If a programme which intends to measure performance is to work successfully
in an organisation, it is necessary to understand the contingent factors that
need to be in place regardless of philosophical beliefs. It must be integrated
with the overall strategy of the business; all approaches to performance
measurement emphasise the alignment of objectives, measures, strategic
decision making and rewards. This is crucial, as it is not possible to measure
performance unless it is clear what an organisation is trying to achieve.
Value-based management (VBM) is a powerful management framework with
the aim to focus all managerial processes on shareholder wealth creation. It
therefore encourages all staff levels within the organisation to focus on value
creation. Various metrics have been developed to measure the value creation
process within the organisation. The application of VBM principles at the lower
levels within the organisation is critical to ensure that lower level staff applies
value-creating principles in their daily jobs. Anglo Platinum has also adopted
VBM, which will help the organisation to enhance decision-making and ensure
pursuing strategies that maximise value. Anglo VBM is a management system
which will enable the company to significantly improve the quality and speed of
decision-making and to drive performance and profitable growth. It requires a
detailed understanding of where and why value is created or consumed within
the businesses through assembling a comprehensive fact base.
A quantitative study was done to collect primary data through the use of
standardised questionnaires that were distributed to respondents at Bleskop
and Brakspruit shafts as well all the accountants at Rustenburg Platinum Mine,
which forms part of Anglo Platinum. The results from this study indicate that
there is a low understanding of VBM as well as a strong focus on business unit
objectives and on short-term goals. A key recommendation would be to use
incentive mechanisms to be aligned to VBM. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2009.
| Identifer | oai:union.ndltd.org:NWUBOLOKA1/oai:dspace.nwu.ac.za:10394/4012 |
| Date | January 2008 |
| Creators | Pienaar, Adrian Cecil Semino |
| Publisher | North-West University |
| Source Sets | North-West University |
| Detected Language | English |
| Type | Thesis |
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