Having a fixed percentage of profit brings meaning to the trade. First, we don't know the logic behind placing the target, but gradually we will find the logic behind fixing the target. In the long term, it will increase the accuracy of prediction.
The ability to go and look beyond numbers makes a huge difference in an organization. Mostly, the leaders do take notice of the revenue decrease and this push layoffs and payment cuts. They should be more focused on what is bothering the employees and what makes them suck at whatever they do. Threatening with salary cut and layoff will work in the short run. But the fuel ceases soon and the individual at the top need to figure out another intimidating stuffs that would make employees ass on fire. It doesn't work.
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