Disrupted Links in the Performance Management Process at “Omega, Inc.”
Omega, Inc., is a small manufacturing company whose sales success or failure rests in the hands of sales representatives employed by franchised dealers operating independently. Omega faces a challenging situation because it does not have control over the people working for the independent dealerships. It is the performance of these individuals that dictates Omega’s sales success. To make things more complicated, until recently there was no clear understanding of the role of the sales representatives and there were no formal sales processes in place. Sales representatives varied greatly in terms of their level of skill and knowledge; most put out little effort beyond taking orders, and they did not feel motivated to make additional sales. Finally, franchises varied greatly regarding their management strategies and follow-up with Omega.
Recently, understanding the need to improve the performance of sales representatives, Omega agreed to partially fund and support a training program for them. The network of franchise owners in turn agreed to work together to implement a performance management system. As a first step in creating the performance management system, the franchise owners conducted a job analysis of the role of the sale representatives, wrote a job description, and distributed it to all sales representatives. The franchise owners also adopted a franchise-wide mission statement based primarily on the need to provide high- quality customer service. This mission statement was posted in all franchise offices, and each franchise owner spoke with his employees about the contribution made by individual sales on achieving their mission. As a second step, the managers set performance goals (i.e., sales quotas) for each employee. Then, all sales representatives attended extensive training sessions. The employees received feedback based on their performance in the training course and then were reminded once again of their sales quotas.
Back on the job, managers gave feedback to their employees regarding their standing in relation to their sales quotas. Since the employees had no way of monitoring their own progress toward their quotas, the performance feedback consisted of little more than a reiteration of monthly sales goals. There was no performance appraisal form in place, so discussions were not documented. This lack of feedback continued, and although sales quotas were being met for the first few months, franchise owners received complaints from customers about the low quality of customer service they were receiving. Subsequently, sales began to decline.
Furthermore, many orders were often incorrect, forcing customers to return items to Omega.
While the new performance management process was an improvement over no performance management (at least initially), the franchise owners were still far from having a system that included a smooth transition between each of the ...
The document provides an overview of some of the most admired companies according to Fortune magazine. It discusses that these companies excel in areas like innovation, management quality, employee talent, product/service quality, long-term value, financial soundness, social responsibility, and use of corporate assets. It also notes that these companies focus on using technology to reduce costs and improve processes. The companies have been able to generate high stock returns due to their ability to create value for customers, employees, and other stakeholders, which allows them to generate strong cash flows.
An Overview of Corporate Finance and the Financial Environment.pdfCynthia Velynne
This document provides an overview of different types of business organizations: sole proprietorships, partnerships, and corporations. Sole proprietorships are owned by one individual and have unlimited liability but are easy to form. Partnerships have two or more owners with unlimited liability but are also easy to form. Corporations have limited liability for owners, unlimited lifespan, and easy ownership transfer through stock shares, making them better able to raise capital. Most large businesses are organized as corporations to maximize value. Managing agencies is a potential problem for corporations that is addressed through governance structures.
Promotions-r-us
1 | P a g e
Prepared by Dawn Rovers
Adapted from OCMC 2011 Case Study
Revised Sept. 22, 2017
NOTE: All organizations and relationships are fiction for teaching purposes
Gerry Atwood, the CEO for Promotions-r-us was sitting at his desk one snowy day in January
2015. He was reviewing the latest report from his Sales Manager. He was at a loss as to how
to improve profitability when their product offering was so mature and competition so intense.
He could not explain why their sales and marketing efforts didn’t seem to be adding much more
value to the firm. He wondered if they needed to expand to new markets, consider moving into
the Business to Consumer market, or find a way to improve overall profitability within their
existing B2B market. He had to report to the Board of Directors the following week on how he
would improve profits for the promotions company that he founded 40 years ago.
Promotions-r-us:
Promotions-r-us was a family run Canadian company serving in the promotional product market
since 1975. They sold a range of products that could be customized with company logos or
slogans (e.g. bags, automotive products, lanyards, magnets, watches, drinkware, sports
products, awards, etc.). Promotions-r-us (PRU) was one of the top 25 promotional product
companies in Canada for the past twelve years. However, by 2015 Promotions-r-us faced a time
of intense competition in the industry, which had grown from a few hundred companies in 1975,
to well over 3000 companies. During that time, Promotions-r-us had evolved and grown with the
market, but by 2012 they had reached a plateau in sales. By 2014, margins had begun to slip
and overall profitability had been down for the past 2 years. At last year’s executive meeting,
the firm’s objective of putting North American made quality products into the hands of valued
partners was reaffirmed. However, a strong emphasis was put on maintaining profitability
through efficiencies in the light of competitive pricing and slipping product margins.
Products and Customers:
Promotions-r-us offered its comprehensive collection of promotional items to a vast portfolio of
clients, including multinational corporations and small to medium sized corporations. Some of
their best customers were multi-national firms with tremendous purchasing power. Further,
Promotions-r-us took pride in the strong relationships they developed over the past 40 years.
Some of their biggest clients had been with them since the company’s inception. However, in
each case, Promotions-r-us only provided for the needs of the North American operations, in
Promotions-r-us
2 | P a g e
some cases, only to the Canadian affiliates. With a relatively small sales force, it would be
difficult to tackle a more international client base in their Business to Business operations.
Further, Promotions-r-us differentiated itself in this.
This document discusses a survey of manufacturers and channel partners regarding their relationships and sales incentive programs. Some key findings include:
- Channel partners value high quality products, vendor reputation, and competitive pricing from manufacturers. Effective communication and aligned goals are also important.
- Sales incentive programs that are performance-based, offer big deal discounts, or provide volume rebates are most effective at motivating partners. Cash incentives are preferred over prizes. Programs need to be clearly communicated and have realistic goals.
- Many manufacturers rely on self-reporting from partners or costly internal research to understand their end customers, but only about a third have actionable end customer data regarding purchases and market segments. Fully automated systems could help manufacturers
Channel management is complex, presenting many challenges. A structured channel program with close program alignment will help you address those challenges.
The document provides an overview of some of the most admired companies according to Fortune magazine. It discusses that these companies excel in areas like innovation, management quality, employee talent, product/service quality, long-term value, financial soundness, social responsibility, and use of corporate assets. It also notes that these companies focus on using technology to reduce costs and improve processes. The companies have been able to generate high stock returns due to their ability to create value for customers, employees, and other stakeholders, which allows them to generate strong cash flows.
An Overview of Corporate Finance and the Financial Environment.pdfCynthia Velynne
This document provides an overview of different types of business organizations: sole proprietorships, partnerships, and corporations. Sole proprietorships are owned by one individual and have unlimited liability but are easy to form. Partnerships have two or more owners with unlimited liability but are also easy to form. Corporations have limited liability for owners, unlimited lifespan, and easy ownership transfer through stock shares, making them better able to raise capital. Most large businesses are organized as corporations to maximize value. Managing agencies is a potential problem for corporations that is addressed through governance structures.
Promotions-r-us
1 | P a g e
Prepared by Dawn Rovers
Adapted from OCMC 2011 Case Study
Revised Sept. 22, 2017
NOTE: All organizations and relationships are fiction for teaching purposes
Gerry Atwood, the CEO for Promotions-r-us was sitting at his desk one snowy day in January
2015. He was reviewing the latest report from his Sales Manager. He was at a loss as to how
to improve profitability when their product offering was so mature and competition so intense.
He could not explain why their sales and marketing efforts didn’t seem to be adding much more
value to the firm. He wondered if they needed to expand to new markets, consider moving into
the Business to Consumer market, or find a way to improve overall profitability within their
existing B2B market. He had to report to the Board of Directors the following week on how he
would improve profits for the promotions company that he founded 40 years ago.
Promotions-r-us:
Promotions-r-us was a family run Canadian company serving in the promotional product market
since 1975. They sold a range of products that could be customized with company logos or
slogans (e.g. bags, automotive products, lanyards, magnets, watches, drinkware, sports
products, awards, etc.). Promotions-r-us (PRU) was one of the top 25 promotional product
companies in Canada for the past twelve years. However, by 2015 Promotions-r-us faced a time
of intense competition in the industry, which had grown from a few hundred companies in 1975,
to well over 3000 companies. During that time, Promotions-r-us had evolved and grown with the
market, but by 2012 they had reached a plateau in sales. By 2014, margins had begun to slip
and overall profitability had been down for the past 2 years. At last year’s executive meeting,
the firm’s objective of putting North American made quality products into the hands of valued
partners was reaffirmed. However, a strong emphasis was put on maintaining profitability
through efficiencies in the light of competitive pricing and slipping product margins.
Products and Customers:
Promotions-r-us offered its comprehensive collection of promotional items to a vast portfolio of
clients, including multinational corporations and small to medium sized corporations. Some of
their best customers were multi-national firms with tremendous purchasing power. Further,
Promotions-r-us took pride in the strong relationships they developed over the past 40 years.
Some of their biggest clients had been with them since the company’s inception. However, in
each case, Promotions-r-us only provided for the needs of the North American operations, in
Promotions-r-us
2 | P a g e
some cases, only to the Canadian affiliates. With a relatively small sales force, it would be
difficult to tackle a more international client base in their Business to Business operations.
Further, Promotions-r-us differentiated itself in this.
This document discusses a survey of manufacturers and channel partners regarding their relationships and sales incentive programs. Some key findings include:
- Channel partners value high quality products, vendor reputation, and competitive pricing from manufacturers. Effective communication and aligned goals are also important.
- Sales incentive programs that are performance-based, offer big deal discounts, or provide volume rebates are most effective at motivating partners. Cash incentives are preferred over prizes. Programs need to be clearly communicated and have realistic goals.
- Many manufacturers rely on self-reporting from partners or costly internal research to understand their end customers, but only about a third have actionable end customer data regarding purchases and market segments. Fully automated systems could help manufacturers
Channel management is complex, presenting many challenges. A structured channel program with close program alignment will help you address those challenges.
This document discusses how social syndication can help organizations expand their social selling reach. It explains that the process of buying and selling has changed, with people now proactively searching online for products rather than waiting for sales calls. This has given social syndication an important role in helping companies promote through social networks. The rest of the document provides solutions for overcoming common challenges in managing social syndication and channel partnerships, such as having structured programs aligned with different partner types and priorities, and celebrating partner successes.
The document discusses how to avoid contracting disasters by properly qualifying subcontractors and suppliers. It recommends assessing them using a 3Ps matrix of people, process, and product. For people, meet representatives to evaluate employee treatment and culture. For process, ensure adequate capital and that the owner delegates responsibilities. Evaluate product quality by visiting 3 past projects and checking reviews. Also review finances over 3 years and request a cash flow projection. The contract stage involves securing terms with bank guarantees if risks were identified. Following this process can help build strong partnerships and avoid costly mistakes.
Strategic Human Resource
Management Plan
NAME OF YOUR COMPANY
Your Name
Date, 2015
AMP-434
Instructor T. Love
TABLE OF CONTENTS
Section 1 #
Introduction #
background & history #
section 2 #
corporate statements #
Mission #
Vision #
Values #
section 3 #
SWOT Analysis #
Strengths #
Weaknesses #
Opportunities #
Threats #
section 4 #
organizational strategy action plan #
SMART Goals #
section 5 #
conclusion #
GRAND CANYON UNIVERSITY SCENARIO GENERATOR
Module 6 Scenario: Performance Management Cycle
Type: Family Business
Size: Medium Size Company
Sector: Flower Shop
Funding: Investors/Lenders
Stakeholders:
Investors/Lenders
Decision makers:
Managers
Formal organization:
LLC
Human Resources Department:
Pay-for service arrangement: temporary agency
Stage in Organizational Lifecycle:
Birth
THESE ARE THE GIVEN CONSTRAINTS:
ORGANIZATIONAL BACKGROUND:
Founded in: 1963
Dedicated to: The company thrives to provide the best possible
experience to all of its business partners and clients.
Culture Our culture is akin to that of a small family. All our
employees are partners in the business, share our success, and help us
sustain the core values that make us successful.
Structure: Our organization is very flat and consists of three tiers:
owners, managers, and non-manager employees.
Mission statement: To ensure that each customer receives prompt,
professional, friendly, and courteous service. To maintain a
professional and friendly environment for our cusotmers and staff. To
provide at a fair price using only quality components. To ensure that
all customers and staff are treated with the respect and dignity they
deserve. To thank each customer for the opportunity to serve them. By
maintaining these objectives we shall be assured of a fair profit that
will allow us to contribute to the community we serve.
Vision statement: Within the next five years, we will become a leading
provider of products and services to small businesses by providing
page 1 / 4
customizable, user-friendly solutions scaled to small business needs.
INTEGRITY: By dealing honestly with our clients, staff, vendors and
community.
RESPONSIBILITY: By considering the environment in which we do
business, community views and the common good.
PROFITABILITY: By being aware that an appropriate level of profit is
necessary to maintain our business and allow our values to continue to
be observed.
Values statement: In conducting our business, we will realize our
vision by performing our affairs so that our actions provide
confirmation of the high value we place on:
Present goals: To reduce delivery and distribution time of products
and services. To reduce the number and frequency of customer
complaints, and to improve the response time of customers inquiries.
Past goals: To reduce employee turnover by 20 percent by introducing a
new employee assistance program. To improve productivity by
implementing a company-wide tra.
Apply Strategic Plan EvaluationRefer back to the Week 2 compa.docxjewisonantone
Apply: Strategic Plan Evaluation
Refer back to the Week 2 company, Hoosier Media, Inc. Your consulting firm is now ready to present suggestions regarding the strategic plan of Hoosier Media, Inc.
In a 10- to 20-slide presentation with speaker notes, address the following which will be presented to the Director of Marketing:
· The best possible options for evaluating a strategic plan
· Corrective actions that should be taken to ensure company operations are correctly aligned with the strategic plan
Include the following in your presentation:
· How should the company measure organizational performance?
· How will the company examine what progress is being made toward the stated objectives?
· What criteria will be used when determining whether company objectives are measurable and verifiable?
· Based on your knowledge of the company, what changes should be made to reposition Hoosier Media competitively for the future?
Research and find 2-3 topics in current news/events
and be prepared to explain the event/news item and its relationship to
the material that we have covered in the course.
You should review papers, magazines and news feeds
to bring potential items for the group to discuss and decide on the
topics. You should then put together a slide on each item which
describes the event and demonstrates how it would impact strategic
management planning processes.
Six Sigma
The term Six Sigma, popularized by Motorola, Honeywell, and General Electric, has two meanings in TQM. In a statistical sense, it describes a process, product, or service with an extremely high capability (99.9997% accuracy). For example, if 1 million passengers pass through the St. Louis Airport with checked baggage each month, a Six Sigma program for baggage handling will result in only 3.4 passengers with misplaced luggage. The more common three-sigma program (which we address in the supplement to this chapter) would result in 2,700 passengers with misplaced bags every month. See Figure 6.4.
Six Sigma
A program to save time, improve quality, and lower costs.
The second TQM definition of Six Sigma is a program designed to reduce defects to help lower costs, save time, and improve customer satisfaction. Six Sigma is a comprehensive system—a strategy, a discipline, and a set of tools—for achieving and sustaining business success:
1. LO 6.3Explain Six Sigma
· It is a strategy because it focuses on total customer satisfaction.
· It is a discipline because it follows the formal Six Sigma Improvement Model known as DMAIC. This five-step process improvement model (1) Defines the project’s purpose, scope, and outputs and then identifies the required process information, keeping in mind the customer’s definition of quality; (2) Measures the process and collects data; (3) Analyzes the data, ensuring repeatability (the results can be duplicated) and reproducibility (others get the same result); (4) Improves, by modifying or redesigning, existing processes and procedures; a.
The document discusses developing an e-business strategy. It explains that an e-business strategy involves three key components: the e-business strategy, e-blueprint formulation, and tactical execution. The e-business strategy formulation phase involves building awareness and planning to create new customer value. It discusses three approaches to strategic planning: top-down analytical planning, bottom-up tactical planning, and continuous planning with feedback. Knowledge building and capability evaluation are also important parts of developing an e-business strategy.
The document discusses how to build an effective capabilities statement to help small businesses stand out and compete for federal contracts. It identifies the key components of a capabilities statement, including core competencies, past performance, differentiators, and corporate data. An effective capabilities statement tells clients who the company is, what they do, and how they are different. It should be concise, tailored to specific opportunities, and updated regularly.
This document provides an overview of a framework called the "three circle Venn diagram" for developing competitive strategies. The framework involves mapping customer needs and perceptions of a company's offerings and its competitors' offerings to understand how to differentiate in ways that matter to customers. It was developed by a marketing professor to simplify complex strategy models. Applying the framework involves conducting customer research, plotting the results on the Venn diagram, and generating strategies to better meet unmet needs and strengthen areas of advantage. An online platform called Vennli was created to help companies implement this framework and use continuous customer feedback to refine their differentiation strategies over time.
The document provides an overview of several strategic planning models and frameworks that can be used in strategic planning, including:
- Strategy map - A diagram that visually communicates an organization's strategy and how objectives align across different levels.
