CHAPTER 12

DISCUSS HOW A MANAGER MIGHT MAKE SURE THAT THE PERFORMANCE PLAN FOR EACH OF HER
DIRECT REPORTS WAS DRIVEN BY ORGANIZATIONAL STRATEGY AND THE BUSINESS PLAN.

To ensure that the performance plans for each direct report align with organizational strategy and the
business plan, a manager can take the following steps:

 Understand Organizational Strategy: The manager needs to have a clear understanding of the
organization's strategy and business objectives. This includes knowing the long-term goals, key
initiatives, and the desired outcomes that the organization aims to achieve.
 Cascade Goals: The manager should cascade the organizational goals and objectives down to
individual team members. By breaking down the high-level strategic goals into actionable and
measurable targets, the manager can ensure that each employee's performance plan is directly
linked to the organization's strategy.
 Align Individual Goals: The manager should work closely with each direct report to set
individual performance goals that are aligned with the organization's strategic priorities. These
goals should be specific, measurable, achievable, relevant, and time-bound (SMART goals). The
manager should emphasize how each employee's contributions tie into the bigger picture of the
organization's success.
 Continuous Feedback and Coaching: Regular feedback and coaching sessions are essential to
keep employees on track and aligned with the business plan. The manager should provide
ongoing guidance, support, and mentorship to help employees understand how their
performance contributes to the overall strategy. This feedback loop helps in identifying any
performance gaps and allows for timely course correction.
 Performance Measurement and Evaluation: The manager should establish performance metrics
and key performance indicators (KPIs) to measure progress towards individual and
organizational goals. These metrics should be aligned with the organization's strategic objectives
and business plan. Regular performance evaluations should be conducted to assess employee
performance and provide insights for improvement.

HOW CAN INFORMATION SYSTEMS SUPPORT THIS GOAL?

Information systems can support the goal of aligning performance plans with organizational strategy and
the business plan in the following ways:

 Goal Tracking: Information systems can provide a platform to track and monitor individual and
team goals. These systems can help managers and employees visualize progress, identify areas
of improvement, and ensure alignment with the organizational strategy.
 Data Analysis: Information systems can collect and analyze performance data, enabling
managers to gain insights into how individual performance contributes to the broader
organizational goals. This analysis can inform decision-making, resource allocation, and talent
development strategies.
 Performance Dashboards: Information systems can generate performance dashboards that
provide real-time visibility into employee performance metrics. These dashboards allow
 managers to monitor progress, identify potential bottlenecks, and address performance issues
proactively.
 Communication and Collaboration: Information systems facilitate communication and
collaboration between managers and their direct reports. They provide a platform for sharing
performance updates, discussing goals, and seeking feedback. This ensures that employees stay
connected to the organization's strategic direction.
 Training and Development: Information systems can assist in identifying skill gaps and training
needs based on performance data. This enables managers to recommend relevant training
programs and development opportunities that align with the organization's strategic priorities.

The SARBANES-OXLEY ACT (SOX) is a U.S. federal law enacted in 2002 to address corporate scandals
and restore trust in financial markets. Key provisions of SOX include:

 Enhanced Financial Reporting: Requires accurate and transparent financial reporting by publicly
traded companies.
 CEO and CFO Certification: Mandates that CEOs and CFOs personally certify the accuracy of
financial statements and disclose material changes.
 Audit Committee Independence: Requires independent audit committees to oversee financial
reporting and audit processes.
 Whistleblower Protection: Provides protection to employees who report illegal activities or
securities violations.
 Criminal Penalties: Imposes severe penalties, including fines and imprisonment, for securities
fraud and obstruction of justice.
 Internal Controls and Risk Management: Emphasizes the establishment of effective internal
controls and risk management processes.
 Enhanced Disclosure: Introduces additional disclosure requirements to provide investors with
more information.

Overall, SOX aims to improve corporate governance, financial reporting, and accountability to protect
investors and enhance transparency in the financial markets.