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Bord – literally； a ‘dashboard’ of performance measures） in the early part of
the 20th century。
Four perspectives are included in the management process； which in
effect extends the range of management by objectives and value…based
management into areas beyond purely financial target se。。ing。 A number
of objectives； measures； targets and initiatives can be set to achieve specific
key performance indicators （KPIs） for each perspective in terms of：
Organizational Behaviour 151
。 Financial： These include KPIs for return on investment； cash flow； profit
margins and shareholder value。
。 Customer： Here the KPIs can be for customer retention rates； satisfaction
levels； referrals and plaints。
。 Internal business processes： These can include stock turn； accident
rates； defects in production； reduction in the number of processes and
improvements in munications。
。 Learning and growth： Employee turnover； morale levels； training and
development achievements and internal promotions vs new recruits
are all KPIs to use here。
The four perspectives are linked by a double feedback loop whose purpose
is to ensure that KPIs are not in conflict with one another。 For example；
if customer satisfaction could be achieved by improving delivery times；
achieving that by； say； increasing stock levels might conflict with a financial
target of improving return on capital employed。 （See Chapter 1 for a refresher
on financial ratios。）
DELEGATION： THE ESSENTIAL
MANAGEMENT SKILL
To be effective an MBA needs to acquire for themselves and engender in
their own management team the ability to delegate； also known as the
art of ge。。ing things done your way by people who are happy to do so。
Figure 4。10 The balanced scorecard
Customers
。 Objectives
。 Measures
。 Targets
。 Initiatives Learning and
growth
。 Objectives
。 Measures
。 Targets
。 Initiatives
Financial
。 Objectives
。 Measures
。 Targets
。 Initiatives
Business
processes
。 Objectives
。 Measures
。 Targets
。 Initiatives
Vision and Strategy
152 The Thirty…Day MBA
Delegation is the tool that frees up your time for higher tasks – strategic
planning； for example。 Also； no organization can grow； and from a career
perspective no MBA can move up； until someone else is in place to fill their
role； delegation is a key tool in developing staff to be ready to take on more
responsibility。 Done effectively； delegation is also highly motivating。 Look
back to both the Hawthorne experiment and Hertzberg’s hygiene factors
described earlier in this chapter to remind yourself why。
The theoretical framework MBAs are most likely to e across that
gives guidance on delegation is that espoused by R Tannenbaum and W
H Schmidt； published in the Harvard Business Review in May/June 1973；
in an article entitled ‘How to choose a leadership pa。。ern’ （Figure 4。11）。
The thinking behind their ideas was to give managers a way to see how to
choose the most appropriate managerial style or use of authority； ranging
from boss…centred （task） to subordinate…centred （relationship） dependent on
their and their team’s capacity for delegation。 For example； a manager with
weak munication skills； leading an untrained team in an organization
with poor or inadequate control systems； will not be able to move far along
the continuum。
Figure 4。11 The leadership continuum – Tannebaum； Schmidt
Use of authority by manager
Areas of freedom for
subordinates
Autocratic manager Democratic manager
Manager
makes and
announces
decisions
Manager
allows full
freedom
within
prescribed
limits
Manager presents
problem； gets
suggestions； then
makes decision
Eight steps to successful delegation
Delegation is difficult and most people experience a loss of control or a
fear that the people they are delegating to are not really capable of doing
the task well。 These natural fears and concerns have to be understood
and managed if delegation is to succeed。 These eight steps improve the
prospects for success in delegation：
。 Decide what tasks to delegate and； equally importantly； what not to：
Routine jobs can usually be passed on with li。。le difficulty but other
Organizational Behaviour 153
areas may involve training people up。 Confidential or disciplinary
work； tasks with strategic or legal and regulatory implications； are not
likely candidates。
。 Don’t just select unpopular and tedious tasks to dump on others。 Pass
on worthwhile work that will genuinely widen experience and skills。
。 Choose who to delegate to： Ideally someone with the right skill set；
who is not already overloaded and who is likely to stay around long
enough for the organization to gain from the experience too。
。 Discuss the changes with the person concerned； get their mitment
and then let everyone in the relevant part of the organization know
about the change in role and why。
。 The subordinate concerned must be given the authority to do the job
and to make independent decisions。
。 Follow up soon and review frequently to make sure the tasks delegated
are being done satisfactorily and that no other work is suffering。
。 Reward appropriately for a successful delegation。
。 municate the success to the team to reinforce the value of taking on
additional responsibilities； personal development and the opportunities
for career progression。
SYSTEMS
If the structure is the skeleton and people are the blood and guts； systems
are the rules and procedures that enable an organization to function effectively
and to prepare itself for the changes ahead。
Rewards
While money is more a hygiene factor than a motivator； people e to
work to get paid and if they achieve great results they expect great rewards。
There is no single aspect of an employee’s life more susceptible to gripes
and plaints than pay。 So how can you make sure that doesn’t happen in
your organization？
。 First； make sure you are paying at least the going rate for the job in
the area。 Don’t think you are ge。。ing a bargain if you get an employee
to work for less than that figure； if they do； either they are not good at
their job； a poor time keeper or have some other disability that you will
find out about later； or they are good and when they find out they will
feel cheated and leave。 The easiest way to find the going rate is to look
at advertisements for similar jobs in your area or visit PayScale （
payscale 》 FOR EMPLOYERS） where you can get accurate realtime
information on pay scales。
154 The Thirty…Day MBA
。 Include an element of incentive for achieving measurable goals。 This
