Atlanta
Elements of Results Controls
Albert (Al) Fiorini should continue running his business of Atlanta Home Loan (AHL)which is mortgage lending and financing company. He needs to fight to regaincontrol over AHL perhaps only about $25,000 worth of equipment left. In other toget back his business Al can apply elements of results controls which require foursteps.
First, Al must define the dimensions. He must defining the right performancedimensions although is critical because the goals that are set and the measurementsthat are made shape employees views of what is important. In this case Al must defined AHL dimensions on which results are desired such as for profitability,customer satisfaction or product defects. This dimension will help company toachieve the target.
Second elements of results control is measuring performance on thesedimensions. In this elements measurements, which involves the assignment of numbers to objects, is a critical element of a results control system. Al will measurehis company performance after defined it in the first elements. It might manydifferent results measures can be linked to rewards. Al can measures of financialsuch as net income, earnings per share and return on assets or in nonfinancialmeasures such as market share, growth, customer satisfaction and the timelyaccomplishment of certain tasks. Besides that, Al can use measurements involvesubjective judgements. For example evaluators may be asked to judge whether amanager is being a team player or developing employees effectively and to recordtheir judgements on a crude, ordinal measurement scale.
Third elements are setting performance targets for employees to strive for.Performance targets or standards are another important results control systemelement. In a results control system, target should be specified for everyperformance dimension that is measured. In this case Al can choose two basic waysto affect behaviour. First, stimulate action by providing conscious goals for
Albert (Al) Fiorini should continue running his business of Atlanta Home Loan (AHL)which is mortgage lending and financing company. He needs to fight to regaincontrol over AHL perhaps only about $25,000 worth of equipment left. In other toget back his business Al can apply elements of results controls which require foursteps.
First, Al must define the dimensions. He must defining the right performancedimensions although is critical because the goals that are set and the measurementsthat are made shape employees views of what is important. In this case Al must defined AHL dimensions on which results are desired such as for profitability,customer satisfaction or product defects. This dimension will help company toachieve the target.
Second elements of results control is measuring performance on thesedimensions. In this elements measurements, which involves the assignment of numbers to objects, is a critical element of a results control system. Al will measurehis company performance after defined it in the first elements. It might manydifferent results measures can be linked to rewards. Al can measures of financialsuch as net income, earnings per share and return on assets or in nonfinancialmeasures such as market share, growth, customer satisfaction and the timelyaccomplishment of certain tasks. Besides that, Al can use measurements involvesubjective judgements. For example evaluators may be asked to judge whether amanager is being a team player or developing employees effectively and to recordtheir judgements on a crude, ordinal measurement scale.
Third elements are setting performance targets for employees to strive for.Performance targets or standards are another important results control systemelement. In a results control system, target should be specified for everyperformance dimension that is measured. In this case Al can choose two basic waysto affect behaviour. First, stimulate action by providing conscious goals for