...between the positive (high performance) and negative (increased stress) effects of stretch goals? Setting goals is part of organizational life and a powerful way to keep employees aligned and clear about expectations. But how tough should the goals be? How high should you set the bar? Some leaders like to set goals at a low to moderate level, based on the concept that they want everyone to be successful. They believe that success increases employee motivation and satisfaction. A second approach is to set the goals fairly high, expecting that a good portion of the employees will achieve them, but everyone has to work pretty hard to be successful. The third approach is to make the goals so high that only the very best performers might attain them, but not too often. This is based on the premise that if you set the bar really high then everyone will work their hardest to go as far as they can. However, stretch goals can have a tradeoff between the positive and negative effects. On the positive side, it can increase high work performance since it enables employees to reach their fullest potential. Sometimes employees find stretch goals very motivating and make it a challenge to attain it, because managers generally attach incentives such as recognition and other forms of rewards for attaining these goals. Nevertheless, stretch goals also have negative effects and this is the stress that employees go through when unrealistic goals are set by managers. Goals should be challenging and...
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...Contents Introduction 3 a) Critically discuss the claim in the above mentioned passage that the most significant trend is the move away from guaranteed compensation to performance related compensation. What are the implications to the organization’s human resource management effectiveness? 3 Performance-Based Remuneration: 3 Guaranteed Variable Salary 4 From guaranteed compensation to performance related compensation. Why? 4 b) Provide a concise overview of how an organization can ensure that its compensation strategies are able to support it strategic objectives 5 • Increased skill and flexibility in the workforce 5 • Reduction in traditional demarcations 5 • Increased efficiency 5 • Tangible benefits for workers in return for changes in working practice. 5 c) Provide a set of arguments to support the view that executive pay should be linked to company performance 6 d) What are the advantages of linking employee pay to performance? 6 Provide a 'felt fair' system of rewarding people according to their contribution 6 Higher performance within the organization may result 7 Provides a tangible means of recognizing achievements 7 People understand the performance imperatives of the organization 7 Link between extra pay and extra performance is clear 7 Conclusion 8 References: 8 Introduction In this assignment I will discuss about compensation and benefit management and many aspects of it and how they can affect an organization and about...
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...provide a broad outline of MBO performance standards, identify key standards controlling performance, and more specifically, isolate goals not easily attained. B. Micro 1. During the past year, performance evaluation problems are surfacing, dissatisfaction is emerging, managers are stating MBO standards are too tight and unfair, and workers are threatening to leave. I. Causes 1. John and Hilda may not have the knowledge or skills to evaluate and change performance levels of individuals or teams. 2. Hirsh was only looking for failure to report under the cover of the MBO system II. Systems affected 1. The company just increased the performance level on several items, bur they didn’t set a specific goal. 2. When the problems appeared, the company should talk about it together, and find out what they should do next, but they didn’t. III. Alternatives 1. Lower the standard of the system. 2. The manager should make a plan or goal from the review, then tell the employees how to do next. IV. Recommendation The company should do what I said before. Case: valley wide utilities company Problems C. Macro 3. The company faced with financial inefficiencies resulting from an expansion of its facilities. 4. President Delgado appointed John Givens and Hilda Hirsh to provide a broad outline of MBO performance standards, identify key standards controlling performance, and more specifically, isolate goals not easily attained. D. Micro ...
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...Human Motivation Workplace Motivation Paper Motivation is defined as an internal process which directs and maintains an individual’s behavior toward a certain goal (Bell, 2015). Organizations are continuously seeking new ways to motivate. Continuous employee train is crucial to organizations to adapt to the changing demands, and reaching their common goal. Each employee is unique thus they are motivated differently. Nuclear generating stations face the challenge of motivating their employees toward being receptive and open to change. It is important all organizations communicate clearly what is expected, recognize the needs of its employees, and develop mechanisms to address those needs (Madsen, 2006). Some organizations began again to look at Maslow’s views on individual needs, providing an encouraging learning environment, and assisting individuals in reaching their potential by learning and changing to improve their performance (Madsen, 2006). This paper will examine motivational strategies effects on productivity, organizational efforts, improved performance, resistance of employees to increasing productivity and the managements philosophy of motivation, and close with analyzing the implications of applying new motivational theories in nuclear power stations. Organizational Efforts and Improved Performance There are two main types of motivation intrinsic and extrinsic. Intrinsic motivation involves engaging in behavior because it is personally rewarding; essentially...
