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Goaltarget of an organization
Management
Name of student
Institution
Goal/target of an organization
Every organisation should have clearly set goals which are written down in the business plan. Goals keep the management focused and motivate staff to attain them. The organisation goal in this case is to create wealth or returns through improving performance to create value through Value Based Management and shareholders- value- based- management. Quality management, empowerment, continuous improvement, great team building are among the mentioned organizational goals.
Mission of the organization
To create a high value returns in terms of producing sufficient wealth to better society (Richard, 2002). Shareholder wealth maximization is a theory that states that individuals who are shareholders pursue wealth maximization for themselves, the society benefits as a whole because this produces the greatest wealth for society. While the ultimate goal of organisations is creating high returns on investment, the mission is creating wealth for the shareholders, and therefore benefiting the society. Employees are encouraged to work together to maximize positive outcome.
Goal/target variable (s)
Value Based Management unlike the usual planning systems, focuses on Better decision making at all levels of an organisations using the right information and incentives drives the company forward. It’s all about maintaining proper records, in the long run. Value Based Management has incredible impact when implemented properly eventually improving economic performance. Value based management goes hand in hand with the companies strategies otherwise it’s rendered useless to implement Value Based Management alone and forgoing the company’s strategies.
Having proper management that implement the strategies well is the overall goal towards success.
Critical success factors in the goal/target variables
Understanding the organisation’s goals, missions and strategies will make proper implementation which will create the desired results.
Putting the customer first is the fuel that drives the organisation’s vehicle because the customer has no choice than to be loyal. Most organisations base their success on entirely focussing on customer’s satisfaction.
Capital expenditures- Expenditures should be done with the assurance of greater returns than the initial capital.
Every decision made should be towards sales growth without which the organisation will nosedive and eventually collapse.
While implementing Value Based Management, the management should not forget the organization’s goals, mission and strategies they go hand in hand for Value Based Management to be effective.
Value Based Management helps supervisors and line managers to have targets and measure their performance in accordance to their particular circumstances driven by the organisations strategy and also informs the board of directors and corporate centre whether their organisation strategy, mergers, acquisitions and divestitures is valuable (Richard, 2002).
Management decisions relevant to the selected value drivers
Establish explicit, top management support. The support can also be demonstrated by making it clear to the employees what is expected of them and what their contribution is to the success of the organisation.
Focus on better decision making among operating (not just financial) personnel. Hiring qualified employees is important; therefore Human Resources Management is critical. It’s important encouraging the employees to follow the laid down strategies in the organisation (Bron, 1994).
Achieve critical mass by building skills in a wide cross-section of the company
Tightly integrate the Value Based Management approach with all elements of planning
Underemphasize methodological issues and focus on practical applications
Use strategic issues analyses that are tailored to each business unit rather than a generic approach.
Proper record keeping is important because it keeps track of the company’s progress and arrests errors in good time.
When all is said and done, great strategies are meaningless unless followed to the latter; management should accept nothing less the complete and satisfactory implementation of the strategies laid down (Bron, 1994)
To sum it all, Value Based Management can best be understood as a marriage between a value creation mindset and the management processes and systems that are necessary to translate the mindset into action, while taken together, they are bound to create massive and sustainable impact in the organisation.
Comparison
Agreement Resources
Both authors point out that organisations seek to maximize shareholders wealth and achieve maximum value. Power refers to………..(blz. 146)
Ellsworth………, blz. 162
Both authors state that value of the company is determined by its future cash flows. Power points to…. (blz. 146);
Ellsworth …… blz. 163
Both authors discuss strategies in a bid to improve organisational performance in terms of increasing wealth and value, Koller…..(blz 146)
Ellsworth ….(blz 163)
Both authors stress the importance of transparency, professional accounting practices and proper records keeping. Koller …148
Ellsworth…..164
Both authors impose the implementation of Value Based Management and Stakeholders Value Based Management to attain the desired results. Koller …150
Ellsworth…..169
Overall conclusion: Overall the similarities between the two articles are so great. This is partly because both authors focus on strategies that create more returns in the organization.
References
Bron, T. (1994). What is value-based management? : The McKinsey Quarterly, blz.
145-160.
