Chapter 7, Problem 2.2CFA

Mario has been the cost accountant for a large manufacturing company for ten years. Over his ten-year tenure, Mario has been an outstanding employee. In fact, twice during that time period, Mario was named “Employee of the Year.” However, over the past four months, Mario’s manager, Marielle, has begun to notice changes in his behavior. Interactions with Mario are often unpleasant. Last week Marielle told Mario about a new project that will begin in one month for which he was named team leader. He did not take the news well, complaining bitterly to Marielle about the amount of work that he had, the extra hours that he is expected to put in with no addition in pay, the nature of the individuals on the teams of which he is a part, and just about everything else happening in the firm. Yesterday, Marielle asked him a question about a project that is to be completed by Friday of this week and received the same lengthy complaints. She is stunned by this behavior since no one else voiced such…

A timeworn story tells of a seasoned woodcutter who had been chopping down twenty trees a day since he was a boy. As he reached his golden years, the local townspeople bought him his first chain saw. The old man was grateful but somewhat confused as he took the gift away. Days later, looking haggard and pale, he appeared in town. When asked how his chain saw had changed his job, he confessed to great frustration. His tree cutting production had dropped 50% to only ten trees per day, and he was more fatigued than before. Concerned that the gift might not be working properly, a townsman grabbed it from the old man’s hands and started it up. As the chain saw roared to life, the old man cried, “What’s that noise? What’s that noise?” Instructions Think of the townspeople as managers and the woodcutter as an employee. Identify one rule for “good” managers that can be developed from the situation described in the story above. In response remember to identify the good management…

A timeworn story tells of a seasoned woodcutter who had been chopping down twenty trees a day since he was a boy. As he reached his golden years, the local townspeople bought him his first chain saw. The old man was grateful but somewhat confused as he took the gift away. Days later, looking haggard and pale, he appeared in town. When asked how his chain saw had changed his job, he confessed to great frustration. His tree cutting production had dropped 50% to only ten trees per day, and he was more fatigued than before. Concerned that the gift might not be working properly, a townsman grabbed it from the old man's hands and started it up. As the chain saw roared to life, the old man cried, "What's that noise? What's that noise?" Instructions Think of the townspeople as managers and the woodcutter as an employee. Identify one rule for "good" managers that can be developed from the situation described in the story above. In response remember to identify the good management rule, link…