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...Pay-for-performance Reimbursement and pay-for-performance are the heart and soul of every organization. Without money flow into the health care system, it is hard to pay for the services offered to individuals. Client has to pay for the health care services utilized in one way or other. Health care system is growing in a faster pace with than the economy in the United States. The various reasons are technology proliferation, new medications in business, research studies, advances in devices, and new procedures. On the other side, there is widespread concerns about the medical errors, inconsistent quality in health care services, increase in cost, and public awareness about the health care services through Medias, led to the movement of pay-for-performance. This emerged as a cost containment program. Health care system is trying to provide quality, efficiency, accountability, and transparency in health care services through the development of pay-for-performance movement (Henley, 2005). Pay-for-performance refers to the financial incentive program that pay a bonus to the participant of services such as physicians, hospitals, physician groups, or health plan groups who attain a benchmark in quality, efficiency, accountability in health care services and in patient care. This is referred as the pay-for-performance movement. This program provides high credit bonus for preventive care services. As the term indicates, "pay-for performance" is the high quality health care services...
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...Chapter 1 Performance Management and Reward Systems in Context Definitions 1. Performance Management-continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with strategic goals of the organisation 2. Performance Appraisal-involves employee evaluations once a year without an ongoing effort to provide feedback and coaching in order for performance to be improved. Systematic description of an employee’s strengths and weaknesses 3. Environmental Trends that make PM critical today Trend 1: Globalization and push for productivity Globalization is a process of interaction and integration among the people, companies, and governments of different nations, driven by international trade and investment and aided by information technology. Globalisation brings about higher competitiveness and the search greater performance level. The performance management system of the organisation will be differentiated based on the different country due to different country have different culture, law and regulations. Besides that, political and economic factor, trade policies, the employment laws, pressure groups in different countries will affect the types of performance management the company chooses. It will remain the biggest challenge for global organizations human resource departments to manage a workforce diverse in culture and language skills, and distributed in various countries. It is critical that...
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...accounting practices are an essential component to achieving organizational profitability. Budgetary restraints, increased operational costs, the economy, and the ultimately the needs of the customer must also be considered to achieve success. When the managerial approach is to evaluate the cause-and effect of both financial and process performance measures, properly aligned to the organization’s strategic goals and objectives, this poses organizations for success, such as, Mecklenburg County in position for a tough economy through a customer-focused balance scorecard, necessary to optimize sustainability and achieve the organization’s overall goals. Mecklenburg County in position for a tough economy through a Customer-focused Balance Scorecard Harvard University Professors, Kaplan and Norton, are credited as inventors of the Balanced Scorecard (BSC). A BSC is a tool organizations use to link strategic goals to operational objectives, through performance measures, to promote successful outcomes. (Snell, Scott & Bohlander, p. 372, 2013). Through BSC, management monitors performance measures from four perspectives related to finances, customer-service, internal processes, and education and development. The BSC theory suggests when these areas are properly aligned organizations optimize their ability to reach goals and objectives (Noreen, Brewer & Garrison, 2014). Between mid-1990 and early 2000, Mecklenburg County...
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...5M $3.8M $2.1M Annual LT Incentive (Stock and Stock Options) $12.9M $7.1M $10.9M $2.5M Perks/Other $175k $0.06M $808k $0.01M Vested/Exercised Shares $5.6M Approx. Total $25M $11.1M $17.2M $5.7M According to the Proxy statements, both Pfizer and Mereck have approximately 90% of their compensation as variable, based on company performance. The large discontinuity between the two companies is mostly due to the vested or exercised shares of Pfizer’s Ian Read. Excluding this amount, the companies’ compensation plans are generally aligned with their comparable sizes and company performance. Pfizer offered the largest incentive-based payout to it’s CEO in 2012, justified by the company exceeding two of three performance metrics despite key patent losses and the leadership Read showed throughout the year. Merck ranked their CEO performance as high in a tough environment, but due to a low internal scorecard results and shareholder return rankings Frazier was awarded a lower amount of variable compensation than in 2011. Overall, both of these industry leaders seem to have incentive programs aligned with company and shareholder performance. Bristol-Meyers Squibb (BMS) stands as the odd-company-out in our analysis. Andreotti’s 2012 base pay was at the level of the previous two, much higher revenue-generating, companies and all other incentives were greater than that of Mereck’s CEO despite a 17% decline in...
