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5 Cards in this Set
- Front
- Back
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Give 4 red flags of poor performance measurement leading to poor performance. |
- solely short term measures - purely financial measures - conflicting measures - measures which may lead to sub-optimal decisions (e.g. ROI) |
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Give 4 red flags of poor performance management leading to poor performance. |
- evaluations based solely on fixed budgets - centrally imposed (top down) budgets - Managers being assessed on uncontrollable factors |
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Describe the beyond budgeting approach to performance management. |
Good for Dynamic businesses - Manager sets their own targets - both strategic and financial (and so takes more ownership) - Monthly balanced scorecards produced and measures are compared to last year / other divisions / competitors - Performance reviews are ad hoc and focus on action plans for future improvements. |
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Give 5 advantages of the beyond budgeting approach (6 available) |
- managers are not punished for failing to meet the full target (improved motivation) - balanced scorecard promotes a balanced range of performance measures - increased ownership as managers set their own targets. - reviews of action plans promote feedback and learning - comparison to internal and external competitors is motivational - Managers share a bonus pool based on long term performance (e.g. share price) - encourages teamwork and long term perspective |
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What components can be included in an employee reward package? |
- basic salary - performance related bonus - share options (CR implications) - Benefits in kind - Pensions (CR implications) |
