Human resources

Question 1

What must targets set be, to keep employees motivated?

Answer 1

clear (SMART)

linked to controllable factors

Question 2

What is meant by gaming?

Answer 2

A type of dysfunctional behaviour

Individual manager is trying to meet their individual targets while ignoring the good of the whole organisation

E.g. a manager may decide to cut divisional investment to boost divisional return on investment but this may result in a long-term fall in profits

Question 3

What is meant by ossification?

Answer 3

Means “turn to stone”

An unwillingness to change the performance measurement scheme once it has been set up

E.g. customer service surveys only being sent to the same group of people (who give good results)

Question 4

What is meant by sub-optimisation?

Answer 4

Focus on some objectives so that others are not achieved

E.g. a focus on winning new customers may result in a reduced focus on existing customer satisfaction

Question 5

What is meant by tunnel vision?

Answer 5

Undue focus on stated performance measures to the detriment of other areas

E.g. an undue focus on ROCE to the detriment of employee satisfaction due to their needs for training or competitive remuneration not being met

Question 6

What is meant by myopia?

Answer 6

Short-termism

Leads to the neglect of longer-term objectives

E.g. only using financial measures as performance indicators

Question 7

What are SMART KPI’s?

Answer 7

Specific
Measurable
Attainable
Relevant
Time-bound