The best Laid Incentive Plan
Case Description
The case study presents an interesting concept of organizational behavior and performance measurement systems. The CFO and Chief Administrative Officer of Rainbarrel products, Hiram Phillip was very confident about the changes he brought in Rainbarrel. He had been in the company for only a year and had done lots of infrastructural changes. Some of the changes included cost cutting in budget, headcount reductions of 10 % across all units, introducing the ‘wall of shame’ policy for customer care representatives, on time shipment policy. He felt, according to his metrics and figures, he had single handedly improved the company’s performances by leaps and bounds. And today was the day where he
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After Hiram Phillips evaluated the company he developed a Performance Management System that would enhance business performance for Rainbarrel Products. One year after the Performance Management System was put into action, Rainbarrel Products showed incredible results. Strengths of these results were reduction in labor costs, costs reduction on commission sales to employees, and clarifying job agendas to each area of sales showed incredible changes. There was evidence of lower costs as a result of higher productivity and improved customer service quality, as well as an increase in the number of on-time shipments being shipped. The reason these strengths were showing up was because no reliable performance measuring metrics was used. The metrics used by Hiram were too focused on number and too narrow. The eccentric of the performance management was cost reduction. Rewards were based on pay for performance, for example you pay the sales folks only on sales, and there may be more sales, but it may be at bad prices or more returns of goods later. The rewards were extrinsic rather than intrinsic. Extrinsic rewards fails to motivate employees and this is what exactly we see in the case. The new policies pushed people to beat the systems like shipping products on due date so that their performance metrics was not affected but their products were lying outside the manufacturing plant, or not to open their emails until they know they cannot
In order for an organization to achieve long term success, it must consistently evaluate those plans and consider all of the organization’s entities and how they link together. By appraising the existing performance management process, it forces deeper analysis of the process, as well as its intended and unintended influences towards employees and the organization.
Performance management systems benefit stakeholders at every level if they are implemented successfully. Performance management systems align employee performance with the strategic direction set by the organization. St. Jessica’s Urban Medical Center’s leadership must perform specific actions, prior to implementing the new performance management system, to ensure it is a success. The organization's leadership must disseminate the information throughout the company, create a process that ensures employees can dispute ratings, train raters to evaluate employees and gain buy-in from early adopters (Aguinis, 2013). A newly implemented performance management system will fail if the proper steps are not taken in the beginning.
What would happen if all guns are banned within the United States? The rapid amount of mass shooting has brought this attention to the mainstream media. The argument to remove the second amendment has brought up many solutions ranging from a total outright ban to the laxer gun right laws. In the article written by Jeffrey Goldberg, “The Case for More Guns (and More Gun Control)”, makes the argument that more civilians with weapons can help either prevent and/or limit mass shootings casualties. In his argument, the number of guns in the U.S. greatly outnumbers the total population consequently an unapproachable goal. Also, interviews both a victim of a mass shooting and experts that help his argument which has many inconsistencies. The article
Freedom is defined as the power or right to act, speak, or think as one wants without hindrance or restraint. There are different forms of freedom, two of which are physical and mental freedom. People advocate the rights of both physical and mental freedom of others who can not. Franklin D. Roosevelt and Malala Yousafzai fought for physical freedom whereas John F. Kennedy fought for mental freedom. In order to be completely free, someone must posses both physical and mental freedom.
The key components to developing effective Reward Strategy is to ensure that there are clearly defined goals to meet business objectives, that the reward programme meets the needs of both the organisation and its employees, and to ensure that this is then supported by effective HR policies. In order to ensure these criteria are met there are a number of factors which influence how reward strategy is developed which include both internal factors within the organisation itself, as well as external factors outside the organisation.
To successfully transform themselves, high-performing organizations have found that they must fundamentally change their cultures so that they are more results-oriented, customer-focused, and collaborative in nature, and have recognized that an effective performance management system can help them drive internal change and achieve desired results. (Human Capital, 2004)
Performance management is the process of planning work assignments, setting expectations, monitoring processes, rating performance, and rewarding performance. Performance management systems are used by organizations to identify, measure, and develop the performance of individuals and teams. The goal of an effective performance management system is to strategically align employee performance with company goals and objectives (Smither & London, 2009). In order to achieve optimal performance, organizations are tasked with implementing innovative solutions that ensure performance management systems that deliver real results and improve performance (MacMillan, 2015). Organizational leaders are responsible for understanding the performance management system in order to focus on employee efforts that will help in achieving both individual and organizational goals (Opm.gov). In this paper, the author will suggest the key processes that DSM needs to provide within its system in order to successfully link its key success factors (KSF). The author will select three drivers, and examine the central manner in which DSM management has aligned its business strategies to performance management. Lastly, the author will critique DSM’s competitive advantage by using three of the six assessment points outlined in the textbook.
