Table of Contents
* Purpose of Study?
* Performance Management Defenition
* Company’s Introduction
* Cameron Limited
* FMC Technologies Limited
* Business Case
* Short Term Incentive Plan (STIP) System in Cameron
* Risk Based Management Compensation (RBMC) System in FMC Technologies * Core Issues in both systems
* Reccomendations for improvment
* Theorists identified in both systems
* STIP & RBMC justifications
* Reference Guide
Purpose of study?
The purpose of this study is to select two organisations within the same sector whom uses Performance Management sytems, explore, contrast and evaluate both systems in an attempt understand and critically evaluate the frameworks and comcepts behind the performance management systems used in both organisations and its contribution to organisation performance. In addition, to understand and be aware of the contribution of the performance management process towards high levels of performance and understand and critically appreciate the role of line managers in the performance management process. The companies chosen were done so simple because they operate in the same sector and have two very similar, however, very different performance systems. Cameron Limited operates what they refer to as a Risk Based Management Compensation and FMC Technologies Limited operates a Short Term Incentive Plan (STIP). Both Performacne Management Systems core design are very much similar, however, when expanded they have been developed very differently which will provide for interesting discussions.
PERFORMANCE MANAGEMENT DEFENITION
Performance Management is a term first used in the 1970’s but did not become recgonised until the 1980’s (Armstrong & Baron, 1998). Performance management is known as the process by which an organization aligns both their resources employees and systems to strategic objectives. However, even today authors have different understandings of performance management. (Fowler, 1990, p.3) defines performance management as:
“... The organisation or work to achieve the best possible results. From this simple viewpoint, performance management is not a system or a technique, it is the totality of the day to day activities of all managers”. (Storey and Sisson, 1993, p.3) defines performance management as: “...an interlocking set of polocies and practices which have as their focus the en-hanced achievment of organizational objectives through a concentration of individual performances” (Fletcher, 1992, p.3) defines performance management as:
“...an approach to creating a shared vision of the purpose and aims of the organisation, helping each individual employee understand and recgonise their part in contributing to them, and in doing so manage and enhance the performance of both individuals and the organisation”
Cameron is a leading provider of flow equipment products, systems and services to worldwide oil, gas and process industries. Leveraging its global manufacturing, engineering and sales and service network, Cameron works with drilling contractors, oil & gas producers, pipeline operators, refiners and other process owners to control, direct, adjust, process, measure and compress pressures and flows. Cameron At A Glance * 180 years of continuous business history
* $ 8 + billion in annual revenues
* 2/3 of business non-US
* 80 + strong product brands
* 27,000 + employees globally
* 300 + locations around the world
* Product portfolio spanning markets upstream to downstream * Headquartered in Houston, Texas, USA
Cameron is a leading provider of flow equipment products, systems and services to worldwide oil, gas and process industries. Leveraging its global manufacturing, engineering and sales and service network, Cameron...
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