People and Organization

  Value Chain Analysis Figure 1: Porter’s value chain model Introduction An Internal Assessment of Competitive Advantage A company is in essence a collection of activities that are performed to design, produce, market, deliver and support its product (or service). Its goal is to produce the products in such a way that they have a greater value (to customers) than the original cost of creating these products. The added value can be considered the profits and is often indicated as ‘margin’. A systematic way of examining all of these internal activities and how they interact is necessary when analyzing the sources of competitive advantage. A company gains competitive advantage by performing strategically important activities more cheaply or better than its competitors. Michael Porter’s value chain helps disaggregating a company into its strategically relevant activities, thereby creating a clear overview of the internal organization. Based on this overview managers are better able to ...

  Performance Management Cycle F igure 1. Performance Management Cycle  Source: Journal of strategy and performance management  Introduction What is the performance management cycle?   The performance management cycle is a model that allows management and employees to better achieve organizational goals through a structured process of employee development and employee motivation.   The performance management cycle definition encompasses four main stages: 1. Planning 2. Monitoring 3. Reviewing 4. Rewarding 1. Planning This involves the overall strategy for the business, but also the personal objectives for all employees and teams, including development goals, specific tasks, targets, actions and behaviors. Once the management team knows the details of what they want the employee to achieve, it is time to meet with the employee and make a strategic plan for the year. This should be a collaborative process, as an employee who understands w...