- Balanced scorecard - A framework that translates an organization's strategy into objectives and measures across financial, customer, internal process, and learning/growth perspectives.
- SWOT analysis - An analysis of an organization's strengths, weaknesses, opportunities, and threats to inform strategic planning.
The document discusses the key components and benefits of these models to effectively communicate and implement organizational strategies.
Business Ethics Governance & Risk - A - ST.docxsmumbahelp
This document provides three sample questions and answers related to business ethics. Question 1 asks to identify and classify financial and operational risks for a new hand sanitizer product into high, medium, and low. The answer introduces the product manager's responsibilities and challenges facing the company. Question 2 asks to analyze the ethical issues in a popular TV advertisement from the perspective of stakeholders. The answer discusses the aim of ethical advertising and issues with portraying women. Question 3 has two parts: (a) asks what decision would be made regarding a job candidate and how to explain it, and (b) asks what programs would be introduced to hire more minority candidates. The answers discuss hiring based on skills and making adjustments to recruitment and training processes.
This document contains Nga Nguyen's marketing portfolio, which includes her resume, executive summaries of various marketing projects and courses, and certificates from online courses on Lynda.com. The executive summaries provide overviews of her work conducting market research for a roommate finding app, analyzing ways to improve Walmart's customer service, and proposing marketing strategies for an online children's clothing store. The document demonstrates Nga Nguyen's qualifications and experience in various areas of marketing such as market research, communications, and digital marketing.
The document discusses key differences between marketing and selling concepts, philosophies of marketing, and marketing analysis and environment forces.
The marketing concept focuses on understanding customer needs and wants to produce products that satisfy them, while the selling concept focuses more on selling goods produced regardless of customer wants.
Marketing philosophies include production, product, selling, and societal concepts. Marketing analysis involves a SWOT analysis to evaluate strengths, weaknesses, opportunities, and threats, and match strengths to opportunities while mitigating weaknesses and threats.
Microenvironment forces close to the company like customers, suppliers, and departments must work together to create value. Macroenvironment forces from broader society like demographics and environment trends also influence companies and markets.
This document outlines a "four square approach" for organizations to manage their business successfully. It involves:
1. Conducting regular SWOT analyses and creating action plans to evaluate strengths, weaknesses, opportunities, and threats.
2. Analyzing products and services using the BCG model to categorize them as stars, cows, dogs, or question marks.
3. Ensuring proper coordination between production, marketing, and sales teams to understand market dependencies.
4. Evaluating leadership, management, employees, information flow, and culture via the "quadrapole" to effectively implement strategies.
Regular evaluation and adaptation using these approaches can help organizations sustain profitability in competitive markets.
The document discusses various corporate strategies that firms can pursue in the 21st century competitive landscape, including bringing new products to market quickly, diversifying product lines, shifting product emphasis, and combining online and physical sales channels. It also summarizes strategies like the Dell model of outsourcing non-core competencies, and pursuing growth through mergers and acquisitions, international expansion, and improving core capabilities. Regionalization with local control and lean, flat organizational structures are presented as strategies for multi-national companies.
Seven Steps for Revitalizing Your BrandR. Jay Olson
If the time has come to re-energize your brand, follow this proven framework to get your CEO and executive team behind you to mobiliize your initiative, and ensure your company's investment drives profitable long-term growth and asset valuation.
Business PaperDescriptionThe business analysis paper sh.docxRAHUL126667
Business Paper
Description:
The business analysis paper should focus on the use of information systems within a company of your choice. You should pick a company for which information systems played a key roll in making that company successful, and the paper should focus on how information systems contributed to that success. Your paper should answer the following areas:
· Industry Profile: What is the industry? What value does the industry provide to its customers?
· Include an analysis of the competitive landscape of the industry in terms of the Porter Competitive model. You will learn about Porter's 5 forces early in the quarter. Your paper should discuss each of the five forces that effect the competitive landscape of your company's industry. Discuss why each of the forces plays a strong or weak role in the industry and give evidence to support your argument.
· Be careful to define the industry correctly. To do so, ask the question "with whom does your company compete?" Be careful that the definition is not too narrow. For instance, Charles Schwab is a discount broker and they obviously compete with other discount brokers like Quick and Reilly and Fidelity. But, they also compete against full service brokers and deep discounters. There is also a risk of defining the industry too broadly. For instance, total retailing in the U.S. is over $2 trillion a year. This includes everything that is sold to a consumer--groceries, automobiles, fast food, clothing, etc. There are sub-sections to the retail industry and these provide a better definition since they are consistent with the criteria cited above regarding who companies compete against. Automobile dealers do not compete with McDonalds or Safeway.
· Company Profile: What business is your company in, and what value does it provide its customers. In what ways is it different than its competitors? How has it's history shaped what it can offer its customers?
· Information Technology: How does the company use IT to support or enable its business processes and competitive strategies? What technologies in particular does it use? Does the company use existing technologies,develop its own technology, or some combination of both? How much of the company’s success do you attribute to its use of IT and/or the company’s early adoption of IT into their business processes? Is it used to enhance or differentiate their product, reduce costs, or both?
· Leadership: Who are/were the key leaders of the company? What decisions did these leaders make, in particular decisions relating to the deployment of IT? What opportunities did they identify that helped make their company what it is today.
· Market and Financial Performance: What is the company’s revenue and profit, and how has it evolved over the years? How does the company’s performance compare to its competitors? You may also want to include other industry specific measures of performances, like cost per available seat mile (CASM) for airlines or sales ...
What does success look like in your industry how do you get topLeul Girma
What does success look like in YOUR industry? How do you get top?
Success is one of the most controversial issues today
Also the concept of industry has become more complex than ever before. Some companies still find it difficult to identify which industry they are in, No matter if you are in one or several industries, you will enjoy this topic.
This video will bring you the most useful tools to analyze your business internal and external environment , then guide you to moving ahead dramatically .After watching this video you will able to know how to lead your business significantly moving forward.
We will discuss deeply how to identify your success factors, in this session will get clear understanding
about industry nature and characteristics very well. Because when you know about the particular city’s road traffic, drivers behavior ,exceptional rule and regulations you will drive greatly. It is very similar with business world
based on industry and company facts we will evaluate your business current position , if is that great you will maintain to being more strong. other ways it motivate you to do something significant action in your business, that could be a milestone to moving ahead dramatically.
The document discusses competitive strategies and the business environment. It covers how business strategy is created through analysis of internal resources and the external environment. Key aspects of strategy include formulation, implementation, managing competition through pricing and communication. Understanding customers is important, and tools like conjoint analysis can provide insights. Effective strategies consider the nature of the operating environment and routes to achieving competitive advantage like focusing on areas of strength. The effectiveness of strategic systems should be evaluated based on factors like alignment with goals and flexibility.
The document discusses Total Quality Management (TQM), an important management approach developed by W. Edwards Deming. TQM emphasizes managing systems to improve quality and customer satisfaction. It was initially ignored in the US but embraced in Japan in the 1940s-50s, leading to their economic rise. Deming outlined 14 points for organizations to transform using TQM, including creating constancy of purpose, adopting a new philosophy, ceasing over-reliance on inspection, and instituting training. The document argues that implementing TQM can help organizations improve services and products.
6Running Head MT400Candace PooleBusiness Proces.docxalinainglis
6
Running Head: MT400
Candace Poole
Business Process Management
MT400
November 14, 2016
When we want to do progress we need expert advice and without expert advice it's too tough carry things according to objectives of company. To move in excellence zone companies use stakeholder engagement in order to improve their corporate policies. Stakeholders are of two types internal as well as external.
I selected Amazon and stake holders of Amazon includes
· Customers: They are related to the company in relation to sales and their objective is to get quality products like books digital contents and all other products company sells that customers use on daily basis.
· Suppliers: They supply different things to company and want development in company so that they can sell more to the company and reap good profits.
· Society: Amazon help many social communities like orphan houses, hunger trust and many other NGO's for welfare cause, their main objective is progress of company so that they can get more help from company.
· Governments: Government is a main stakeholder because government offer certain subsidies and collect taxes from company.
· Shareholders and the financial community: Shareholder want the development of company as they share profit of company and all those financial institutes who lends to the company also share profit and dividends.
Process is intended to provide its customer knowledgeable digital contents and cloud computing facilities to the general public in order to raise educated community. Success is to accomplish the goal of providing quality contents and solution to cloud computing. Goal is to effective contents and to make agreements with supplier in order to accomplish the order of client.
Metric 1: Customer Satisfaction Score:
1. Definition:
To make customer happy and service quality better in order to reach on apex of success.
2. Significance in assessment
Customer satisfaction is the key player to accomplish all goals and objectives of company.
3. Example: To check via surveys whether customers are satisfied and happy with services of company.
Metric 2: Perfect order percentage (POP)
1. Definition: An effective measure to check the percentage of orders that are perfectly taken processed, and accomplished according to the exact need of customer.
2. Significance: It's very important measure to check whether POP will accomplish the goal of quality milk of company.
3. Example: To check the list of order processing and customer feedback
Metric 3: Gross Margin
1. Definition: What percent of Profit Company is reaping from each sale?
2. Significance: Its main indicator or metric of success in any process. It ensures whether company is on right track to accomplish its goals.
3. Example: Amazon reaping 31.91% gross margin on sale of ecommerce related products and cloud computing services.
Identify two quick wins for your process. For each, describe a quick win is a visible improvement in the.
. According to your textbook, Contrary to a popular misconception.docxmadlynplamondon
According to a cross-cultural study of 186 societies, attitudes toward homosexuality vary significantly across cultures. Only 31% of societies studied stigmatized homosexual behavior, while 38% viewed it as a normal developmental phase for youth and 18% accepted committed same-sex relationships as an alternative form of marriage. The historical stigmatization of homosexuality in America is a product of enculturation rather than universal moral values.
-How did artwork produced in America from 1945 to 1960 compare to ar.docxmadlynplamondon
Post-World War II American art differed from European art by embracing abstract expressionism through artists like Jackson Pollock and his drip paintings, while European art focused more on figurative styles. Pollock's painting Number 1, 1950 (Lavender Mist) used dripped and splattered oil paint on canvas in 1950, as did Willem de Kooning's Woman I in 1952, showing the abstract expressionist movement in America. European art of the time included Alberto Giacometti's figurative sculpture Woman of Venice II from 1956.
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This document discusses how social syndication can help organizations expand their social selling reach. It explains that the process of buying and selling has changed, with people now proactively searching online for products rather than waiting for sales calls. This has given social syndication an important role in helping companies promote through social networks. The rest of the document provides solutions for overcoming common challenges in managing social syndication and channel partnerships, such as having structured programs aligned with different partner types and priorities, and celebrating partner successes.
The document discusses how to avoid contracting disasters by properly qualifying subcontractors and suppliers. It recommends assessing them using a 3Ps matrix of people, process, and product. For people, meet representatives to evaluate employee treatment and culture. For process, ensure adequate capital and that the owner delegates responsibilities. Evaluate product quality by visiting 3 past projects and checking reviews. Also review finances over 3 years and request a cash flow projection. The contract stage involves securing terms with bank guarantees if risks were identified. Following this process can help build strong partnerships and avoid costly mistakes.
Strategic Human Resource
Management Plan
NAME OF YOUR COMPANY
Your Name
Date, 2015
AMP-434
Instructor T. Love
TABLE OF CONTENTS
Section 1 #
Introduction #
background & history #
section 2 #
corporate statements #
Mission #
Vision #
Values #
section 3 #
SWOT Analysis #
Strengths #
Weaknesses #
Opportunities #
Threats #
section 4 #
organizational strategy action plan #
SMART Goals #
section 5 #
conclusion #
GRAND CANYON UNIVERSITY SCENARIO GENERATOR
Module 6 Scenario: Performance Management Cycle
Type: Family Business
Size: Medium Size Company
Sector: Flower Shop
Funding: Investors/Lenders
Stakeholders:
Investors/Lenders
Decision makers:
Managers
Formal organization:
LLC
Human Resources Department:
Pay-for service arrangement: temporary agency
Stage in Organizational Lifecycle:
Birth
THESE ARE THE GIVEN CONSTRAINTS:
ORGANIZATIONAL BACKGROUND:
Founded in: 1963
Dedicated to: The company thrives to provide the best possible
experience to all of its business partners and clients.
Culture Our culture is akin to that of a small family. All our
employees are partners in the business, share our success, and help us
sustain the core values that make us successful.
Structure: Our organization is very flat and consists of three tiers:
owners, managers, and non-manager employees.
Mission statement: To ensure that each customer receives prompt,
professional, friendly, and courteous service. To maintain a
professional and friendly environment for our cusotmers and staff. To
provide at a fair price using only quality components. To ensure that
all customers and staff are treated with the respect and dignity they
deserve. To thank each customer for the opportunity to serve them. By
maintaining these objectives we shall be assured of a fair profit that
will allow us to contribute to the community we serve.
Vision statement: Within the next five years, we will become a leading
provider of products and services to small businesses by providing
page 1 / 4
customizable, user-friendly solutions scaled to small business needs.
INTEGRITY: By dealing honestly with our clients, staff, vendors and
community.
RESPONSIBILITY: By considering the environment in which we do
business, community views and the common good.
PROFITABILITY: By being aware that an appropriate level of profit is
necessary to maintain our business and allow our values to continue to
be observed.
Values statement: In conducting our business, we will realize our
vision by performing our affairs so that our actions provide
confirmation of the high value we place on:
Present goals: To reduce delivery and distribution time of products
and services. To reduce the number and frequency of customer
complaints, and to improve the response time of customers inquiries.
Past goals: To reduce employee turnover by 20 percent by introducing a
new employee assistance program. To improve productivity by
implementing a company-wide tra.
Apply Strategic Plan EvaluationRefer back to the Week 2 compa.docxjewisonantone
Apply: Strategic Plan Evaluation
Refer back to the Week 2 company, Hoosier Media, Inc. Your consulting firm is now ready to present suggestions regarding the strategic plan of Hoosier Media, Inc.
In a 10- to 20-slide presentation with speaker notes, address the following which will be presented to the Director of Marketing:
· The best possible options for evaluating a strategic plan
· Corrective actions that should be taken to ensure company operations are correctly aligned with the strategic plan
Include the following in your presentation:
· How should the company measure organizational performance?
· How will the company examine what progress is being made toward the stated objectives?
· What criteria will be used when determining whether company objectives are measurable and verifiable?
· Based on your knowledge of the company, what changes should be made to reposition Hoosier Media competitively for the future?
Research and find 2-3 topics in current news/events
and be prepared to explain the event/news item and its relationship to
the material that we have covered in the course.
You should review papers, magazines and news feeds
to bring potential items for the group to discuss and decide on the
topics. You should then put together a slide on each item which
describes the event and demonstrates how it would impact strategic
management planning processes.
Six Sigma
The term Six Sigma, popularized by Motorola, Honeywell, and General Electric, has two meanings in TQM. In a statistical sense, it describes a process, product, or service with an extremely high capability (99.9997% accuracy). For example, if 1 million passengers pass through the St. Louis Airport with checked baggage each month, a Six Sigma program for baggage handling will result in only 3.4 passengers with misplaced luggage. The more common three-sigma program (which we address in the supplement to this chapter) would result in 2,700 passengers with misplaced bags every month. See Figure 6.4.
Six Sigma
A program to save time, improve quality, and lower costs.
The second TQM definition of Six Sigma is a program designed to reduce defects to help lower costs, save time, and improve customer satisfaction. Six Sigma is a comprehensive system—a strategy, a discipline, and a set of tools—for achieving and sustaining business success:
1. LO 6.3Explain Six Sigma
· It is a strategy because it focuses on total customer satisfaction.
· It is a discipline because it follows the formal Six Sigma Improvement Model known as DMAIC. This five-step process improvement model (1) Defines the project’s purpose, scope, and outputs and then identifies the required process information, keeping in mind the customer’s definition of quality; (2) Measures the process and collects data; (3) Analyzes the data, ensuring repeatability (the results can be duplicated) and reproducibility (others get the same result); (4) Improves, by modifying or redesigning, existing processes and procedures; a.
The document discusses developing an e-business strategy. It explains that an e-business strategy involves three key components: the e-business strategy, e-blueprint formulation, and tactical execution. The e-business strategy formulation phase involves building awareness and planning to create new customer value. It discusses three approaches to strategic planning: top-down analytical planning, bottom-up tactical planning, and continuous planning with feedback. Knowledge building and capability evaluation are also important parts of developing an e-business strategy.
The document discusses how to build an effective capabilities statement to help small businesses stand out and compete for federal contracts. It identifies the key components of a capabilities statement, including core competencies, past performance, differentiators, and corporate data. An effective capabilities statement tells clients who the company is, what they do, and how they are different. It should be concise, tailored to specific opportunities, and updated regularly.
