Profit as a signal of product quality and customer service: performance evaluation for plant managers
AbstractPlant managers generally have no direct marketing responsibilities but they have control over product quality and customer service. This paper hypothesises that many firms evaluate these managers on profit because sales, a component of profit, convey information on a plant manager's performance on product quality and customer service. Several predictions are developed from the hypothesis and tested in this study. The chance that a plant manager is evaluated on cost vs profit is predicted to decrease with the sensitivity and precision of sales as an indicator of product quality and customer service. In addition, the chance that a plant manager is evaluated on cost vs profit may be associated with the extent to which the manager is also evaluated on specific measures of product quality and customer service. Empirical results are generally consistent with these predictions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Int. J. of Accounting, Auditing and Performance Evaluation.
Volume (Year): 4 (2007)
Issue (Month): 6 ()
Contact details of provider:
Web page: http://www.inderscience.com/browse/index.php?journalID=41
compensation; cost centres; performance evaluation; plant managers; profit centres; product quality; customer service.;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley).
If references are entirely missing, you can add them using this form.