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The strategic and coherent approach to the management of the most valued asset: the people working there who individually and collectively contribute to the achievement of its objectives for sustainable competitive advantage. 'management of the most valued asset'
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HARD začněte se učit
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hiring, | appraisal development, | reward system | development of employees.
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Strategic significance of employees. začněte se učit
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The creation and fulfilment of the strategy relies on the skills, knowledge and creativity of the people. Today, employees are seen less an an expensive necessity but as a strategic resource that might provide the organisation with competitive advantage.
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Operational significance of employees. začněte se učit
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Successful completion of a task relies on having employees with appropriate skills and abilities to carry out their work.
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# začněte se učit
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Risk attitude aligning*. | Employing and retention. | Legal obligations. | Awarding for performance. | Control salary costs. | Justice and consistency. | Objectives of organisation achieving. | Motivation. RELACJOM systemu wynagrodzeń *Employees attitude aligned with that of the organisation.
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BP BP E začněte se učit
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Basic Pay. | Performance related work (PRP)*. | Benefits in kind. | Pension. | Executive share option scheme. PIG KPC * Piecework. | Individual PRP. | Group PRP. | Knowledge contingent pay. | Profit related pay. | Commission.
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Benefits of linking reward scheme to performance: # začněte se učit
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Motivation. | Interminable improvement focus. | Clearness of what creates organisational success. | Attracting staff. MICA
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Problems of linking reward scheme to performance: DUCATS začněte se učit
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Dysfunctional behaviour. | Unmotivated*. | Cost. | Achievement prioritising. | Targets setting. | Stress source. DUCATS *If target outside of employee control, difficult to achieve or rewards are insufficient or inappropriate.
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Dysfunctional behaviours of PM system: SS GOT MMM začněte se učit
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Sub-optimisation.| Short-termism.| Gaming.| Ossification.| Tunnel vision.| Misrepresentation. | Misinterpretation.| Measure fixation. Ossification = lack of flexibility. | Sub-optimisation = nieoptymalność. Measure fixation = E.g. measuring behaviour or results that are not important
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Non-accounting management style: by Hopwood začněte se učit
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Non-financial measures, such as customer satisfaction.
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Budget constrained management style by Hopwood: 2cz začněte se učit
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Short-term financial performance is measured | using, say, ROCE.
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Profit-conscious management style by Hopwood: 2cz začněte se učit
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Measures of long-term profitability, | such as NPV.
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