This document provides an overview of a framework called the "three circle Venn diagram" for developing competitive strategies. The framework involves mapping customer needs and perceptions of a company's offerings and its competitors' offerings to understand how to differentiate in ways that matter to customers. It was developed by a marketing professor to simplify complex strategy models. Applying the framework involves conducting customer research, plotting the results on the Venn diagram, and generating strategies to better meet unmet needs and strengthen areas of advantage. An online platform called Vennli was created to help companies implement this framework and use continuous customer feedback to refine their differentiation strategies over time.
The document provides an overview of several strategic planning models and frameworks that can be used in strategic planning, including:
- Strategy map - A diagram that visually communicates an organization's strategy and how objectives align across different levels.
- Balanced scorecard - A framework that translates an organization's strategy into objectives and measures across financial, customer, internal process, and learning/growth perspectives.
- SWOT analysis - An analysis of an organization's strengths, weaknesses, opportunities, and threats to inform strategic planning.
The document discusses the key components and benefits of these models to effectively communicate and implement organizational strategies.
Business Ethics Governance & Risk - A - ST.docxsmumbahelp
This document provides three sample questions and answers related to business ethics. Question 1 asks to identify and classify financial and operational risks for a new hand sanitizer product into high, medium, and low. The answer introduces the product manager's responsibilities and challenges facing the company. Question 2 asks to analyze the ethical issues in a popular TV advertisement from the perspective of stakeholders. The answer discusses the aim of ethical advertising and issues with portraying women. Question 3 has two parts: (a) asks what decision would be made regarding a job candidate and how to explain it, and (b) asks what programs would be introduced to hire more minority candidates. The answers discuss hiring based on skills and making adjustments to recruitment and training processes.
This document contains Nga Nguyen's marketing portfolio, which includes her resume, executive summaries of various marketing projects and courses, and certificates from online courses on Lynda.com. The executive summaries provide overviews of her work conducting market research for a roommate finding app, analyzing ways to improve Walmart's customer service, and proposing marketing strategies for an online children's clothing store. The document demonstrates Nga Nguyen's qualifications and experience in various areas of marketing such as market research, communications, and digital marketing.
The document discusses key differences between marketing and selling concepts, philosophies of marketing, and marketing analysis and environment forces.
The marketing concept focuses on understanding customer needs and wants to produce products that satisfy them, while the selling concept focuses more on selling goods produced regardless of customer wants.
Marketing philosophies include production, product, selling, and societal concepts. Marketing analysis involves a SWOT analysis to evaluate strengths, weaknesses, opportunities, and threats, and match strengths to opportunities while mitigating weaknesses and threats.
Microenvironment forces close to the company like customers, suppliers, and departments must work together to create value. Macroenvironment forces from broader society like demographics and environment trends also influence companies and markets.
This document outlines a "four square approach" for organizations to manage their business successfully. It involves:
1. Conducting regular SWOT analyses and creating action plans to evaluate strengths, weaknesses, opportunities, and threats.
2. Analyzing products and services using the BCG model to categorize them as stars, cows, dogs, or question marks.
3. Ensuring proper coordination between production, marketing, and sales teams to understand market dependencies.
4. Evaluating leadership, management, employees, information flow, and culture via the "quadrapole" to effectively implement strategies.
Regular evaluation and adaptation using these approaches can help organizations sustain profitability in competitive markets.
The document discusses various corporate strategies that firms can pursue in the 21st century competitive landscape, including bringing new products to market quickly, diversifying product lines, shifting product emphasis, and combining online and physical sales channels. It also summarizes strategies like the Dell model of outsourcing non-core competencies, and pursuing growth through mergers and acquisitions, international expansion, and improving core capabilities. Regionalization with local control and lean, flat organizational structures are presented as strategies for multi-national companies.
Seven Steps for Revitalizing Your BrandR. Jay Olson
If the time has come to re-energize your brand, follow this proven framework to get your CEO and executive team behind you to mobiliize your initiative, and ensure your company's investment drives profitable long-term growth and asset valuation.
Business PaperDescriptionThe business analysis paper sh.docxRAHUL126667
Business Paper
Description:
The business analysis paper should focus on the use of information systems within a company of your choice. You should pick a company for which information systems played a key roll in making that company successful, and the paper should focus on how information systems contributed to that success. Your paper should answer the following areas:
· Industry Profile: What is the industry? What value does the industry provide to its customers?
· Include an analysis of the competitive landscape of the industry in terms of the Porter Competitive model. You will learn about Porter's 5 forces early in the quarter. Your paper should discuss each of the five forces that effect the competitive landscape of your company's industry. Discuss why each of the forces plays a strong or weak role in the industry and give evidence to support your argument.
· Be careful to define the industry correctly. To do so, ask the question "with whom does your company compete?" Be careful that the definition is not too narrow. For instance, Charles Schwab is a discount broker and they obviously compete with other discount brokers like Quick and Reilly and Fidelity. But, they also compete against full service brokers and deep discounters. There is also a risk of defining the industry too broadly. For instance, total retailing in the U.S. is over $2 trillion a year. This includes everything that is sold to a consumer--groceries, automobiles, fast food, clothing, etc. There are sub-sections to the retail industry and these provide a better definition since they are consistent with the criteria cited above regarding who companies compete against. Automobile dealers do not compete with McDonalds or Safeway.
· Company Profile: What business is your company in, and what value does it provide its customers. In what ways is it different than its competitors? How has it's history shaped what it can offer its customers?
· Information Technology: How does the company use IT to support or enable its business processes and competitive strategies? What technologies in particular does it use? Does the company use existing technologies,develop its own technology, or some combination of both? How much of the company’s success do you attribute to its use of IT and/or the company’s early adoption of IT into their business processes? Is it used to enhance or differentiate their product, reduce costs, or both?
· Leadership: Who are/were the key leaders of the company? What decisions did these leaders make, in particular decisions relating to the deployment of IT? What opportunities did they identify that helped make their company what it is today.
· Market and Financial Performance: What is the company’s revenue and profit, and how has it evolved over the years? How does the company’s performance compare to its competitors? You may also want to include other industry specific measures of performances, like cost per available seat mile (CASM) for airlines or sales ...
What does success look like in your industry how do you get topLeul Girma
What does success look like in YOUR industry? How do you get top?
Success is one of the most controversial issues today
Also the concept of industry has become more complex than ever before. Some companies still find it difficult to identify which industry they are in, No matter if you are in one or several industries, you will enjoy this topic.
This video will bring you the most useful tools to analyze your business internal and external environment , then guide you to moving ahead dramatically .After watching this video you will able to know how to lead your business significantly moving forward.
We will discuss deeply how to identify your success factors, in this session will get clear understanding
about industry nature and characteristics very well. Because when you know about the particular city’s road traffic, drivers behavior ,exceptional rule and regulations you will drive greatly. It is very similar with business world
based on industry and company facts we will evaluate your business current position , if is that great you will maintain to being more strong. other ways it motivate you to do something significant action in your business, that could be a milestone to moving ahead dramatically.
The document discusses competitive strategies and the business environment. It covers how business strategy is created through analysis of internal resources and the external environment. Key aspects of strategy include formulation, implementation, managing competition through pricing and communication. Understanding customers is important, and tools like conjoint analysis can provide insights. Effective strategies consider the nature of the operating environment and routes to achieving competitive advantage like focusing on areas of strength. The effectiveness of strategic systems should be evaluated based on factors like alignment with goals and flexibility.
The document discusses Total Quality Management (TQM), an important management approach developed by W. Edwards Deming. TQM emphasizes managing systems to improve quality and customer satisfaction. It was initially ignored in the US but embraced in Japan in the 1940s-50s, leading to their economic rise. Deming outlined 14 points for organizations to transform using TQM, including creating constancy of purpose, adopting a new philosophy, ceasing over-reliance on inspection, and instituting training. The document argues that implementing TQM can help organizations improve services and products.
6Running Head MT400Candace PooleBusiness Proces.docxalinainglis
6
Running Head: MT400
Candace Poole
Business Process Management
MT400
November 14, 2016
When we want to do progress we need expert advice and without expert advice it's too tough carry things according to objectives of company. To move in excellence zone companies use stakeholder engagement in order to improve their corporate policies. Stakeholders are of two types internal as well as external.
I selected Amazon and stake holders of Amazon includes
· Customers: They are related to the company in relation to sales and their objective is to get quality products like books digital contents and all other products company sells that customers use on daily basis.
· Suppliers: They supply different things to company and want development in company so that they can sell more to the company and reap good profits.
· Society: Amazon help many social communities like orphan houses, hunger trust and many other NGO's for welfare cause, their main objective is progress of company so that they can get more help from company.
· Governments: Government is a main stakeholder because government offer certain subsidies and collect taxes from company.
· Shareholders and the financial community: Shareholder want the development of company as they share profit of company and all those financial institutes who lends to the company also share profit and dividends.
Process is intended to provide its customer knowledgeable digital contents and cloud computing facilities to the general public in order to raise educated community. Success is to accomplish the goal of providing quality contents and solution to cloud computing. Goal is to effective contents and to make agreements with supplier in order to accomplish the order of client.
Metric 1: Customer Satisfaction Score:
1. Definition:
To make customer happy and service quality better in order to reach on apex of success.
2. Significance in assessment
Customer satisfaction is the key player to accomplish all goals and objectives of company.
3. Example: To check via surveys whether customers are satisfied and happy with services of company.
Metric 2: Perfect order percentage (POP)
1. Definition: An effective measure to check the percentage of orders that are perfectly taken processed, and accomplished according to the exact need of customer.
2. Significance: It's very important measure to check whether POP will accomplish the goal of quality milk of company.
3. Example: To check the list of order processing and customer feedback
Metric 3: Gross Margin
1. Definition: What percent of Profit Company is reaping from each sale?
2. Significance: Its main indicator or metric of success in any process. It ensures whether company is on right track to accomplish its goals.
3. Example: Amazon reaping 31.91% gross margin on sale of ecommerce related products and cloud computing services.
Identify two quick wins for your process. For each, describe a quick win is a visible improvement in the.
Similar to Disrupted Links in the Performance Management Process at Omega, I.docx (20)
. According to your textbook, Contrary to a popular misconception.docxmadlynplamondon
According to a cross-cultural study of 186 societies, attitudes toward homosexuality vary significantly across cultures. Only 31% of societies studied stigmatized homosexual behavior, while 38% viewed it as a normal developmental phase for youth and 18% accepted committed same-sex relationships as an alternative form of marriage. The historical stigmatization of homosexuality in America is a product of enculturation rather than universal moral values.
-How did artwork produced in America from 1945 to 1960 compare to ar.docxmadlynplamondon
Post-World War II American art differed from European art by embracing abstract expressionism through artists like Jackson Pollock and his drip paintings, while European art focused more on figurative styles. Pollock's painting Number 1, 1950 (Lavender Mist) used dripped and splattered oil paint on canvas in 1950, as did Willem de Kooning's Woman I in 1952, showing the abstract expressionist movement in America. European art of the time included Alberto Giacometti's figurative sculpture Woman of Venice II from 1956.
-Just thoughts and opinion on the reading-Consent and compen.docxmadlynplamondon
-Just thoughts and opinion on the reading
-Consent and compensation are two things that the Johns Hopkins doctors did not provide Henrietta Lacks. How are these ideas at odds?
-African Americans today face disparities in the health care system even today. How can Henrietta's story motivate change in our current system?
.
. The Questioned Documents Unit (QDU) provides forensic support .docxmadlynplamondon
. The Questioned Documents Unit (QDU) provides forensic support to federal, state and local law enforcement agencies by conducting examinations on evidence collected during their investigation as well as expert testimony concerning information contained in the reports. The Cryptanalysis and Racketeering Records Unit (CRRU) supports law enforcement by assisting in the analysis of cryptic communications such as codes found in letters, notes and diaries (FBI.gov).
After an individual is arrested, I will obtain fingerprints and photographs of the subject and complete a number of forms that are used to start a criminal file on the subject. I will use the Buccal Collection DNA test kit provided by the FBI on my subject. Once completed properly and submitted to the FBI, the kit will be sent to the Federal DNA Database Unit (FDDU). The FDDU will take the DNA test kit and upload it into NDIS creating a DNA profile for my subject. The subject’s DNA profile will be searched against unknown forensic profiles from crime scenes across the country. If my subject’s DNA matches with another crime from another state he can be charged for that crimes as well. In my opinion this is the most important service the FBI has. This allows all agencies to communicate and share information based off of DNA evidence. The flaw is that they need the criminal to be apprehended and processed in order for the DNA to be in the system.
In Knoxville Tennessee, FBI Emergency Response agents train how to excavate a body at the Body Farm. The agents pair up in teams with forensic anthropologists to learn how to best identify and excavate human remains to preserve the clues and pieces of evidence that decaying bodies may leave behind. The weeklong training gives agents step by step instructions while surprising the agents with twists and surprises during their excavations. This was very interesting to me because it helps put things into perspective. Teaches them to put the victim first, which will motivate them to slow down, be methodical with their techniques and be very thorough because it only can be done once.
respond to this discussion question 150 words
.
. What is it about the fundamental nature and structure of the Olym.docxmadlynplamondon
. What is it about the fundamental nature and structure of the Olympics that helps explain why the conflict arose and escalated?
b. Was the form of aggression displayed by the attackers hostile aggression or instrumental aggression? Explain your reasoning. (Note: you
must
make a decision between these alternatives and defend your decision.)
.
-Learning objectives for presentation-Brief background o.docxmadlynplamondon
Madeleine Leininger developed the transcultural nursing theory to address the need for culturally competent care (Leininger, 2002). Her theory focuses on how culture impacts health, wellness, and nursing care. It emphasizes understanding a patient's cultural values, beliefs and practices to provide sensitive and respectful care.
-You will need to play a phone game Angry Birds (any version) to mak.docxmadlynplamondon
-You will need to play a phone game Angry Birds (any version) to make observation.
-Make an observation on how you must launch the birds in order to knock over the items.
-Pay attention to how the path of the birds (the projectiles) changes as you change the launch angle and how far back you pull the birds at launch.
-You will also need to complete the calculations in assignment.
Assignment file below...
.
. EDU 571 Week 5 Discussion 1 -
"Data Collection" Please respond to the following:
· Using your planned evaluation project, assume that the client paying for the evaluation has requested that you primarily use audio/visual interview and observation techniques. The client envisions using clips in the evaluation report and in marketing campaigns. Discuss the appropriateness, advantages, and disadvantages of using digital capabilities to capture sound, video, and photographs of the interviewees, focus groups, and observations. Provide reasons for opposing or supporting the request (partially or completely).
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·
EDU 571 Week 5 Discussion 2 -
"Benefits of Meta-Evaluation" Please respond to the following:
· Your client told you that a meta-evaluation should not be included in the plan or budget. Explain two (2) reasons for including a meta-evaluation in the evaluation plan. Recommend two (2) ways to reduce the costs.
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EDU 571 Week 3 Target of Program Evaluation Plan, Part 1 -
Target of Program Evaluation Plan, Part 1
Assignment 1 is the first part of a five-part project to plan the various elements of a program evaluation for education. Select a program target from your school district, workplace, (e.g., business training program) or your university (where you are a student). For you to gain the most from the assignment, you should select a program that you are interested in, would like to see evaluated, and are able to obtain information about. (Possible programs include: student assessment, teacher assessment, pay for student achievement, new teacher or employee training, online classrooms, anti-bullying, gender equity for girls in math and science, school to work, retention of at-risk students, and schools of choice (charter schools), etc.). As you develop the entire plan, gather information, and receive feedback from your professor (or others), you should revise and refine each part of the project. Think of your professor as your project evaluator and supervisor who will help guide you so that you produce an outstanding, well-developed evaluation plan for the stakeholders.
Write a 1000 words paper in which you:
1. Describe three (3) elements of a worthy object for program evaluation - its type, the department administrating it, and target population.
2. Describe the program's history, primary purpose(s), and / or expected outcomes.
3. Explain three (3) reasons for selecting the program (e.g., program's value or lack of it, issues surrounding it, age, relevance, cost, impact on students, etc.).
4. Discuss three (3) advantages of evaluating the program at this time.
5. Discuss two (2) major constraints in conducting an evaluation on this program and a method of addressing them.
6. Use at least three (3) peer-reviewed academic resources in this assignment. Note: Wikipedia and many Websites do not qualify as academic resources. Peer-reviewed academic resources refer to articles and scholarly journals that are reviewe.
. What were the causes of World War II Explain how and why the Unit.docxmadlynplamondon
. What were the causes of World War II? Explain how and why the United States got involved in the war. Discuss the U.S. home front. How did women and minorities respond to the war? Explain the war in North Africa and Europe. Discuss the Allied invasion of Normandy on June 6, 1944. What was Adolf Hitler’s “final solution,” and what were the consequences of the Holocaust? How did the Allies end the war in Europe? Discuss the war in the Pacific. What proved to be an effective U.S. strategy in the Pacific? Analyze Harry Truman’s controversial decision to drop the atomic bombs on Japan. What were the consequences of World War II?
.
