Codman & Shurtleff Case Study Analysis
Learning Objective
We discussed that one of the challenges of decentralized decision making is that information about vital decisions often resides at the lower levels of the organization. In this session, we will discuss the role interactive control systems play in helping increase the flow of information throughout the organization, which can help ensure employees have the information they need to make good decisions on behalf of the organization.
Read pages 156-163 of the Bloomfield Textbook
Read Codman & Shurtleff Case
Complete the Assignment Below:
Some managers at Johnson and Johnson argue that if they get a bonus for achieving targets in their division’s profit plan, they will be more motivated to achieve these targets. Write a brief email to Johnson and Johnson’s board of directors where you state and support your opinion about whether Johnson and Johnson should pay their division managers for achieving targets in the profit plan.
Professor’s Name
Course
Date of Submission
Codman and Shurtleff Case
Johnson & Johnson
New Brunswick, Nj 08933 USA
11 October 2020
To the Board of Directors:
I am writing to give you my input regarding the issue of giving bonuses to managers when they achieve targets in their division’s profit plan. I am of the opinion that the managers should not be given bonuses for achieving such targets. While they may be motivated to achieve such targets, other overwhelming disadvantages emerge that can compromise the success of the company into the future.
The managers should not be given bonuses because it poses the risk of manipulation by savvy managers. Some managers can cut budgets on certain areas of their operations and make it seem that the objectives would still be reached when such cuts occur. The desire for the bonuses can lead ma...
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