Performance Measures and Controls - Coursework Example

? Performance and Control Measures No: Performance Measures and Controls Government controls (Legislation and Regulation) Health and Safety in Employment Act The aims and objectives of the Health and Safety in Employment Act 1992 (HSE Act) is to take care of the health and safety of people at their work workplace. It makes responsible to all stakeholders (employee, employer and the self-employed) to ensure Health and Safety measures are in place to make working environment ideal. The prime responsibility of the employer is to pin point the work place hurdles and maintain a register to lodge incidents if it happens. Elimination / minimization of hazards The mentioned Act merits that all the hurdles in the way of smooth working are to be addressed properly to take concrete steps to eliminate or minimize it. Potential hazards which may cause irreparable damage to life and assets should be taken seriously for removal. In case elimination is not possible then two options are left to address this issue, either to separate it or minimize it. By applying mentioned tactics, we may put to the hazard at its lowest ebb. The chain of control meant for ongoing monitoring and to analyze the risk that are in the way (Health and Safety in Employment Act). Initially, the business sector showed its anger on the inclusion of Health & Safety cover for the employees in the Employment Act 1992 with a view that they have to bear unnecessary burden of expenses that relates to health and safety measures for the employees within their area of operations of small to medium sized business concern (Health and Safety in Employment Act). On the public side, it was applauded by the workers and treated this act of government, a step in the right direction. The effectiveness of this act can be gauged with this fact that it proves its lasting and positive impact. It definitely reduced the incident that took place in the past within the premises of working place in New Zealand prior to promulgation of this act (Health and Safety in Employment Act). Example Take the example of Ruth who engages himself for the sewing of fashion garments that enables Lavina to sell it from her apparel outlet called Lavina Modes. He does the job for Lavina on piece rates who, according to the broader term of the Act is the employer of Ruth. Therefore, where she works may be considered as place of work. In case Ruth does the job independently where the role of Lavina is an independent contractor. By all means as per the terms of the Act, he may be treated as self employed. It is a case of multiple factors, inclusive of resourcing, economic dependence and the control of Lavina over Ruth. Employment Relations Act (ERA) The New Zealand Employment Relations Act 2000 came into being to safeguard the interest of human resources. Later on it was amended by the Parliament to meet the requirement. Courts and Authorities Under the mentioned Act, numbers of courts have been established to deal with the issues of Employment, Employers, Employees and the Self employed. The judges of the Competent Courts are appointed on the advice of Attorney General and the members of Employment Relations Authority are appointed by the Attorney General on the advice of the concerned ministry. The mediation service is the prerogative of labor department. These courts are empowered by the section 187 of ERA on the matter that relates employment disputes. The employment court in question has the status of the High Court of New Zealand (Rudman, 2009). According to Section 157, Employment Relations Authority has to carry out the investigation of the matter handed over to find out the factual status of the case and to resolve the issue between the employer and the employee. As per Section 144, Mediation Service is being provided by the Labor Department. However, section 164(b) empowers parties involved in disputes to resolve the issues themselves before knocking at the door of Employment Relations Authority (Rudman, 2009). Example: In the case of Cartwright v Commissioner of Police, it was held by the competent court of law that the employee’s manager bullied the employee. The basis of the decision of the court was that the manager anticipated the performance of the employee and formed a negative view that compelled the manager to dominate the employee in many ways resulting in poor performance of the employee. The court of the view that the attitude of the manager with the employee was unethical, uncompromising and unprofessional. This has multiplied the miseries of the employee and put him under duress. The Court keeping in mind the conduct of the manager, fix the responsibility on the manager for not acting fairly and reasonably which is the hall mark of a good employer. Resource Management Act (RMA) The Resource Management Act (RMA) which passed in the year 1991 by the New Zealand Parliament was a significant move in the history of New Zealanders as far as controversies are concerned that raised before passage of the bill. In the later years, The RMA proved an effective tool in promoting the sustainable management of natural and physical resources i.e. land, air and water. The concerned ministry of the country termed RMA as New Zealand principal legislation for the environmental management (Wheen, 1997). The Act in vogue and the decisions taken under it by the bottom layers of the management and the judiciary, badly affected the individual and the business alike. The decisions made under RMA by district and regional councils and by the courts hampered the efficiency of the individuals and the businesses in its broader spectrum. The mentioned act comes under severe attack being its infectiveness in protecting the interest of the people and the business. The Civil Society at that time played its role in the larger interest of the people (Haris, 2004). Under the promulgated acts, the people of New Zealand may encounter with specific restrictions in terms of trade. There are some specific restrictions that apply for a trade or business interest. Suppose you have your own business and commercial zone is created across the road in that specific scenario you cannot pen down or submit that this creation will impact profitability of business. Yes, if the concern of business relating to environmental issues on the proposed plan may be acceptable for a second thought to the authority (Haris, 2004). Example Suppose you have your own business and commercial zone is created across the road in that specific scenario you cannot pen down or submit that this creation will impact profitability of business. Yes, if the concern of business relating to environmental issues on the proposed plan may be acceptable for a second thought to the authority. 