Strategic Human Resource Management (SHRM) – Life Cycle It is divided into four different stages, each indicating a separate stage of HR life cycle. Each stage has specific actions or steps that form respective stage for example, in third stage there are six different steps involved such as step 3 to step 8 argument into seven principles, namely, (1) (BPR) was essentially an 19 TQM was adopted by Japan and US to improve their production in a co mpetitive market vis a vis cost effective Total quality management, which is customer-and process-oriented, facilitate cost savings and shorter cycle times while increasing customer satisfaction (Koskela et al. b). A mass
Financial performance indicators
All organisations have financial performance measures as part of their performance managementalthough there is debate as to the relative importance of financial and non-financial indicators. Proponents of financial performance measures argue that they are necessary because of the primary objectives of companies. Rather than focusing on achieving higher profit levels, companies are under increasing pressure to look at the long-term value of the business.
This is due to the following factors. Total shareholder return TSR is the return shareholders receive both in dividends and capital growth. Studies have found that there is little correlation between TSR and EPS growth, and virtually no relationship at all with return on equity, yet many companies are still using profit as their only measure of performance.
Even where companies state that their objective is to maximise shareholder value, often directors' bonuses are still based on short-term profitability or EPS targets. However strong evidence has been found between shareholder value and future cash flows, argument between bpr and tqm, another financial measure. Financial performance exists at different levels of the organisation.
This page is mostly concerned with measuring the financial performance of the organisation as a whole, and of measuring the performance of key projects. Furtehr measures are used as part of the particualr problem of divisional performance appraisal. ROCE is a key measure of profitability. A high gross profit margin is desirable. It indicates that either sales prices are high or that production costs are being kept well under control.
A high net profit margin is desirable. It indicates that either sales prices are high or that all costs are being kept well under control. This is the turnover divided by the capital employed. The main reason why companies fail is poor cash management rather than profitability so it is vital that liquidity is managed. A company can be profitable but at the same time encounter cash flow problems. Liquidity and working capital ratios give some indication of the company's liquidity.
A decrease in the ratio year on year or a figure that is below the industry average could indicate that the company has liquidity problems.
The company should take steps to improve liquidity, argument between bpr and tqm. by paying creditors as they fall due or by better management of receivables in order to reduce the level of bad debts. This is a similar to the current ratio but argument between bpr and tqm is removed from the current assets due to its poor liquidity in the short term, argument between bpr and tqm.
An increase in the inventory holding period could indicate that the company is having problems selling its products and could also indicate that there is an increased level of obsolete stock, argument between bpr and tqm. The company should take steps to increase stock turnover, e. by removing any slow moving or unpopular items of stock and by getting rid of any obsolete stock. A decrease in the inventory holding period could be desirable as the company's argument between bpr and tqm to turn over inventory has improved and the company does not have excess cash tied up in inventory.
However, any reductions should be reviewed further as the company may be struggling to manage its liquidity and may not have the cash available to hold the optimum level of inventory. An increase in the receivables collection period could indicate that the company is struggling to manage its debts. Possible steps to reduce the ratio include:.
A decrease in the receivables collection period may indicate that the company's has improved its management of receivables. However, a receivables collection period well below the industry average may make the company uncompetitive and profitability could be impacted as a result. An increase in the company's payables period could indicate that the company is struggling to pay its debts as they fall due.
However, it could simply indicate that the company is taking better advantage of any credit period offered to them, argument between bpr and tqm. A decrease in the company's payables period could indicate that the company's ability to pay for its purchases on time is improving.
However, the company should not pay for its purchases too early since supplier credit is a useful source of finance.
In addition to managing profitability and liquidity it is also important for a company to manage its financial risk. The following ratios may be calculated:. A high level of gearing indicates that the company relies heavily on debt to finance its long term needs. This increases the level of risk for the business since interest and capital repayments must be made on debt, where as there is no argument between bpr and tqm to make payments to equity.
The ratio could be improved by reducing the level of long term debt and argument between bpr and tqm long term finance using equity. This is the operating profit profit before finance charges and tax divided by the finance cost. A decrease in the interest cover indicates that the company is facing an increased risk of not being able to meet its finance payments as they fall due.
The ratio could be improved by taking steps to increase the operating profit, e. through better management of costs, argument between bpr and tqm by reducing finance costs through reducing the level of debt. A decrease in the dividend cover indicates that the company is facing an increased risk of not being able to make its dividend payments to shareholders.
As discussed above, profit based measures have a poor correlation with shareholder value. Measures that have a closer correlation include the following:. This Product includes content from the International Auditing and Assurance Standards Board IAASB and the International Ethics Standards Board for.
Accountants IESBApublished by the International Federation of Accountants IFAC in December and is used with permission of IFAC. Financial performance indicators. Contents [ Hide ]. Discounted cash flow based approaches such as NPV, IRR and MIRR. Economic value added EVA TM, argument between bpr and tqm.
Related Free Resources Kaplan Blog. Kaplan Business in the UK Kaplan Financial Kaplan Publishing Kaplan LPD.
This Product includes content from the International Auditing and Assurance Standards Board IAASB and the International Ethics Standards Board for Accountants IESBAargument between bpr and tqm, published by the International Federation of Accountants IFAC in December and is used with permission of IFAC.
Contents [ Hide ] 1 Financial Performance Indicators FPIs 1. financial performance measures ; FPIs ; profitability ; liquidity ; gearing ; investor ratios ; EBITDA ; gross margin ; net margin ; ROCE ; asset turnover ; inventory holding period ; Return on capital employed ; current ratio ; quick ratio ; acid test argument between bpr and tqm ; Receivables collection period ; debtors collection period ; Payables period ; creditors period ; Financial gearing ; Interest cover ; Earnings Per Share ; EPS ; Dividend cover ; Dividend yield ; Earnings yield ; shareholder value ; ratio analysis ; ratios.
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blogger.com is a platform for academics to share research papers The Theory and Practice of Change Management by John Hayes 2nd Edition Management Innovation 3: Business Process Re-engineering (BPR) This is a completely opposite approach to that of incremental innovation preached in TQM. Slack et al. () defines BPR as ‘The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of
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