In an effort to boost his department's ROI,the manager of an automobile repair shop prioritizes repairs that use his department's car lift (its major capital investment).However,the car company's CEO would actually prefer that a more comprehensive approach to car repairs be used across multiple departments.The CEO's favored approach would be better for the company overall,although it would hurt the department manager's personal ROI.Which of the following would be an appropriate response?
A)No response is needed.The manager should continue to prioritize his own ROI.
B)The company should eliminate ROI entirely from its performance evaluations since it can be so easily abused.
C)The company should combine multiple divisions together so ROI is better aligned with the CEO's goals.
D)The company should consider adopting multiple performance measures,in addition to ROI,to evaluate the department manager's performance in line with the company's overall objectives.

Question

Quizplus · Accepted Answer

The best option would be for the company to consider adopting multiple performance measures in addition to ROI to evaluate the department manager's performance in line with the company's overall objectives. This would allow the manager to still prioritize the use of the car lift to some extent, while also encouraging a more comprehensive approach to car repairs that benefits the company as a whole. Eliminating ROI entirely from performance evaluations would not be practical or effective, as ROI is an important metric for evaluating the performance of a capital investment. Combining multiple divisions together would not necessarily solve the issue of the manager prioritizing his own ROI over the company's interests.

In an Effort to Boost His Department's ROI,the Manager of an Automobile