Richard, R. (2002). Capital-market relationships: the myths of share holder wealth maximization
In. Leading with purpose,
Goal-Setting Theory of Motivation
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Goal-Setting Theory of Motivation
Latham and Locke established a well-developed and defined goal-setting theory aimed at motivating the employees. Goal-setting theory is founded on the importance of developing a strong and positive relationship between performance and goals of the organization. This was the same case with the highway administrator who set minimum number of potholes to be refilled by the workers. Research has revealed that goal setting form of motivation is more effective when the goals set by the administrators are very specific and challenging, used as performance evaluation tools, and linked to outcome and feedbacks on results (Locke, and Latham 87). The impacts of the goal-setting motivational program are influenced by moderators like self-efficacy and ability of the employees. The effectiveness of goal-setting performance motivational program is enhanced through setting of deadlines and allocating specific tasks to a given group of workers to accomplish with the allocated time. However, learning goal-setting staff motivational programs often produce better performance outcome compared to a pure performance oriented goal-setting schemes, while individual goal-setting is of equal importance as group goal-setting programs (Kristof-Brown, and Stevens 1089).
Goal-setting staff motivational programs have a significance influence and impact on the behavior and performance of the road repair crews. It is therefore important for the highway administrator to consider implementing this program. However, the highway administrator must have well-defined specific goals for this program to succeed in motivating the crews. Furthermore, the goal-setting programs are the main explanation for the leading work-motivation theories; including Vroom’s VIE theory, Hersberg’s theory, social cognitive theory, Maslow’s motivational theory, and operant-based behaviorism theory (Locke, and Latham 91). The highway administrator, like other managers must accept the effectiveness of goal-setting motivation as an effective and feasible means of improving and sustaining the performance of the road crews. As established by a number of research findings, setting specific goals that are more challenging but attainable is likely to result into better performance outcome compared to non-specific and easy goals (VandeWalle 711). For this reason, it was important for the highway administrator to set specific goals to each crew above the average performance rate.
According to this theory of motivation, the two main determinants of cognitive behavior include intention (goals) and values. Goals also have an effect on job performance (behavior) of the crews through other mechanisms rather than cognitive behavior. As asserts, Latham and Locke (90), goal setting motivational program therefore, direct the actions and attention of the employees. Similarly, it would be possible for the road repair crews to rely on the set goals as a guide and derive to meeting the expectations of the highway administrator and the supervisors. In addition, the proposal by the highway administrator to reward the best performers among the crews also motivates the team to commit and work harder to be rewarded for their efforts. Such goal-oriented performance reward increases competition among the workers as everyone would be fighting to get the top-performers reward (Locke, and Latham 95). Notably, challenging goals (such as setting goal above the average work rate) mobilizes energy, increases the level of persistent, and result into higher efforts. This would be the expectations of the highway administrator given that he has set attainable but challenging goals to the pothole repair team. Goals are therefore act as motivational tools to the employees to advance strategies and policies that would improve their performance capacity and meet the set-goals. Finally, goal accomplishment is likely to lead to staff satisfaction and derivation of further motivation (Kristof-Brown, and Stevens 1091). It is for these reasons that it was important for the highway administrator to use goal-setting motivational program.
The goal-oriented performance program is more effective than other motivation approaches; this outcome of this program is influenced by other variables rather than the reward (Kristof-Brown, and Stevens 1089). However, this approach would deliver quality and professional outcome in the workplace. Although the road crew have a common goal (target) set by the highway administrator, the quality of the outcome would significantly differ from one crew to another. The differences in the quality of the potholes refilled are highly dependent on personal qualities and professional differences among the road crews. For instance, the crews with more practical experience in the field are likely to deliver quality outcomes than their colleagues with little experience. Similarly, the differences in quality of the potholes would be dependent on personal attributes such as commitments and dedication (Porter, L., and Lawler 54). The crews who are fully dedicated to this project stand better chances of emerging top in terms of quality of the work done. Finally, technical and professional differences are reflected in the quality of the potholes. Crews with more professional and technical knowledge on road repair and maintenance stand higher opportunity of refilling more potholes above the expected standards, hence earning more performance rewards at the expense of their juniors in the field (Locke, and Latham 93). Given these technical and professional differences among the crews, it is therefore of great importance for the highway administration team to put into consideration such differences as way of creating fairness and equality in rewarding the road crews. This would further motivate inexperienced workers with limited skills in pothole refilling.