I am going to investigate the topic of alcohol consumption of students under 21 while in college. College environments, which include the faculty, students, and the surrounding communities, can be seen as too lenient when it comes to underage drinking. I believe that college attitudes do blur the line that marks the age of when people can drink, and are lenient when it comes to young students drinking. I am going to find out what colleges do about the problem of underage drinking, and how this affects the students. Some people might say colleges don’t do much about underage drinking because it is easier to ignore the problem than it is to fix it. Others might argue that colleges don’t need to do anything about students under 21 drinking because
Chapter 2 Harvard Press Book (2006). Performance management: Measure and improve the effectiveness of your employees. (Chapter 2) Motivation: The Not-So-Secret Ingredient of High Performance. Harvard Business School Publishing. Cambridge, MA. Lynn, I., Hodge, Y. & Yemen G. (2007). Teamwork turmoil. University of Virginia Darden School Foundation. Beamish, P. & Jiang, R. & (2011). The Chinese fireworks industry. Richard Ivey School of Business Foundation. Kaplan, R.S. (2010). Leading change with strategy execution system. Harvard Business School Publishing. Cambridge, MA. Karkhardt, D. & Hanson, J. (1993). Informal networks: The company behind the charts. Harvard Business School Publishing. Cambridge, MA. Katzenbach, J. & Smith, D. (1993). The discipline of team. Harvard Business Review. President and Fellows of Harvard College. Kerr, S. (1995). On the folly of rewarding A, while hoping for B. Academy of Management Executive. 9 (1), 7-14 Download on class site Kramer, R.M. (2003). The harder they fall. Harvard Business School Publishing. Cambridge, MA. Montgomery, C.A. (2005). Newell Company: Corporate Strategy. Harvard Business School Press.
Performance is the strengths and opportunities identified in an employee that can be measured and communicated to an employee to encourage development. Through a performance management system, Laura can gain insights about her employees. In addition, it would help clarify the employees’ job definitions. A PM system can aid in enhancing employee development and competencies. Employee misconduct is minimized and administrative action becomes fairer. Thus, the PM system will help protect Laura from HR relate lawsuits. By measuring employees’ performance against her company goals, Laura can make clear her objectives and change the organization for the better (Southwell, 2015, Unit 1). In the article “A (Blurry) Vision of the Future: How Leader
Clay County is located in the far western part of the state if North Carolina. The country is part of the tri-state area of North Carolina, Georgia, and Tennessee. This tri-state area is home to over 5 county school systems all within a 20 to 40 mile driving radius of each other. Clay County specifically borders the state of Georgia and is only about 20 miles away from the Tennessee boarder. Due to the location of Clay County Schools the district finds itself recruiting and competing for quality teachers each year from the surrounding areas. Filling teacher vacancies is not as much of a problem as retaining teachers for more than a year to two. Good teachers make a difference in student achievement,
The world of business evolves over time through new products, services and technical advances. As it changes, it is also important to re-evaluate how success is measured currently in the business field. It is possible that new methods may need to be developed or identified to truly identify issues or success within an organization. The Goal: A Process of Ongoing Improvement provides insight on how a company that was set in its old ways of measurements did not conform to new technology that was introduced on the floor. This was creating a false sense of success when in fact money was being lost. It also introduces the Theory of Constraint.
The strengths that I have identified in myself are leadership, independence, curiosity, dependable, diligent, responsible, passionate, and determined. I believe that I can bring those qualities to the incentive program and that I can help benefit both myself and others around me. According to my friends and teachers, I also tend to bring positivity with me as well. The world isn’t cupcakes and rainbows, they do exist, but not for everyone and terrible things are part of the world as well. Because of that, I consistently try my best to brighten somebody’s day, no matter if it has been gloomy or joyful. Nobody should ever face anything though alone, and when something extraordinary happens, you should always have someone to share and celebrate
On its face, it seems contradictory that a reward would be an unhealthy means to assist the process of learning or behaving. How else would the unpleasantries of learning, of working, or
Performance management relates to an organization’s ability to implement a system to evaluate and advance employee performance. Achieving peak performance requires consistency, clear objectives, and constructive employee evaluation. According to Mithas, Ramasubbu, & Sambamurthy (2011), an organization must design the performance management system based on extensive research about the organization’s mission, and then properly communicate the purpose of the system to employees, stakeholders, and decision makers. After the performing the research, the information should be used to establish the appropriate performance management specialized for the organization. In addition, an effective performance management system should align