MONITORING PROGRESS OF ORGANISATIONAL PERFORMANCE WITH EAGLE EYES ( COPYRIGHT RESERVED )

        MONITORING  PROGRESS OF ORGANISATIONAL PERFORMANCE  WITH  EAGLE  EYES
[ COPYRIGHT  RESERVED ]

BY  S. K. SENGUPTA 

Every member of an organization must have definite targets . Every member must clearly know what his targets are . Every member must fulfill his targets . Only then the organization can achieve its goals .

It therefore is essential that at the beginning of every production or financial year targets are set for every employee of an organization . Every employee should be made to set the targets in consultation with his reporting authority . Targets will be finalized only after the reporting authority gives his signed approval .                                                                     

After the yearly target has been settled , it has to be broken down into mutually agreed upon monthly targets . The reporting authority then can subsequently check the actual achievements of the employee against the planned monthly targets .

What this write-up proposes to suggest here is the format in which the monthly planned targets of an employee can be usefully presented .This format is easy to prepare , simple to understand , and a very effective tool to keep progress on track for the organization as a whole from top to bottom .

To understand how the format has to be prepared for a particular employee , let us take the manager of Personal Banking Division ( PBD ) of a private Bank . There are four areas , let us suppose , in which he is expected to perform :

             i.            Business Development ( Deposits & Advances )

           ii.            Customer Satisfaction ( Holding Monthly Customer Meeting & Minimizing Customer grievances )

         iii.            Bringing new Prestigious accounts to Bank’s Books .

        iv.            Major Image Building Measures .

The yearly measurable/quantifiable targets in these four areas will be fixed for the manager . This will be done by the manager himself in consultation with his reporting authority , in this case the Branch Manager . These goals fixed for the manager ( PBD ) has to be in harmony with the overall goals of the Bank . These goals will be settled only after the Branch Manager okays it after every due consideration . Once this is done , the yearly targets will be divided into monthly targets by the manager subject to approval by the Branch Manager . Once this too is done , then the 12 monthly targets will be presented in a format as shown below :

MONTHLY  GOAL  SHEET

( Month Ending April , 2015 )

Goal – Business Development

HEAD	CURRENT POSITION	MONTHLY TARGET	ACTUAL PERFORMANCE	VARIANCE	COMMENTS
Deposits
Advances

Goal – Customer Satisfaction

HEAD	CURRENT POSITION	MONTHLY TARGET	ACTUAL PERFORMANCE	VARIANCE	COMMENTS
Number of Meetings Held
Number of Grievances Received

Goal – New Prestigious Accounts

HEAD	CURRENT POSITION	MONTHLY TARGET	ACTUAL PERFORMANCE	VARIANCE	COMMENTS
New Accounts Brought

Goal – Major Image Building

HEAD	CURRENT POSITION	MONTHLY TARGET	ACTUAL PERFORMANCE	VARIANCE	COMMENTS
New Image Building Measures

On 1^st of April this sheet will be opened . Current Position will show the position as on the start of the day on 1^st of April . Next column will show the monthly Target . At the end of the day on 30^th April , the actual position will be mentioned under Actual Performance . If Actual Performance is greater than the Monthly Target , then the excess will be shown as a positive (+) variance under the Variance column . If Actual Performance = Target , then Variance will be Nil . If Actual Performance is less than Monthly Target , then the shortfall will be mentioned as a negative (-) variance . Suitable Comments must be given to explain any substantial Negative or Positive Variance . This report must be prepared at the end of each month and submitted to the Reporting Authority . On the first of next month , the sheet for the next month will come into operation .

The Reporting ( and Controlling ) Authority , the Branch Manager in this case , will watch over the performance of the PBD Manager . If the PBD Manager is over-performing or under-performing , his ( PBD Manager’s ) comments and the circumstances will have to be observed analytically . The Branch Manager then will have to report the matter to Higher Authorities with his observations . In case of under-performance suitable corrective actions will be taken . In case of over-performance the PBD Manager will be duly rewarded .

Suppose the Hierarchy in an Organization is as shown below :

Here , the Reporting ( and Controlling ) Authority

for E1 is D1

for E2 is D2

for E3 is D3

for E4 is D4

for E5 is D5

for E6 is D6  .

The Reporting ( and Controlling ) Authority

for D1 is C1

for D2 is C2

for D3 is C3

for D4 is C4

for D5 is C5

for D6 is C6  .

The Reporting ( and Controlling ) Authority

for C1 is B1

for C2 is B1

for C3 is B2

for C4 is B2

for C5 is B3

for C6 is B3  .

The Reporting ( and Controlling ) Authority

for B1 is A

for B2 is A

for B3 is A

A is the ultimate Head of the Organization . Therefore , he has no Controlling or Reporting Authority . Nevertheless he is responsible for the overall Targets and Goals of the Organization which he has to achieve with all the employees working under him .

As shown in the chart above , the monthly targets for each employee will be prepared in consultation with his Reporting Authority . The Reporting Authority gives final consent to the targets . Subsequently the monthly monitoring of performance of each employee is also done by the Reporting ( and Controlling ) Authority .

As can be seen in the Chart , all employees ( except the ones at the very bottom and the very top ) have to report to a higher authority , and at the same time there are other employees below them who have to report to them . A has to report to no one as he is at the top of the structure . No one reports to E1 , E2 , E3 , E4 , E5 & E6 as they are at the bottom of the structure .

If Overall Goals are suitably broken down and handed over to all the employees , and if all the employees achieve the targets allotted to them , the Goals of the Organization will be achieved . For this it is essential that the performance of every single employee is closely monitored on a regular basis as explained above .

Many many organizations and institutions do not take the trouble of fixing quantifiable targets for each and every employee . Often they say that quantifying targets is not possible . Nothing can be farther from truth . With a little application of mind , targets can be quantified . If necessary an organization can take the help of experts to learn how to do it in the initial stages .

Quantified planning is a must . Every employee thereafter must produce results to match these plans . Without these measures an organization cannot survive .

Performance has no substitute .