Economics · Performance Measurement
The Eastland Postal Service is government-owned and required to provide a parcel delivery service to every home and business at a low price set by the government. Express Couriers Co. is a privately owned parcel delivery company operating in the same area, which is unregulated and mostly delivers to large businesses in the capital city. If asked to assess the relative efficiency of the management of the two organisations, which of the following factors should NOT be allowed for when comparing their Return on Capital Employed (ROCE)?
- 1Differences in prices charged
- 2Differences in geographic areas served
- 3Differences in workforce motivation✓
- 4Differences in objectives pursued
Correct answer
Differences in workforce motivation
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