CASE STUDIES – CHAPTER 8
CASE STUDY 1
Why did Freeport-McMoRan need a performance management system? •
The price of copper jumped significantly in 2006, so they needed to ramp up production to make more profit •
They needed to change their strategy on handling a changing marketplace and remaining competitive •
Each mine was run separately, so employee organization was difficult to determine •
They acquired a company which operated differently than they did, so they needed more standardization 2.
How will it help the company if it has to adjust its strategy in the future? •
A performance management system acts as a sort of template for organizational goals, and it can be modified fairly easily based on changing goals, conditions and variables •
If contributions from certain areas with the organization need to change, the goals are available to everyone for easy and instant access 3.
Do you think a pen-and-paper performance management system could have been as effective as the electronic system Freeport-McMoRan adopted? •
Why or why not?
Electronic media is the only way to ensure instant, real-time, and consistent access to company information •
Pen-and-paper is wasteful, especially since it can be easily outdated by minor changes made to information
CASE STUDY 2
Why do nonprofits such as the San Diego Zoological Society need an appraisal system if their goal is not to maximize their profits? •
Profits are not the only reason for appraisals:
Employee development is also a key factor in determining success, and showing employees their value in the company by linking it to compensation o
Setting and tracking goals is another way of ensuring growth in alignment with business objectives 2.
What do you think are the pros and cons of using a web-based appraisal system? •
Pros: instant, real-time access; quantifiable metrics; transparency; contribute to employee performance; helps to determine whether any performance gaps or missing areas exist...
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