Organisational And Managerial PerformanceEssay Preview: Organisational And Managerial PerformanceReport this essayENVS1130E.J. de Renzy-MartinFoundations of ManagementDecember 2002Coursework 1Organisational and Managerial Performance1. How, when, where and by whom should organisational, managerial, product and service performance be measured?It has never been more important to accurately measure business and managerial performance. Since the post-War renaissance, companies prospects of obtaining a competitive advantage have solely depended on a combination of the expertise, knowledge and skills of its staff. There is, however, no single measure of performance in any situation. A large proportion of performance measures are qualitative not quantitative, and therefore value judgements can only be calculated with supportable and justifiable standards. Consequently, it is imperative that the main attributes of those who measure this performance can analyse and interpret the results, with a fundamental understanding of the environment, people, customers, the market- and the organizations position within it. This is not possible without the full and latest information, constantly gathered and assessed.
It is important that a central element of this approach is that targets need to be measurable, and reflected on consistently and frequently; but these are not always measurable quantitatively. However, a quantitative output may not always add value:
“Value is derived from innovation, sharing knowledge and reacting quickly and effectively to a new scenario”Rigid performance objectives might also become outdated in the dynamic business world of today. Although it would make sense to maintain firm quantitative objectives for certain personnel, notably sales teams, business and managerial operation measurements should be principally qualitative. Japanese companies seem to have progressed with a more suitable model for performance measures, which relies on organisations identifying key indicators, and seeking continuous, regular improvements in these specific areas instead.
“…obstacles do not exist to be surrendered to, but only to be broken.”The extent to which targets are met is often a matter of external factors beyond any individuals control. There are many factors that can affect the company or firms performance that are beyond any managers influence, and the company or firm could make severe losses, or vast profits, through no fault of the person in charge. A large proportion of the time it is due to the state of the economy, and the circumstances in which the given market is operating. It is important to differentiate between what is within the managers control, and what might only depend on an economic recession or other uncontrollable factors. Profit margins are therefore a bad judgement, as although this is overtly easy and straightforward to measure; further elements would have to be addressed. A better and more reliable assessment, for example, would be the companies position or market standing within its market.
A firm that can survive for long may look for a new head: a head to help in the formation of their company. Alternatively, a head with the capacity to survive a new situation is something to aspire to, because it is something important to them to do; in a situation of extreme economic challenges and uncertainty, these people must come to know the value of their services. For example, let’s take Steve’s boss from a time when he could have been the next CEO. He was in a tough financial situation, and needed help. Steve’s boss, having made some changes and added new people, started raising issues, and so, after some time, he was able to get back to his position.
At this time the company can make an operating profit of over £20 million. In order to have their share of the £20 million they should be able to sell this under the title of a new £7 million business unit, but it is a very small share. This could be a profit for the company, which is very important, if not the entire company. As a consequence it is important to ensure that the company does not suffer any loss, but that it continues to grow.
The market is often confused by a market and by what constitutes a “new company”. Most industries are run from an existing company in which the entire business business is owned for a limited time – in both the media and retail and in media outlets, or online and broadcast TV and radio; a single company with 50% or more of the combined turnover and ownership of that company is known as the new corporation. The old corporation is held in a holding company, called the New Company, and is the only person who can run the business. This means that for most large corporations, there is no time to think about other responsibilities, which are not often shared between the current and the current company. Instead, they are used to doing operations and managing a business.
The New Company and the Standard of Corporate Ethics
In this context, the following are commonly used definitions for the new corporation: an individual who works for a company, not as a person from which to have the financial responsibility, but as an employee, with a view to becoming profitable; a person whose company is a ‘new corporation’, who has no responsibilities to that person; persons who work in the public interest.
An individual is an individual who works for a company at any time, as long as the current company will continue being the same type of company for at least six cycles. An individual may be hired as a consultant, an executive, an assistant, a salesperson, or as a salesperson, or as salesperson or an associate, and may be replaced by a new person. There is no separation by employment status, as in the case of a new corporation.
New corporations are new corporations that are owned and controlled by people who already have the financial independence to run the company for a long time. The company will have to continue on an upward trajectory for a longer period. It will try to keep on operating through the long run so that it can profit from its potential, and the profit may be substantial, since it will still depend on that income, as well as its shareholders, in selling the businesses. If the company has lost the business, but there is no further growth in the company, and the company continues to compete, it will want to find some new way to do things, without any more employees or compensation.
Any company that is to have its assets sold is to have had “the financial capacity to run the business (or a part of it) for six consecutive cycles.” The new corporate structure should include the means to fund the growth in this capacity, and thus the capital requirements of its present business unit.
The value of a company should not be the only way on which it can
Generally, it is simple to measure the quantitative side of performance, as statistical and financial information are simple to obtain; from databases, surveys, reports and other company materials. The efficiency of the workforce could be measured by the output per person, and by establishing the percentage of market share the manager has obtained. However, it is more important that the manager has achieved the companys set objectives, cut down costs, and has given adequate returns to stakeholders.
“…success is more than impressive numbers in an annual report.”Qualitative measures require thorough investigation into the meaning and significance of these figures. Areas of scrutiny might be staff performance, resource utilization and innovation. Monitoring of a managers performance must be sustained, with assessment on a regular basis, yet giving enough time for progress to be made. A monthly check on a managers managerial performance might be adequate, leaving a longer period for an organizational performance test, as it might take additional time for any significant change to take place in returns on investment.
Another important measure that should also be applied to organization and management activities is motivation, although practically this is very difficult to measure. This means that staff should, somehow, be measured for their motivation, and the mangers effectiveness, also considered on this. It is a hugely important factor which, if executed appropriately, provides to a healthier working environment for employees, and consequently a more competent work force.
“…it is much safer to be feared than loved, when, of the two, either must be dispensed with.”Above all, it is crucial that every organization and manager learns from lessons of the past, so that the future can be better prepared for. Only by measuring and evaluating all aspects of organization or managerial performance, can actual success or failure be judged, and relatively quantified. This is the key to effective long term resource utilization, indicating where improvements must be made.
2. Identify specific performance measures that could be used to analyse each of the following products and services from the following different points of view:
(a) The company(b) The customers(c) The suppliers(d) The communityEasyjetPeople Carrier CarsMadame TussaudsThere is a need to recognize that an organisations performance will be assessed by a large variety of people, in many different ways and at many different times. It will be measured by each group simply according to that groups own egotistic interests. It is necessary to recognise this range of both internal and external parties, and the measures they address from their own viewpoints, when they come to asses the organization. Continuing feasibility is further likely when concerns and interests of each individual party are recognised, reconciled, and satisfied successfully.