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ATH Micro-Technologies Assignment

Part A

Q1 Does the eam-out structure focus on the right performance goals?

The current eam-out structure is mainly focused on shon-term revenue and profit maximi2ation rather than aiming tor a sustainable overall business growth. Apart from tbs financial aspects. the performarce goals should be focused on the other factors such as Customer satisfaction. Interna! control and management and employee innovativeness. A wholesome performance measurement should be as parallel with the organizational objective$. Thus the proposed eam-out structure is not effective enough to dnve the organization and its work force towards the long term goals of the organization.

Q2 Should Scepter Pharmaceutical put additional Controls on his entrepreneurial firm?

Scepter the acquirer company needs to focus on the achievement of the proposed synergies that v.ere supposed to be derived from the conglomerate. ATH has every prerequisite to be a successful target company provded Scepter Pharmaceutrcals should impose effective control for operational effcency with focusing on the optimum utiiizaton of the avai!able resources of ATH at its disposal. Further it is necessary for Scepter to impose additional control on ATH in order to determine the performance achievements upon which the earn outs are based on at least close monitoring at regular intervals of the activities and decisions of ATH 's Senior Staff will enable it to trackany deviations from its merger objectives.

Q3 if you were president of ATH tech how would you communicate and motivate employees 10 achieve profit and performance goals?

Motivating other peopie is always a difficult task to accomplish v.*rth a reasonabie level of precision yet without right motivation the workforce of ATH could not be able to achieve the targets that have been set before them and it is duty of the senior management to communicate effective motivation to its employees. This can be acheved by aligning the goals across the organization effectively to support a properly defmed strategy.

There are various reasoning for implementing alignment of the goal as it can

•    Enhance and speed up execution operationally i.e. switching from planning of strategy to execution phase with ease.

•    Retention of emptoyees by improving their morale improves retentcn, resutting in morę engaged employees to woids a mutual organisational goal.

It is necessary to Effectively communicate expectattons to the employees while identifying their strengths and weaknesses on the go to ensure that they are actually aligned to the goals that of the organization, and well aware about his/her contribution towards the organization'$ core mission & Vision. Communication on the part of the company can be done through a well-defined scorecard system both on organisation wise and individual department wise. Further it is also important to communicate about the rewards based on performance and achievement of the targets to promote productivity, Thus by puttmg together the goals and rewards are need to be simultaneously communcated to motrvaie emptoyees.

Q4whatare the appropriate performance goals for employees to focus on?

Companies can set four types of goals as emptoyers. with its emptoyees:

1.    Job Goals: Goals that clearly outline tasks which are to become mandatory to finish the job. Such goals must te specifically personalized as per every employee and respective position.

2.    Project Goals. consists of actrvities with specifically' defined end and begmning that the emptoyees should pursue.

3.    Professional Development Goals: These defined goals provcte focus on improvmg effciency and techncal that are important for the professional growth. And they should help in devetoping both employee and the organization as a whole.

4.    Performance Goals: When we refer to performance goals then we are talking about specific end results which are key to an organization's success and which a specific employee also needs to perform and produce results. Performance goals enable emptoyees to stay focussed on producing target-oriented results. These goals vary from work actwities sińce they are morę about improvmg efficency and the quality of an employee with respect to his/her position in an orępnization. Motivatton, efficiency. productivity, job satisfactions and accountability are some rudimentary