Free Essay

The Five Traps of Performance Management

In: Business and Management

Submitted By Abdelrahman
Words 2936
Pages 12
The Five Traps of Performance Measurement by Andrew Likierman
In an episode of Frasier, the television sitcom that follows the fortunes of a Seattle-based psychoanalyst, the eponymous hero’s brother gloomily summarizes a task ahead: “Difficult and boring—my favorite combination.” If this is your reaction to the challenge of improving the measurement of your organization’s performance, you are not alone. In my experience, most senior executives find it an onerous if not threatening task. Thus they leave it to people who may not be natural judges of performance but are fluent in the language of spreadsheets. The inevitable result is a mass of numbers and comparisons that provide little insight into a company’s performance and may even lead to decisions that hurt it. That’s a big problem in the current recession, because the margin for error is virtually nonexistent.
So how should executives take ownership of performance assessment? They need to find measures, qualitative as well as quantitative, that look past this year’s budget and previous results to determine how the company will fare against its competitors in the future. They need to move beyond a few simple, easy-to-game metrics and embrace an array of more sophisticated ones. And they need to keep people on their toes and make sure that today’s measures are not about yesterday’s business model.
In the following pages I present what I’ve found to be the five most common traps in measuring performance and illustrate how some organizations have managed to avoid them. My prescriptions aren’t exhaustive, but they’ll provide a good start. In any event, they can help you steal a march on rivals who are caught in the same old traps.
Trap 1: Measuring Against Yourself
The papers for the next regular performance assessment are on your desk, their thicket of numbers awaiting you. What are those numbers? Most likely, comparisons of current results with a plan or a budget. If that’s the case, you’re at grave risk of falling into the first trap of performance measurement: looking only at your own company. You may be doing better than the plan, but are you beating the competition? And what if the estimates you’re seeing were manipulated?
To measure how well you’re doing, you need information about the benchmarks that matter most—the ones outside the organization. They will help you define competitive priorities and connect executive compensation to relative rather than absolute performance—meaning you’ll reward senior executives for doing better than everyone else.
The trouble is that comparisons with your competitors can’t easily be made in real time—which is precisely why so many companies fall back on measurements against the previous year’s plans and budgets. You have to be creative about how you find the relevant data or some proxy for them.
One way is to ask your customers. Enterprise, the car-rental company, uses the Enterprise Service Quality Index, which measures customers’ repeat purchase intentions. Each branch of the company telephones a random sample of customers and asks whether they will use Enterprise again. When the index goes up, the company is gaining market share; when it falls, customers are taking their business elsewhere. The branches post results within two weeks, put them next to profitability numbers on monthly financial statements, and factor them into criteria for promotion (thus aligning sales goals and incentives).
Of course you have to make sure you don’t annoy your customers as you gather data. Think about how restaurant managers seek feedback about the quality of their service: Most often they interrupt diners’ conversations to ask if everything is OK; sometimes they deliver a questionnaire with the bill. Either approach can be irritating. Danny Meyer, the founder of New York’s Union Square Hospitality Group, gets the information unobtrusively, through simple observation. If people dining together in one of his restaurants are looking at one another, the service is probably working. If they’re all looking around the room, they may be wowed by the architecture, but it’s far more likely that the service is slow.
Another way to get data is to go to professionals outside your company. When Marc Effron, the vice president of talent management for Avon Products, was trying to determine whether his company was doing a good job of finding and developing managers, he came up with the idea of creating a network of talent management professionals. Started in 2007, the New Talent Management Network has more than 1,200 members, for whom it conducts original research and provides a library of resources and best practices.
Trap 2: Looking Backward
Along with budget figures, your performance assessment package almost certainly includes comparisons between this year and last. If so, watch out for the second trap, which is to focus on the past. Beating last year’s numbers is not the point; a performance measurement system needs to tell you whether the decisions you’re making now are going to help you in the coming months.
Look for measures that lead rather than lag the profits in your business. The U.S. health insurer Humana, recognizing that its most expensive patients are the really sick ones (a few years back the company found that the sickest 10% accounted for 80% of its costs), offers customers incentives for early screening. If it can get more customers into early or even preemptive treatment than other companies can, it will outperform rivals in the future.
The quality of managerial decision making is another leading indicator of success. Boards must assess top executives’ wisdom and willingness to listen. Qualitative, subjective judgments based on independent directors’ own experience with an executive are usually more revealing than a formal analysis of the executive’s track record (an unreliable predictor of success, especially for a CEO) or his or her division’s financial performance. (See “Evaluating the CEO,” by Stephen P. Kaufman, HBR October 2008.)
