Key Performance Factors and Indicators

 

Introduction

1 Organisations divide up their work (their objectives). They group together various pieces of work (objectives) and call them positions (= jobs). They give a position to a person (a Position Holder).

2 Thus, each Position Holder (PH) does different pieces of work i.e. tries to achieve different objectives.

3 Assumption. Some work (objectives) which a Position Holder does (or should do) rates as more important than other work.

4 In other words, if a PH (Position Holder) does not do some work well (achieve some wise objectives), it will mean that their Section or Division or the Organisation cannot perform well.

Key Performance Factors

5 These notes use the term “Key Performance Factors”* to describe such important pieces of work (= important areas of a position).

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A Frame of Reference for looking at Remuneration

Some Objectives for remunerating People

1 Any Organisation aims to achieve a number of objectives by the remuneration it pays to its Members.

2 Thus any estimate of the “correct” salary for (a) a particular position and/or (b) the person holding the position should keep in mind what the salary aims to achieve in relation to these objectives.

3 The objectives would include one or more of the following:

(a) Recruit suitable Applicants

(b) Retain (if desired) the Position Holder – once appointed

(c) Encourage a high level of application to achieving the position’s objectives by the Position Holder

(d) Encourage the Position Holder to give attention to the “right” objectives for the Organisation

(e) Rate as fair* with regard to other positions within the Organisation

(f) Rate as fair* with respect to the community’s values and objectives. This factor probably equals the idea behind the phrase “national interests”.

4 For senior-level positions the following special objectives apply:

(g) Provide opportunities for other Executives’ salaries to achieve one or more of the above objectives.

5 Example. Payment of a given remuneration to a Chief Executive will usually influence payments made to Executives who work in the same Organisation and report to the Chief Executive. Continue reading