...Operations Management MGT 203 MANAGING EFFICIENCY AND PRODUCTIVITY Week 11 Dr Pieris Chourides Productivity • A measure of performance. • Broadly a ratio of output to input, i.e. comparing amount produced (output) with resources used (input) • Materials, machinery, labour, capital, energy --- a combination • What improvements have there been over the last 50 years in – construction productivity – payroll processing – Car servicing – banking • How do we evaluate productivity levels and identify areas for improvement? Managing Productivity • Productivity – An economic measure of efficiency that summarizes the value of outputs relative to the value of the resources used to produce them. Levels of Productivity • The unit of analysis used to calculate or define: – Aggregate productivity—the total level of productivity for a country. – Industry productivity—the total productivity of all the firms in an industry. – Company productivity—the level of productivity of a single company. – Unit productivity—the productivity level of a unit or department. – Individual productivity—the productivity attained by a single person. Forms of Productivity • Total factor productivity–an overall indicator of how well an organization uses all of its resources (i.e., labor, capital, materials, and energy) to create all of its products and services. Outputs Productivity = Inputs Forms of Productivity • Labor productivity–a partial productivity ...
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...analysis. In this view, nations have strategic purposes, the capacity to mobilize resources, and the power to affect their economies. The country analysis framework has three interrelated components: strategy, performance, and context. Each of these has economic, political, and social dimensions. All governments have a national strategy composed of explicit or implicit goals and a set of policies to achieve those goals. These lead to performance, which can be judged by assessing how well the country is doing economically, politically, and socially. These outcomes also depend on a country’s context, which has domestic aspects (economic, political, social, institutional, and ideological) and international aspects (trading relationships, political links, multilateral institutions, global industries). In turn, the outcomes affect the context for future strategies. Thus, strategy, performance, and context are interdependent. Country analysis can therefore begin with any of the three components, but requires examining all of them. Country analysis is not a mechanistic or deterministic process; it requires critically interpreting data, analyzing causal relationships, and assessing options. One can begin with the descriptive question: What is the country’s strategy, performance, and context? But full analysis requires follow-on questions such as: Why did the government chose its strategy? How well did the country do (relatively, absolutely)? Why...
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...Annales Universitatis Apulensis Series Oeconomica, 11(2), 2009 639 THE PERFORMANCE MANAGEMENT IN PUBLIC INSTITUTIONS OF HIGHER EDUCATION AND THE ECONOMIC CRISIS Rodica Gherghina 1 Florin Văduva 2 Mirela Anca Postole 3 ABSTRACT: The need to reduce public spending in the developin g process and funding of public services has led to the introduction of performance indicators in the public institutions. Moreover, the need to optimize the educational activity, the implementation of an efficient management, insuring the quality and the compatibility of the e ducational systems has led to numerous investigations in this area by adopting, as a theor etical reference framework some organizational models to explain the functionality of the educatio nal system and to define a performance appraisal system. Each model generated by default a certain p hilosophy regarding the evaluation methods of the institutional performance, design and use of th e performance indicators on education institutions . Key words: economic crisis, performance, indicators , education JEL codes: I21, H52 Introduction Changes in higher education in Romania, just as thr oughout Europe and elsewhere, were as many and radical as they were continuous. Since the early 1990s, the first private universities were established in Romania and the number of public uni versities, of the faculties or of the new curriculum...
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...COVER PAGE Table of Content Page Number Table of Contents Executive Summary Module 1 - Identifying Global Business Opportunities Module 2 - Analyzing International Competitors Module 3 - Assessing the Economic/Geographic Environment Module 4 - Assessing the Social- Cultural Environment Module 5 - Assessing the Political Legal Environment Module 6 - Selecting a Global Company Structure Module 7 - Financing Sources for Global Business Operations Module 8 - Creating a Global MIS (Management Information System) Module 9 - Identifying Human Resources for Global Business Activities Module 10 - Managing International Financial and Business Risks Module 11 - Product Target Market Planning for Foreign Markets Module 12 - Designing a Global Distribution Strategy Module 13 - Planning a Global Promotion Strategy Module 14 - Selecting...
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...EXPERIENTAL LEARNING COURSES FS FIELD STUDY 5 * Your Tools As you observe a class, note down your significant observation of the performance-based activity in the classroom. Then, make a checklist of the important things you wish to consider in your assessment planning. For these tasks, please use the Activity Forms provided for you. For your proposed plan for process-oriented assessment, it is recommended that you use the format that you agreed in your Assessment-2 class. Please remember that the rubrics are part and parcel of your assessment plan. OBSERVATION NOTES | Name of the School Observed: Cagayan State University Andrews CampusYear level & Section: III-J Subject Area: Social ScienceSubject Matter: Micro and Macro Economics Topic: Four Production ProblemsObserved teacher: Mr. Roger Ramos Objective: Perform a simple role-play showing ways on how to solve the four production problems. | Describe in bullets the performance-based activity you observe. * The performance-based assessment task that was given to us portrays real-life situation wherein we were able to use and apply the information we acquired during the discussion. It was an authentic assessment task that is embedded in a context that has some meaning or purpose beyond school or beyond the bounds of the classroom lesson or unit. * It involves all domains of learning: * Cognitive- we are able to use the information that we acquired by thinking on what possible way...