It may sound trite, but how the company presents itself in official communications often signals the management style of top executives. In August 2006 the Economist reported that Arijit Chatterjee and Donald Hambrick, of Pennsylvania State University, had devised a narcissism index on which to rate 105 company bosses, based on the prominence of the CEO’s photo in the annual report, his or her prominence in press releases, the frequency of the first person singular in interviews with the CEO, and his or her compensation relative to that of the firm’s second-highest-paid executive.
Finally, you need to look not only at what you and others are doing but also at what you aren’t doing. The managers of one European investment bank told me that they measure performance by the outcomes of deals they’ve turned down as well as by the outcomes of deals they’ve won. If the ones they’ve rejected turn out to be lemons, those rejections count as successes. This kind of analysis seems obvious once stated, but I’ve noticed a persistent bias in all of us to focus on what we do over what we don’t do. Good management is about making choices, so a decision not to do something should be analyzed as closely as a decision to do something.
Trap 3: Putting Your Faith in Numbers
Good or bad, the metrics in your performance assessment package all come as numbers. The problem is that numbers-driven managers often end up producing reams of low-quality data. Think about how companies collect feedback on service from their customers. It’s well known to statisticians that if you want evaluation forms to tell the real story, the anonymity of the respondents must be protected. Yet out of a desire to gather as much information as possible at points of contact, companies routinely ask customers to include personal data, and in many cases the employees who provided the service watch them fill out the forms. How surprised should you be if your employees hand in consistently favorable forms that they themselves collected? Bad assessments have a tendency to mysteriously disappear.
Numbers-driven companies also gravitate toward the most popular measures. If they’re looking to compare themselves with other companies, they feel they should use whatever measures others use. The question of what measure is the right one gets lost. Take Frederick Reichheld’s widely used Net Promoter Score, which measures the likelihood that customers will recommend a product or service. The NPS is a useful indicator only if recommendations play the dominant role in a purchase decision; as its critics point out, customers’ propensity to switch in response to recommendations varies from industry to industry, so an NPS is probably more important to, say, a baby-food manufacturer than to an electricity supplier.
Similar issues arise about the much touted link between employee satisfaction and profitability. The Employee-Customer-Profit Chain pioneered by Sears suggests that more-satisfied employees produce more-satisfied customers, who in turn deliver higher profits. If that’s true, the path is clear: Keep your employees content and watch those profits soar. But employees may be satisfied mainly because they like their colleagues (think lawyers) or because they’re highly paid and deferred to (think investment bankers). Or they may actually enjoy what they do, but their customers value price above the quality of service (think budget airlines).
A particular bugbear of mine is the application of financial metrics to nonfinancial activities. Anxious to justify themselves rather than be outsourced, many service functions (such as IT, HR, and legal) try to devise a return on investment number to help their cause. Indeed, ROI is often described as the holy grail of measurement—a revealing metaphor, with its implication of an almost certainly doomed search.
Suppose an HR manager undertakes to assign an ROI number to an executive training program. Typically, he or she would ask program participants to identify a benefit, assign a dollar value to it, and estimate the probability that the benefit came from the program. So a benefit that is worth $70,000 and has a 50% probability of being linked to the program means a program benefit of $35,000. If the program cost $25,000, the net benefit is $10,000—a 40% ROI.
Think about this for a minute. How on earth can the presumed causal link be justified? By a statement like “I learned a production algorithm at the program and then applied it”? Assessing any serious executive program requires a much more sophisticated and qualitative approach. First you have to specify ahead of time the needs of the program’s stakeholders—participants, line managers, and sponsors—and make sure that the syllabus meets your organizational and talent-management objectives. Once the program has ended, you have to look beyond immediate evaluations to at least six months after participants return to the workplace; their personal feedback should be incorporated in the next annual company performance review. At the soft drinks company Britvic, HR assesses its executive coaching program by tracking coachees for a year afterward, comparing their career trajectories with those of people who didn’t get coached.
Trap 4: Gaming Your Metrics
In 2002 a leaked internal memo from associates at Clifford Chance, one of the world’s largest law firms, contended that pressure to deliver billable hours had encouraged its lawyers to pad their numbers and created an incentive to allocate to senior associates work that could be done by less expensive junior associates.
Lawyers aren’t the only ones: A number of prominent companies have been caught trying to manipulate their numbers. Since 2004 Royal Dutch Shell has paid $470 million to settle lawsuits relating to its overstatement of reserves. Morgan Stanley was reportedly willing to lose €20 million on a securities trade for the Finnish government just before closing its books for 2004 in order to improve its position in the league table for global equity capital market rankings.
