Page 444 - PM Integrated Workbook 2018-19

Chapter 15

Example 2

Which of the following statements regarding Fitzgerald and Moon’s Building
Blocks model are correct?

(1) The determinants of performance are quality, innovation, resource
utilisation and competitiveness.

This statement is not correct. The determinants of performance are
quality, innovation, resource utilisation and flexibility. Competitiveness is
a result of the determinants.

(2) Standards are targets for performance and should be fair, achievable
and controllable.

This statement is not correct. Standards should be fair, achievable and
staff should have ownership of them. Controllability is a feature of the
rewards block.

(3) Rewards encourage staff to work towards the standards and should be
clear, motivating and controllable.

Rewards should be clear, motivating and controllable, so this is correct.

(4) It is a performance measurement framework particularly suitable for
service organisations.

This statement is correct. Fitzgerald and Moon’s Building Blocks model
is a framework designed to attempt to overcome the problems
associated with performance management in service companies.

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