Financial Management Techniques ACCT614

Scenario:

The   Eddison Electronics Company (EEC) owns a wide variety of manufacturing   companies that make sophisticated electronic controls. You are EEC's   corporate business financial analyst. Your responsibilities include the   following:

· Creating and analyzing the monthly   performance of each company within EEC.

· Providing and analyzing costing   information for each company within EEC.

· Analyzing the major capital projects   submitted by each company.

EEC   has introduced a new 1.5GB computer memory chip. The following is the plan   and first-year results of the 1.5GB chip project and the financial activity   for 2006.

Click here to   view EEC's plan and first-year results.

Deliverable   Length:

2,000–2,200   words

Assignment Requirements Below:

The President of EEC has decided to adopt the balanced scorecard. The balanced scorecard translates an organization’s mission and strategy into operational objectives and performance measures for 4 different perspectives. You received an e-mail from him asking about tying compensation with performance measures. Discuss the following in your response:

· Discuss unethical behavior that can result if the wrong performance measures are used to tie performance measures to compensation.

· How can EEC avoid these behaviors?

· How should EEC tie performance measures to compensation?

· Who is responsible for establishing the performance measures?