You can’t prevent people from gaming numbers, no matter how outstanding your organization. The moment you choose to manage by a metric, you invite your managers to manipulate it. Metrics are only proxies for performance. Someone who has learned how to optimize a metric without actually having to perform will often do just that. To create an effective performance measurement system, you have to work with that fact rather than resort to wishful thinking and denial.
It helps to diversify your metrics, because it’s a lot harder to game several of them at once. Clifford Chance replaced its single metric of billable hours with seven criteria on which to base bonuses: respect and mentoring, quality of work, excellence in client service, integrity, contribution to the community, commitment to diversity, and contribution to the firm as an institution. Metrics should have varying sources (colleagues, bosses, customers) and time frames. Mehrdad Baghai and coauthors described in “Performance Measures: Calibrating for Growth” (Journal of Business Strategy, July–August 1999) how the Japanese telecommunications company SoftBank measured performance along three time horizons. Horizon 1 covered actions relevant to extending and defending core businesses, and metrics were based on current income and cash flow statements. Horizon 2 covered actions taken to build emerging businesses; metrics came from sales and marketing numbers. Horizon 3 covered creating opportunities for new businesses; success was measured through the attainment of preestablished milestones. Multiple levels like those make gaming far more complicated and far less likely to succeed.
You can also vary the boundaries of your measurement, by defining responsibility more narrowly or by broadening it. To reduce delays in gate-closing time, Southwest Airlines, which had traditionally applied a metric only to gate agents, extended it to include the whole ground team—ticketing staff, gate staff, and loaders—so that everyone had an incentive to cooperate.
Finally, you should loosen the link between meeting budgets and performance; far too many bonuses are awarded on that basis. Managers may either pad their budgets to make meeting them easier or pare them down too far to impress their bosses. Both practices can destroy value. Some companies get around the problem by giving managers leeway. The office supplier Staples, for example, lets them exceed their budgets if they can demonstrate that doing so will lead to improved service for customers. When I was a CFO, I offered scope for budget revisions during the year, usually in months three and six. Another way of providing budget flexibility is to set ranges rather than specific numbers as targets.
Trap 5: Sticking to Your Numbers Too Long
As the saying goes, you manage what you measure. Unfortunately, performance assessment systems seldom evolve as fast as businesses do. Smaller and growing companies are especially likely to fall into this trap. In the earliest stages, performance is all about survival, cash resources, and growth. Comparisons are to last week, last month, and last year. But as the business matures, the focus has to move to profit and the comparisons to competitors.
It’s easy to spot the need for change after things have gone wrong, but how can you evaluate your measures before they fail you? The answer is to be very precise about what you want to assess, be explicit about what metrics are assessing it, and make sure that everyone is clear about both.
In looking for a measure of customer satisfaction, the British law firm Addleshaw Booth (now Addleshaw Goddard) discovered from a survey that its clients valued responsiveness most, followed by proactiveness and commercial-mindedness. Most firms would interpret this finding to mean they needed to be as quick as possible. Addleshaw Booth’s managers dug deeper into the data to understand more exactly what “responsiveness” meant. What they found was that they needed to differentiate between clients. “One size does not fit all,” an employee told me. “Being responsive for some clients means coming back to them in two hours; for others, it’s 10 minutes.”
The point is that if you specify the indicator precisely and loudly, everyone can more easily see when it’s not fit for the purpose. The credit-rating agencies have come under attack because they gave AAA ratings to so many borrowers who turned out to be bad risks. The agencies have argued in their own defense that lenders misunderstood what the ratings meant. The AAA rating, they claim, was awarded on the basis of borrowers’ credit records, and it described the likelihood of default under normal market conditions; it did not factor in what might happen in the event of a massive shock to the financial system. Reasonable as this explanation may be, it is no consolation to those who thought they knew what the magic AAA represented.
• • •
Why do organizations that excel in so many other ways fall into these traps? Because the people managing performance frameworks are generally not experts in performance measurement. Finance managers are proficient at tracking expenses, monitoring risks, and raising capital, but they seldom have a grasp of how operating realities connect with performance. They are precisely the people who strive to reduce judgments to a single ROI number. The people who understand performance are line managers—who, of course, are crippled by conflicts of interest.
A really good assessment system must bring finance and line managers into some kind of meaningful dialogue that allows the company to benefit from both the relative independence of the former and the expertise of the latter. This sounds straightforward enough, but as anyone who’s ever worked in a real business knows, actually doing it is a rather tall order. Then again, who says the CEO’s job is supposed to be easy?
Andrew Likierman ( is the dean of London Business School, a nonexecutive director of Barclays Bank, and the chairman of the UK’s National Audit Office.

