Case Study: Franklin Corporations

How the standards were implemented Impact on motivation

Standards
Dual standard:

Labour standard employed in plant

1 unit/ 30 minutes

Production Vice Presidents standard employed in managerial accounting

1 unit/ 40 minutes

Employed as a motivation device

Tre n d to w a rd s m o re u n fa vo u ra b l e

S ta rt p e ri d i o s fa vo u ra b l e Tre n d to w a rd s u n fa vo u ra b l e va ri n ce a

Motivation
Trend towards less favourable variance indicates a problem.

High unattainable goals are demotivating.