Performance Management system
Performance Management system , a system has been chosen which is Management by objectives. Carefully analyse the case of Littleton Credit Union and write an answer after studying the case study. Find below case study and question :
Credit unions are not-for-profit, community-based financial cooperatives which are operated for the purpose of promoting thrift and providing benefit to the local community. The three main aims of a Credit Union are:
To encourage its members to save regularly.
To provide loans to members at very low rates of interest.
To provide members with help and support on managing their financial affairs (if required).
Littleton Credit Union (LCU) has been in existence for 15 years and operates out of its head office / main branch in Littleton and four smaller branches in the surrounding area.
Littleton is a medium sized town (population around 25000) in the east of England. It was prosperous throughout the first half of the 20th century due to its steel industry. In recent years the mass production of steel has ended, however there remains expertise in advanced manufacturing of high quality specialist steel products. It has received considerable regeneration funding from the European Union and the town centre has been relatively resistant to the recession, although its proximity to a large scale out of town retail development has meant that the town centre is not well served by national chain stores. Despite its potential, Littleton is currently one of the 50 most deprived districts in England. The unemployment rate is nearly 12% (against a UK average of around 8%).
Currently LCU employs around 100 staff. 30 are based in the Littleton Head Office branch. Each of the other 4 branches employs between 15 and 20 staff, many on a part time basis, providing financial services and advice on managing personal finances to its client base.
As a not-for-profit organisation with the promotion of financial prudence at the heart of its mission, the company does not want to encourage its members to borrow more than they can afford to repay. Unsecured loans (representative APR 12.7%) are available to members once they have been a member of LCU for a minimum of 8 weeks and have demonstrated their ability to repay. Budgeting advice is provided by LCU staff and every effort is made to discourage people from borrowing more than they can afford for example from payday loan companies or local “loan sharks”.
However LCU does need to attract sufficient savings to enable it to continue to lend. There is currently concern that while there are plenty of small savers and borrowers (the core business of any credit union) LCU may be at risk as they lack some larger scale savers who in effect provide the funding for the loans that LCU offers.
Carla Fredericks took over as the chief executive of LCU four months ago and has spent her time getting to know the business. She had previously worked in the “conventional” banking sector but along with many credit union employees, moved to LCU because she was disenchanted with the sector and wanted to make a difference in a more sustainable and ethical business. She feels that a performance management system may be useful in developing the LCU and providing a better service to the community. Unsurprisingly, salaries in LCU are not high, indeed are only around 80% of the rates paid in local building societies. However, people work at LCU not only for the money but also for the sense of commitment to the local community.
She has contacted you as you were friends together at university and she knows you are proficient in HR. You have agreed to work for her for free as the project she has asked you to undertake is in a good cause.
your report should address:
How the system promotes the values and mission of LCU.
Performance management system is Management by objectives ( Standardised UK English)
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