Justin Lin

Wenjie Zhang

Professor Charlene Geary

LDR　2720

10-17-2010

From the book – Harvard Facts Dangerous Half – Truth & Total Nonsense ( Pfeffer and Sutton), we can see their own description of Evidence Based Management:” EBM can help managers and leaders do a better job of learning and practicing their profession, and make these difficult jobs a bit less taxing and more successful.” Rather than doing what everyone else is doing, or what you have always done, they key is finding evidence from the information you have collected, analyzed and presented and act on those facts. It is about putting aside belief and conventional wisdom and instead, making more informed and intelligent decisions based on new evidence.

According to Evidence Based Management principles in HR would impact traditional HR systems and discontinue them. Use EBM principles can help HR department to do evaluation and grade, a plenty of evidence to show it is often a rigid and expensive way of managing rewards that does not produce the highest performance levels possible. From these evidences HR department can make decision whether the employees exert their contortion on the company running. So depends on employees’ performance, it is easier for HR department to do allocation, as in: salary, bonus, their position and so on. From the leadership part, EBM also has effect on leadership development succeed; through EBM develop the right mind-set. Leaders learn even as they act on what they know. Leaders who practice the attitude of wisdom think and act as if their organization is an unfinished prototype, not something that is "not broke, so they won't fix it." They don't treat it as something they will ruin with dangerous new ideas, that is too much of a mess to fix or is impossible to change because there will be too much resistance.

Finance department also us EBM to analysis and make decision. Analysis data from evidence, and identify the critical revenue, cost, and risk factors that are...