While the Sales Manager May Be Ecstatic to Learn He

question 109

Essay

While the sales manager may be ecstatic to learn he has beaten his sales goal,the production manager may not share that enthusiasm because having more sales than anticipated required overtime for workers and additional maintenance on some machinery.Managers use budgeting to control and evaluate their operations.Two types of budgets that are discussed in chapter 6 are the static budget and the flexible budget.How do the two budgets differ and explain how the flexible budget is used in evaluating performance.

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Definitions:

Encounter Stage

The phase during which a new employee learns the values, skills, and behaviors necessary to participate effectively within an organization.

Psychological Contract

An unwritten agreement that represents the mutual beliefs, perceptions, and informal obligations between an employer and an employee.

Inflated Positive Expectations

An overly optimistic view or anticipation of outcomes that might not be realistic, often leading to disappointment.

Psychological Contract Breach

The perception that an employer has failed to fulfill one or more of the unwritten expectations of the employment relationship.