Armco

Essentially, scrap metal and raw iron ore are intangible products, in that there are no substitutes and steel manufacturers are forced to pay the prices that suppliers offer. Again, company size helps here where essentially it’s the bigger the better. Suppliers will often be more inclined to sell to larger steel manufactures as order quantities are higher.

6. Managers performances judged on things over which they had no control. Many costs were caused by people who did not report to the managers (e.g., capital spending, salaries, maintenance). Easy to blame poor performance on uncontrollables.

Lack of prior performance management. Inexperienced managers and business owners may not have properly documented their actions on performance management. Undocumented performance management

This allows the staff to take risk and make a ranking list which allows them to delegate which risk that will spend more man power on.

Given the alternatives and the evaluations, it is best if the company will reorganize its existing resources. In this way, procedures will be organized and problems with their corresponding solutions will be documented. It will be easier both for the supervisors and operators to act when they will encounter the same problem. Furthermore, the management will know who will be responsible for the delay of production or the reason

Measurement of Performance: Each level of the organization will regularly compare its progress against the goals. These quality reviews should be held in conjunction

Finally as mentioned in many of the disadvantage points, the communication in the company can be bad, it can be impossible to contact the higher levels of management who make things happen, and whenever the workforce has questions or suggestions it can take many weeks to get replies because of the amount of hierarchal communication involved to get them

The second objective of keeping employees by rewarding them by coming up with a performance based on the pay scheme translates to the employees being motivated to put extra efforts in their duties. Achieving an extra payment on top of their payment is the key aim of this strategy. The scheme of payment was made up of the base payment, merit pay and bonuses. Each of the workers in the organization gets a certain base payment awhile being in a position to earn

Now a days companies are being affected by ever growing competition in the global market. This competitive situation has inspired organizations to reinvent its very structure and the way it operates. Companies and its operations now have been segmented into divisions, which urge top management to assess the divisional performance to achieve company objective. Divisions tend to be categorised into either a profit centre or an investment centre. While the performance of profit centre is measured by taking profit figure into account, for investment centres its mainly profit and investment both.

Performance can be measured using 360 degree, and will ensure managers are implementing the performance management systems correctly

- Management decisions are slow and they do not always fit the reality on the ground

So, objectives guide the design of pay systems. They also serve as the standard for judging the success of the pay system. If the objective is to attract and retain the best and no brightest, yet skilled employees are leaving to take higher -paying. jobs with other employers, the system may not be performing effectively. Although there may be many non-pay reasons for turnover, objectives provide standards for evaluating the effectiveness of a pay system.

Lack of availability of ample information; as financial data are confidential to the company; is the factor which has limited the study.

▪ The company does not have sufficient source of secondary data and collecting of data was not smooth.

* The insufficient details obtained from various departments and from the company as a whole may affect the study to a great extent.