Strategic Management: Formulation and Implementation

Human Resource Measures

Several types of human resource measurement techniques are also available:

* Production measures focuses on the quantity and for quality of output or results (for example, the number of computers produced or sold).

* Personal measures include absences, tardiness, accident frequency, and rate of wage or salary advancement.

* Judgmental measures are necessary for certain types of employees, such as managerial, technical, and professional employees. This judgment may take the form of rating scales, comparisons, or critical incidents.

* Performance appraisals are typically performed by an employee's immediate supervisor. Performance appraisals can be used to broad purposes (1) as the basis for salary, promotion, and transfer decisions; (2) to improve the employee's performance and career development through self-learning and personal growth.

Production Measures

There are three categories of control standards and measures:

* Precontrol (of inputs) focuses on predetermining standards and measures for the quantity and quality of resources inputs (labour resources, capital resources and materials).

* Concurrent control relates to how much and when outputs will be produced and is typically termed production scheduling. Popular tools for production scheduling include various network models such as the Program Evaluation and Review Technique (Pert) and linear programming models.

* Postcontrol focuses on actually analyzing the output. Two techniques are widely used postcontrol. First, standard cost analysis involves estimating and combining the direct labour, direct materials, and overhead costs to find actual per unity costs. Second, statistical quality control focus on detecting low-quality or defective output.