Mr. Pradip Singh, Deputy Director in the ‘Accounts and Finance Department’ of Bharat Oil Company is trying to evolve a system for deciding individual and group performance targets, based on the normal productivity of his subordinates. The major activities of his department include ‘routine accounting of operations wage payment’, ‘accounting of non-routine purchases’ and ‘assistance in overall financial planning’ and control to be achieved by the senior executives.
On an average, for a period of four months a year, his subordinates are busy working on the presentation of annual budgets. In the last three months of the year, they have to concentrate on finalization of accounts (including complex accounting adjustments). As a result of this ‘seven months busy schedule’, Mr. Singh and his team are not in a position to carry out ‘routine accounting’ in a proper manner. This has created many problems in ‘reporting through accounting records’ and also ‘relevant control through accounting statements’.
Another problem with his office is the absence of well-defined individual and group work –targets. This has also created on overall mismatch between ‘work volume’ and ‘resource availability’. Lot of energy and time get wasted due to ‘poor work planning’ and hence, overall departmental productivity comes down. Most often, he and his subordinates work overtime (without much expectations) but do not enjoy his appreciation from the bosses. (This is mainly because, the work-targets are not achieved in time of lot of “adhocism” was used).
Mr. Singh does not know how to set targets for himself and his subordinates, and link them with the overall work planning. The ‘Target setting process’ is mostly complex, subjective and delicate. This process also involved behavioral aspects of ‘labor management’. The overall mission and sectorial objectives of the organization are also to be kept in mind, while in deciding the ‘supportive role’ of his department. The ‘servicing role’ of his department is difficult to be defined quantitatively, but definite targets and work plans are essential.
Questions:-
1) Explain the “Target Setting Process” for Mr. Singh’s department. Also suggest definitions of individual and group targets.
2) Design an ‘integrated work plan’ for Mr. Singh’s department.
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