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More experienced staff can be left to work more autonumously

Unskilled contracted workers will need direction but not necessarily mentorship as they are not our employees

Course admin leaders - need to have the space to develop but with Mark keeping an eye on their development and general approach

Qualified business skills teachers - allow mostly free-reign, they are zero hour and there to allow flexibility so must be allowed the space to operate

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there will be some elements of the overall Academy running costs that will need to be covered by the Patland profit centre as these are required to run this section, eg, app costs as this app is being used for both Trimayr and Patland students, part of lease expenses for the building

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Mark wants his courses to costs as little as possible, (incremental), this causes an issue as he will want to do as many courses as possible and look highly profitable, at the expense of being able to delivey other courses (capacity) Mark would not want a full cost as in his mind he should not be picking up costs that already exist and would still exist if the patland courses did not exist, overheads, depriciation, fionas salary etc  

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Mark wants his courses to costs as little as possible, (incremental), this causes an issue as he will want to do as many courses as possible and look highly profitable, at the expense of being able to delivey other courses (capacity) Mark would not want a full cost as in his mind he should not be picking up costs that already exist and would still exist if the patland courses did not exist, overheads, depriciation, fionas salary etc  

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Mark will aim to take the marginal cost approach, but need to understand how we account for the 19 new staff - they also help out with the admin for other courses, should this time be allocated to those areas?

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Patland Course Managers

Will want the lowest TP, being the marginal cost (variable cost of labour and training materials) that are incurred

Fiona Reagan

May want a TP that covers the marginal cost and any lost contribution should the courses have been taken up by non-Patland attendees

Trimayr Group

TP set needs to serve the interests of both divisions to drive goal congruence

Setting a TP that is either too high/ low will lead to dysfunctional behaviour amongst the divisions

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Leadership = process of influencing others to work willingly.

May have to adopt different approaches for different types of employees e.g. unskilled contractors may require more autocratic style of leadership vs the skilled teachers where more democratic approach suitable.

Important to ensure our assumptions about different employees is correct so as to use the correct leadership approach. Can be damaging if the wrong one used.

Mark and his team leaders could use Managerial Grid - do they want to be task-focused or people-focused leaders

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Using MC as the transfer price per Marks request is likely to positively impact the Patland course managers but negatively impact Fiona which may lead to dysfunctional behaviour. A solution here may be to use dual pricing so both parties are happy

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While there are designated staff for Patland courses, Marks team uses the facilities at the academy. It could be seen as unfair to Fiona if her portion of the Academy takes the entire hit of fixed costs for this

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different groups will require different styles

could use a participative style for qualified teachers and work along side them for ideas and input

more autocratic style for the unskilled contracted employees who will need more control over them

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Fiona is responsible for the overall academy and would not want the patland courses to comprimise the core mission of trimayr, she would strongly disagree with incremental costs only for patland as there are significant additional overheads that she is incurring and this would effect the overall performance and have a negative impact on the performance of the academy.

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Fiona is responsible for the overall academy and would not want the patland courses to comprimise the core mission of trimayr, she would strongly disagree with incremental costs only for patland as there are significant additional overheads that she is incurring and this would effect the overall performance and have a negative impact on the performance of the academy.

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Transfer pricing useful for decreasing dysfunctional behaviour however can decrease autonomy of Mark & co

Mark wants transfer price at the MC however not fair on Fiona. She won't be able to cover her FC.

Reaching capacity suggests optimal transfer price will be the incremental costs and the contribution foregone of a Dazzland course