Performance Measurement
Performance measurement/incentive system: Canadian REd Cross
Executive Summary:
(CRCS) is the one of the largest charity organization and 2nd largest brand in the world. Its mission to improve the lives of vulnerable people by mobilizing the power of humanity in Canada and around the world. Its vision is to lead the organization through which people voluntarily demonstrate their caring for others in need.
In this report I will perform a review of the internal performance measurement and incentive system of CRCS.
CRCS performance measurements are placed to make partnership with the employees and supervisor to determine objectives, review achievements and formulate development plans. Balanced score cards are used that interprets the value, objectives and competencies, which align with the organization’s objectives and performance development of the employees: Appendix 1.
As not-for-profits organization compensation is not based on organization’s profitability, rather based on surplus and government grants. Most of the funds of the charity come from individual and corporate donors and government grant.
CRCS compensation and incentive policies are based in accordance of Board of Governors’ policy. It is based on society’s ability to pay and within the salary range.
Usually, salaries in not-for-profit is lower than for-profit. Most of the employees are happy to work due to intrinsic incentive system.
It is believed that pay for performance is a strong tool to motivate employees. And a better employee performance improves the organization’s performance, including its financial results, implementation of project plans and achievement of strategic goals.
It is desirable that CRCS employees also get industry standard compensation, which could include performance incentive, promotion, perks and allowances, monetary reward and compatible – ratio salary. Which will increase the employee loyalty and productivity and the organization remain competitive.
Executive Summary:
(CRCS) is the one of the largest charity organization and 2nd largest brand in the world. Its mission to improve the lives of vulnerable people by mobilizing the power of humanity in Canada and around the world. Its vision is to lead the organization through which people voluntarily demonstrate their caring for others in need.
In this report I will perform a review of the internal performance measurement and incentive system of CRCS.
CRCS performance measurements are placed to make partnership with the employees and supervisor to determine objectives, review achievements and formulate development plans. Balanced score cards are used that interprets the value, objectives and competencies, which align with the organization’s objectives and performance development of the employees: Appendix 1.
As not-for-profits organization compensation is not based on organization’s profitability, rather based on surplus and government grants. Most of the funds of the charity come from individual and corporate donors and government grant.
CRCS compensation and incentive policies are based in accordance of Board of Governors’ policy. It is based on society’s ability to pay and within the salary range.
Usually, salaries in not-for-profit is lower than for-profit. Most of the employees are happy to work due to intrinsic incentive system.
It is believed that pay for performance is a strong tool to motivate employees. And a better employee performance improves the organization’s performance, including its financial results, implementation of project plans and achievement of strategic goals.
It is desirable that CRCS employees also get industry standard compensation, which could include performance incentive, promotion, perks and allowances, monetary reward and compatible – ratio salary. Which will increase the employee loyalty and productivity and the organization remain competitive.