. Complete the prewriting for the progress reportPrewriting p.docxmadlynplamondon
. Complete the prewriting for the progress report:
Prewriting prepares you to write and helps you organize your ideas.
You may print the lesson and jot notes for yourself on the paper, or you may write notes on your own.
You do not have to submit prewriting for any points, but don't skip this important step!
2. Complete a draft of the progress report:
Remember to use the memo format style in typing this progress report.
This report should be two or more pages when you are completed.
The draft will be much shorter than your final report.
Follow a logical structure: introduction, what is finished, what is underway, what is left to do, and a conclusion.
Use specifics such as dates, proper names, numbers, costs, etc.
Include one or more visuals may such as pictures, graphs, charts, tables, etc.
.
-in Filomena by Roberta Fernandez the author refers to the Mexican r.docxmadlynplamondon
-in Filomena by Roberta Fernandez the author refers to the Mexican rituals for the day of the dead how is this celebration portrayed in the story?
-in "La doctora Barr" how does Mary Helen Ponce describe the traditional way Mexican-American women prepared for a childbirth in their community?
-how does Nilda feel about Sophies's presence in her home?
-how is bilingualism used in the story "Filomena"? Support your opinions with examples from the story
-describe the incident with the vanilla ice cream . Why was it so upsetting for Nilda?
.
-Write about a violent religious event in history.(Ex. Muslim ex.docxmadlynplamondon
-Write about a violent religious event in history.
(Ex. Muslim extremist acts in history, or the Christian crusades, etc.)
-Write about belief/reasoning/justification those certain people believe their actions have and affects of...
-(Identity)They're view of the world and themselves. Is it rationale or is it a problem. Why?
5-pages minimum
4-scholarly sources min. 2 of 4 book sources Need Dec. 2nd by 9pm.
.
-This project is an opportunity to demonstrate the ability to analyz.docxmadlynplamondon
-This project is an opportunity to demonstrate the ability to analyze and write about music with clarity and purpose. Assume the role of a reviewer/critic who is applying for a job writing a music column for a progressive weblog catering to readers who on average have at least a bachelor's degree and are concerned with issues of justice and equality
-The CD reviewed is one that will allow reflection about how music can provide people the opportunity to imagine the lives and experiences of others different from oneself. Questions to guide reflection while listening should include:
1. Who are the peoples performing the music or who is the music about?
2.What type of life is presented through the music's lyrics and musical sound?
3.What themes or issues are presented by the music?
4. How do the various musical selections relate to each other?
5.What can be learned about people by listening to this CD?
6.Why should other people listen to this music?
-A list of CDs is available for this assignment. CDs may be downloaded for a fee from a preferred site.
-The review will need to include:
1.CD title, artist, genre, release date, etc
2.Background information about the artist or artists for those who may not be familiar.
-The review should be between 800 and 1000 words.
-Conventions of good writing (e.g., correct grammar, spelling, appropriate use of quotations, unctuation) should be observed throughout this project. Moreover, it is important to consider the audience and write in a style that is appropriate. Quotations or information from a primary or secondary source should be cited correctly using APA, Turabian, or MLA.
.
-7 Three men are trapped in a cave with no hope of rescue and no foo.docxmadlynplamondon
Judge A belongs to the legal positivist school of thought. He bases his decision solely on statutory law and case precedents interpreting the law, without considering other factors.
Judge B belongs to the natural law school of thought. He believes the laws of nature apply in extraordinary situations where people are cut off from civilization, rather than man-made laws.
Judge C belongs to the sociological jurisprudence school of thought. She bases her decision on a scientific survey of the community's beliefs, rather than just statutory law or precedent.
-1. Are the three main elements of compensation systems—internal.docxmadlynplamondon
-1.
Are the three main elements of compensation systems—internal consistency, market competitiveness, and recognizing employee contributions—equally important, or do you believe that they differ in importance? If different, which do you believe is most important? Least important? Give your rationale.
use 1 online reference and
Martocchio, J. (2017). Strategic Compensation: A human resource management approach (9th ed.). Upper Saddle River, NJ: Pearson.
.
- What are the key differences between national health service (.docxmadlynplamondon
- What are the key differences between national health service (NHS) and national health insurance (NHI) systems?
- How do NHI and NHS systems compare with the health care system in the United States?
- How do most countries with similar levels per capita income differ from and resemble the United States with respect to provider payments, coordination of care, workforce and information technology, and health system performance?
Cite at least 2 peer reviewed journal/article. Write in APA format
.
--Describe and analyze the ways in which Alfons Heck’s participation.docxmadlynplamondon
Alfons Heck participated in the Hitler Youth and Nazi culture as a child, which helped shape his sense of purpose and identity. In his memoir "A Child of Hitler", written many decades later, Heck reflects on his experiences and how the acts of writing and reflection allowed him to craft a new identity in the present. Students are asked to analyze how Heck's participation in the Hitler Youth influenced his identity, and how writing his memoir also impacted his identity later in life, in a 2-4 page paper with citations.
------ Watch an online speechpresentation of 20 minutes or lo.docxmadlynplamondon
------
Watch an online speech/presentation of 20 minutes or longer.
( please cite the presentation you would use)
Write a speech analysis essay of
2-3 pages
I: List the speaker, date, location, & topic, and describe the audience. Describe each of these elements and analyze the effect that each of these elements had on the speaker and/or speech.
II: Describe and analyze the effectiveness of each part of the speaker's introduction (attention getter, revelation of topic, statement of credibility, statement of central idea, preview of main points).
III: Summarize each of the speaker's main points. What pattern of organization did the speaker utilize? Was this effective? Why or why not?
IV: Describe and analyze the effectiveness of the evidence/supporting material that the speaker used.
V: Describe and analyze the effectiveness of the speaker's language.
VI: Describe and analyze the effectiveness of the speaker's delivery.
VII: Describe and analyze the effectiveness of each part of the speaker's conclusion.
.
) Florida National UniversityNursing DepartmentBSN.docxmadlynplamondon
)
Florida National University
Nursing Department
BSN Program
NUR 4636-Community Health Nursing
Prof. Eddie Cruz, RN MSN
Please choose one infectious disease or communicable disease and present a 1,000 words essay including the follow;
Name of the disease including agents that cause Infectious/Communicable Disease, the mode of contamination or how it is spread.
The modes of prevention applying the three levels of prevention with at least one example of each one.
Prevalence and control of the condition according to the Center for Disease Control and Prevention (CDC) including morbidity and mortality.
Implications of the disease in the community and the role of the community health nurse in the control and prevention of the disease.
The essay must be presented in a Word Document, APA format, Arial 12 font attached to the forum in the tab of the Discussion Question title “Infections/Communicable disease essay” and in the assignment tab under the exercise title “SafeAssign infectious/communicable disease”. A minimum of 3 references no older than 5 years must be used. If you use any reference from any website make sure they are reliable sites such as CDC, NIH, Institute of Medicine, etc.
There is a rubric attached to the assignment for your guidance.
Below please see the definitions of infectious disease and communicable disease. They are similar but differ in some characteristics.
Infectious diseases
are disorders caused by organisms — such as bacteria, viruses, fungi or parasites. Many organisms live in and on our bodies. They're normally harmless or even helpful. But under certain conditions, some organisms may cause
disease
. Some
infectious diseases
can be passed from person to person.
Communicable
, or infectious
diseases
, are caused by microorganisms such as bacteria, viruses, parasites and fungi that can be spread, directly or indirectly, from one person to another. Some are transmitted through bites from insects while others are caused by ingesting contaminated food or water.
.
- Please answer question 2 at the end of the case.- cita.docxmadlynplamondon
- Please answer
question 2
at the end of the case.
- citations and references in
IEEE
style
( at least two)
- your answer should be in regards to the case
+
regarding the question itself.
Do it twice ( two different copies)
.
How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
This presentation was provided by Rebecca Benner, Ph.D., of the American Society of Anesthesiologists, for the second session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session Two: 'Expanding Pathways to Publishing Careers,' was held June 13, 2024.
The chapter Lifelines of National Economy in Class 10 Geography focuses on the various modes of transportation and communication that play a vital role in the economic development of a country. These lifelines are crucial for the movement of goods, services, and people, thereby connecting different regions and promoting economic activities.
A Visual Guide to 1 Samuel | A Tale of Two HeartsSteve Thomason
These slides walk through the story of 1 Samuel. Samuel is the last judge of Israel. The people reject God and want a king. Saul is anointed as the first king, but he is not a good king. David, the shepherd boy is anointed and Saul is envious of him. David shows honor while Saul continues to self destruct.
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
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Chapter wise All Notes of First year Basic Civil Engineering.pptxDenish Jangid
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
Traditional Musical Instruments of Arunachal Pradesh and Uttar Pradesh - RAYH...
Disrupted Links in the Performance Management Process at Omega, I.docx
1. Disrupted Links in the Performance Management Process at
“Omega, Inc.”
Omega, Inc., is a small manufacturing company whose sales
success or failure rests in the hands of sales representatives
employed by franchised dealers operating independently. Omega
faces a challenging situation because it does not have control
over the people working for the independent dealerships. It is
the performance of these individuals that dictates Omega’s sales
success. To make things more complicated, until recently there
was no clear understanding of the role of the sales
representatives and there were no formal sales processes in
place. Sales representatives varied greatly in terms of their level
of skill and knowledge; most put out little effort beyond taking
orders, and they did not feel motivated to make additional sales.
Finally, franchises varied greatly regarding their management
strategies and follow-up with Omega.
Recently, understanding the need to improve the performance of
sales representatives, Omega agreed to partially fund and
support a training program for them. The network of franchise
owners in turn agreed to work together to implement a
performance management system. As a first step in creating the
performance management system, the franchise owners
conducted a job analysis of the role of the sale representatives,
wrote a job description, and distributed it to all sales
representatives. The franchise owners also adopted a franchise-
wide mission statement based primarily on the need to provide
high- quality customer service. This mission statement was
posted in all franchise offices, and each franchise owner spoke
with his employees about the contribution made by individual
sales on achieving their mission. As a second step, the managers
set performance goals (i.e., sales quotas) for each employee.
Then, all sales representatives attended extensive training
sessions. The employees received feedback based on their
performance in the training course and then were reminded once
2. again of their sales quotas.
Back on the job, managers gave feedback to their employees
regarding their standing in relation to their sales quotas. Since
the employees had no way of monitoring their own progress
toward their quotas, the performance feedback consisted of little
more than a reiteration of monthly sales goals. There was no
performance appraisal form in place, so discussions were not
documented. This lack of feedback continued, and although
sales quotas were being met for the first few months, franchise
owners received complaints from customers about the low
quality of customer service they were receiving. Subsequently,
sales began to decline.
Furthermore, many orders were often incorrect, forcing
customers to return items to Omega.
While the new performance management process was an
improvement over no performance management (at least
initially), the franchise owners were still far from having a
system that included a smooth transition between each of the
components of the performance management process.
MARKETING PRINCIPLES
MKTG 305
SWOT Assignment – CSUSB
Purpose:
In this assignment you will apply what you have learned from
Chapters 2 and 3 by conducting a SWOT analysis of CSUSB.
Instructions
1. Use the layout template provided in the assignment details.
Save it as a Word document and submit it to Blackboard.
2. Begin by populating the Strengths section of your chart.
3. Identify what you perceive to be the strengths of CSUSB as
compared to other universities. For example, answering the
following questions should provide you with a start, but this list
is not meant to be exhaustive:
a. What advantages does CSUSB have that others don’t have?
b. What does CSUSB do better than anyone else?
c. What resources can CSUSB access?
d. What do other people see as the strengths of CSUSB?
e. What accomplishments should CSUSB be most proud of?
f. What are the values of CSUSB and are they a strength or a
weakness?
g. What is the reputation/brand of CSUSB and is it a strength or
a weakness?
3. Continue to fill in the other three sections in your chart by:
a. Identifying the weaknesses of CSUSB compared to other
universities.
b. Identifying opportunities that exist or will exist in the future
(think environmental scan from Chapter 3) that CSUSB might
be well positioned to take advantage of.
c. Identifying threats that exist or will exist in the future (again,
think environmental scan from Chapter 3) that CSUSB will need
to take steps to address in order to avoid.
4. Follow the layout example below. Use well written, bulleted
sentences and make sure that you provide clear support for each
of your bullet points. For example, you cannot simply state that
the school has a good/bad reputation without providing a
sentence or two to support your position.
Name:
Put your name here!
Company:
Company A
Strengths
Weaknesses
4. Internal
· Second most valuable brand in the world valued at $76 billion
· Diversified income (5 different brands earning more than $4
billion each)
· Strong patents portfolio (15,000 patents)
· Investments in R&D reaching 4 billion a year.
· Competent in mergers & acquisitions
· Have an access to cheap cash reserves
· Effective corporate social responsibility (CSR) projects
· Localized products
· Highly skilled workforce
· Economies of scale or economies of scope
· Investments in R&D are below the industry average
· Very low or zero profit margins
· Poor customer services
· High employee turnover
· High cost structure
· Weak brand portfolio
· Rigid (bureaucratic) organizational culture impeding fast
introduction of new products
· High debt level ($3 billion)
· Brand dilution (the firm has too many brands)
· Poor presence in the world's largest markets
Opportunities
Threats
External
· Market growth for the main firm's product
· Growing demand for renewable energy
· New technology, that would drive production costs by 20% is
in development
· Our country accession to EU
· Changing customer habits
· Disposable income level will increase
· Government's incentives for 'specific' industry
· Economy is expected to grow by 4% next year
5. · Growing number of people buying online
· Interest rates falling to 1%
· Corporate tax may increase from 20% to 22% in 2013
· Rising pay levels
· Rising raw material prices
· Intense competition
· Market is expected to grow by only 1% next year indicating
market saturation
· Increasing fuel prices
· Aging population
· Stricter laws regulating environment pollution
· Lawsuits against the company
· Currency fluctuations
Positive
Negative
Name:
Put your name here!
