In this module, you will expand your study of managerial accounting to include assessment and motivation of employees within an organization. Employees are the lifeblood of the overall operations and progress in any organization. To have maximum productivity from your employees, it becomes important to have goals aligned. The personal goals of the employee need to be aligned and consistent with the goals of an organization’s success. An appropriate incentive and growth opportunity can be used to align these goals.
Management should evaluate and manage employee performance on a regular basis by employing the leading indicators of performance. This allows the organization to identify problems, business opportunities, and business threats that may arise in the future. Leading indicators are also used to manage everyday activities to make sure the outcomes of business activities are favorable. From the leading indicators, employees receive signals about what they can do better before the outcome is made and it is too late to make a change.
The performance measures most commonly used by organizations are:
Organizational learning and growth
Business and production processes