Similar Documents

Free Essay


...The Five Traps of Performance Measurement Jude Buffum | by Andrew Likierman 96 Harvard Business Review 1524 Oct09 Likierman layout.indd 96 | October 2009 | 9/4/09 12:38:55 PM I of Frasier, the television sitcom that follows the fortunes of a Seattle-based psychoanalyst, the eponymous hero’s brother gloomily summarizes a task ahead: “Difficult and boring – my favorite combination.” If this is your reaction to the challenge of improving the measurement of your organization’s performance, you are not alone. In my experience, most senior executives find it an onerous if not threatening task. Thus they leave it to people who may not be natural judges of performance but are fluent in the language of spreadsheets. The inevitable result is a mass of numbers and comparisons that provide little insight into a company’s performance and may even lead to decisions that hurt it. That’s a big problem in the current recession, because the margin for error is virtually nonexistent. IN AN EPISODE So how should executives take ownership of performance assessment? They need to find measures, qualitative as well as quantitative, that look past this year’s budget and previous results to determine how the company will fare against its competitors in the future. They need to move beyond a few simple, easy-to-game metrics and embrace an array of more sophisticated ones. And they need to keep people on their toes and make sure that......

Words: 3212 - Pages: 13

Free Essay

Case Study

...ADVANCED CERTIFICATE IN MANAGEMENT BUSINESS STUDIES A group of investors had formed Trap-Ease America after it had obtained worldwide rights to market the innovative mouse traps. The group had hired Martha to serve as president and to develop and manage the Trap-Ease America organization. Martha had initially forecasted Trap-Ease’s first year sales at five million units. Martha knew that the investor group believed that Trap-Ease America had a ’once in a life time chance’ with its innovative mousetrap. To evaluate this opportunity Martha must collect information from different angles. She must choose a best target market for the Trap-Ease. 1. As Martha and Trap-Ease America feel that they face once in a life time opportunity after obtaining worldwide rights to market the mousetrap. Martha had forecasted Trap-Ease’s first year sales at five million units. As she sensed that group’s impatient with the progress of company so far. So she budgeted approximately $250,000 in administrative cost and fixed costs for the first year, but this did not include marketing cost. To evaluate this opportunity Martha must evaluate write market for mouse traps. Market can be divided into different groups of buyers with different needs; buyers desire different benefits from one product. Consumers needs and wants change with their age. As Martha wondered, apart from trapping mouse using mouse traps consumers may also buy the trap as novelties. Company needed to sell enough traps to cover......

