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are all KPIs to use here。 
The four perspectives are linked by a double feedback loop whose purpose 
is to ensure that KPIs are not in conflict with one another。 For example; 
if customer satisfaction could be achieved by improving delivery times; 
achieving that by; say; increasing stock levels might conflict with a financial 
target of improving return on capital employed。 (See Chapter 1 for a refresher 
on financial ratios。) 
DELEGATION: THE ESSENTIAL 
MANAGEMENT SKILL 
To be effective an MBA needs to acquire for themselves and engender in 
their own management team the ability to delegate; also known as the 
art of ge。。ing things done your way by people who are happy to do so。 
Figure 4。10 The balanced scorecard 
Customers 
。 Objectives 
。 Measures 
。 Targets 
。 Initiatives Learning and 
growth 
。 Objectives 
。 Measures 
。 Targets 
。 Initiatives 
Financial 
。 Objectives 
。 Measures 
。 Targets 
。 Initiatives 
Business 
processes 
。 Objectives 
。 Measures 
。 Targets 
。 Initiatives 
Vision and Strategy
152 The Thirty…Day MBA 
Delegation is the tool that frees up your time for higher tasks – strategic 
planning; for example。 Also; no organization can grow; and from a career 
perspective no MBA can move up; until someone else is in place to fill their 
role; delegation is a key tool in developing staff to be ready to take on more 
responsibility。 Done effectively; delegation is also highly motivating。 Look 
back to both the Hawthorne experiment and Hertzberg’s hygiene factors 
described earlier in this chapter to remind yourself why。 
The theoretical framework MBAs are most likely to e across that 
gives guidance on delegation is that espoused by R Tannenbaum and W 
H Schmidt; published in the Harvard Business Review in May/June 1973; 
in an article entitled ‘How to choose a leadership pa。。ern’ (Figure 4。11)。 
The thinking behind their ideas was to give managers a way to see how to 
choose the most appropriate managerial style or use of authority; ranging 
from boss…centred (task) to subordinate…centred (relationship) dependent on 
their and their team’s capacity for delegation。 For example; a manager with 
weak munication skills; leading an untrained team in an organization 
with poor or inadequate control systems; will not be able to move far along 
the continuum。 
Figure 4。11 The leadership continuum – Tannebaum; Schmidt 
Use of authority by manager 
Areas of freedom for 
subordinates 
Autocratic manager Democratic manager 
Manager 
makes and 
announces 
decisions 
Manager 
allows full 
freedom 
within 
prescribed 
limits 
Manager presents 
problem; gets 
suggestions; then 
makes decision 
Eight steps to successful delegation 
Delegation is difficult and most people experience a loss of control or a 
fear that the people they are delegating to are not really capable of doing 
the task well。 These natural fears and concerns have to be understood 
and managed if delegation is to succeed。 These eight steps improve the 
prospects for success in delegation: 
。 Decide what tasks to delegate and; equally importantly; what not to: 
Routine jobs can usually be passed on with li。。le difficulty but other 
Organizational Behaviour 153 
areas may involve training people up。 Confidential or disciplinary 
work; tasks with strategic or legal and regulatory implications; are not 
likely candidates。 
。 Don’t just select unpopular and tedious tasks to dump on others。 Pass 
on worthwhile work that will genuinely widen experience and skills。 
。 Choose who to delegate to: Ideally someone with the right skill set; 
who is not already overloaded and who is likely to stay around long 
enough for the organization to gain from the experience too。 
。 Discuss the changes with the person concerned; get their mitment 
and then let everyone in the relevant part of the organization know 
about the change in role and why。 
。 The subordinate concerned must be given the authority to do the job 
and to make independent decisions。 
。 Follow up soon and review frequently to make sure the tasks delegated 
are being done satisfactorily and that no other work is suffering。 
。 Reward appropriately for a successful delegation。 
。 municate the success to the team to reinforce the value of taking on 
additional responsibilities; personal development and the opportunities 
for career progression。 
SYSTEMS 
If the structure is the skeleton and people are the blood and guts; systems 
are the rules and procedures that enable an organization to function effectively 
and to prepare itself for the changes ahead。 
Rewards 
While money is more a hygiene factor than a motivator; people e to 
work to get paid and if they achieve great results they expect great rewards。 
There is no single aspect of an employee’s life more susceptible to gripes 
and plaints than pay。 So how can you make sure that doesn’t happen in 
your organization? 
。 First; make sure you are paying at least the going rate for the job in 
the area。 Don’t think you are ge。。ing a bargain if you get an employee 
to work for less than that figure; if they do; either they are not good at 
their job; a poor time keeper or have some other disability that you will 
find out about later; or they are good and when they find out they will 
feel cheated and leave。 The easiest way to find the going rate is to look 
at advertisements for similar jobs in your area or visit PayScale ( 
payscale 》 FOR EMPLOYERS) where you can get accurate realtime 
information on pay scales。
154 The Thirty…Day MBA 
。 Include an element of incentive for achieving measurable goals。 This 
could be mission; perhaps the easiest reward system; but it really 
only works for those directly involved in selling。 Or a bonus for successful 
performance; usually paid in a lump sum related as closely as possible 
to the results obtained。 The Chartered Institute of Personnel and 
Development (cipd。uk 》 Subjects 》 Pay and reward) gives 
further guidance on a prehensive range of reward options。 
。 Benefits in kind are a form of pensation that is not part of basic 
pay and that isn’t tied directly to their performance。 Pension; working 
conditions; being allowed to wear casual dress; on…site childcare; 
personal development training; pany product discounts; flexible 
hours; telemuting and fitness facilities are all on the list of benefits 
that are on offer in certain jobs today。 There may be tax implications 
on benefits in kind and the Digita Use of employer’s assets: benefits in 
kind calculator (digita/tiscali/home/calculators/employersa 
ssetscalculator/default。 asp) will help work out if tax is due and if so 
how much。 
。 Team awards can be used to engender be。。er teamwork。 Where money 
is involved it should be spent on things of value to the team。 It could be 
an evening out; or any other social event。 It could also be used to buy 
a business asset that’s nice to have but could not really be justified on 
business grounds; for example a dedicated photocopier。 
Appraisals 
An appraisal is almost certainly an MBA’s first point of contact with an 
organization’s systems and the most likely one to cause dissatisfaction and 
frustration。 Although supposedly not about blame; reward or even praise; 
that’s how it ends up。 Its output is a personal development plan to help 
everyone perform be。。er and be able to achieve career goals。 
There are plenty of standard appraisal systems and procedures; many 
are li。。le more than a tick boxes and rating process; others are built around 
buzzwords such as ‘360 degree appraisals’; meaning that staff below and 
above as well as peers have an input into the process。 
There are really only four ground rules for successful appraisals: 
。 The appraisal needs to be seen as an open two…way discussion between 
people who work together; rather than simply a boss/subordinate relationship; 
and prepared for in advance。 Discussion should be focused 
on achievements; areas for improvement; overall performance; training 
and development; and career expectations and not salary (that’s for a 
separate occasion)。 
。 It should be results oriented rather than personality o

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