Performance Management
Table of Contents * Introduction * Objective * 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 * Bibligeorgphy
INTRODUCTION
Objective
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
INTRODUCTION
Objective
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