Words: 1298 - Pages: 6

Premium Essay

Case Analisis of Ease-Trap

...Case Analysis of Trap-Ease America A group of investors had formed Trap-Ease America after obtaining the worldwide rights to sell a patented and innovative mousetrap from an inventor. The group hired Martha as president to develop and manage the company. Trap-Ease America regarded housewives as the best target market. Because the company believed that women will be attracted to the safety and cleanliness that the traps offer. Unlike traditional spring-loaded traps or poisons, the tarp lures the mouse into a square tube in which it will be trapped alive. There is no danger in baiting and setting trap. It can also avoid the “mess” resulted by the traditional trap’s operation. Martha sold the trap directly to large retailers such as Safeway, Kmart, and CB Drug. The traps sold in packages of two, with a suggested price of $ 2.49, about five to ten times more expensive than the traditional trap. Martha promoted the mousetrap mainly through trade show and personal selling. Despite the innovativeness of the trap and its success at gaining public attention, sales are disappointingly slow. Following are analysis of the problem Trap-Ease faced and some suggestions. Martha and the investors believe they face an once-in-a-lifetime opportunity that the patented mousetrap will bring huge profits. But things were not going on well in the start-off. We know that in order to evaluate any investment opportunity investors need to conduct a detailed analysis concerning a variety of different......

Words: 1587 - Pages: 7

Premium Essay


...the right store at the right time in the appropriate proportions across the approximately 4,600 store network. On-Trend Targeted Product  We identifies fashion trends timely and integrates these insights into on-trend product in our stores. Generic Strategy - Porter  Porter’s generic strategies: low cost, differentiation, specialization. Key stakeholders & their influence. PEST model, macro environment. – Five Forces model, micro/industry environment. Porter's Five Forces Model And Three Generic Strategies Porter's Five Forces Model Porter's Five Competitive Forces model is a framework made by Michael Porter that is used by businesses when thinking about business strategy and the impact of Information technology. This model can help a business decide whether to, enter an industry or expand your business in the industry you are already working on. The five forces in the model are the following: Buyer Power, Supplier Power, and Threat of substitute products or services, Threat of new entrants, Rivalry among existing companies. The generic + strategy + trap Since the...

Words: 1660 - Pages: 7

Premium Essay

Trap-Ease the Big Cheese of Mousetraps

...Trap-Ease the Big Cheese of Mousetraps Martha and the Trap-Ease investors believe they face a once in a lifetime opportunity. What information do they need to evaluate this opportunity? How do you think the group would write its mission statement? How would you write it? First of all there are four primary areas for assessment that should be considered. 1. People Behind the idea: the background, talents, and experience of the personnel behind the idea and the management team, employees, and advisers. 2. Resources available: 3. The knowledge and information possessed by the entrepreneur, including knowledge of the new concept, the industry, and market research. Moreover they shall consider barriers to entry, location, competitors, social and economic trends, regulatory factors, target market, and market penetration and more importantly how information would be obtained? 4. The idea’s ability to generate revenue. How great is the potential to sell something that will generate actual revenues? There are a lot of tools that can be used to evaluate the initial idea and subsequent opportunities. • Creative tools such as ALUO (Advantages, Limitations, Uniqueness, and Opportunity) can help entrepreneurs identify the key strategic points and differences surrounding their ideas for the business. • The KIC (Knowledge of Industry Checklist), including a comprehensive competitor analysis, is a useful guide for collecting and interpreting information about the industry. • “Give Me......

