Impact of Performance Measures Systems on Ethical Behaviour and Culture

This document discusses the impact of performance measurement systems on the ethical behaviour and culture of a firm. It explores how these systems motivate employees to perform better and foster a high-performance culture. The case study of Catapult Sports Pty. Ltd is used as a reference.

Transcript
Introduction
 The business environment has become very dynamic and competitive in nature. Hence, in
line of this it is important for the different firms in the environment to ensure that they are
successfully being able to adopt certain measures which will help in seeing to it that the
overall goals of the firm are achieved successfully.
 Moreover, it is also important to deploy certain performance measurement systems which
will ensure that the firm is being able to attain all its target successfully.
 In addition to this, to understand the overall importance of the performance measurement
system in the better manner, the Catapult Sports Pty. Ltd has been chosen as a point of
reference.
 The overall remuneration report will be analysed as it will contribute to the purpose of
understanding whether the firm will be successful in its initiatives in the long run or not.
 The Catapult Sports Pty ltd is a firm which provides wearable athletic as well as Global
positioning system the tracking device of which can be rightfully provided to the team
sports.
 The company carries out its operations in the different counties around the globe and is
present in various sporting team domains as well.
 The firm is based in Australia and was found in 2005.
Impact of Performance Measures Systems on the ethical behaviour and culture of the firm
 The performance measurement system can be understood to have a profound impact on
the overall ethical behaviour as well as the culture of the firm. This can be stated because
it tends to motivate the employees to perform in a better manner.
 In addition to this the performance measurement systems also tends to have an impact on
the communication which takes place within the firm. Additionally, it also assists in
seeing to that the different employees are able to interact well with one another and gain
an understanding of the overall objectives.
 Moreover, the performance measurement system also assists in ensuring that the results
of the performance as undertaken by the employees can be measured against certain
specific goals as well as targets which makes the evaluation procedure entirely easier.
 Hence, it can be stated to be because of this, that when the employees understand the
overall transparent procedure of the firm then they are able to engage in ethical behaviour
and ensure that all the goals are achieved and a high performance culture is fostered.
Performance measures having greatest impact on management behaviour

 The performance measurement system, as understood previously tends to have a
motivational impact on the employees and hence, it becomes important to ensure that,
their impact on the manager behaviour is understood.
 Various measures like the customer conversion rate, net revenue, the market share among
others can be rightfully made use of in order to understand whether the managerial goals
are being achieved or not.
 In addition to this, to reward the employees and the managers, with positive results, the
firm wold be required to undertake relative measures to see to it that they remain
motivated and continuous feedback is provided to them.
 From the annual report of the firm, an idea of the initiatives undertaken by the firm could
be attained.
Financial and non-financial measures
 The last section of the report laid down the different financial as well as non-financial
measures which can be largely adopted by the firm in order to ensure that the
remuneration and compensation to be given to the directors can be determined.
 Various measures like the goodwill of the firm, the overall market share, the net revenue
and other methods were analysed to gain an understanding of the above.
Conclusion
Hence, it can be mentioned that, any firm which wants to gain success in the long run would be
required to take measures to improve the performance.