...Introduction In January 1991, the management of the Kansas City Works of Armco’s Midwestern implemented a new performance measurement system that was “designed to give us better management focus on the things that are most important for them to worry about, earlier warning problems and improved commitment to achieve objectives”. However, the changes top management wanted to institute and integrate into the system were met with less than favorable impressions, not excluding outright dissatisfaction and resistance to change, evidenced when“managers kept using the old data and never seriously considered improvements that could be made”. As a result, this has caused the accounting group to temporarily discontinue the initial implementation of the system in April 1991. However, they promised to attempt to reintegrate the system by 1992. This consequently puts the pressure on top management to change the mindset of the company’s managers as implementing a good performance measurement system could spell out as much as $30 million per annum. Furthermore, a couple of other issues remains to plague the company. The first issue raised was how to evaluate managers’ performances in situations where the outcome of their performance was influenced by fortuitous events. The second issue problematizes whether or not top management should implement a system that would compensate exemplary individual performance among employees. II. Problem How can top management change the mindset of middle and...
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...RESULTS BASED MANAGEMENT IN THE DEVELOPMENT CO-OPERATION AGENCIES: A REVIEW OF EXPERIENCE BACKGROUND REPORT In order to respond to the need for an overview of the rapid evolution of RBM, the DAC Working Party on Aid Evaluation initiated a study of performance management systems. The ensuing draft report was presented to the February 2000 meeting of the WP-EV and the document was subsequently revised. It was written by Ms. Annette Binnendijk, consultant to the DAC WP-EV. This review constitutes the first phase of the project; a second phase involving key informant interviews in a number of agencies is due for completion by November 2001. TABLE OF CONTENTS PREFACE.......................................................................................................................................................... 3 I. II. III. IV. V. VI. RESULTS BASED MANAGEMENT IN THE OECD COUNTRIES -- An overview of key concepts, definitions and issues -- ........................................................................ 5 RESULTS BASED MANAGEMENT IN THE DEVELOPMENT CO-OPERATION AGENCIES -- Introduction --...................................................................................................................................... 9 PERFORMANCE MEASUREMENT IN THE DEVELOPMENT CO-OPERATION AGENCIES -- The project level --............................................................................................................................ 15 PERFORMANCE MEASUREMENT IN THE...
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...PRINCIPLES OF PERFORMANCE MANAGEMENT Do a Performance Improvement Analysis Measure the frequency of behavior (what the individual says or the physical movements made) and the outputs (the physical evidence of completed work produced by those behaviors) prior to any management change. This analysis can be done for just one behavior and output or for many by job category, department and organization. Through this analysis, one measures present performance, establishes standards, specifies why behavior is deficient, calculates the net economic value of improvement after the cost of solutions, and places them in priority order. The result of this analysis is identification of potentially high-payoff behaviors and outputs that can be improved - an important first step, because, surprisingly, key behaviors and outputs are often overlooked or undervalued in organizations. Introduce the procedures used in Performance Management and quantify the amount of change that occurs in specific time periods. Because the investment in changing behavior is often very low and the economic payoffs may be high, the potential high return on investment usually excites top management Be specific Describe and communicate desired performances and the standards for judging them in terms that are measurable, observable and objective. A description of the events that are signals prompting the response should be included. In training, coaching, measuring performance, feeding back performance data, conducting...
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...15}22 Strategy management through quantitative modelling of performance measurement systems U.S. Bititci*, P. Suwignjo, A.S. Carrie Centre for Strategic Manufacturing, DMEM, University of Strathclyde, Glasgow G11XJ, UK Received 30 March 1998; accepted 29 September 1999 Abstract This paper is based on previous works on performance measurement and on quanti"cation of relationships between factors which a!ect performance. It demonstrates how tools and techniques developed can be used to evaluate the performance of alternative strategic choices through a quantitative approach to modelling of performance measurement systems. The paper provides a brief background to the research problem and preceding works. The tools and techniques used are brie#y introduced. Use of these tools and techniques to evaluate the performance of alternative manufacturing strategies is demonstrated. Finally, the capability of the approach to deal with dynamic environments is demonstrated 2001 Elsevier Science B.V. All rights reserved. using sensitivity analysis. Keywords: AHP; Performance measurement; Prioritisation of performance measures; Dynamics of performance measures; Resource allocation 1. Introduction The nature of competition has changed dramatically over the last two decades. Quality, speed, and #exibility, in addition to cost, have emerged as the three most important competitive attributes [1}4]. This has made the traditional "nancially based performance measurement systems less relevant...