could be mission； perhaps the easiest reward system； but it really
only works for those directly involved in selling。 Or a bonus for successful
performance； usually paid in a lump sum related as closely as possible
to the results obtained。 The Chartered Institute of Personnel and
Development （cipd。uk 》 Subjects 》 Pay and reward） gives
further guidance on a prehensive range of reward options。
。 Benefits in kind are a form of pensation that is not part of basic
pay and that isn’t tied directly to their performance。 Pension； working
conditions； being allowed to wear casual dress； on…site childcare；
personal development training； pany product discounts； flexible
hours； telemuting and fitness facilities are all on the list of benefits
that are on offer in certain jobs today。 There may be tax implications
on benefits in kind and the Digita Use of employer’s assets： benefits in
kind calculator （digita/tiscali/home/calculators/employersa
ssetscalculator/default。 asp） will help work out if tax is due and if so
how much。
。 Team awards can be used to engender be。。er teamwork。 Where money
is involved it should be spent on things of value to the team。 It could be
an evening out； or any other social event。 It could also be used to buy
a business asset that’s nice to have but could not really be justified on
business grounds； for example a dedicated photocopier。
Appraisals
An appraisal is almost certainly an MBA’s first point of contact with an
organization’s systems and the most likely one to cause dissatisfaction and
frustration。 Although supposedly not about blame； reward or even praise；
that’s how it ends up。 Its output is a personal development plan to help
everyone perform be。。er and be able to achieve career goals。
There are plenty of standard appraisal systems and procedures； many
are li。。le more than a tick boxes and rating process； others are built around
buzzwords such as ‘360 degree appraisals’； meaning that staff below and
above as well as peers have an input into the process。
There are really only four ground rules for successful appraisals：
。 The appraisal needs to be seen as an open two…way discussion between
people who work together； rather than simply a boss/subordinate relationship；
and prepared for in advance。 Discussion should be focused
on achievements； areas for improvement； overall performance； training
and development； and career expectations and not salary （that’s for a
separate occasion）。
。 It should be results oriented rather than personality oriented。 The appraisal
interview starts with a review against objectives and finishes by
se。。ing objectives for the next period。
Organizational Behaviour 155
。 Appraisals should be regular and timely。 At least annually； perhaps
more frequent in periods of rapid change。 New employees should be
appraised in their first three months。
。 Sufficient time should be allowed and the appraisal needs to be carried
out free from interruptions。
EPIC Training and Consulting Services has a free Workforce Development
Toolkit on its website； including a guide on carrying out appraisals and
templates for both appraiser and appraisee （h。。p：//workforce。epicltd）。
Development
If an organization is only as effective as the people it employs； it follows
that the money invested in developing them and improving their skills
should translate into improved results for the business as a whole。 The
statistics support the argument that money spent wisely on development
pays dividends； so as a task it forms a major part of the human resources
department’s workload。
Two acronyms an MBA will find useful to pump…prime any development
plan are the following。
KSAs （Knowledge； skills and attitudes）
Development programmes have learning objectives in each of these three
areas and all three aspects need to be addressed for development to have
the greatest impact：
。 Knowledge； described as perception； learning and reasoning。 Would it
was as simple as that； but the HR and learning gurus have subdivided
that into： declarative knowledge or factual information； procedural
knowledge； that is； understanding how and when to apply the facts；
and strategic knowledge； used in planning and evaluating。
。 Skills are concerned with a proficiency level； for example in using a
so。。ware application such as Excel； making a presentation； operating
equipment； closing a sale or negotiating a deal。
。 A。。itudes are the positive； negative or neutral feelings arising out of
opinions and beliefs concerning actions that affect motivation levels；
which in turn influence a person’s behaviour。
TNA （Training needs analysis）
This process identifies the gap between the skills an organization needs to
achieve its strategic and tactical goals and the skills employees currently
have。 Employee surveys； management observations； customer ments
and appraisal are all among the tools used to gather information to identify
training needs。 （See Figure 4。12。）
156 The Thirty…Day MBA
Organizations have a wide repertory of tools to apply to ensure that people
are developed。 Governments have an interest in encouraging training and
o。。en provide information on where training programmes are being run as
well as offering grants to help with the costs。 These should be explored at
the outset； as any financial assistance can sweeten the budgetary pill。 The
main options in terms of learning methods are：
。 On…the…job coaching and mentoring： This is where people learn from
someone more experienced how a job should be done。 The advantages
are that it is free and involves no time away from work。 It should also
be directly related to an individual’s training needs。 However； it is only
as good as the coach and if they are untrained you could end up simply
replicating poor working standards。
。 In…house classroom training： This is the most traditional and familiar
form of training。 Some； or all； of your employees gather in a ‘classroom’
either on your premises or in a local hotel。 You hire in a trainer or use
one of your own experienced staff。 This method provides plenty of
opportunity for group interaction and the instructor can motivate the
class and pay some a。。ention to individual needs。 The disadvantages；
particularly if it is held away from your premises； are that you incur
large costs that are more to do with hospitality than training； it is time
consuming and it may be difficult to release a large enough number of
employees at the same time to achieve economies of scale。
。