If support department allocations are used to motivate managers to be more efficient:
I. The managers must believe the allocation system is fair
II. The managers should choose the allocation bases
III. It is not important that managers understand how the allocations are made
A) I only
B) I and III only
C) II and III only
D) II only

Question

Quizplus · Accepted Answer

For support department allocations to effectively motivate managers towards efficiency, it's crucial that managers perceive the allocation system as fair. This perception of fairness encourages acceptance and motivation to improve efficiency based on the allocations. Allowing managers to choose the allocation bases could potentially improve their engagement with the process, but it's not a universally required condition for motivation. Understanding how allocations are made is also important for transparency and fairness, contradicting statement III.

If Support Department Allocations Are Used to Motivate Managers to Be