The following multiple goals were identified by General electric:
2. Market position
4. Product Leadership
5. Personnel Development
6. Employee attitudes
7. Public responsibility
8. Balance between short-range and long-range goals
General Electric is a huge, highly decentralized corporation. At the time it developed these goals, GE had approximately 170 responsibility centers called "departments," but this is a deceptive term. In most other companies, these departments would eb called divisions. For example, some GE departments had sales of more than $500 million.
Each department manager's performance was evaluated annually in relation to the specified multiple goals. A special measurements group was set up to devise ways of quantifying accomplishments in each of the areas. In this way, the evaluation of performance would become more objective as teh various measures were developed and improved.
Select 3 goals listed above. Describe how you would measure perfromance in each of these areas? Be specific.
I am doing this as an example for you, and then you can use it as a template to practice.
<br>First I am going to define what a responsibility center is. A responsibility center is the apportioning of accountability for a particular set of outputs and / or inputs to an individual (or a group of individuals). Responsibility can be divided in physical units of output, quantities of inputs used, or financial measurement of performance in these areas.
<br>After defining the term responsibility center, know I will choose 3 goals and describe how I will measure performance in each of them.
<br>1. Profitability: I will use the most common type of measurement of profitability which is profit generate by each dollar invested, called: Return on Equity (ROE). ROE= profit after tax divided by total equity.
Describe how you would measure peformance in each of these areas