Friday, October 7, 2011

Link Pay To Performance: Objectives Cascade

Ask any competitive sport, "the coach to identify the target before the first team in every season, and he would certainly have to respond to something like" win a championship. "The individual tasks, all members of the organization, small and large, rotating, and the realization of this all important goal.

Most companies operate on the same basic principle, but manifested in the form of mastery rather than increasing profit margins. Now, increasingly maddening world of financial management, it is sometimes difficult to link performance to pay, how can you determine the effect of the total budget of a particular individual, and because of its relative cutting the cake?

Thinking about cascading goals as a pyramid: at the top is the one overriding objective, supported by the lower layers of the objectives, although increasingly variable depending on whether one approaches the end, we are all connected to the initial target. The upside is limited and controlled by a few, while the lower layers are formed by the rest of the pack. Although management of each company is limited to a small group, without the support and help from their low levels, the whole pyramid is destined to collapse. For this reason, as in sports, with business success is the sum of each and every one of its parts. This system is more than worth its weight in gold to relieve some of the limitations of budget management.

"Objectives cascade" linking the salary of an individual control over the main objective. For example, senior managers of a company, whose credits include such activities as the spearhead of marketing campaigns or major financial decisions, make more money. Work for the ultimate goal of the company to collect more benefits, these people make important decisions and constitute the largest percentage of the budget. Similarly, managers who could control the recruitment of a specific region are given a smaller, but proportional and other employees below them an even smaller amount, but still comparable.

For the new employee, the hours of hard work over the long days, the system of "cascading objectives" should not be seen as an obstacle but as a window of opportunity. Supported the work of the notable tag leads to promotion, which is assigned to the employee responsible for more - and added that the remuneration of its business objectives inevitably closer links with the top floor of the pyramid.

There is a moral advantage of paying for performance. When an employee feels like the work he or she is under, there is a little less enthusiasm at work. The motivation and the desire to feel proud of their work are not really there. However, employees who feel their work is essential to the advancement of society as a whole, almost always work with the best of their abilities.

The ability of the partners in the steep slope to the top of the pyramid gives incentives for the future life.

While HRMS is designed to perform the cascading process full of purpose, but it can be used to monitor the performance of HR base, and therefore ultimately affects the combination HR & Payroll events.

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