Xi, Inc Is Just Starting Up

question 55

Essay

Xi, Inc. is just starting up. The management team has decided from the beginning that decentralization was the preferred organizational style and has made this clear in all interviews and discussions with potential employees. Mr. Yang, the CEO, is unsure about the best way to evaluate his division managers. He has heard the terms return on investment, residual income, economic value added, and flexible budgets but wants to know the pros and cons of each.
Required:
Briefly describe ROI, residual income, EVA and other approaches to performance evaluation. Include in your discussion, where appropriate, how to calculate the measure and problem areas in the development of some of the results.

---

Definitions:

Subjective Well-Being

Self-perceived happiness or satisfaction with life. Used along with measures of objective well-being (for example, physical and economic indicators) to evaluate people’s quality of life.

Intimacy

The feeling of being emotionally close to someone, characterized by mutual affection, trust, and deep connection.

Personal Growth

The process of developing and enhancing one's self-awareness, skills, and general well-being.

Community Contribution

Efforts or actions taken by individuals or groups to improve or enrich the social, economic, cultural, or environmental quality of their community.