Performance Management for Organizational Success...

Performance Management for Organizational Success Performance management in an organization includes activities which ensure that goals are consistently being met in an effective and efficient manner. It focuses on the performance of the organization, department, employees, or even the production processes which produces the product or service, as well as many other areas. It is also known as a process by which the organization aligns the resources, systems and employees to strategic objectives and priorities. An organization aspiring for success needs in place the process of performance management. Aims of the performance management in the organization are (i) to make the performance of the organization visible, (ii) to drive the management and the employees to take actions, and (iii) to provide timely feedback on the effect of the actions for taking corrective measures. Performance management highlights the visible performance gaps in the organization. It creates increased pressure on the management and the employees for improvement in the performance level. It identifies the areas of improvement in the organization. It helps the organization for sustaining the continuous improvement in quality, cost, safety, and in meeting the customer requirements. Performance management is a structured visual approach to monitoring of the organizational performance, highlighting issues and reacting to them in a timely manner. Performance management system is required in the organization for the purpose of meeting obligations to customers, employees, shareholders and other stakeholders. Collection and analyzing of data is an important necessity in the process of the performance management. Accuracy of the data for the performance indicators is necessary for the stimulation of the improvement activities in the organization. The data-improvement cycle is given below in Fig 1. Fig 1 Data improvement cycle Performance management is a tool to ensure effective management in the organization. It is the process...

Business Process Re-engineering...

Business Process Re-engineering  Business process re-engineering (BPR) is a strategy of the management of an organization which focuses on the analysis and design of various business processes and flow of work within the organization. It seeks to help the organization radically to restructure its operations by focusing on the ground up design of the business processes. BPR helps the organization to rethink in fundamental way how it should do the work in order to drastically reduce operational costs, improve service to its customers, and become a world class organization.  It is also sometimes known as business process redesign, business transformation, or business process change management. BPR as an approach to radical organizational change is a relatively recent concept emerging from the two papers written by Davenport and Short (1990), and Hammer (1990). These papers gave rise to two popular books in 1993 written by (i) by Davenport , and (ii) by Hammer and Champy. The authors of these books promoted the idea that sometimes radical redesign and reorganization of the organization becomes necessary for lowering the costs and increasing the quality of service. The concept of BPR has become popular in a short period of time, promising amazing results very quickly in relation to corporate and technological change, transformation and competitive pressures. BPR strategy presumes that the business processes are set of logically related tasks performed to achieve defined business outcomes. Re-engineering of these processes emphasize a holistic focus on business objectives, and processes related to them are recreated totally rather than carrying out the optimization of the sub processes. The most notable definitions of BPR are given below. Hammer and Champy has defined BPR as ‘… the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary modern measures of performance, such as...

Vision, Mission, and Values of an Organization...

Vision, Mission, and Values of an Organization Vision and mission both relate to an organization’s purpose and are typically communicated in some written form. Vision and mission are statements from the organization that answer questions about who we are, what do we value, and where we’re going. Vision and mission create a target for strategy development. Vision and mission provide a high level guide, and the strategy provides a specific guide, to the goals and objectives showing success or failure of the strategy and satisfaction of the larger set of objectives stated in the mission. Vision and mission statements play three critical roles. They are (i) to communicate the purpose of the organization to stakeholders, (ii) to inform strategy development, and (iii) to develop the measurable goals and objectives by which to gauge the success of the organization’s strategy. These interdependent, cascading roles, and the relationships among them, are summarized in the Fig 1. Fig 1 Key roles of vision and mission There are three reasons why an organization must develops vision and mission statements as shown above. First it helps the organization focus on what is really important. Although the organization knows what it is trying to do to improve the performance, yet it is easy to lose sight of this when dealing with the day to day hassles that plague all organizations. The vision and mission statements of the organizations help employees remember what is important as they go about doing their daily work. Second, organizational vision and mission statements let people and other organizations have a snapshot view of what the organization is and what it wants to do. When the organizational vision and mission statements are easily visible, people can learn about the organization without having to work hard for...

Site selection activity for a greenfield steel plant Apr03

Site selection activity for a greenfield steel plant...

Site selection activity for a green field steel plant The site-selection process is conducted to identify possible sites for a proposed green field steel plant and to compare their relative merits based on various criteria. The selection of a suitable site is a very critical activity. The decision of site selection is very important since the investment is very large and it influences the economies of the area very much. It is a strategic decision that cannot be changed once taken. The changes in selected site can be done only with a considerable loss of time and money. Normally the final site selection is done after evaluating several sites. Factors affecting site selection process The site selection process has become increasingly complex because of the plethora of environment laws and regulations as well as the greater public awareness and involvement in various issues influencing site selection. In present investment atmosphere, site selection issues are characterized by their multi objectives and numerous stake holders. To appreciate the complexity of the selection process, the factors influencing the site selection issues are described below. Numerous possible sites – There is possibility that a large number of possible sites may be available which can satisfy the selection criteria to varying degree. Contradicting objectives – There can be contradictions in some of the objectives. For example the objective of keeping minimum capital investment may contradict with the objective of keeping a long term safe environment.. Intangible objectives – These are the objectives which cannot be quantified. Diversity of Interest groups – Investment decision at a particular site may impact several public groups who may have diversity of interest. The groups not satisfied with the investment decision can create problem. Value tradeoffs – Decisions regarding value tradeoffs especially among multiple...