MA 12 Performance Management - Big Picture

Question 1

Ultimate goal for performance management

Answer 1

Evaluate how organization is managed from an efficiency and effectiveness perspective

Question 2

First step in p.m.

Answer 2

Planning and setting targets - must be linked to strategic goals

Question 3

3 considerations for management when setting performance measures

Answer 3

• objective for org and clear reasoning why that measure was selected
• who is accountable for objective and how they will be assessed
• how it can be measured

Question 4

What must be considered when determining responsiblitiy for goals?

Answer 4

If the performance measures are within their control

Question 5

Decentralized organizations often have a lack of goal congruence. How can this be rectified?

Answer 5

Clear communication of org goals

P.M. system and org structure to align goals

Question 6

4 types of responsibility centres

Answer 6

Revenue/Cost/Profit/Investment

Question 7

Ways individual performance measurement can provide value

Answer 7

• provides a platform for improved management controls
• motivates workforce
• provides a pattern of consistency
• establishes clear link between strategy and individiual responsibilities and accountabilities

Question 8

Critical components of individual performance systems

Answer 8

• understanding of expectations, measurement, reward system and clear standards on what is acceptable and what is not
• link to strategic objectives such that the employee’s contribution can be identified and measured
• link between accountability and controllability
• standard of individual KPI accross org
• most KIP should align with org P.M.s

Part of a managemetn by objectives program

Question 9

Adv of a well-structured set of P.Ms

Answer 9

• provides info for decision makers
• puts spotlight on critical factors
• provides a platform for future performance measures
• provides critical insight to managers about strategy choices
• includes a mix of lead measures and lag measures

Question 10

lead vs lag

Answer 10

Lead = predictive and input based
Lag = summarize past performance and output based

Question 11

5 key areas for for-profit PM

Answer 11

• financial
• customer
• internal business process
• learning and growth
• regulatory

Question 12

5 key areas for NFP PM

Answer 12

• stakeholder measures
• financial
• internal business process
• learning and growth
• social impact

spotlight is more on resources utilized (volunteer hours/fundraising campaign spending etc)

Question 13

2 key stakeholders for NFP

Answer 13

Donors

Clients

Question 14

Two types of motivation

Answer 14

intrinsic and extrinsic