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...Personnel Evaluation Assignment No. 2 (Paper) XXXXXXXXXX From XXXXXXXX PAD 530-Public Personnel Management August 5, 2012 In assignment number (2), for this paper I will compare and contrast three (3) state agencies’ personnel evaluation systems, analyze and summarize four (4) key factors to consider in implementing a public personnel evaluation system, and describe four (4) challenges public managers must consider in implementing a public personnel evaluation system. As it relates to Personnel Evaluation, there are certain performance evaluation process supported by supervisors and employees there are important components of any merit system to consider. Hence, the merit principle requires that public employees on all levels be covered by the evaluation processes that are valid and have results that may confidently and legitimately be used as the basis for a variety of personnel actions (Nigro, Nigro, & Kellough, (2007) p. 192). Compare and contrast three (3) state agencies’ personnel evaluation systems. In comparing and contrasting the three state agencies, I have chosen New Jersey, Kentucky, and Delaware, as it applies to education standards. Therefore, we shall look at the following, for all three states consider items (a-d) that I have outlined below: a. Goals of the work unit/employee: meet with the supervisor at the beginning of the Professional growth; the middle; and at the end; all in order to focus on enhancing an educator’s skills...
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...Key to Improving Job Performance Vacherrie Toles Troy University Abstract This paper explores factors that affect job performance and the concept of improving job performance. Specifically, it examines how various factors are related to job performance and how to enhance those factors. Job performance is a critical subject that has been assessed for many years as it determines an organization’s overall success. The articles discussed in this paper demonstrate that there is an apparent need for an extensive review of factors affecting job performance. It further emphasizes the need for employers to understand and consider those factors that affect job performance when making strategic decisions. Employers can significantly improve job performance by understanding how to enhance and improve the contributing factors. Keywords: job performance, how to improve job performance, importance of job performance, what affects job performance The Key to Improving Job Performance Job performance is a critical subject that has been assessed for many years. Job performance is based on how well one performs their job. An organization’s overall success is dependent upon the performance of its employees. Thus, it is imperative that employers understand and consider those factors that affect job performance and how. This will allow employers to implement strategies that will improve job performance. The following factors have been known to affect job performance: job satisfaction...
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...of the system's performance is presented and perhaps analyzed. A large number of different types of performance measures have been used to characterize systems, particularly production, distribution, and inventory systems. Such a large number of available performance measures makes performance measure selection difficult. Generally, performance measurement research focuses on analyzing performance measurement systems that are already in use, categorizing performance measures and then studying the measures within a category, and building rules of thumb or frameworks by which performance measurement systems can be developed for various types of systems. Beamon (1996) presents a number of characteristics that are found in effective performance measurement systems, and can therefore be used in evaluation of these measurement systems. These characteristics include: inclusiveness (measurement of all pertinent aspects), universality (allow for comparison under various operating conditions), measurability (data required are measurable), and consistency (measures consistent with organization goals). Besides analyzing the measures based on their effectiveness, benchmarking is another important method that is used in performance measure evaluation. Benchmarking can be useful in that it can serve as a means of identifying improvement opportunities. Camp (1989) provides an excellent, comprehensive discussion of benchmarking. In order to study the large number of performance measures available...