Company:
California State University, San Bernardino (CSUSB)
Strengths
Weaknesses
Internal
9. Preface viii
Acknowledgments xiii
Dedication xiv
About the Author xiv
PART I Strategic and General Considerations 1
Chapter 1 Performance Management and Reward Systems in
Context 1
1.1 Definition of Performance Management (PM) 2
1.2 The Performance Management Contribution 4
1.3 Disadvantages/Dangers of Poorly Implemented PM Systems
8
1.4 Definition of Reward Systems 10
1.4.1 Base Pay 10
1.4.2 Cost-of-Living Adjustments and Contingent Pay 11
1.4.3 Short-Term Incentives 11
1.4.4 Long-Term Incentives 11
1.4.5 Income Protection 12
1.4.6 Work/Life Focus 13
1.4.7 Allowances 13
1.4.8 Relational Returns 13
1.5 Aims and Role of PM Systems 14
1.5.1 Strategic Purpose 15
1.5.2 Administrative Purpose 16
1.5.3 Informational Purpose 16
1.5.4 Developmental Purpose 16
1.5.5 Organizational Maintenance Purpose 16
1.5.6 Documentational Purpose 17
1.6 Characteristics of an Ideal PM System 18
1.7 Integration with Other Human Resources and Development
10. Activities 23
1.8 Performance Management Around the World 24
� CASE STUDY 1-1: Reality Check: Ideal Versus Actual
Performance
Management System 28
� CASE STUDY 1-2: Performance Management at Network
Solution
s, Inc. 31
� CASE STUDY 1-3: Distinguishing Performance Management
Systems from
Performance Appraisal Systems 32
Chapter 2 Performance Management Process 37
2.1 Prerequisites 38
2.2 Performance Planning 46
2.2.1 Results 46
2.2.2 Behaviors 46
2.2.3 Development Plan 47 iii
11. iv Contents
2.3 Performance Execution 48
2.4 Performance Assessment 49
2.5 Performance Review 50
2.6 Performance Renewal and Recontracting 52
� CASE STUDY 2-1: Job Analysis Exercise 55
� CASE STUDY 2-2: Disrupted Links in the Performance
Management Process
at “Omega, Inc.” 55
� CASE STUDY 2-3: Performance Management at the
University of Ghana 56
Chapter 3 Performance Management and Strategic Planning 59
3.1 Definition and Purposes of Strategic Planning 60
3.2 Process of Linking Performance Management to the
Strategic
Plan 61
3.2.1 Strategic Planning 65
3.2.2 Developing Strategic Plans at the Unit Level 74
3.2.3 Job Descriptions 76
3.2.4 Individual and Team Performance 77
12. 3.3 Building Support 79
� CASE STUDY 3-1: Evaluating Vision and Mission
Statements at Pepsico 82
� CASE STUDY 3-2: Dilbert’s Mission Statement Generator 83
� CASE STUDY 3-3: Linking Individual with Unit and
Organizational
Priorities 84
� CASE STUDY 3-4: Linking Performance Management to
Strategy at
Procter & Gamble 84
PART II System Implementation 87
Chapter 4 Defining Performance and Choosing a Measurement
Approach 87
4.1 Defining Performance 88
4.2 Determinants of Performance 89
4.2.1 Implications for Addressing Performance Problems 90
4.2.2 Factors Influencing Determinants of Performance 91
13. 4.3 Performance Dimensions 91
4.4 Approaches to Measuring Performance 95
4.4.1 Behavior Approach 95
4.4.2 Results Approach 96
4.4.3 Trait Approach 99
� CASE STUDY 4-1: Diagnosing the Causes of Poor
Performance 101
� CASE STUDY 4-2: Differentiating Task from Contextual
Performance 102
� CASE STUDY 4-3: Choosing a Performance Measurement
Approach at
Paychex, Inc. 102
� CASE STUDY 4-4: Deliberate Practice Makes Perfect 103
Chapter 5 Measuring Results and Behaviors 106
5.1 Measuring Results 107
5.1.1 Determining Accountabilities 107
Contents v
14. 5.1.2 Determining Objectives 109
5.1.3 Determining Performance Standards 111
5.2 Measuring Behaviors 112
5.2.1 Comparative Systems 115
5.2.2 Absolute Systems 118
� CASE STUDY 5-1: Accountabilities, Objectives, and
Standards 126
� CASE STUDY 5-2: Evaluating Objectives and Standards 126
� CASE STUDY 5-3: Measuring Competencies at the
Department of
Transportation 127
� CASE STUDY 5-4: Creating BARS-Based Graphic Rating
Scales for
Evaluating Business Student Performance in Team Projects 128
Chapter 6 Gathering Performance Information 130
6.1 Appraisal Forms 131
6.2 Characteristics of Appraisal Forms 137
6.3 Determining Overall Rating 140
6.4 Appraisal Period and Number of Meetings 143
6.5 Who Should Provide Performance Information? 146
15. 6.5.1 Supervisors 146
6.5.2 Peers 146
6.5.3 Subordinates 147
6.5.4 Self 148
6.5.5 Customers 149
6.5.6 Disagreement Across Sources: Is This a Problem? 149
6.6 A Model of Rater Motivation 150
6.7 Preventing Rating Distortion Through Rater Training
Programs 153
� CASE STUDY 6-1: Evaluating an Appraisal Form Used in
Higher Education 157
� CASE STUDY 6-2: Judgmental and Mechanical Methods of
Assigning
Overall Performance Score at The Daily Planet 162
� CASE STUDY 6-3: Minimizing Intentional and Unintentional
Rating Errors 164
� CASE STUDY 6-4: Minimizing Biases in Performance
Evaluation at Expert
Engineering, Inc. 165
Chapter 7 Implementing a Performance Management System
16. 168
7.1 Preparation: Communication, Appeals Process, Training
Programs, and Pilot Testing 169
7.2 Communication Plan 170
7.3 Appeals Process 174
7.4 Training Programs for the Acquisition of Required Skills
176
7.4.1 Rater Error Training 177
7.4.2 Frame of Reference Training 180
7.4.3 Behavioral Observation Training 181
7.4.4 Self-Leadership Training 182
7.5 Pilot Testing 184
7.6 Ongoing Monitoring and Evaluation 185
vi Contents
7.7 Online Implementation 188
� CASE STUDY 7-1: Implementing a Performance Management
Communication Plan at Accounting, Inc. 192
17. � CASE STUDY 7-2: Implementing an Appeals Process at
Accounting, Inc. 192
� CASE STUDY 7-3: Evaluation of Performance Management
System at
Accounting, Inc. 192
� CASE STUDY 7-4: Training the Raters at Big Quality Care
193
PART III Employee Development 195
Chapter 8 Performance Management and Employee
Development 195
8.1 Personal Developmental Plans 196
8.1.1 Developmental Plan Objectives 197
8.1.2 Content of Developmental Plan 199
8.1.3 Developmental Activities 200
8.2 Direct Supervisor’s Role 203
8.3 360-Degree Feedback Systems 206
8.3.1 Advantages of 360-Degree Feedback Systems 213
8.3.2 Risks of Implementing 360-Degree Feedback Systems 215
8.3.3 Characteristics of a Good System 215
� CASE STUDY 8-1: Developmental Plan Form at Old
18. Dominion University 220
� CASE STUDY 8-2: Evaluation of a 360-Degree Feedback
System Demo 220
� CASE STUDY 8-3: Implementation of 360-Degree Feedback
System at Ridge
Intellectual 221
� CASE STUDY 8-4: Personal Developmental Plan at
Brainstorm, Inc.—Part I 221
� CASE STUDY 8-5: Personal Developmental Plan at
Brainstorm, Inc.—
Part II 222
Chapter 9 Performance Management Skills 226
9.1 Coaching 227
9.2 Coaching Styles 233
9.3 Coaching Process 233
9.3.1 Observation and Documentation of Developmental
Behavior
and Outcomes 235
9.3.2 Giving Feedback 239
9.3.3 Disciplinary Process and Termination 245
19. 9.4 Performance Review Meetings 248
� CASE STUDY 9-1: Was Robert Eaton a Good Coach? 256
� CASE STUDY 9-2: What Is Your Coaching Style? 257
� CASE STUDY 9-3: Preventing Defensiveness 259
� CASE STUDY 9-4: Recommendations for Documentation 260
PART IV Reward Systems, Legal Issues, and Team
Performance Management 263
Chapter 10 Reward Systems and Legal Issues 263
10.1 Traditional and Contingent Pay Plans 264
10.2 Reasons for Introducing Contingent Pay Plans 265
Contents vii
10.3 Possible Problems Associated with Contingent Pay Plans
268
10.4 Selecting a Contingent Pay Plan 270
10.5 Putting Pay in Context 272
10.6 Pay Structures 276
10.6.1 Job Evaluation 277
20. 10.6.2 Broad Banding 279
10.7 Performance Management and the Law 280
10.8 Some Legal Principles Affecting Performance
Management 281
10.9 Laws Affecting Performance Management 284
� CASE STUDY 10-1: Making the Case for a CP Plan at
Architects, Inc. 289
� CASE STUDY 10-2: Selecting a CP Plan at Dow
AgroSciences 289
� CASE STUDY 10-3: Contingency Pay Plan at Altenergy LLC
290
� CASE STUDY 10-4: Possible Illegal Discrimination at
Tractors, Inc. 291
Chapter 11 Managing Team Performance 294
11.1 Definition and Importance of Teams 295
11.2 Types of Teams and Implications for Performance
Management 296
11.3 Purposes and Challenges of Team Performance
Management 298
21. 11.4 Including Team Performance in the Performance
Management
System 299
11.4.1 Prerequisites 300
11.4.2 Performance Planning 302
11.4.3 Performance Execution 303
11.4.4 Performance Assessment 304
11.4.5 Performance Review 305
11.4.6 Performance Renewal and Recontracting 306
11.5 Rewarding Team Performance 307
� CASE STUDY 11-1: Not All Teams Are Created Equal 309
� CASE STUDY 11-2: Team Performance Management at Duke
University
Health Systems 310
� CASE STUDY 11-3: Team-Based Rewards for the State of
Georgia 312
� CASE STUDY 11-4: Team Performance Management at Bose
313
Index 315
22. 1 Generating buzz: Idaho Power takes on performance
management to prepare for workforce aging. (2006,
June). Power Engineering. Retrieved November 26, 2010 from
http://www.powergenworldwide.com/index/
display/articledisplay/258477/articles/power-
engineering/volume-110/issue-6/features/generating-buzz-
idaho-power-takes-on-performance-management-to-prepare-for-
workforce-aging.html
2 Workforce performance is top HR priority. (2005). T+D,
59(7), 16.
PREFACE AND INTRODUCTION
In today’s globalized world, it is relatively easy to gain access
to the competition’s technology and
products. Thanks to the Internet and the accompanying high
speed of communications, technolog-
ical and product differentiation is no longer a key competitive
advantage in most industries. For
example, most banks offer the same types of products (e.g.,
various types of savings accounts
and investment opportunities). If a particular bank decides to
offer a new product or service
(e.g., online banking), it will not be long until the competitors
23. offer precisely the same product. As
noted by James Kelley, performance management project leader
at Idaho Power, “technology is a
facilitator, but not a guarantor, of effectiveness or efficiency of
a company’s workforce.”1
So, what makes some businesses more successful than others?
What is today’s key compet-
itive advantage? The answer is people. Organizations with
motivated and talented employees
offering outstanding service to customers are likely to pull
ahead of the competition, even if
the products offered are similar to those offered by the
competitors. This is a key organizational
resource that many label “human capital” and gives
organizations an advantage over the compe-
tition. Customers want to get the right answer at the right time,
and they want to receive their
products or services promptly and accurately. Only having the
right human capital can make
these things happen. Only human capital can produce a
sustainable competitive advantage. And,
performance management systems are the key tools that can be
used to transform people’s talent
and motivation into a strategic business advantage.
24. Unfortunately, although 96% of human
resources (HR) professionals report that performance
management is their number 1 concern,
fewer than 12% of HR executives and technology managers
believe that their organizations have
aligned strategic organizational priorities with employee
performance.2
This edition includes the following six important changes. More
detailed information on
each of these issues is provided in the section titled “Changes in
This Edition.”
• There is an emphasis on the role of the context within which
performance management
takes place.
• This edition emphasizes that knowledge generated regarding
performance management is
essentially multidisciplinary.
• This edition emphasizes the important interplay between
science and practice.
• This edition describes the technical aspects of implementing a
performance management
25. system in detail and, in addition, it emphasizes the key role that
interpersonal dynamics
play in the process.
• This new edition includes new cases in almost every chapter.
Taken together, this new
edition includes a total of 43 case studies.
• Each of the chapters includes new sections.
SOME UNIQUE FEATURES OF THIS BOOK
Performance management is a continuous process of identifying,
measuring, and developing the
performance of individuals and teams and aligning their
performance with the strategic goals of
the organization. Performance management is critical to small
and large, for-profit and not-for-profit,
viii
http://www.powergenworldwide.com/index/display/articledispla
y/258477/articles/power-engineering/volume-110/issue-
6/features/generating-buzzidaho-power-takes-on-performance-
27. not-for-profit sector, the government in England has
implemented what is probably the world’s
biggest performance management system, and, by statutory
force, the performance of teachers and
“headteachers” (i.e., school principals) is now evaluated
systematically. This particular system
includes a massive national effort of approximately 18,000
primary schools, 3,500 secondary schools,
1,100 special schools, 500 nursery schools, 23,000
headteachers, 400,000 teachers, and an unspecified
number of support staff.4
Unfortunately, few organizations use their existing performance
management systems
in productive ways. Performance management is usually vilified
as an “HR department require-
ment.” In many organizations, performance management means
that managers must comply
with their HR department’s request and fill out tedious, and
often useless, evaluation forms.
These evaluation forms are often completed only because it is
required by the “HR cops.”
Unfortunately, the only tangible consequence of the evaluation
process is that the manager has to
spend time away from his or her “real” job duties.
28. This book is about the design and implementation of successful
performance management
systems. In other words, it focuses on research-based findings
and up-to-date applications that
help increase an organization’s human capital. Performance
management is ongoing and cyclical;
however, for pedagogical reasons, the book needs to follow a
linear structure. Because performance
observation, evaluation, and improvement are ongoing
processes, some concepts and practices
may be introduced early in a cursory manner but receive more
detailed treatment in later sections.
Also, this book focuses on best practices and describes the
necessary steps to create a top-notch
performance management system. As a result of practical
constraints and lack of knowledge about
system implementation, many organizations cut corners and do
not implement systems that
follow best practices because of environmental and political
issues (e.g., goals of raters may not be
aligned with goals of the organization). Because the way in
which systems are implemented in
practice is often not close to the ideal system, the book includes
numerous examples from actual
29. organizations to illustrate how systems are implemented given
actual situational constraints.
CHANGES IN THIS EDITION
This edition includes important updates and additional
information. In preparation for revising
and updating this book, I gathered more than 300 potentially
relevant articles and books. About
150 of those were most relevant, and about 50 of those new
sources are now included in this
edition. These sources have been published since the second
edition of the book went into
production. This vast literature demonstrates an increased
interest in performance management
on the part of both academics and practitioners.
This edition includes five important changes throughout the
book. First, there is an emphasis
on the role of the context within which performance
management takes place. Performance manage-
ment does not operate in a vacuum. Rather, it takes place within
a particular organizational context,
and organizations have a particular history, unwritten norms
about what is valued and what is not,
30. 3 Gillespie, T. L., & Parry, R. O. (2009). Students as
employees: Applying performance management principles
in the management classroom. Journal of Management
Education, 33, 553–576.
4 Brown, A. (2005). Implementing performance management in
England’s primary schools. International
Journal of Productivity and Performance Management, 54, 468–
481.
x Preface and Introduction
5 Aguinis, H., Boyd, B. K., Pierce, C. A., & Short, J. C. (2011).
Walking new avenues in management research
methods and theories: Bridging micro and macro domains.
Journal of Management, 37, 395–403.
6 Cascio, W. F., & Aguinis, H. (2008). Research in industrial
and organizational psychology from 1963 to 2007:
Changes, choices, and trends. Journal of Applied Psychology,
93, 1062–1081.
and unwritten norms about communication, trust, interpersonal
relations, and many other factors
31. that influence daily activities. Thus, for example, implementing
a 360-degree feedback system may be
effective in some organizations but not in others (Chapter 8). As
a second illustration, some organiza-
tions may have a culture that emphasizes results more than
behaviors which, in turn, would dictate
that the performance management system also emphasize
results; instead, other organizations may
place an emphasis on long-term goals, which would dictate that
performance be measured by empha-
sizing employee behaviors rather than results (Chapter 4). Also,
we need to understand the contextual
reasons why performance ratings may not be accurate—
particularly if there is no accountability for
raters to provide valid assessments (Chapter 6). As yet another
example, cultural factors affect what
sources are used for performance information: In a country like
Jordan, whose culture determines
more hierarchical organizational structures, the almost
exclusive source of performance information
is supervisors, whereas employees and their peers almost have
no input; this situation is different in
countries with less hierarchical cultures in which not only
performance information is collected from
peers, but also supervisors are rated by their subordinates
32. (Chapter 6). To emphasize the role of
culture, this edition describes examples and research conducted
in organizations in Jordan (Chapter
6); Japan, China, Turkey, Germany, France, South Korea,
Mexico, Australia, and the United Kingdom
(Chapter 1); Brazil (Chapter 3); Hong Kong and the Pearl River
Delta (Chapter 11); Ghana (Chapter 1);
South Africa (Chapter 1); Bulgaria and Romania (Chapter 1);
and India (Chapters 1 and 3).
Second, this edition emphasizes that knowledge generated
regarding performance manage-
ment is essentially multidisciplinary. Accordingly, the sources
used to support best-practice
recommendations offered in this book come from a very diverse
set of fields of study ranging from
micro-level fields focusing on the study of individual and teams
(e.g., organizational behavior,
human resource management) to macro-level fields focusing on
the study of organizations as a
whole (e.g., strategic management). This is consistent with a
general movement toward multidis-
ciplinary and integrative research in the field of management.5
For example, best-practice
recommendations regarding the measurement of performance
33. originate primarily from industrial
and organizational psychology (Chapter 5). On the other hand,
best-practice recommendations
regarding the relationship between performance management
and strategic planning were
derived primarily from theories and research from strategic
management (Chapter 3). In addition,
much of the best-practice recommendations regarding team
performance management originated
from the field of organizational behavior (Chapter 11).
Third, this edition emphasizes the important interplay between
science and practice.
Unfortunately, there is a great divide in management and related
fields between scholars and
practitioners. From the perspective of scholars, much of the
work conducted by practitioners is
seen as relevant but not rigorous. Conversely, from the
perspective of practitioners, the work done
by scholars is seen as rigorous but mostly not relevant. This
“science-practice divide” has been
documented by a content analysis of highly prestigious
scholarly journals, which regularly pub-
lish work that does not seem to be directly relevant to the needs
of managers and organizations.6
34. This edition attempts to bridge this divide by discussing best-
practice recommendations based on
sound theory and research and, at the same time, by discussing
the realities of organizations and
how some of these practices have been implemented in actual
organizations.
Fourth, this edition, as its predecessor, describes the technical
aspects of implementing a
performance management system in detail. In addition, this
edition emphasizes the key role that
interpersonal dynamics play in the process.7 Traditionally,
much of the performance appraisal
literature has focused almost exclusively on the measurement of
performance—for example,
Preface and Introduction xi
whether it is better to use 5-point versus 7-point scales.
However, more recent research suggests
that, related to the issue of context mentioned earlier, issues
such as trust, politics, leadership, nego-
35. tiation, mentorship, communication, and other related topics
related to interpersonal dynamics are
just as important in determining the success of a performance
management system. Accordingly,
this edition discusses the need to establish a helping and
trusting relationship between supervisors
and employees (Chapter 9), the role of an organization’s top
management in determining the
success of a system (Chapter 3), and the motivation of
supervisors to provide accurate performance
ratings (Chapter 6), among many other related issues throughout
the book.
