Performance : Creating the Performance-Driven Organization by Mark A. Stiffler

By Mark A. Stiffler

A unified method of functionality administration that integrates association and worker performancePerformance presents a realistic framework for rethinking what functionality administration is and the way it may be used to raised execute method. It basically offers a unified technique for aligning, measuring, profitable, reporting, and studying the functionality of a firm and its people who permits executives and bosses to maneuver past today’s incomplete and fragmented method of functionality administration. that includes real-world illustrations and intuitive, useful, and actionable steps to making a performance-driven association, this crucial advisor will essentially switch the way you take into consideration your organization’s functionality.

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Extra resources for Performance : Creating the Performance-Driven Organization

Sample text

In the United States, about 50% of companies in a recent survey said they have all their employees on a variable pay plan, and 80% said they have some employees on a variable pay plan. However, variable pay and pay for performance are not necessarily synonymous. In most cases, variable pay is determined by corporate or group performance, not by individual performance. And if variable pay means that a top performer gets a 5% annual raise while a mediocre performer gets a 3% raise, is that really pay for performance?

Strategic areas are underfunded while nonstrategic areas receive more than enough funding for reasons relating to history, politics, or some other backward-looking criterion. Linking Past and Future Performance management, as it is practiced today, is a lot like driving a car while looking only in the rearview mirror. In theory, you can do it— provided that you don’t mind hitting a tree or a deer every now and then. Organizations tend to be firmly rooted in the past. They measure financial performance over some number of prior quarters, and they look at individual performance and productivity, usually over the past year.

That means using past performance to change future behavior and making frequent—and by that, I mean at least quarterly, if not monthly—adjustments to your future direction to keep people on the most efficient path to success. Linking Finance and Human Resources Finance and human resources: Could there be two more different views of the world? Finance looks at numbers. If the organization meets its revenue and profit targets (along with any number of other measures having to do with such things as margins, cash flow, and inventory turns), then the organization is, by definition, performing well.

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