In the United States, byĬontrast, setting a target lower than one achieved Organizations, for example, missing targets isĬonsidered deeply embarrassing, so managers To set such targets, companies must often The best targets are attainable, but with a If they are out of reach, staff won’t even try to hit They are too easy, they won’t improve performance. Selecting the right targets is both science and art. Support the next shift as well as their own. Workers benefit from doing what they can to Teams with the plant’s overall output, so A betterĪpproach would combine targets for individual Starts with little or no work in process, whichĬuts both productivity and output. Of the shift because otherwise all of the creditįor finishing their uncompleted work would Slow down or stop altogether toward the end Whether they can complete a full “unit” of workĬomplete a unit. Not on the performance of all shifts for the entireĭay, workers have every incentive to decide Incentives are based only on its own performance, Some manufacturing plants,įor example, still set overall production targetsįor each shift individually. Usually, it canĪchieve this only by incorporating several of them The metrics that a company chooses must actually In the real world, the details of performancemanagement Of metrics and targets, from its top-levelĪction to address the problem. Ideal system, a business creates a cascade Worst, changes in technologies, markets, or As Henry FordĮfficiently or effectively as they could. Attributed to his ability to get the company’s
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