Fifth, this new edition includes new cases in almost every
chapter. Taken together, this
new edition includes a total of 43 case studies. In addition, the
instructor’s manual includes
approximately 4 more cases per chapter, for a total of about 40
additional cases. Thus, depending
on an instructor’s preference, a course based on this new edition
could be taught entirely follow-
ing a case format or using a lecture and case combination
format.
In addition to the aforementioned changes that permeate the
36. entire book, each chapter includes
new sections. As illustrations, consider the following chapter-
by-chapter nonexhaustive additions:
• Performance management around the world (Chapter 1). This
material will be useful in
terms of understanding that although performance management
systems may have similar
goals, their implementation and deployment will be affected by
cultural and contextual
factors depending on where the organization is located.
• Biases in the job analysis process and their effects in the
resulting job analysis ratings
(Chapter 2). This material will be useful in terms of providing
guidelines on how to gather
valid job analysis information.
• Relationship between strategies, goals, and firm performance
(Chapter 3). This new material
will be useful in providing guidelines on the most effective
sequence of implementation of
the various strategic planning steps as it cascades down and
across the various organizational
units.
37. • Voice behavior: Raising constructive challenges with the goal
to improve rather than merely
criticize, challenge the status quo in a positive way, and make
innovative suggestions for
change when others, including an employee’s supervisor,
disagree (Chapter 4). This material
will be useful in terms of understanding the multidimensional
nature of performance and
how different performance dimensions may be valued
differently in different organizations.
• Relative percentile method for measuring performance
(Chapter 5). This material will be
useful regarding the development of measures to assess
performance more accurately.
• Open-ended sections included in most appraisal forms
(Chapter 6). This material will be
useful in terms of learning how to make the most of this
information, which is typically
underutilized in most performance management systems.
• Calculation of return on investment of portions of a
performance management system
38. (Chapter 7). This material will be useful in terms of learning
how to document the relative
effectiveness, in tangible and financial terms, of a performance
management system.
• The feedforward interview (FFI) (Chapter 8). This new
material will be useful in terms of
understanding how the FFI is a process that leads to uncovering
the contextual and per-
sonal conditions that lead to success regarding both
achievement and job satisfaction.
• Disciplinary process that may lead to termination (Chapter 9).
This material will be useful in
terms of providing information on what to do when performance
problems are identified but
employees are unable or unwilling to address them effectively.
• Relationship between new legal regulations and the
implementation of performance
management systems in China (Chapter 10). This new
information will be useful in terms
7Aguinis, H., & Pierce, C. A. (2008). Enhancing the relevance
of organizational behavior by embracing
39. performance management research. Journal of Organizational
Behavior, 29, 139–145.
xii Preface and Introduction
of understanding how the legal environment has a direct impact
on performance
management practices worldwide.
• Types of learning that can take place as part of the team
development plan in the perform-
ance planning stage (Chapter 11). This material will be useful in
terms of providing a
deeper understanding of specific interventions aimed at
improving team learning and
performance.
Further, the following is a nonexhaustive list of specific topics
that have been updated and
expanded in each chapter:
• The discussion of voice behavior (i.e., constructive criticisms
that challenge the status quo
40. and promote innovative improvements) as an important
contribution of performance
management systems, performance management’s contribution
to minimizing employee
misconduct, an expanded discussion of allowances, an expanded
discussion of the four dif-
ferent dimensions of fairness (i.e., procedural, distributive,
interpersonal, and informa-
tional justice), the additional strategic purpose of performance
management systems as a
catalyst for onboarding (i.e., processes helping new employees
to transition from organiza-
tional outsiders to organizational insiders), and the importance
of implementing a system
that is congruent with the cultural norms of the organization as
well as the culture of the re-
gion and country where the organization is located (Chapter 1).
• An expanded discussion of how rater accountability leads to
improved accuracy in perform-
ance ratings (Chapter 6).
• An expanded discussion of how to evaluate whether the
performance management system
is working as intended, and a new section on the
41. implementation of online performance
management systems (Chapter 7).
• A description of the performance review meetings as work
meetings—each one with spe-
cific purposes, the need to separate the performance review
meetings to minimize negative
surprises, an expanded discussion of how to deal with employee
defensiveness during the
performance review meeting, and the need to consider an
employee’s personality (e.g., core
self-evaluations) in the process of giving feedback (Chapter 9).
• An expanded discussion of nonfinancial rewards (Chapter 10).
• New material regarding challenges faced in implementing
performance management with
expatriate teams (Chapter 11).
PLAN FOR THE BOOK
Part I, which includes Chapters 1 through 3, addresses general
as well as strategic considerations
regarding performance management. Chapter 1 discusses the
advantages of implementing a
42. successful performance management system as well as the
negative outcomes associated with
deficient systems, including lowered employee motivation and
perceptions of unfairness. This
chapter also includes what can be described as the features of an
ideal system. Chapter 2
describes the performance management process starting with
what should be done before a
system is implemented and ending with the performance
renewal and recontracting phases.
Chapter 3 links performance management systems with reward
systems and an organization’s
strategic plan. This chapter makes it clear that a good
performance management system is a
critical component of the successful implementation of an
organization’s strategy.
Part II, including Chapters 4 through 7, addresses the details of
system implementation. This
discussion is sufficiently general yet detailed enough so that all
managers, not just HR managers,
will benefit from this material. Chapters 4 and 5 describe some
of the technical aspects associated
with the assessment of performance and how to identify and
measure both behaviors and results.
43. Chapter 6 discusses appraisal forms and various types of rating
schemes, and it discusses the
Preface and Introduction xiii
advantages and disadvantages of using various sources of
performance information (e.g., supervisor,
peers, and customers). Finally, Chapter 7 describes the steps
involved in implementing a
performance management system, including a communication
plan and pilot testing of the system
before it is implemented.
Part III, including Chapters 8 and 9, addresses employee
development issues. Chapter 8
includes a description of employee developmental plans and the
advantages of using 360-degree
systems for developmental purposes. Chapter 9 addresses the
skills needed by supervisors to
observe and assess performance as well as those needed to
provide constructive feedback.
Part IV, including Chapters 10 and 11, concerns the relationship
44. among performance
management, rewards, the law, and teams. Chapter 10 includes a
discussion of traditional and
contingent pay plans, pay structures, and their links to
performance management. In addition, this
chapter provides a discussion of legal issues to consider when
implementing a performance man-
agement system. Finally, Chapter 11 addresses the timely topic
of how to design and implement
performance management systems dealing with team
performance.
FACULTY RESOURCES
Each of the chapters includes a list of its learning objectives as
well as summary points and cases for
discussion. I hope this additional material will allow students to
have an enjoyable and productive
learning experience that will enhance your own individual
human capital. Also, there are several
resources available for instructors including PowerPoint slides,
exam questions and answers
(multiple choice and essay-type), role plays, and approximately
40 additional cases (about 4 per
chapter) that can be used for in-class discussions, examination
45. materials, or take-home homework
or examinations. These materials will allow instructors to
prepare for teaching this course more
quickly and help make teaching this course a more enjoyable
and interactive experience. These fac-
ulty resources can be downloaded by visiting
www.pearsonhighered.com/aguinis and clicking on
Instructor Resources.
ACKNOWLEDGMENTS
I would like to thank several individuals who were extremely
instrumental in allowing me to
write the first edition, second, and current third edition of this
book. I am indebted to Graeme
Martin for encouraging me to start this project. Wendy
O’Connell and Jon Dale helped me
gather the numerous examples and illustrations that I have used
throughout. Barbara Stephens
helped me update many of these examples in the second edition.
Christine Henle allowed me to
use her extremely useful lecture notes. Barbara Stephens,
Bonnie Davis, Debra Lammers, and
Ray Zammuto gave me excellent and detailed comments that
allowed me to improve each of
46. the chapters. Harry Joo, Ryan K. Gottfredson, and Sofia J.
Vaschetto assisted me in writing the
Instructor’s Manual for this edition. Teaching and giving
lectures and workshops on perform-
ance management at the Instituto de Empresa (Madrid, Spain),
Université Jean Moulin Lyon 3
(Lyon, France), University of Johannesburg (South Africa),
University of Salamanca (Spain),
and University of Melbourne (Australia) allowed me to test and
improve various sections of the
book. Finally, this edition benefited from the feedback provided
by Lynn K. Bartels, Robyn A.
Berkley, Perry A. Barton, Alan Cabelly, and Clifford E.
Thermer, who have used the second
edition to teach courses at universities throughout the United
States and were kind enough to
offer their suggestions for improvements and additions. I thank
each of you for your time and
intellectual investment in this project. Your coaching and
feedback certainly helped me improve
my performance!
Herman Aguinis
Bloomington, Indiana
47. www.pearsonhighered.com/aguinis
ABOUT THE AUTHOR
Dr. Herman Aguinis is the Dean’s Research Professor, Professor
of Organizational Behavior and
Human Resources, and the Founding Director of the Institute for
Global Organizational
Effectiveness at Indiana University’s Kelley School of
Business. He has been a visiting scholar at
universities in the People’s Republic of China (Beijing and
Hong Kong), Malaysia, Singapore,
Australia, Argentina, France, Puerto Rico, South Africa, and
Spain. His teaching, research, and
consulting activities are in the areas of human capital
acquisition, development, and deployment.
Dr. Aguinis wrote Applied Psychology in Human Resource
Management (with Wayne F. Cascio,
7th ed., 2011, Prentice Hall) and Regression Analysis for
Categorical Moderators (2004, Guilford) and
edited Test-Score Banding in Human Resource Selection (2004,
Praeger) and Opening the Black Box of
Editorship (with Y. Baruch, A. M. Konrad, & W. H. Starbuck,
2008, Palgrave-Macmillan). In addi-
48. tion, he has written more than 90 refereed journal articles in
Academy of Management Journal,
Academy of Management Review, Journal of Applied
Psychology, Personnel Psychology, Organizational
Behavior and Human Decision Processes, and elsewhere. Dr.
Aguinis is a Fellow of the American
Psychological Association, the Society for Industrial and
Organizational Psychology, and
the Association for Psychological Science, and has been
inducted into the Society of
Organizational Behavior. He has served as Division Chair for
the Research Methods Division of
the Academy of Management, Program Chair for the
Iberoamerican Academy of Management,
and editor-in-chief for the journal Organizational Research
Methods. He has delivered more than
180 presentations at professional conferences and more than 90
invited presentations at universi-
ties in more than 20 countries around the world, and consulted
with numerous organizations in
the United States, Europe, and Latin America using his English,
Spanish, French, Italian, and
German language skills. For more information, please visit
http://mypage.iu.edu/~haguinis/
49. xiv
DEDICATION
To my dear friend Ariel Aisiks, true visionary and global leader
who has
been teaching me how to be a top performer for more than 30
years.
http://mypage.iu.edu/~haguinis/
1
A manager is responsible for the application
and performance of knowledge.
—PETER F. DRUCKER
LEARNING OBJECTIVES
By the end of this chapter, you will be able to do the following:
� Explain the concept of performance management (PM).
� Distinguish performance management from performance
appraisal.
50. � Explain the many advantages and make a business case for
implementing
a well-designed performance management system.
� Recognize the multiple negative consequences that can arise
from the poor design and
implementation of a performance management system. These
negative consequences
affect all the parties involved: employees, supervisors, and the
organization as a whole.
� Understand the concept of a reward system and its
relationship to a performance
management system.
� Distinguish among the various types of employee rewards,
including
compensation, benefits, and relational returns.
� Describe the multiple purposes of a performance management
system including
strategic, administrative, informational, developmental,
organizational
maintenance, and documentational purposes.
51. � Describe and explain the key features of an ideal performance
management system.
PART I: STRATEGIC AND GENERAL CONSIDERATIONS
Chapter 1
Performance Management
and Reward Systems in Context
2 Part I • Strategic and General Considerations
� Create a presentation providing persuasive arguments in
support of the reasons that
an organization should implement a performance management
system, including
the purposes that performance management systems serve and
the dangers of a
poorly implemented system.
� Note the relationships and links between a performance
management system and
52. other human resources functions, including recruitment and
selection, training and
development, workforce planning, and compensation.
� Describe and explain contextual and cultural factors that
affect the implementation
of performance management systems around the world.
1.1 DEFINITION OF PERFORMANCE MANAGEMENT
Consider the following scenario:
Sally is a sales manager at a large pharmaceutical company. The
fiscal year
will end in one week. She is overwhelmed with end-of-the-year
tasks,
including reviewing the budget she is likely to be allocated for
the following
year, responding to customers’ phone calls, and supervising a
group of
10 salespeople. It’s a very hectic time, probably the most hectic
time of the
year. She receives a phone call from the human resources (HR)
department:
“Sally, we have not received your performance reviews for your
53. 10 employees;
they are due by the end of the fiscal year.” Sally thinks, “Oh,
those perform-
ance reviews. . . .What a waste of my time!” From Sally’s point
of view, there
is no value in filling out those seemingly meaningless forms.
She does not
see her subordinates in action because they are in the field
visiting customers
most of the time. All that she knows about their performance is
based on
sales figures, which depend more on the products offered and
geographic
territory covered than the individual effort and motivation of
each sales-
person. And, nothing happens in terms of rewards, regardless of
her ratings.
These are lean times in her organization, and salary adjustments
are based
on seniority rather than on merit. She has less than three days to
turn in her
forms. What will she do? She decides to follow the path of least
resistance: to
please her employees and give everyone the maximum possible
rating. In
54. this way, Sally believes the employees will be happy with their
ratings and
she will not have to deal with complaints or follow-up meetings.
Sally fills
out the forms in less than 20 minutes and gets back to her “real
job.”
There is something very wrong with this picture, which
unfortunately happens all
too frequently in many organizations. Although Sally’s HR
department calls this
process “performance management,” it is not.
Performance management is a continuous process of identifying,
measuring, and devel-
oping the performance of individuals and teams and aligning
performance with the strategic goals
of the organization. Let’s consider each of the definition’s two
main components:
1. Continuous process. Performance management is ongoing. It
involves a
neverending process of setting goals and objectives, observing
performance,
and giving and receiving ongoing coaching and feedback.1
55. Chapter 1 • Performance Management and Reward Systems in
Context 3
2. Alignment with strategic goals. Performance management
requires that
managers ensure that employees’ activities and outputs are
congruent with the
organization’s goals and, consequently, help the organization
gain a competitive
advantage. Performance management therefore creates a direct
link between
employee performance and organizational goals and makes the
employees’ contri-
bution to the organization explicit.
Note that many organizations have what is labeled a
“performance management”
system. However, we must distinguish between performance
management and
performance appraisal. A system that involves employee
evaluations once a year
without an ongoing effort to provide feedback and coaching so
56. that performance can be
improved is not a true performance management system.
Instead, this is only a
performance appraisal system. Performance appraisal is the
systematic description of
an employee’s strengths and weaknesses. Thus, performance
appraisal is an important
component of performance management, but it is just a part of a
bigger whole because
performance management is much more than just performance
measurement.2
As an illustration, consider how Merrill Lynch has transitioned
from a perform-
ance appraisal system to a performance management system.
Merrill Lynch is one
of the world’s leading financial management and advisory
companies, with offices in 37
countries and private client assets of approximately US$ 1.6
trillion (http://ml.com/). As
an investment bank, it is a leading global underwriter of debt
and equity securities and
strategic adviser to corporations, governments, institutions, and
individuals world-
wide. Recently, Merrill Lynch started the transition from giving
57. employees one per-
formance appraisal per year to focusing on one of the important
principles of
performance management: the conversation between managers
and employees in
which feedback is exchanged and coaching is given if needed.
In January, employees
and managers set employee objectives. Mid-year reviews assess
what progress has been
made toward the goals and how personal development plans are
faring. Finally, the
end-of-the-year review incorporates feedback from several
sources, evaluates progress
toward objectives, and identifies areas that need improvement.
Managers also get
extensive training on how to set objectives and conduct reviews.
In addition, there is a
Web site that managers can access with information on all
aspects of the performance
management system. In sharp contrast to its old performance
appraisal system, Merrill
Lynch’s goal for its newly implemented performance
management program is worded
as follows: “This is what is expected of you, this is how we’re
going to help you in your
58. development, and this is how you’ll be judged relative to
compensation.”3
As a second example, consider the performance management
system for managers
at Germany-based Siemens, which provides mobile phones,
computer networks, and
wireless technology and employs 475,000 people in 190
countries (www.siemens.com).
At Siemens, the performance management system is based on
three pillars: setting clear
and measurable goals, implementing concrete actions, and
imposing rigorous
consequences. The performance management at Siemens has
helped change people’s
mind-set, and the organization is now truly performance
oriented. Every manager
understands that performance is a critical aspect of working at
Siemens, and this guiding
philosophy is communicated in many ways throughout the
organization.4
Performance management systems that do not make explicit the
employee con-
tribution to the organizational goals are not true performance
59. management systems.