Words: 2713 - Pages: 11

Premium Essay

Case Study of “Rigorous or Not?: a Case of Auditor Judgment for Deferred Tax Issues”

...irrelevant, important or unimportant. Frames are a necessary aspect of judgment, but it is important to realize that our judgment frames provide only one particular perspective. The importance is that judgment framing question management’s perspective appropriately by viewing other frames and it is a foundation to professional skepticism. How do perceptual biases relate to judgment biases? Our eyes and related perceptual skills ordinarily are quite good at perceiving and helping us to accurately judge shape similarity. However, optical illusions can predictably and systematically fool our eyes. The judgment biases are similar to the perceptual ones, like there are times when our intuitive judgment falls prey to systematic traps and biases. What are the five steps in the judgment process? a. Clarify Issues & Objectives: To get at issues, ask “what is the problem to be solved?” To get at objectives ask “what is wanted or needed?” Ask “what” and “why” questions. b. Consider Alternatives: To identify alternatives, being creative is needed in seeking input from others and achieve our objectives. If the issue and objectives are properly clarified, the alternatives can be identified by asking, “How can we achieve our objectives?” c. Gather and Evaluate Information: the information that is gathered and considered should result in sufficient appropriate audit...

Words: 2140 - Pages: 9

Premium Essay

Balanced Scorecard - Executive Brief

...The Balanced Scorecard (BSC) Framework, Implementation Methodology and Recommended Application - Executive Brief (April 2012) - Introduction Balanced Scorecard is an integrated, organization-wide management system that drives, in an aligned manner, the transformation, improvement and modernization efforts of all hierarchical levels towards the accomplishment of organization’s Strategy. For this reason, Balanced Scorecard is also known as a Strategy Execution system. More precisely, Balanced Scorecard represents a framework for aligned Strategic Planning and for the consistent management of the organizational and individual performance in the execution of the Strategic Plan. Furthermore, Balanced Scorecard is a communication tool that helps each employee better understand where the Strategy drives the organization, what the plan is for reaching that destination and what their departmental and individual measured contribution is to that convergent effort. With such understanding, the employees – whether directly involved in the planned Strategy Execution, or not – can also change and improve the way they perform their daily jobs through micro-decisions that are both convergent and complementary to the execution of organization’s Strategic Plan. BSC History Balanced Scorecard has been launched twenty years ago as a first set of principles for balanced strategic Objectives and Measures/KPIs setting and measurement. The “parents” of Balanced Scorecard are Dr. Robert S.......

Words: 2511 - Pages: 11

Free Essay

Mis 589 Week 7 Homework

...Steven Le Week 7 Text Book Questions Chapter 9—Questions R2, R4, R7 MIS 589: Networking Concepts and Applications Keller University Chapter 9 R2. What are the five areas of network management defined by the ISO? The five areas of network management are: Performance management, fault management, configuration management, accounting management, security management. Kurose, J. F., & Ross, K. W. (2012). Computer Networking: A Top-Down Approach, VitalSource for DeVry University, 6th Edition. [VitalSource Bookshelf version]. Retrieved from R4. Define the following terms: managing entity, managed device, management agent, MIB, network management protocol. Managing entity: control the network management information and to control the devices in the network. Managed device: a piece of network equipment that is under the control of the managing entity. Management agent: a software process running on a managed device that communicated with the managing entity and takes action on the managed device under the control of the managing entity. MIB: pieces of information associated with all of the managed objects in a device. Network management protocol: runs between the managing entities of the management agents on the managed devices. Kurose, J. F., & Ross, K. W. (2012). Computer Networking: A Top-Down Approach, VitalSource for DeVry University, 6th Edition. [VitalSource Bookshelf......

