Controlling Performance Pt 2 Flashcards
What is the formal process of performance appraisal? (TARA)
Targets
Actual results monitored
Review
Action Plan
Name the control mechanisms
Organisational structure Target setting and budgeting Direct supervision Self-control Culture
Explain each of the types of organisational control
Personal Centralized Control
Bureaucratic control
Output control
Clan or Culture control
What are the 4 approaches to performance appraisal
Ranking System
A formal structured approach. Ranks are based on an agreed scale such as 1-5. the individual is assessed and analyzed based on objectives, tasks, workflows and results against pre agreed statements of required results and performance.
Unstructured Format
Evaluators use an essay or short answer to grade employees. all variables are considered from quantitative to more informal. Aims to capture all aspects of employee performance rather than being restricted to pre-agreed targets.
Self Rating
Individuals rate themselves on certain agreed criteria and then fed back to the manager who makes their own assessment. this forms the basis for an appraisal interview where both parties discuss the ratings they have given.
360 approach
Employees are assessed and also make an assessment of management. Appraisal will come from a range of sources including colleagues. Helps to develop a more accurate view of performance.
Target setting: name the areas that could be the basis of a target for an individual?
Volume of work produced Knowledge of work Quality of work Management skills Personal skills
Explain Kaplan and Norton’s Balanced Scorecard
The balanced scorecard is a framework for developing a multidimensional set of performance measures for strategic control of the overall organisation.
The vision and strategy is made up of:
Financial Perspective: Profit margins, profit increase.
Internal business process: Internal efficiency, effective operations
Learning and growth: investing in training and innovation.
Customer perspective : monitoring quality and customer relations.
What are the benefits of using a Balanced Scorecard?
Avoids management reliance on short-term financial measures.
By identifying non-financial measures managers may be able to identify problems sooner. i.e. by monitoring customer satisfaction steps can be taken to make improvements before customers leave for a competitor.
It can ensure that success for each division is related to overall corporate goals.
It can assist stakeholders in evaluating the firm if measures are communicated externally.
What are the drawbacks of using a Balanced Scorecard?
No clear relation between the balances scorecard and shareholder analysis.
Often involves a substantial shift in corporate culture in order to implement.
Measures can give conflicting and confusing signals. i.e.is customer satisfaction is falling along with one of the financial indicators which should management sacrifice?
