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This is an audio recording summarizing the American Management Association’s audio book, “Managing By Objectives.” This is the sixth chapter of the book entitled “Methods of Measuring Performance.” The narrator begins by describing that profit, revenue, and cost can vary for all departments. He says that the most effective methods of cutting cost is to eliminate unnecessary activities. He talks about how production control sheets help foremen determine plant productivity. He discusses how to formulate standards to estimate cost and performance. He ends the tape by saying that managers need to consider the cost of production, quality of product, and employee morale when calculating productivity.