Michael C. Jensen
There are 4 articles for this faculty member.
Specific Knowledge and Divisional Performance Measurement
| Authors: | Michael C. Jensen and William H. Meckling |
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| Published: | October 7, 2009 |
| Paper Release Date: | September 2009 |
| Feature: | Working Papers |
Performance measurement is one of the critical factors that determine how individuals in an organization behave. It includes subjective as well as objective assessments of the performance of both individuals and subunits of an organization such as divisions or departments. Besides the choice of the performance measures themselves, performance evaluation involves the process of attaching value weights to the different measures to represent the importance of achievement on each dimension. This paper examines five common divisional performance measurement methods: cost centers, revenue centers, profit centers, investment centers, and expense centers. The authors furnish the outlines of a theory that attempts to explain when each of these five methods is likely to be the most efficient.
Published in 2005
Decision Rights: Who Gives the Green Light?
| Published: | August 8, 2005 |
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| Feature: | Research & Ideas |
Four steps to ensure that the right decisions are made by the right people. HBS professor emeritus Michael C. Jensen explains in Harvard Management Update.
Published in 2001
Why Corporate Budgeting Needs To Be Fixed
| Published: | November 26, 2001 |
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| Feature: | Op-Ed |
Not to mince words, but corporate budgeting is a joke, argues HBS professor emeritus Michael C. Jensen in this Harvard Business Review excerpt. The problem isn't with the budget process—it's when budget targets are used to determine compensation.
Published in 2000
Value Maximization and Stakeholder Theory
| Published: | July 24, 2000 |
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| Feature: | Research & Ideas |
Many managers, says HBS Professor Michael C. Jensen, are caught in a dilemma: between a desire to maximize the value of their companies and the demands of "stakeholder theory" to take into account the interests of all the stakeholders in a firm. The way out of the conflict, says Jensen, lies in a new way of measuring value.
