University of Twente Student Theses


Controlling employee performance with a direct effect on the achievement of the organizational objective

Geerdink, P. (2011) Controlling employee performance with a direct effect on the achievement of the organizational objective.

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Abstract:This master thesis seeks to develop a better understanding of how to be in control of the employee performance at Qredits in order to effectively achieve the organizational objective of 2015. In 2008 a new foundation was established to provide micro loans to new and existing entrepreneurs. This foundation, called Qredits Stichting Microkrediet Nederland is part of the overall ‘’Micro financiering in Nederland’’ initiative. Qredits offers micro loans up to €35.000,- secured with professional business coaching. Screening of the micro loan application is executed through own loan officers who pro actively visit the entrepreneurs at home or at the business location. Currently the organization employs 25 full time employees, including 13 loan officers geographically divided over the Netherlands. In November 2009 McKinsey and Company conducted a research commissioned by the Ministry of Economic Affairs to describe the future vision on micro financing in the Netherlands. This research resulted in a set of objectives for Micro financiering Nederland called ‘’Ambition 2015’’. The main objective for Qredits is to sell 5000 loans per year by the end of 2015 with a default rate below five percent calculated over the total amount of outstanding debt. With this number of loans it will be possible for Qredits to cover the operational costs with the interest collections and Qredits can start to attract funding from private investors such as mainstream banks and pension funds. To achieve both, the 5000 loans a year and conduct an intensive screening of all the loan applications the management hired 13 loan officers geographically located through the Netherlands. However, there is information asymmetry between the loan officer and the entrepreneur. The loan officer might not have all the relevant information to conduct a solid screening and the entrepreneur might be reluctant to share the information which will have a negatively influence on the risk assessment. On top of this issue, the management has to make sure the loan officers perform sufficient and reliable screening procedures. Because of the information asymmetry between the management and the loan officer it is possible for the loan officer to execute hidden actions and pursue own interests. Together this makes the loan officer the crucial factor in effectively reaching the organizational objective consequently the management wants to be in control of the performance of these loan officers. Based on the practical problem the research objective is to provide the management of Qredits insight in how to be in control of employee performance in order to effectively reach the organizational objective of 2015.To fulfill the research objective, this explorative research is conducted using the case study methodology.
Item Type:Essay (Master)
Qredits, Stichting Microkrediet Nederland, Almelo, the Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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