Making an explicit link between an employee’s performance
objectives and the
www.siemens.com
http://ml.com/
4 Part I • Strategic and General Considerations
organizational goals also serves the purpose of establishing a
shared understanding
about what is to be achieved and how it is to be achieved. This
is painfully clear in
Sally’s case described earlier: from her point of view, the
performance review forms
did not provide any useful information regarding the
contribution of each of her
subordinates to the organization. Sally’s case is unfortunately
more common than we
would like. A survey conducted by the consulting firm Watson
Wyatt showed that
only 3 in 10 employees believe their companies’ performance
review systems actually
helped them improve their performance.5
60. In subsequent chapters, we describe best practices on how to
design and implement
performance management systems. For now, however, let’s say
that well-designed and
implemented performance management systems make
substantial contributions to the
organization. This is why a recent survey of almost 1,000 HR
management professionals
in Australia revealed that 96% of Australian companies
currently implement some type of
performance management system.6 Similarly, results of a
survey of 278 organizations,
about two-thirds of which are multinational corporations, from
15 different countries,
indicated that about 91% of organizations implement a formal
performance management
system.7 Moreover, organizations with formal and systematic
performance management
systems are 51% more likely to perform better than the other
organizations in the sample
regarding financial outcomes, and 41% more likely to perform
better than the other
organizations in the sample regarding other outcomes including
customer satisfaction,
61. employee retention, and other important metrics. Based on these
results, it is not surpris-
ing that senior executives of companies listed in the Sunday
Times list of best employers in
the United Kingdom believe that performance management is
one of the top two most
important HR management priorities in their organizations.8
Let’s describe these
performance management contributions in detail.
1.2 THE PERFORMANCE MANAGEMENT CONTRIBUTION
There are many advantages associated with the implementation
of a performance
management system.9 A performance management system can
make the following
important contributions:10
1. Motivation to perform is increased. Receiving feedback about
one’s performance
increases the motivation for future performance. Knowledge
about how one is
doing and recognition about one’s past successes provide the
fuel for future
accomplishments.
62. 2. Self-esteem is increased. Receiving feedback about one’s
performance fulfills a
basic human need to be recognized and valued at work. This, in
turn, is likely to
increase employees’ self-esteem.
3. Managers gain insight about subordinates. Direct supervisors
and other
managers in charge of the appraisal gain new insights into the
person being
appraised. The importance of knowing your employees is
highlighted by the fact
that the Management Standards Centre, the government-
recognized organization
in the United Kingdom for setting standards for the management
and leadership
areas, has recognized that developing productive relationships
with colleagues is
a key competency for managers (http://www.management-
standards.org, Unit
D2). Gaining new insights into a person’s performance and
personality will help
http://www.management-standards.org
63. Chapter 1 • Performance Management and Reward Systems in
Context 5
the manager build a better relationship with that person. Also,
supervisors gain a
better understanding of each individual’s contribution to the
organization. This
can be useful for direct supervisors as well as for supervisors
once removed.
4. The definitions of job and criteria are clarified. The job of
the person being
appraised may be clarified and defined more clearly. In other
words, employees
gain a better understanding of the behaviors and results required
of their specific
position. Employees also gain a better understanding of what it
takes to be a
successful performer (i.e., what are the specific criteria that
define job success).
5. Self-insight and development are enhanced. The participants
in the system
64. are likely to develop a better understanding of themselves and
of the kind of
development activities that are of value to them as they progress
through the
organization. Participants in the system also gain a better
understanding of
their particular strengths and weaknesses that can help them
better define
future career paths.
6. Administrative actions are more fair and appropriate.
Performance management
systems provide valid information about performance that can
be used for adminis-
trative actions such as merit increases, promotions, and
transfers as well as termina-
tions. In general, a performance management system helps
ensure that rewards are
distributed on a fair and credible basis. In turn, such decisions
based on a sound
performance management system lead to improved interpersonal
relationships and
enhanced supervisor–subordinate trust.11 For example, a good
performance man-
agement system can help mitigate explicit or implicit emphasis
65. on age as a basis for
decisions. This is particularly important given the aging
working population in the
United States, Europe, and many other countries around the
world.12
7. Organizational goals are made clear. The goals of the unit
and the organization are
made clear, and the employee understands the link between
what she does and orga-
nizational success. This is a contribution to the communication
of what the unit and
the organization are all about and how organizational goals
cascade down to the unit
and the individual employee. Performance management systems
can help improve
employee acceptance of these wider goals (i.e., organizational
and unit levels).
8. Employees become more competent. An obvious contribution
is that employee
performance is improved. In addition, there is a solid
foundation for helping
employees become more successful by establishing
developmental plans.
66. 9. Employee misconduct is minimized.13 Employee misconduct
is an increasingly
pervasive phenomenon that has received widespread media
coverage. Such
misconduct includes accounting irregularities, churning
customer accounts, abus-
ing overtime policies, giving inappropriate gifts to clients and
potential clients
hoping to secure their business, and using company resources
for personal use.
Although some individuals are more likely to engage in
misconduct compared to
others based on individual differences in personality and other
attributes, having
a good performance management in place provides the
appropriate context so
that misconduct is clearly defined and labeled as such and
identified early on
before it leads to sometimes irreversible negative consequences.
10. There is better protection from lawsuits. Data collected
through performance
management systems can help document compliance with
regulations (e.g.,
67. equal treatment of all employees regardless of sex or ethnic
background). When
performance management systems are not in place, arbitrary
performance
6 Part I • Strategic and General Considerations
evaluations are more likely, resulting in an increased exposure
to litigation for
the organization.
11. There is better and more timely differentiation between
good and poor performers.
Performance management systems allow for a quicker
identification of good and
poor performers. Also, they force supervisors to face up to and
address performance
problems on a timely basis (i.e., before the problem becomes so
entrenched that it
cannot be easily remedied).
12. Supervisors’ views of performance are communicated more
clearly. Performance
68. management systems allow managers to communicate to their
subordinates their
judgments regarding performance. Thus, there is greater
accountability in how man-
agers discuss performance expectations and provide feedback.
Both assessing and
monitoring the performance of others are listed as key
competencies for
managers by the Management Standards Centre
(www.management-standards.org,
Units B3, B4, and B7). When managers possess these
competencies, subordinates
receive useful information about how their performance is seen
by their supervisor.
13. Organizational change is facilitated. Performance
management systems can
be a useful tool to drive organizational change. For example,
assume an organi-
zation decides to change its culture to give top priority to
product quality and
customer service. Once this new organizational direction is
established, per-
formance management is used to align the organizational culture
with the goals
69. and objectives of the organization to make change possible.
Employees are pro-
vided training in the necessary skills and are rewarded for
improved perform-
ance so that they have both the knowledge and motivation to
improve product
quality and customer service. This is precisely what IBM did in
the 1980s when
it wanted to switch focus to customer satisfaction: the
performance evaluation of
every member in the organization was based, to some extent, on
customer satis-
faction ratings regardless of function (i.e., accounting,
programming, manufac-
turing, etc.).14 For IBM as well as numerous other
organizations, performance
management provides tools and motivation for individuals to
change, which, in
turn, helps drive organizational change. In short, performance
management sys-
tems are likely to produce changes in the culture of the
organization and, there-
fore, the consequences of such cultural changes should be
considered carefully
before implementing the system.15 As noted by Randy
70. Pennington, president of
Pennington Performance Group, “The truth is that the culture
change is driven
by a change in performance. An organization’s culture cannot
be installed. It can
be guided and influenced by policies, practices, skills, and
procedures that are
implemented and reinforced. The only way to change the culture
is to change
the way individuals perform on a daily basis.”16
14. Motivation, commitment, and intentions to stay in the
organization are
enhanced. When employees are satisfied with their
organization’s perform-
ance management system, they are more likely to be motivated
to perform well,
to be committed to their organization, and not try to leave the
organization.17
For example, satisfaction with the performance management
system is likely to
make employees feel that the organization has a great deal of
personal meaning
for them. In terms of turnover intentions, satisfaction with the
71. performance
management system leads employees to report that they will
probably not look
for a new job in the next year and that they don’t often think
about quitting
www.management-standards.org
Chapter 1 • Performance Management and Reward Systems in
Context 7
their present job. As an illustration of this point, results of a
study including
93 professors at a university in South Africa suggested that the
implementation
of a good performance management system would be useful in
preventing
them from leaving their university jobs.18
15. Voice behavior is encouraged. A well-implemented
performance management
system allows employees to engage in voice behavior that can
lead to improved
organizational processes. Voice behavior involves making
72. suggestions for changes
and improvements that are innovative, challenge the status quo,
are intended to be
constructive, and are offered even when others disagree.19 For
example, the per-
formance review meeting can lead to a conversation during
which the employee
provides suggestions on how to reduce cost or speed up specific
process.
16. Employee engagement is enhanced. A good performance
management system
leads to enhanced employee engagement. Employees who are
engaged feel
involved, committed, passionate, and empowered. Moreover,
these attitudes and
feelings result in behaviors that are innovative and, overall,
demonstrate good
organizational citizenship and take action in support of the
organization.
Employee engagement is an important predictor of
organizational performance
and success and, consequently, engagement is an important
contribution of good
performance management systems.20
73. Table 1.1 lists the 16 contributions made by performance
management systems.
Recall Sally’s situation earlier in the chapter. Which of the
contributions included in
Table 1.1 result from the system implemented at Sally’s
organization? For example, are
Sally’s employees more motivated to perform as a consequence
of implementing their
“performance management” system? Is their self-esteem
increased? What about Sally’s
Contributions of Performance Management Systems
Motivation to perform is increased.
Self-esteem is increased.
Managers gain insight about subordinates.
The definitions of job and criteria are clarified.
Self-insight and development are enhanced.
Administrative actions are more fair and appropriate.
74. Organizational goals are made clear.
Employees become more competent.
Employee misconduct is minimized.
There is better protection from lawsuits.
There is better and more timely differentiation between good
and poor performers.
Supervisors’ views of performance are communicated more
clearly.
Organizational change is facilitated.
Motivation, commitment, and intentions to stay in the
organization are enhanced.
Voice behavior is encouraged.
Employee engagement is enhanced.
TABLE 1.1
75. 8 Part I • Strategic and General Considerations
BOX 1.1
What CEOs Say About the Contribution of Performance
Management Systems
A study conducted by Development Dimensions International
(DDI), a global human resources
consulting firm specializing in leadership and selection, found
that performance management
systems are a key tool that organizations use to translate
business strategy into business results.
Specifically, performance management systems influence
“financial performance, productivity,
product or service quality, customer satisfaction, and employee
job satisfaction.” In addition,
79% of the CEOs surveyed say that the performance
management system implemented in their
organizations drives the “cultural strategies that maximize
human assets.”21
insight and understanding of her employees’ contributions to
76. the organization?
Is Sally’s organization now better protected in the face of
potential litigation?
Unfortunately, the system implemented at Sally’s organization
is not a true perform-
ance management system but simply an administrative nuisance.
Consequently, many,
if not most, of the potential contributions of the performance
management system are
not realized. In fact, poorly implemented systems, as in the case
of Sally’s organization,
not only do not make positive contributions but also can be very
dangerous and lead to
several negative outcomes.
1.3 DISADVANTAGES/DANGERS OF POORLY
IMPLEMENTED PM SYSTEMS
What happens when performance management systems do not
work as intended, as in
the case of Sally’s organization? What are some of the negative
consequences associated
with low-quality and poorly implemented systems? Consider the
following list:
77. 1. Increased turnover. If the process is not seen as fair,
employees may become
upset and leave the organization. They can leave physically
(i.e., quit) or
withdraw psychologically (i.e., minimize their effort until they
are able to find a
job elsewhere).
2. Use of misleading information. If a standardized system is
not in place, there
are multiple opportunities for fabricating information about an
employee’s
performance.
3. Lowered self-esteem. Self-esteem may be lowered if feedback
is provided
in an inappropriate and inaccurate way. This, in turn, can create
employee
resentment.
4. Wasted time and money. Performance management systems
cost money and
quite a bit of time. These resources are wasted when systems
are poorly designed
and implemented.
78. 5. Damaged relationships. As a consequence of a deficient
system, the relationship
among the individuals involved may be damaged, often
permanently.
6. Decreased motivation to perform. Motivation may be lowered
for many reasons,
including the feeling that superior performance is not translated
into meaningful
tangible (e.g., pay increase) or intangible (e.g., personal
recognition) rewards.
Chapter 1 • Performance Management and Reward Systems in
Context 9
7. Employee burnout and job dissatisfaction. When the
performance assessment
instrument is not seen as valid and the system is not perceived
as fair, employees
are likely to feel increased levels of job burnout and job
dissatisfaction. As a con-
sequence, employees are likely to become increasingly
79. irritated.22
8. Increased risk of litigation. Expensive lawsuits may be filed
by individuals who
feel they have been appraised unfairly.
9. Unjustified demands on managers’ and employees’ resources.
Poorly imple-
mented systems do not provide the benefits provided by well-
implemented
systems, yet they take up managers’ and employees’ time. Such
systems will be
resisted because of competing obligations and allocation of
resources (e.g., time).
What is sometimes worse, managers may simply choose to avoid
the system
altogether, and employees may feel increased levels of
overload.23
10. Varying and unfair standards and ratings. Both standards
and individual
ratings may vary across and within units and be unfair.
11. Emerging biases. Personal values, biases, and relationships
are likely to replace
80. organizational standards.
12. Unclear ratings system. Because of poor communication,
employees may not
know how their ratings are generated and how the ratings are
translated into
rewards.
Table 1.2 summarizes the list of disadvantages and negative
consequences resulting
from the careless design and implementation of a performance
management system. Once
again, consider Sally’s organization. What are some of the
consequences of the system
implemented by her company? Let’s consider each of the
consequences listed in Table 1.2.
For example, is it likely that the performance information used
is false and misleading?
How about the risk of litigation? How about the time and money
invested in collecting,
compiling, and reporting the data? Unfortunately, an analysis of
Sally’s situation, taken
with the positive and negative consequences listed in Tables 1.1
and 1.2, leads to the con-
clusion that this particular system is more likely to do harm
81. than good. Now think about
TABLE 1.2 Disadvantages/Dangers of Poorly Implemented
Performance Management Systems
Increased turnover
Use of false or misleading information
Lowered self-esteem
Wasted time and money
Damaged relationships
Decreased motivation to perform
Employee job burnout and job dissatisfaction
Increased risk of litigation
Unjustified demands on managers’ and employees’ resources
Varying and unfair standards and ratings
82. Emerging biases
Unclear ratings system
10 Part I • Strategic and General Considerations
the system implemented at your current organization or at the
organization you have
worked for most recently. Take a look at Tables 1.1 and 1.2.
Where does the system fit best?
Is the system more closely aligned with some of the positive
consequences listed in Table
1.1 or more closely aligned with some of the negative
consequences listed in Table 1.2?
One of the purposes of a performance management system is to
make decisions
about employees’ compensation (e.g., pay raises). For many
employees, this is perhaps
one of the most meaningful consequences of a performance
management system.
Chapter 10 provides a detailed discussion of how a performance
management system is
83. used to allocate rewards. However, here we will discuss some
basic features of reward
systems and the extent to which the allocation of various types
of rewards is dependent
on the performance management system.
1.4 DEFINITION OF REWARD SYSTEMS
An employee’s compensation, usually referred to as tangible
returns, includes cash
compensation (i.e., base pay, cost-of-living and merit pay,
short-term incentives, and
long-term incentives) and benefits (i.e., income protection,
work/life focus, tuition
reimbursement, and allowances). However, employees also
receive intangible returns,
also referred to as relational returns, which include recognition
and status, employment
security, challenging work, and learning opportunities. A
reward system is the set of
mechanisms for distributing both tangible and intangible returns
as part of an employ-
ment relationship.
It should be noted that not all types of returns are directly
84. related to performance
management systems. This is the case because not all types of
returns are allocated
based on performance. For example, some allocations are based
on seniority as opposed
to performance. The various types of returns are defined next.25
1.4.1 Base Pay
Base pay is given to employees in exchange for work
performed. The base pay, which
usually includes a range of values, focuses on the position and
duties performed rather
than an individual’s contribution. Thus, the base pay is usually
the same for all employ-
ees performing similar duties and ignores differences across
employees. However,
BOX 1.2
What Happens When Performance Management Is Implemented
Poorly?
One example of a poorly implemented performance management
system resulted in a $1.2 million
85. lawsuit. A female employee was promoted several times and
succeeded in the construction industry
until she started working under the supervision of a new
manager. She stated in her lawsuit that
once she was promoted and reported to the new manager, the
boss ignored her and did not give her
the same support or opportunities for training that her male
colleagues received. After eight months
of receiving no feedback from her manager, she was called into
his office, where the manager told
her that she was failing, resulting in a demotion and a $20,000
reduction in her annual salary. When
she won her sex-discrimination lawsuit, a jury awarded her $1.2
million in emotional distress and
economic damages.24
Chapter 1 • Performance Management and Reward Systems in
Context 11
differences within the base pay range may exist based on such
variables as experience
and differential performance. In some countries (e.g., United
States), there is a differ-
86. ence between wage and salary. Salary is base cash compensation
received by employees
who are exempt from regulations of the Fair Labor Standards
Act and, in most cases,
cannot receive overtime pay. Employees in most professional
and managerial jobs (also
called salaried employees) are exempt employees. On the other
hand, nonexempt
employees receive their pay calculated on an hourly wage.
