Fields Construction Decides to Change from Completed-Contract Method to Percentage-Of-Completion

question 105

Essay

Fields Construction decides to change from completed-contract method to percentage-of-completion method of recording construction projects.It also has a compensation plan for bonuses to supervisors for three percent of net income,which are retroactive for changes in prior years net income.Discuss the direct and indirect effects of this change.

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Definitions:

Role Ambiguity

The uncertainty or lack of clarity surrounding the expectations, responsibilities, and duties associated with a specific role or position.

Role Conflict

A situation where an individual faces incompatible demands or expectations from different roles they are performing.

Psychological Strains

Emotional or mental stress and tension resulting from adverse or demanding circumstances, often affecting an individual's well-being and performance.

Organizational Commitment

An employee's psychological attachment to their job, characterized by loyalty and belief in the organization's values.