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...centers and financial performance measures Performance measurement is a tool for management control activity. Management control can be defined as the process by which managers and/or those placed in positions of responsibility influence other members of an organization to implement the organization’s strategies. The management control activities are aimed at ensuring that strategies are carried out so that the organization’s objectives are achieved. A specific aspect of management control activity is task control. Task control --a management control process by which specified tasks are carried out effectively and efficiently. Some writers draw a distinction between management control and task control, describing the former as a broad process for deciding and ensuring how strategies are implemented, and the latter as a device for assuring that specified tasks are carried out in a desired manner. In any event, performance evaluation can be applied to assess the success/failure with which a strategy is implemented or to measure the efficiency or effectiveness with which a specified task is performed. The steps followed to measure performance of a unit are often represented in a stylized model describing the chain of activities that produce a performance report. The figure below is one such stylized model of performance measurement that outlines a number of steps that produce a performance report used in decisions. A simple process model of performance measurement Define organization...
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...0 Introduction to Performance Management The most common view of performance management is that creating a shared vision of the purpose and aims of the organisation. It is about helping the individual employees to understand and recognize their part in contributing to the organisation’s success and thereby managing and improving the performance of both the individuals and the organisation. People must be managed to deliver superior performance that is in alignment with the values of the organisation. There is no easy or universally accepted definition of performance management. Nevertheless, it seems possible to recognize three major perspectives of performance management (Palan, 2002): 1. Managing organisational performance. 2. Managing employee performance, and 3. Integrating the management of organisational and employee performance. (Rogers, 1999) defines that the characteristics of performance management systems for managing organisational performance are that they are corporate systems which include the following processes as part of an integrated cycle of management: * Setting corporate policy and resource aims and guidelines, * Specifying within the above framework, a detailed set of plans, budgets, objectives, targets and standards of performance, and * Regularly and systematically reviewing the performance of all series. 1.1 Current Trends and challenges of implementing an effective Performance Management. How we can identify...
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...professor Robert Kaplan and business consultant David Norton, is a performance measurement system (Peters, 2014). In the early 90s, as the concept of the balanced scorecard was introduced, companies largely used financial standards to measure performance. The financial evaluations were highly focused and lacked an evaluation of strategic objective (Janes, 2014). The balanced scorecard provides performance measurement that includes four main perspectives including financial, customer, internal business processes and learning and growth. Key performance indicators (KPIs) are chosen for each section based upon strategic objectives. Once established the KPIs can be laid out into a strategy map that creates an easy visual aid. The strategy maps allows for easy dissemination from management to employees with clear understanding. In determining the KPIs, the objective is to look at the strategy at hand and determine the causal relationship, answering the “if” and “then” questions (Janes, 2014). The cause and effect relationship is advantageous due to its ability to allow qualitative questions to be determined. The balanced scorecard is a commonly accepted performance measurement tool. The evaluation of performance can often be a difficult task. Particularly in the non-profit sector where the financial outlook may not paint a full picture, a balanced scorecard can step away from the financial goals and evaluate performance on an organizational level. The non-profit of this author’s current...
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...Biyani's Think Tank Concept based notes HUMAN RESOURCE MANAGEMENT MBA II SEMESTER Deptt. of Management Biyani Girls College, Jaipur For more detail :- http://www.gurukpo.com MBA II SEMESTER (HUMAN RESOURCE MANAGEMENT) MODULE/UNIT 2 TRAINING DEFINITION : The term training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies. ... To make proficient with specialized instruction and practice. Meaning: It is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviours to enhance the performance of employees. Training is activity leading to skilled behavior. * It’s not what you want in life, but it knows how to reach it. * It’s not where you want to go, but it knows how to get there. * It’s not how high you want to rise, but it knows how to take off. * It may not be quite the outcome you were aiming for, but it will be an Outcome. * It’s not what you dream of doing, but it’s having the knowledge to do it * It’s not a set of goals, but it’s more like a vision * It’s not the goal you set, but it’s what you need to achieve it Training is about knowing where you stand (no matter how good or bad the current For more detail :- http://www.gurukpo.com situation looks) at present, and where you will be after some point of time. Training is about the acquisition of...