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...Running head: SENIOR LEADERSHIP CHALLENGE Performance Based Service Contracting Impediments POINT PAPER PERFORMANCE BASED SERVICE CONTRACTING PROBLEM In last 10 years, the priority of the Federal Government has been to expand the use of Performance Based Service Acquisition (PBSA). Unfortunately, as whole, the Federal Government has been unable to achieve any of the PBSA targeted quotas as set forth by the Office of Management and Budget. BACKGROUND Performance Based Service Acquisition is a procurement method of contracting. It is structured around performance outcomes, objectives and measurable goals. The strategy of PBSA arose as a result of evolving Government practices to align with commercial business practices. PBSA employs a number of techniques, strategies and frameworks for the definition of program requirements, acquisition planning, competition management, performance measurement, contract structure, payment structure, and post-award contract monitoring and management. (“SARA Panel Draft Report,” 2006) In PBSA, the contractor is provided a Performance Work Statement (PWS) or a Statement of Objectives (SOO) in which the Government describes the end result. The contractor is also provided a Quality Assurance Surveillance Program (QASP) which specifies how and when the Government will assess the contractor’s performance of the tasks set forth in the PWS or SOO. (“Performance Based Service Acquisition,” 2009) In some cases, the...
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...2012). Supply chain management has become an important for companies to evaluate and research because improper management can lead to can hinder performance. Therefore, increased evaluation and research in proper supply chain management is essential for businesses to maintain a competitive advantage. This paper is going to analyze supply chain management a retail perspective to new learning perspectives of modern businesses. Issues For many years supply chain managers had difficulty determining the optimal amount for their inventory levels (Chin et al, 2012). For example, in Wal-Mart the company has to determine how much inventory to include in stores in comparison to a just in time approach. Research has indicated that improper supply chain management can lead to inefficient company performance (Asamoah, Annan, Nyarko, 2012). Therefore, improper evaluation of inventory can increase costs for the company and decrease sales to lack of inventory. For example, typically businesses would replenish inventories when the inventory is low. The supply chain manager would order new inventory when current inventory was low and based on historical trends (e.g. Christmas). The result of replenishing according to inventory levels and trends is the possibility consumers are ready to purchase and there is no inventory or the business has increased holding costs due to too much inventory. The balance between having enough inventory and excess inventory...
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...Subject: Organizational Management, Task2 A. Develop an action plan: 1. Analyze the financial and leadership strengths and weaknesses of the Utah Symphony before the merger. Utah Symphony had a great deal of financial talent, but has been unable to find a strong source for future success. The potential merger builds on these strengths and weaknesses by creating a better future for both companies. Strength points: Symphony became one of the first orchestras from the western united stated to tour internationally. Unlike artists who worked for the opera, musicians employed by the USO received a full year contract and earned a full time salary. They had well management and financial that they were able to go to several cities and have hundreds concerts A weaking of the economy, the bursting of the of the internet bubble and subsequent collapse of the stock market, and the tragic of September 11,2001 had led to a decline in public ( ticket sales and individual ,corporate and foundation pledges) support for the arts The Utah Symphony has its home in Abravanel Hall, which is acclaimed as one of the world's great concert halls - having won awards for both its architecture and its extraordinary acoustics. In addition to performing more than 70 subscription concerts in Abravanel Hall, the Symphony regularly travels around the Intermountain West serving communities in Utah, Wyoming, Nevada and Idaho. Funding from the Utah State Legislature makes it possible for the Symphony...
