When the decision-making period begins, you will be informed about how actively you managed your division, which affects the chances that your division will have high earnings or low earnings. Corporate headquarters cannot observe how actively you managed the division.
Being a more active manager of your division means that you monitor the daily operations closely and maintain regular communication with your subordinates, customers and vendors. Because of your active involvement, you often work overtime and incur business expenses on the job that are not reimbursed by the company. As a result, being a more active manager is personally costly to you in terms of your time and effort. If you are a more active manager, then there is an 80% chance that your division’s earnings will be high. However, there is still a 20% chance that your division’s earnings will be low because of external factors beyond your control.
Being a less active manager of your division means that you delegate most of your duties to your subordinates and spend little time with your customers and vendors. You work strictly within your regular work hours and avoid incurring any business expenses that are not reimbursed by the company. Being a less active manager is personally less costly to you in terms of your time and effort than being a more active manager. If you are a less active manager, then there is an 80% chance that your division’s earnings will be low. However, there is still a 20% chance that your division’s earnings will be high because of external factors beyond your control.
Please click the ‘CONTINUE’ button to proceed.
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