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Question
Human resources management: targets and appraisals
Finally, given the issues facing ABM noted above, the board will require advice regarding ways to align human resource management with the organization's strategy. The existing appraisal system comprises of an annual appraisal meeting between the individual and their line manager followed by, a discussion of the targets for that individual (which are all financial in nature, based on the projections for the next financial year), followed by an explanation of their bonus payment based on the previously agreed targets. For this section of the report, the CEO is of the opinion that you should consider the management setting of targets in the light of the move to using a balanced scorecard. This must be followed by a deliberation of how these targets might be used within the appraisal system. At this stage, no alterations to the reward system (basic pay plus an annual bonus) at ABM are desired. It is now 1 September 2018.
Advise ABM on the management setting of targets and how they must be used in the appraisal system.
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