Although goal-setting motivational of effective in deliver the expected performance, it is limited to some extent. Being in the position of the highway administrator, it would be preferable for the organization to consider using the Vroom’s expectancy theory. Unlike Herzberg and Maslow who focused on needs of the employees, Vroom stressed on outcome based motivation and performance (Vroom 59). Expectancy theory asserts that workers’ motivation is a product of personal desire for rewards; hence expected performance and such performance would lead to instrumentality (reward). This motivational theory is founded on the theory that better efforts by the employees would produce better performance and outcome (Vroom 71). Expectancy is therefore influenced by factors including possession of right and appropriate skills needed for performing particular jobs, availability of vital information, availability of useful production resources, and the provision of social support (Vroom 63-4). The concept of instrumentality, as explained by Vroom in his expectancy motivational theory, focuses on the importance of faith its ability to deliver valid outcome. Thus this theory concentrates on three key relationships: performance-reward relationship, rewards-personal goals, and effort-performance relationship. According to Vroom’s expectancy theory, employees are accorded the freedom to choose whether or not to perform a task, depending on their personal level of motivation, which further depends on valence, instrumentality, and expectancy (Vroom 68). This motivation theory is therefore preferred in over goal-setting motivational program because it is a self-interest motivation theory for the crew to maximize satisfaction. Secondly, the expectancy theory emphasizes on pay-offs rather than goals, and stresses on perception and expectation. Finally, the Vroom’s theory is focused on the psychological extravagance with the primary objective of attaining maximum pleasure without experiencing pain (Vroom 74). This theory therefore best fit the case of road crews and should be recommended to the highway administrators.
Works Cited
Kristof-Brown, and Stevens, C. Goal Congruence in Project Teams: Does the Fit Between Members’ Personal Mastery and Performance Goals Matter? Journal of Applied Psychology, 2011: 86(6), 1083-1095.
Locke, E. A., and Latham, G. P. A Theory of Goal Setting and Task Performance. Upper Saddle River, NJ: Prentice Hall, 2009: 86-95. Print.
Porter, L., and Lawler, L. Managerial Attitudes and Performance. Homewood, IL: Richard D. Irwin, Inc., 2006: 50-55.
VandeWalle, D. Building a Practically useful Theory of Goal Setting and Task Motivation. American Psychologist, 2002: 57(9), 705-717.
Vroom, V. Work and Motivation. San Francisco, CA: Jossey-Bass, 2004: 57-75. Internet source.
GOALS OF ORGANIZATION’S COMPENSATION SYSTEM
GOALS OF ORGANIZATION’S COMPENSATION SYSTEM
Magnetize employees: the fundamental purpose of organization’s compensation system is to magnetize quality workforce available in the market at the time of hiring.
Preserve employees: the fundamental intention of organization’s compensation system is to retain well performing and proficient employees for the benefit of the organization in order to achieve organizational objectives.
Motivate workforce: organization’s compensation system facilitates to motivate employees; in turn it helps the organization to achieve its organizational aspirations. Organization can only accomplish its objectives when employees are productive and this can be achieved through compensation which acts as a motivating factor.
Acquiescence with decrees and set of laws: one of the purposes of a compensation program necessitates being to maintain the organization in acquiescence with diverse state and federal decrees and set of laws.
Administrative competence: due to the restricted economic resources in an organization, one of the purposes of a compensation program ought to be to encompass a compensation program that is effortless to oversee, supple, and commercial.
To make parallel compensation with the business strategy, a company ought to foremost be proficient to eloquent what that business strategy is. The rationale is this compensation systems should be premeditated last to make certain that they are gratifying the kinds of performance and behaviors that will eventually permit the company to apprehend its strategy. Articulating the company’s enduring and quick-fix business strategies and formulating confident they are associated with contemporary compensation approaches. Selecting the compensation loom that will preeminent recompense and emphasize the company’s articulated tactical goals. Sporadically assessing the compensation loom aligned with the business stratagem to perceive if goals have been congregated and make indispensable adjustments. By sporadically evaluating the association between the business stratagem and the compensation loom, companies can make certain that the two are still in alliance. This in addition permits companies to adjudicator the efficacy of the compensation loom. In other words, if the company is nearer to its tactical purposes than it was at the commencement of the tactical planning course of action, the stratagem and compensation approaches are most probable allied and functioning synergistically. Compensation vestiges an imperative contrivance for assisting a company accomplish its tactical objectives. Conversely, companies ought to be acquainted with that compensation does not maneuver in a vacuum. It is simply one step in an exceptionally self-motivated tactical planning and execution procedure. But by guarantying that compensation is allied with their strategic objectives, companies plunk a better likelihood of accomplishing those objectives and sustaining a competitive frame over their contenders.
REFERENCES
HYPERLINK “http://www.dgm.com/…/reinforcing-the-bridge-between-business-strategy”www.dgm.com/…/reinforcing-the-bridge-between-business-strategy
HYPERLINK “http://www.chrs.net/images/chrs_papers/alcompst.pdf”www.chrs.net/images/chrs_papers/alcompst.pdf
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