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...Recommendation of Redesign of Hershey’s Performance Management System to Appeal to the Diverse Groups That It Employs Performance management systems assess employees’ performance while ensuring that these performance standards align with the goals and views of the company or organization (Aguinis, 2009). At Hershey, the main diversity stated in the case study was the diversity of age between workers which consisted of millennial workers, those in their 20s, and the baby boomer generation. The performance management is an ongoing effort of Human Resources to identify measure and develop the performance of values that Hershey promotes. Currently the markers for review are based upon the values of the company which include, embracing diversity, sharing knowledge, leading with integrity, teamwork and personal responsibility. The performance management system allows employees to set goals within each value and review is based upon reaching those specified goals (Noe, Holleneck, Gerhart. & Wright, 2011). Analysis of How a Hershey’s Employee Would Interpret the Values that Hershey Embraces in Relation to Employees In an effort to improve this performance management system Human Resources may wish to further explore the research that indicates that teams with diverse memberships are likely to have a deeper pool of resources in which the company can benefit from (Bassett-Jones, 2005). Since the current review process consist of setting up personal goals based on the company's value...
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...psychological empowerment on the relationship between participative goal setting and team outcomes – a study in China In the late twentieth century, it is popular to research the effect of participative goal setting. With team becoming a more dominant mode in organizing, motivating, and managing, it is worthwhile to investigate the effect of participation in team goal setting. This study aims to test the mediating effect of psychological empowerment (PE) on the relationship between participative team goal setting and team identity and team performance. Executive MBA students (371) in 75 groups from China Europe International Business School in China participated in the study. Introduction Goal-setting theory (Locke 1968; Locke and Latham 2002) is among the most valid and practical theories of employee motivation in organizational psychology (Miner 1984; Lee and Earley 1992; Pinder 1998; Locke and Latham 2002), and has been rated as the most important among 73 management theories by organizational behavior scholars (Miner 2003; Locke 2004). A number of studies in goal-setting theory are the effect of participative goal setting (PGS) on employee performance and attitude. The presumption is that people who participate in setting goals are likely to be more motivated to achieve them than those who are given goals created by others (London, Mone and Scott 2004). However, reviews addressing the use of participation in goal setting (Mitchell 1979; Locke and Latham 1984; Erez and Arad...
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...Planning and Measuring Stephanie L. Kidd MGT/521 May 17, 2014 diane Hunt-Wagner Planning and Measuring Performance The balance scorecard is a strategic planning system that is used by Sherman Ceramics business activities which will support all managers and employees to understand the strategy of the organization and improve the internal and external communications. Sherman Ceramics has enlisted a balance scorecard to measure financial metrics that will give executives and managers a better view of the organizations performance. Planning and Measuring Performance Balanced Scorecard |Aspect of Company |Factors to be Considered |Organizational Goal |Actual Performance |Gaps | |Performance | | | | | |Customer |Customer Satisfaction Rate |95% |95% |Customer satisfaction rate is in | | |Customer Recommendation Rate |80% |100% |line with the goal. Customer | | |(rate of new business generated | | |recommendations are exceeding the| | ...
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...LET1 - 317.1.1-06 Behavioral Influences Vroom’s expectancy theory comprises of three components: valence, expectancy and instrumentality (Droar, Dave, 2003). In an environment in which there is a reasonable expectancy for a specified outcome, the effort, or expectancy, of an individual must include having the right resources, skills, and necessary support to conclude to the desired result (Droar, Dave, 2003). Instrumentality is the performance of an individual that performance will result in a valued outcome depends on a clear understanding of the relationship between performance and outcome, trust in management or decision making process will result in a perceived positive outcome and clarity of the reward and to whom the reward will be bestowed upon. The third and final component is Valence (Droar, Dave, 2003). Valence is the weight or self worth a person places on the expected outcome. Vroom’s expectancy theory suggests that if any of these components are not present, an individual will not put forth the effort required to achieve a desired outcome due to lack of motivation from absent rewards (Droar, Dave, 2003). In Droar’s explanation of Victor Vroom’s theory of motivation, he explains that “Valence is the importance that the individual places upon the expected outcome.” Valence would vary depending on the individual in which the demand for the outcome is placed upon. A supervisor may have a higher level of importance than a laborer. In Droar’s explanation...
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