Words: 283 - Pages: 2

Premium Essay

Seven Rules for Leaders

...successful CEO, there are many talented managers who stumble along the way, damaging their careers and the organizations they were charged to lead. The actions new leaders take during their first few months can have a major impact on their success or failure, yet there is little good advice available on how to take charge in a new leadership role. Transitions are pivotal times, in part because everyone is expecting change to occur. But they are also periods of great vulnerability for new leaders who lack established working relationships and detailed knowledge of their new role. New leaders who fail to build momentum during their transition face an uphill battle from that point forward. Common Traps An analysis of new leaders who under-perform reveals six common traps into which they fall. Trap #1. Being Isolated New leaders can become isolated as a consequence of over-reliance on financial and operating reports and quantitative analyses to assess their new organizations. They spend too much time reading and not enough time meeting and talking. Often this happens because the new leader wants to “know” the organization before venturing out into it. But the resulting isolation inhibits the 1 This is an extrapolation from data collected in a 1998 survey of directors of human resources in the Fortune 500. Forty...

Words: 5715 - Pages: 23

Premium Essay


...Global Perspectives on Investment Management LEARNING FROM THE LEADERS Conversation with a Money Master BILL MILLER, CFA with FRED H. SPEECE, JR., CFA Bill Miller, CFA, is chairman and chief investment officer at Legg Mason Capital Management, Inc., and was named ‘‘The Greatest Money Manager of the 1990s’’ by Money magazine. In this question and answer session, Fred H. Speece, Jr., CFA, interviews Bill Miller about his insights into portfolio management in general and value investing in particular. Continuing a tradition of lifelong learning a cfa institute publication Conversation with a Money Master BILL MILLER, CFA Bill Miller, CFA, is chairman and chief investment officer at Legg Mason Capital Management, Inc., and was named ‘‘The Greatest Money Manager of the 1990s’’ by Money magazine. In this question and answer session, Fred H. Speece, Jr., CFA, interviews Bill Miller about his insights into portfolio management in general and value investing in particular. Speece: You have an impressive long-term track record as a portfolio manager. Given today’s very efficient and sophisticated market, do we still have room for stock picking? Miller: When we discuss market efficiency, we run into a semantic issue about what exactly is meant by the term ‘‘market efficiency.’’ At Legg Mason, we believe that the markets are pragmatically efficient, which means that they are extremely competitive and usually beat most active managers. For example, fewer than 35 percent......

Words: 8589 - Pages: 35

Free Essay

Mgt330 Week 3 Paper

...Being the District Manager of Dunkin Doughnuts Jennifer Clifford MGT330: Management for Organizations Instructor: Michael Marticek April 27, 2015 Being the District Manager of Dunkin Doughnuts Introduction  For the last two years, I was the manager of a Dunkin Donuts location that has been ranked as the top performing store in the system. Recently, after review my performance over the last two years, they have promoted me to district manager and given me the responsibility of opening another five new locations over the next two years. With this new job, I will be responsible for structuring, staffing and operating these five new locations, which means coming up with job designs, an organizational design, the recruiting and selection of employees, and the training and performance reviews of the employees. Job Design  “Job design occurs when managers determine the tasks needed to be done, who will do them, and the selection criteria to be used to choose employees and place them on the job (Baack, 2014). When coming up with the job design I need to look at every job that will need to be done at each location and what parts of each job will work well with one another. I do not want the job of a cook to be that of a drive through attendant as well, if I do they might burn the food. Job design consists of job analysis, job description and job specification and each one of these is important to the job design. Job analysis is when the human resources department......

Words: 1292 - Pages: 6

Premium Essay

Business Organization

...Management plays a substantial role in how business operates. The variety of methods to the speculative and practical background of management has come up with varieties of what is meant by such key words as management and organization. The required reading outlines three key elements needed in the successful running of a business. The three key elements are Information and decision making, planning process and techniques and strategy and strategic management. The reading covers a general outline of the elements required for a manager to make familiar decisions among alternate courses of action. The reading also lists types of managerial decisions, information competency, and information needs in organization, why managers plan and the planning process and benefits of planning. In the following I will describe the various components that comprise the main aspects of the required readings. Information, technology and management. Information is basically data that is used when made meaningful in the decision making process. The reading shows how valuable and useful data is and that it is accessible by everyone but not everyone makes data that is readily available to them useful information. When we are able to gather, analyze and use information for decision making and problem solving this is called information competency. In order for companies to have top performance employees should have the right information available to them. The reading outlines information systems.......

