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Annotations to Peer Performance and Budgetary Targets Article
Annotation 1
The authors of the article are experienced in their fields of study. The intended audience of the article are their colleagues and business supervisors who have complications with their target-setting approach. The main point of the article is that in management, peer-based target setting is advantageous in comparison with the approach of setting targets based on expectation of improving past results. To test this idea, the authors review the work of a company they refer to as Gamma. It employs slack capacity and cooperation to address capacity bottlenecks. In planning Gamma utilizes a mixed approach where peer-based targets are used less when cooperation is most beneficial. The case of Gamma proves that the peer-based approach has limited compatibility with cooperation because it limits motivation to help others because the target is depended on everyones performance.
Annotation 2
The authors of the article are all sufficiently qualified scientists having the Ph.D. degree. The article itself is of interest both to other scientists and businessmen seeking new methods for setting targets. It mainly deals with the peer-based target setting approach, which identifies a peer group of managers , the average performance of which then becomes a benchmark for target setting (Peer Performance and Budgetary Targets, 2021). Its work in practice is examined on the case of a company referred to as Gamma. The company often deals with capacity bottlenecks and uses cooperation via internal transfers to deal with them. However, the cooperation is less compatible with peer-based target setting because the more successful units have less motivation to help the less efficient ones. Therefore, the case of Gamma provides new information to the authors study.
Reference
Peer Performance and Budgetary Targets. (2021). Strategic Finance. Web.
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