2. Operational Measurement and Control There are several systems of operational measurement and control that influence the manner in which operations are conducted in a business. Some examples of measurement and control systems are: 1. Quality control To ensure customer about the quality of products they are going to use, is a key of success for the business. If the customer is getting high quality product, business will be successful in gaining the satisfaction and trust of the customer. On the other hand, by following the principles of Quality Management, the stakeholders of the company, employees, and customers, will get more benefits from the organization they are working with. Customer will get satisfactory product and it result high profits for the business which will ultimately benefits the employees in form of rewards or bonus. Example: In the 1950s and 1960s, Japanese goods were identical for making low priced but also low quality, Power customer satisfaction ratings. These companies after have adopted measures set by the ISO. ISO 9000:2005 has given standardized description of 8 principles of Quality Management Systems Fundamentals and Vocabulary. Japanese adopted the quality control measures and they reached at the top where they got the most favorite rating and become the most trust worthy companies. These principles are as follow and by applying these principles; an organization can increase its performance (ISO 9000 series). ISO 9000:2005 has given standardized description of 8 principles of Quality Management Systems Fundamentals and Vocabulary. These principles are as follow and by applying these principles; an organization can increase its performance (ISO 9000 series). Principle 1: Customer Focus Principle 2: Leadership Principle 3: Involvement of people Principle 4: Process approach Principle 5: System approach to management Principle 6: Continual improvement Principle 7: Factual approach Principle 8: Mutually beneficial supplier relationship (ISO 9000 series). 2. Stock control (or Inventory control) Another way of controlling operations of business is the Inventory control or Stock control. There are three types of inventories which a business can hold with it; Stock of Raw material Work in process Stock of all Finished Products (Production & Operations - Stock Control). Each of the business wants to reduce its holding cost for the inventory and by reducing this, a business can safe guard its production on a lower cost, which will also benefits to its customers and the employees. For business, the reduced amount of holding cost can be useful in many ways, either it can increase its production to cover the unforeseen demand of product in future or can save that amount for some unforeseen losses in future (Production & Operations - Stock Control). How the control achieves its purpose in a small or medium-sized business It is a most asked question by most of the small or medium sized business that they will get high and positive results by applying and following the operation control management principles? To be successful in getting the high and positive Growth within the operations of business and adopting pure Jobs strategy, many firms in the entire world need to promote and adopt entrepreneurial drive more effectively (Management Awards). The creation and development of SMEs are the bases of creating employment and by adopting the measures of controls each of the SME will be able to further economic growth. This ultimately ensures the competitiveness with the competitors of firm and growth possibilities some of which already exist. By making a firm compatible with the help of control measures, enterprises as well as supporting the creation of new ventures (Management Awards). Risk Management Risk is an uncertain loss due an organization or business may get due to some accidents of as a result of some fraudulent activities (kaddatz, 1995). Operational Risk Management is an effective tool of decision making that influence the manner in which operations are conducted in a business. It helps in identifying the risk of business and helps in minimizing risks which reduce the mishaps in business and safeguard the assets and health of organization. Operational Risk Management is simply a way of fertilizing the thoughts and ideas. Risk management is a simple process consists on simple steps. These steps are as follows: Risk identification Risk measurement and evaluation Analysis of risk treatment methods Selection and implication of treatment method Monitoring performance of treatment method (kaddatz, 1995). Measures to Minimize Risk Many companies suffer huge loss due to their poor management against risk. There are some very easy measures which may help each organization to minimize their risk. The risk management is necessary for both, the business and for its stake holders (5 Measures to Minimize Risk). 1- Integrated approach to Risk Management Managing operational risk is a process to protect an organization from any unforeseen loss of future which can result a failed internal process, people or system and can also influence the external processes of business. The Integrated approach can protect company from such type of losses (5 Measures to Minimize Risk). Most of the firms think that risk only lies in the frauds, but it is not the truth (5 Measures to Minimize Risk). 2- Safeguard the Database Another easy way of controlling risk is by securing the data and book keeping of the firm. Many IT companies are providing solutions to any type of data base and book keeping and there is a variety of data base tools; tools that provide real time and historical measurements compared against preconfigured metrics; and tools that afford full visibility into all database activity and allow enterprises to enforce security policy and comply with regulatory requirements while providing virtual patching (5 Measures to Minimize Risk). References “5 Measures to Minimize Risk”. (n.d.). Retrieved 20 May 2012 from ciozone: http://www.ciozone.com/index.php/Case-Studies/5-Measures-To-Minimize-Risk.html Harris, Rob. (ed.) (2004). Handbook of Environmental Law. (2nd Ed.). Wellington: Royal Forest and Bird Protection Society of New Zealand. “Health and Safety in Employment Act”. (n.d.). Retrieved 20 May 2012 from http://www.level.org.nz/health-and-safety/health-and-safety-in-employment-act/ ISO 14000 series. (n.d.). Retrieved 20 May 2012 from prove and improve: http://www.proveandimprove.org/tools/iso14000.php ISO 9000 series. (n.d.). Retrieved 20 May 2012 from prove and improve: http://www.proveandimprove.org/tools/iso9000.php Kaddatz, m. m. (1995). Risk management for small and medium transit agencies. Washington, D.C.: National Academy Press. “Management Awards”. (n.d.). Retrieved 20 May 2012, from reference for business: http://www.referenceforbusiness.com/management/Log-Mar/Management-Awards.html “Production & operations - stock control”. (n.d.). Retrieved 20 May 2012 from tutor2u.net: http://tutor2u.net/business/gcse/production_stock_control.htm Rudman, Richard. (2009). New Zealand Employment Law Guide. Auckland: CCH New Zealand Limited. Wheen, Nicola R. (1997). "The Resource Management Act 1991: A Greener Law for Water". New Zealand Journal of Environmental Law 1: 165–198. Read More