Words: 873 - Pages: 4

Free Essay

Mosquito Trap

...Bacacay East District Tanagan Elementary School Bacacay [pic] Science Investigatory Project presented to the Panel of Judges of 2015 Division Science Fair September 17, 2015 Camalig North Central School Camalig, Albay Presented by: ALEX BENDO Researcher ROCKY RABINO Research Adviser 2 Abstract Purpose One of the best ways to keep a yard clear of biting mosquitoes is to use a mosquito trap. When set up properly, just one or two of these ingenious devices can kill thousands of mosquitoes and all but wipe out a local population. The style of trap varies by brand, but generally they range from indoor units the size of air purifiers to large units that resemble barbecue grills. Some run on electricity, while others are powered by propane tanks. You can easily reduce the number of mosquitoes on your property with a plastic bottle trap that will attract and kill the mosquitoes. The liquid in each trap will last about two weeks, and then, it can be easily replaced. For increased effectiveness, place multiple traps around your house or property. Procedure Used Get a large 2 liter Coke/Pepsi/Fanta, etc plastic soda bottle. This is the kind that takes a couple of hands to hold onto. Empty the bottle by drinking or draining. Take the cap off and throw away. Just below the point where the neck of the bottle straightens out onto the body of the bottle, cut it across. So now you have a funnel and a cylinder. Invert the funnel into the......

Words: 3436 - Pages: 14

Free Essay


...PROJECT: “LOSS CAUSATION MODEL” HISTORY, THEORY & APPLICATION Fall 2014 Student: Mariana Ifteni INTRODUCTION/ HISTORY Companies suffer a considerable loss due to accidents, and it is reflected in paying insurance cost, repair of the damage machinery, slowing down of production, additional charges on training of new specialists, and so on. Thus, a special system of accident investigation or, in other words, loss causation investigation is widely in practice. Accident investigations are conducted not only to prevent material loss, physical injury or corrective measures – the point is also to assure that the injured worker gets all material compensation necessary, or, instead, to oppose false insurance claims. Thus, inadequate safety program is reflected in the lack of workers training, necessary inspections of the equipment and so on. Inadequate safety program standards are evident when workers do not understand the peculiarity of the safety program and how to apply it, that is why insufficient compliance to standards occurs. Before a loss occurs (Injury, illness, damage, loss in process), there are series of events that take place with a root cause that begins this series of events. The root cause is called a Lack of Control (Inadequate standards, lack of compliance for preparedness, knowledge and skill training, etc). This leads to a basic cause (or personal factor) such as lack of knowledge, stress, inadequate capabilities. This in turn leads to an immediate cause......

Words: 2768 - Pages: 12

Premium Essay

Organizational Design and Structure

...•Ch. 4: How do you think planning in today’s organizations compares to planning twenty-five years ago? Do you think planning becomes more important or less important in a world where everything is changing fast and crises are a regular part of organizational life? Why? The planning process is not very different however the steps involved have likely increased from twenty-five years ago. Problems that occur in today’s organizations are much more complex and require complex solutions and complex risk assessments. This is evident in the increased number of departments needed within an organization to handle the vast amount of work such as marketing, procurement, legal and E-business departments. Planning is much more important in a world that is constantly changing and crises are a regular occurrence. It is imperative that organizations select managers that are as diverse as the departments within the company. In a fast paced, changing world there are so many more levels of uncertainty and planning is a huge factor in the success of a business. “Frequent changes require more information processing to achieve horizontal coordination.” (Daft, 2010, p. 153) •Ch. 4: Is changing the organization's domain a feasible strategy for coping with a threatening environment? Can you think of an organization in the recent news that has changed its domain? Explain. Changing an organization’s domain is probably not the best idea. This is especially true for an organization that operates......

Words: 1017 - Pages: 5