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...Manufacturing Strategic Plan Why is strategic management necessary? Strategic management, and business policies are essential for organizations to gain competitive advantage within their respective markets. Organizations like Riordan Manufacturing implement policies, and procedures to provide structure, and standardize operations in efforts to maintain proper control of production, inventory, and logistics. Developing a strategic plan focuses on the need for planning, roles of ethical and social responsibility, current competitive advantages, innovation, sustainability, internal dynamics, influence of business continuity, and assessment, and feedback. The following discussion details a strategic plan for Riordan Manufacturing. Topics include areas of environmental scanning, strategy formulation, strategy implementation, evaluation, and control. Riordan Manufacturing Effective Strategy Guidelines Riordan Manufacturing is focused on what really matters, the bottom-line performance and long-term healthy survival of its organization. Now that Riordan Manufacturing has implemented an effective competitive strategy it must evaluate and measure its performance. Measuring its performance is critical to the success of Riordan Manufacturing. By implementing an effective measurement guideline, it would help Riordan Manufacturing in tracking the progress against its goals and objectives; identify areas of improvement; and ultimately compare performance against both its defined internal standards...
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...Requiements of business Management Systems: A Delineation of the Comprehensive Set of Criteria Bartłomiej NITA* 1 Introduction There are organizations which have serious problems with transforming their strategies in-to actions and achieving good performance, so the major purpose of modern management accounting is to support the strategy execution. However, for fulfilling this goal it is essential to design and implement effective performance measurement and management system in order to asses, control, and finally improve organizational performance. Unfortunately, still a lot of companies today use financial and accounting-based calculations as the ultimate measures of company performance although exclusively financial approach to performance is not sufficient any longer. The aim of the paper is to figure out the requirements that should be fulfilled by modern performance management systems. Thus, in the first part of the article the short review of contemporary approach to performance management was described, in the following part different opinions and discussions from the relevant academic literature were depicted and finally the comprehensive set of ten requirements was proposed. 2 Contemporary Approach to Performance Management In 1965 R. N. Anthony published his seminal work titled “Planning and Control Systems”, in which he introduced the concept of management control. His classic definition of management control was “the...
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...the hotel industry supply and demand and market competition, the hotel management concepts and methods of updating. In the 90's of the last century, new management concepts and methods of the hotel began to introduce the manufacturing industry widely implemented, emphasizing the quality of service is the key, the fundamental functions of the hotel is a one hundred percent customer satisfaction, providing error free service for the customer. The hotel have to diversify the means to create their own service advantage, build the core competitiveness of service products. "100-1=0" theory which is popular. It should be said, put...
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...European Management Journal VoI. 14, No. 6, pp. 596--611, 1996 ~ Pergamon S0263-2 373(96)00056-4 Copyright © 1996 Elsevier Science Ltd Printed in Great Britain. All rights reserved 0263-2373/96 $17.00 + 0.00 Effective Organizational Control'. A Framework, Applications, and Implications ERIC FLAMHOLTZ, Professor of Management, University of California at Los Angeles This article by Eric Flamholtz provides a framework for understanding the nature, role, functioning, design, and effects of organizational control systems. It represents a model of control which can be used to make this process more visible in organizations. It illustrates the practical applications of the model, and suggests its implications for corporate and human resource management as well as for scholars. Copyright © 1996 Elsevier Science Ltd Introduction All organizations (businesses, universities, governments, hospitals) are concerned with channeling human efforts toward attainment of organizational objectives. Regardless of their formal purposes, organizations are composed of people with their own personal interests. Even if these individuals and groups wish to help attain organizational goals, the organization of which they are ,~=r~ must integrate their efforts and direct them toward goals. Thus, organizations must influence or the behavior of people, if they are to fulfil their nd achieve their goals. To help gain control over the behavior of people in formal organizations, most enterprises...
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