1.4.2 Cost-of-Living Adjustments and Contingent Pay
Cost-of-living adjustments (COLA) imply the same percentage
increase for all employees
regardless of their individual performance. Cost-of-living
adjustments are given to com-
bat the effects of inflation in an attempt to preserve the
employees’ buying power. For
example, in 2003 in the United States, organizations that
implemented a COLA used a
2.1% pay increase. In 2001, this same percentage was only
1.4%. Year-by-year COLA
percentages can be obtained from such agencies as the Social
Security Administration in
the United States
87. (http://www.ssa.gov/OACT/COLA/colaseries.html).
Contingent pay, sometimes referred to as merit pay, is given as
an addition to the
base pay based on past performance. Chapter 10 describes the
topic of contingent pay
in detail. In a nutshell, contingent pay means that the amount of
additional compensa-
tion depends on an employee’s level of performance. So, for
example, the top 20% of
employees in the performance score distribution may receive a
10% annual increase,
whereas employees in the middle 70% of the distribution may
receive a 4% increase,
and employees in the bottom 10% may receive no increase at
all.
1.4.3 Short-Term Incentives
Similar to contingent pay, short-term incentives are allocated
based on past performance.
However, incentives are not added to the base pay and are only
temporary pay adjust-
ments based on the review period (e.g., quarterly or annual).
Incentives are one-time
88. payments and are sometimes referred to as variable pay.
A second difference between incentives and contingent pay is
that incentives are
known in advance. For example, a salesperson in a
pharmaceutical company knows
that if she meets her sales quota, she will receive a $3,000
bonus at the end of the quar-
ter. She also knows that if she exceeds her sales quota by 10%,
her bonus will be $6,000.
By contrast, in the case of contingent pay, in most cases, the
specific value of the reward
is not known in advance.
1.4.4 Long-Term Incentives
Whereas short-term incentives usually involve an attempt to
motivate performance in
the short term (i.e., quarter, year) and involve cash bonuses or
specific prizes (e.g., two
extra days off), long-term incentives attempt to influence future
performance over a
longer period of time. Typically, they involve stock ownership
or options to buy stocks
at a preestablished and profitable price. The rationale for long-
89. term incentives is that
employees will be personally invested in the organization’s
success, and this invest-
ment is expected to translate into a sustained high level of
performance.
Both short-term and long-term incentives are quite popular.
Take, for example, the
public sector in the United States. A survey administered in late
1998 to 25 state and 400
http://www.ssa.gov/OACT/COLA/colaseries.html
12 Part I • Strategic and General Considerations
local governments employing more than six people showed that
all but one of the state
governments and 242 (i.e., 85%) of the local governments used
some type of incentive.26
Some organizations are taking this idea to what may be called
“big pay for big
performance.” Contingent pay plans will be discussed in detail
in Chapter 10. In the
90. meantime, consider the case of a Denver, Colorado, energy
company, Delta Petroleum,
which gave four top executives 1.5 million shares the day the
stock closed at $21.76, for
a total value of $32.6 million.28 However, there is a catch:
Delta stock will have to reach
$40 per share for the executives to be able to sell theirs. If this
value is not reached, the
executives’ shares cannot be cashed in. Moreover, the
executives will be able to sell only
one-sixth of their shares when the price reaches $40. They will
be able to sell another
one-sixth if and when the stock price reaches $50, and another
sixth if and when it
reaches $60. And there is yet another restriction: time. The first
batch of stock that vests
at $40 must reach that value within 13 months of the time the
executives received the
options. If the value of $40 is not reached within this time
frame, the second and third
batches of stock cannot be cashed in and they simply disappear.
1.4.5 Income Protection
Income protection programs serve as a backup to employees’
91. salaries in the event that
an employee is sick, disabled, or no longer able to work. Some
countries mandate
income protection programs by law. For example, Canadian
organizations pay into a
fund that provides income protection in the case of a disability.
Take, for instance, the
University of Alberta, which offers a monthly income of 70% of
salary to employees
who become severely disabled. In the United States, employers
pay 50% of an
employee’s total contribution to Social Security so that income
is protected for family
members in case of an employee’s death or a disability that
prevents the employee
from doing substantial work for one year and for an employee
when he or she reaches
retirement age. For example, a 40-year-old employee earning an
annual salary of
BOX 1.3
Short-Term Incentives for Physicians
Short-term incentives are being used in a test pilot program in
92. Colorado Springs, Colorado. Eight
health-care providers and three insurance companies have
teamed up with the nonprofit Colorado
Business Group on Health to pay physicians up to $100 in cash
per patient for providing diabetes
care that results in positive outcomes for patients. Doctors in
the program receive the additional pay
as an incentive without an increase to base salary. The program
requires doctors to work closely
with patients and focus on preventative medicine, including
education, goal-setting, and follow-up
meetings. Physical indicators, such as blood pressure, blood
sugar, and cholesterol, are measured
against goals to determine whether successful outcomes are
being achieved. The goals of the
program are to provide better disease control for the patient and
to cut down on expensive future
treatments, such as emergency room visits and inpatient stays in
the hospital. Additional savings are
expected through reduced medical claims and health insurance
premiums paid by employers. In
summary, the health providers and insurers are utilizing short-
term incentives as part of the
performance management systems with the goal of motivating
physicians to focus on treatments
93. that will enhance the overall health and well-being of the
patient in an ongoing manner.27
Chapter 1 • Performance Management and Reward Systems in
Context 13
$90,000 and expected to continue to earn that salary until
retirement age would receive
about $1,400 a month if he retired at age 62, about $2,000 a
month if he retired at age 67,
and about $2,500 if he retired at age 70.
Other types of benefits under the income protection rubric
include medical
insurance, pension plans, and savings plans. These are optional
benefits provided by
organizations, but they are becoming increasingly important and
often guide an
applicant’s decision to accept a job offer. In fact, a recent
survey including both employees
in general and HR professionals in particular showed that health
care/medical insurance
is the most important benefit, followed by paid time off and
94. retirement benefits.29
1.4.6 Work/Life Focus
Benefits related to work/life focus include programs that help
employees achieve a better
balance between work and nonwork activities. These include
time away from work (e.g.,
vacation time), services to meet specific needs (e.g., counseling,
financial planning, on-site
fitness program), and flexible work schedules (e.g.,
telecommuting, nonpaid time off). For
example, Sun Microsystems actively promotes an equal balance
between work and home
life and closes its Broomfield, Colorado, campus from late
December through early
January every year. This benefit (i.e., vacation time for all
employees in addition to indi-
vidual yearly vacation time) is part of Sun’s culture. Sun
believes in a work hard–play
hard attitude, as is evidenced by CEO Scott McNealy’s motto:
“Kick butt and have fun.”30
1.4.7 Allowances
95. Benefits in some countries and organizations include allowances
covering housing and
transportation. These kinds of allowances are typical for
expatriate personnel and are
popular for high-level managers throughout the world. In South
Africa, for example, it is
common for a transportation allowance to include one of the
following choices:31
• The employer provides a car and the employee has the right to
use it both privately
and for business.
• The employer provides a car allowance, more correctly
referred to as a travel allowance,
which means reimbursing the employee for the business use of
the employee’s
personal car.
Other allowances can include smart phones and their monthly
charges, club and
gym fees, discount loans, and mortgage subsidies.32 Although
these allowances are
clearly a benefit for employees, some of them directly or
indirectly also produce a benefit
96. for the employer. For example, smart phones means that
employees are reachable via
phone, text, and e-mail 24/7. Similarly, if employees take
advantage of a gym fee
allowance, they are likely to stay healthier which in turn may
lead to less health-related
expenses for the organization.
1.4.8 Relational Returns
Relational returns are intangible in nature. They include
recognition and status, employment secu-
rity, challenging work, opportunities to learn, and opportunities
to form personal relationships at
work (including friendships and romances).33 For example, Sun
Microsystems allows employees
to enroll in SunU, which is Sun’s own online education tool.
SunU encapsulates a mix of traditional
14 Part I • Strategic and General Considerations
classroom courses with online classes that can be accessed
anywhere in the world at any time.34
97. Sun offers its employees enormous scope for development and
career progression, and there is a
commitment to ensuring that all employees are given the
opportunity to develop professionally.
The new knowledge and skills acquired by employees can help
them not only to further their
careers within Sun but also to take this knowledge with them if
they seek employment elsewhere.
Thus, some types of relational returns can be long-lasting.
Table 1.3 includes a list of the various returns, together with
their degree of
dependency on the performance management system. As an
example of the low end
of the dependency continuum, cost-of-living adjustment has a
low degree of depend-
ency on the performance management system, meaning that the
system has no impact
on this type of return. In other words, all employees receive this
type of return regard-
less of past performance. On the other end, short-term
incentives have a high degree of
dependency, meaning that the performance management system
dictates who receives
98. these incentives and who does not. Long-term incentives (e.g.,
profit sharing and stock
options, which are discussed in more detail in Chapter 10) also
have a high degree of
dependency; although this type of incentive is not specifically
tied to individual
performance, it does depend on performance measured at the
team, unit, or even
organizational levels. Between the high and low end, we find
some returns with a mod-
erate degree of dependency on the performance management
system such as base pay,
a type of return that may or may not be influenced by the
system.
Think about the performance management system of your
current employer, the
system used by your most recent employer, or the system in
place at an organization where
someone you know is employed at present. Based on Table 1.3,
try to think about the vari-
ous types of tangible and intangible returns allocated in this
organization. To what extent is
each of these returns dependent on the organization’s
performance management system?
99. 1.5 AIMS AND ROLE OF PM SYSTEMS
The information collected by a performance management system
is most frequently used
for salary administration, performance feedback, and the
identification of employee
strengths and weaknesses. In general, however, performance
management systems can
TABLE 1.3 Returns and Their Degree of Dependency
on the Performance Management System
Return Degree of Dependency
Cost-of-living adjustment Low
Income protection Low
Work/life focus Moderate
Allowances Moderate
Relational returns Moderate
100. Base pay Moderate
Contingent pay High
Short-term incentives High
Long-term incentives High
Chapter 1 • Performance Management and Reward Systems in
Context 15
serve the following six purposes: strategic, administrative,
informational, developmental,
organizational maintenance, and documentational purposes.35
Let’s consider each of these
purposes in turn.
1.5.1 Strategic Purpose
The first purpose of performance management systems is to help
top management
achieve strategic business objectives. By linking the
organization’s goals with individual
101. goals, the performance management system reinforces behaviors
consistent with the
attainment of organizational goals. Moreover, even if for some
reason individual goals
are not achieved, linking individual goals with organizational
goals serves as a way to
communicate what are the most crucial business strategic
initiatives.
A second strategic purpose of performance management systems
is that they play an
important role in the onboarding process.36 Onboarding refers
to the processes that lead
new employees to transition from being organizational outsiders
to organizational insid-
ers. Performance management serves as a catalyst for
onboarding because it allows new
BOX 1.4
How Sears Uses Performance Management to
Focus on Strategic Business Priorities
New leadership at Sears is utilizing performance management
practices and principles to align
102. human resources with business strategy. Headquartered in
Hoffman Estates, Illinois, Sears Holdings
Corporation is the third largest broad-line retailer in the United
States, with approximately $55
billion in annual revenues and with approximately 3,900 retail
stores in the United States and
Canada. Sears Holdings is the leading home appliance retailer
as well as a leader in tools, lawn and
garden products, home electronics, and automotive repair and
maintenance. The company is the
nation’s largest provider of home services, with more than 13
million service calls made annually.
Following the merger with Kmart Corp. and Sears, Roebuck &
Co., Aylwin B. Lewis was promoted
to chief executive and tasked with a strategic culture change
initiative in hopes of reinvigorating
the struggling retail company. A strategic objective is to move
from an inward focus to a customer
service approach. A second key objective is to bring about an
entrepreneurial spirit where store
managers strive for financial literacy and are challenged to
identify opportunities for greater
profits. Several aspects of the performance management system
are being utilized to achieve these
strategic objectives. For example, employee duties and
103. objectives are being revised so that employ-
ees will spend less time in back rooms and more time
interacting with customers to facilitate pur-
chases and understand customer needs. In addition, leadership
communication with employees
and face-to-face interaction are being encouraged. Lewis spends
three days per week in stores
with employees and frequently quizzes managers on their
knowledge, such as asking about profit
margins for a given department. The greatest compliment
employees receive is to be referred to as
“commercial” or someone who can identify opportunities for
profits. All Sears headquarters
employees are also required to spend a day working in a store,
which many had never done
before. Executive management has identified 500 employees
who are considered potential leaders
and given training and development opportunities specifically
aimed at cultural and strategic
changes. In sum, the performance management system at Sears
is used as a strategic tool to
change Sears’ culture because senior management views
encouraging key desired behaviors as
critical to the company’s success in the marketplace.37
104. 16 Part I • Strategic and General Considerations
employees to understand the types of behaviors and results that
are valued and rewarded,
which, in turn, lead to an understanding of the organization’s
culture and its values.
1.5.2 Administrative Purpose
A second function of performance management systems is to
furnish valid and useful
information for making administrative decisions about
employees. Such administrative
decisions include salary adjustments, promotions, employee
retention or termination,
recognition of superior individual performance, identification of
poor performers,
layoffs, and merit increases. Therefore, the implementation of
reward systems based on
information provided by the performance management system
falls within the adminis-
trative purpose. For example, the government in Turkey
mandates performance
105. management systems in all public organizations in that country
with the aim to prevent
favoritism, corruption, and bribery and to emphasize the
importance of impartiality and
merit in administrative decisions.38
1.5.3 Informational Purpose
Performance management systems serve as an important
communication device. First,
they inform employees about how they are doing and provide
them with information
on specific areas that may need improvement. Second, related to
the strategic purpose,
they provide information regarding the organization’s and the
supervisor’s expecta-
tions and what aspects of work the supervisor believes are most
important.
1.5.4 Developmental Purpose
As noted earlier, feedback is an important component of a well-
implemented per-
formance management system. This feedback can be used in a
developmental man-
106. ner. Managers can use feedback to coach employees and
improve performance on an
ongoing basis. This feedback allows for the identification of
strengths and weak-
nesses as well as the causes for performance deficiencies (which
could be due to
individual, group, or contextual factors). Of course, feedback is
useful only to the
extent that remedial action is taken and concrete steps are
implemented to remedy
any deficiencies. Feedback is useful only when employees are
willing to receive it.
Organizations should strive to create a “feedback culture” that
reflects support for
feedback, including feedback that is nonthreatening and is
focused on behaviors and
coaching to help interpret the feedback provided.39
Another aspect of the developmental purpose is that employees
receive information
about themselves that can help them individualize their career
paths. Thus, the develop-
mental purpose refers to both short-term and long-term aspects
of development.
107. 1.5.5 Organizational Maintenance Purpose
A fifth purpose of performance management systems is to
provide information to be
used in workforce planning. Workforce planning comprises a set
of systems that
allows organizations to anticipate and respond to needs
emerging within and outside
the organization, to determine priorities, and to allocate human
resources where they
can do the most good.40 An important component of any
workforce planning effort is
Chapter 1 • Performance Management and Reward Systems in
Context 17
the talent inventory, which is information on current resources
(e.g., skills, abilities,
promotional potential, and assignment histories of current
employees). Performance
management systems are the primary means through which
accurate talent invento-
ries can be assembled.
108. Other organizational maintenance purposes served by
performance management
systems include assessing future training needs, evaluating
performance achievements
at the organizational level, and evaluating the effectiveness of
HR interventions
(e.g., whether employees perform at higher levels after
participating in a training
program). These activities cannot be conducted effectively in
the absence of a good
performance management system.
1.5.6 Documentational Purpose
Finally, performance management systems allow organizations
to collect useful
information that can be used for several documentation
purposes. First, performance
data can be used to validate newly proposed selection
instruments. For example, a
newly developed test of computer literacy can be administered
to all administrative
personnel. Scores on the test can then be paired with scores
collected through the
109. performance management system. If scores on the test and on
the performance meas-
ure are correlated, then the test can be used with future
applicants for the
administrative positions. Second, performance management
systems allow for
the documentation of important administrative decisions. This
information can be
especially useful in the case of litigation.
Several companies implement performance management systems
that allow
them to accomplish the multiple objectives described earlier.
For an example of one
such company, consider the case of SELCO Credit Union
(http://selco.org/selco/
about.asp) in Eugene, Oregon, a not-for-profit consumer
cooperative that was estab-
lished in 1936.41 SELCO’s eight branches serve nearly 80,000
members. SELCO
offers many of the same services offered by other banks,
including personal check-
ing and savings accounts, loans, and credit cards. Being
members of the credit
union, however, allows individual members a say in how the