ENGL 112 Lecture Notes - Lecture 10: Human Capital, Avocado, Economic Indicator
Document Summary
High returns (also high risks) (for the investors) Performance management: a process by which managers and employees work together to plan, monitor and review an employee"s work objectives and overall contribution to the organization. More than just an annual performance review, performance management is the continuous process of setting objectives, assessing progress and providing on-going coaching and feedback to ensure that employees are meeting their objectives and career goals. Be responsive so that if someone goes wrong it is reflected in the metrics. Example: housing starts -> sales at home depot. Example: droughts / dry weather -> avocado prices input oriented, hard to measure and easy to influence. Lag indicators are important but look backwards. Output oriented, easy to measure but hard to improve or influence. Sales / profits / margins look backwards in time. Decisions made with regard to profits can happen 12-24 months prior to the period in which profits are captured in financial statements.
