One of conditions that has to be fulfilled so that managers can assume responsibility for achieving goals is converting corporate goals into concrete employees’ work tasks. In that way, managers are provided with the tool for goal management.
Business Improvement System is a work system based on corporate goals, and paying performance-related salaries.
Companies that do not measure work performance pay salaries to their managers and employees assuming that they accomplish defined goals.
The implementation of the Business Improvement System leads to changes in paying - companies start paying employees on the basis of work performance on managerial and employee positions.
· Defining company's key tasks
· Setting criteria for measuring key task performance
· Setting key task objectives
· Establishing success markers for each key task
· Setting task priority
· Establishing incentive for achieving and overachieving performance targets for
every key task
· Improving work performance
· Paying employees based on performance
· Paying only for the work that contributes to company goals
· Measuring and improving work performance
· Managing business goals
· Insight into business activity data
· Balanced Scorecard for planing organisational goals
· Performance management system
· Matrix and hierarchical models of organisational structuring
· Performance-related pay model
Performance-related pay model has been widely implemented both in public and private sector throughout the world and it is in the process of being introduced in our region as well.