Using Perfect Pay For Performance Plan

1855 WordsSep 8, 20158 Pages
Essay: Using Perfect pay for Performance Plan to enhance Blue Line Management approach It has long been a problem for a company to effectively manage its business. For a corporation to survive, compete and grow, it must consistently deliver value to customers at least as well as its competitors. While value-drive company focus on long- term profitability and survival, many organizations were observed to be involved in value reducing decisions, such as sacrificing the long-term sustainability to achieve a short-term target. After countless debates on the source of such discourse, it is believed that much of the mistakes were arisen from fundamental errors about what value creation really means. The blue line management, is an approach with the sole aim of creating value, from which we can lift the veil of manage for value and identifies the source of common error. This approach is contrast to “red-line management ” in which manager focus too much on stated goals regardless of whether these efforts are actually value creating or destroying. Under a blue line approach, perspectives of many researches is incorporated to keep organizations and its people focused on value creation, and give incentives to get them to do it continuously. However, the goal is not that simply to reach. For the purpose of value creation, a firm has to continuously invest in projects that its expected incoming cash flows is more than outgoing cash flows.When calculating a decision’s net present

More about Using Perfect Pay For Performance Plan

Open Document