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PERFORMANCE MANAGEMENT (Performance measurement & control (Some…
PERFORMANCE MANAGEMENT
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HR management/ planning
HR planning
Planning approach:1. Rational planning
- attempt to forecast future requirements for all grades & types of staff, to analyze existing staff into the various categories required & to forecast the resulting surpluses/shortfalls which then follow by selection & recruitment should the latter arise.
- however it failed to pay sufficient attention to the complexity of human behavior, emphasizing system rather than actually managing people in effective way.
2. Diagnostic planning
- attempt to look behind the raw data & to discern the factors that lead to variation in such matters as turnover, retention & absenteeism.
- 'Planning becomes integrated into the whole process of management of the employment relationship, manpower planning has a part to play in bridging the gap btw the needs of the org & the needs of individual employees.
Types of employment contract:1. Coercive contract
- in which the individual considers he/she is being forced to contribute efforts & energies involuntarily & the rewards he/she receives in return are adequate compensation.
2. Calculative contract
- accepted voluntarily by the individual, in which he expects to do his job in exchange for a readily identifiable set of rewards. With such psychological contract, motivation can only be increased if rewards to individual are improved. If org attempts to demand greater efforts without increasing the rewards, the psychological contract will revert to a coercive one, and motivation may become negative.
3. Co-operative contract
- in which individual identifies himself w org & its goals, so that he/she actively seeks to contribute further to the achievement of those goals. Motivation comes out of success at work, a sense of achievement, & self-fulfillment.
- The individual will probably want to share in the planning & control decisions which affect his work & co-operative contract are hence likely to occur where employees participate in decision making.
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Advantages:
- It focus on the long-term NPV of a company.
- It force managers to have regard for careful investment & control of WC.
- It focus on CF rather than accounting data.
- It is an absolute measurement which can easily link to financial objective.
Disadvantages:
- Failure to measure short term position
- Use of historical accounts
- Other value drivers are excluded.
- Adjustments needed could be problematic.