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...VALUE ADDED APPROACH TO FIRM PERFORMANCE MANAGEMENT DIFFER FROM MORE TRADITIONAL APPROACHES IN ASSESING PERFORMANCE? Performance management is a process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organization. It is the continuous process of setting objectives, assessing progress and providing on-going coaching and feedback to ensure that employees are meeting their objectives and career goals. Traditionally, private sector businesses usually focus on the financial measures of their bottom line: return-on-investment, market share, and earnings-per-share. Alone this approach does not provide the full perspective of an organization's performance that a manager needs to manage effectively. But by balancing internal and process measures with results and financial measures, managers will have a more complete picture and will know where to make improvements. In contrast, Value Chain Analysis helps you identify the ways in which you create value for your customers, and then helps you think through how you can maximize this value: whether through superb products, great services, or jobs well done. Assessing your business performance should be an ongoing process. It helps you identify areas that need to be improved before they become major issues, as well as giving you the opportunity to consider how to respond. The first step of assessing your business performance is to review your business plan...
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...reasons for which companies started to produce non-financial report and figure out the key features of sustainability report, and then evaluate the sustainability report of Onesteel in relation of the key features. This essay is based on academic journals and professional business websites, as well as information sourced from company’s sustainability report for the year of 2011. The paper discussed the key features of sustainability report mainly by the global reporting initiative sustainability reporting guidelines, such as the six principles (balance, comparability, accuracy, timeliness, clarity and reliability) and the core indicators (environmental factors, human rights, labor practices and decent work, society, product responsibility and economic factors). In conclusion, the company of Onesteel is a leading one of mining industry, it had done well in sustainability report according to the key features of sustainability report. However, Onesteel should include the information about opportunities and predictions for future in order to make the sustainability report more completed, besides this, Onesteel should turn some information stated by words into numbers so that it can be easier for stakeholders to read and use the report. Introduction With the rise of environmental and social care, sustainability is being increasingly important for companies to consider. As a consequence, company reports has been improved recently and...
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...and • to determine the implications for the auditor's report. All audits should involve an assessment of the appropriateness of the going concern assumption, and it is obvious to say that the auditor may well have to perform additional procedures when there are heightened risks relating to going concern, caused by difficult economic and market conditions. But going concern should be considered at all stages of the audit, not just in terms of specific procedures. It is important to remember that going concern is not just something considered at a particular stage in the audit cycle, but should be an issue that permeates the whole performance and review of an audit. Auditors should consider the current economic circumstances and their impact on a particular audit when: • assessing risk at the planning stage of the audit, and when re-assessing risk as the audit progresses • designing and performing audit procedures to respond to the assessed risks • evaluating and concluding on the results of audit procedure, and • forming an audit opinion. Assessing risk at the planning stage of the audit Auditors are required by ISA 315, Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, to gain an understanding of the audit client's...
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...01 TechnicAl during The recenT globAl economic crisis, isA 570, going concern hAs been A well-esTAblished source of guidAnce for AudiTors. AddiTionAl direcTion hAs been provided by The iAAsb’s prAcTice AlerT AudiT considerATions in respecT of going concern in The currenT economic environmenT, issued in JAnuAry 2009. relevAnT To AccA QuAlificATion pAper p7 The recent global economic crisis, commonly referred to as the credit crunch, has provided many challenges for both the preparers and the auditors of published financial statements. For auditors, ISA 570, Going Concern is a well-established source of guidance, and additional direction has been provided by the IAASB’s Practice Alert Audit Considerations in Respect of Going Concern in the Current Economic Environment, issued in January 2009. In the UK, the APB issued the Bulletin Going Concern Issues During the Current Economic Conditions in December 2008. Both of these are examinable documents for the Paper P7 exams in 2010. The auditor’s objectives in relation to going concern ISA 570 contains well-established guidance on going concern, including the following objectives for the auditor: ¤ to obtain sufficient appropriate audit evidence regarding the appropriateness of management’s use of the going concern assumption in the preparation of the financial statements ¤ to conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt...
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...Chapter 2 Goals, Values and Performance Test Bank True/False Questions 1. Value refers to the amount of money that customers are willing to pay for a good or a service True Page: p35 2. A firm’s Value Added is the difference between the value of its outputs and the total costs of the inputs purchased by the firm to provide these outputs True Page: p35 3. One way of creating value by a firm is its “Commerce” activity, which transforms raw material and intermediate products into final products False Page: p35 4. Most of the tools used by top decision-makers in the corporate world are based upon the central assumption of profit maximization True Page: p35 5. There are different ways of measuring a firm’s profitability. Different measures of profitability are likely to result in very different rankings of firm performance True Page: p37 6. Economic profit is a better indicator of a firm’s performance than accounting profit because economic profit includes the cost of remunerating of the capital employed by the firm False Page: p36 7. Time is an important factor in assessing a firm’s performance True Page: p39 8. If time enters into the equation, the maximization of profit equates the maximization of the firm’s value, where this value is equal to the Net Present Value of the firm’s cash flows False Page: p39 9. In practice, valuing...
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...9 -9 1 1 -4 1 2 REV: MAY 28, 2012 Assessing a Company’s Future Financial Health Assessing the long-term financial health of a company is an important task for management as it formulates goals and strategies and for outsiders as they consider the extension of credit, long-term supplier agreements, or an investment in a company’s equity. History abounds with examples of companies that embarked on overly ambitious programs and subsequently discovered that their portfolios of programs could not be financed on acceptable terms. The outcome was frequently the abandonment of programs mid-stream at considerable financial, organizational, and human cost. It is the responsibility of management to anticipate a future imbalance in the corporate financial system before its severity is reflected in the financials, and to consider corrective action before both time and money are exhausted. The avoidance of bankruptcy is an insufficient standard. Management must ensure the continuity of the flow of funds to all of its strategically important programs, even in periods of adversity. Figure A provides a conceptualization of the corporate financial system, with a suggested step-bystep process to assess whether it will remain in balance over the ensuing 3 to 5 years. The remainder of this note discusses each of the steps in the process and then provides an exercise on the various financial measures that are useful as part of the analysis. The final section of the note demonstrates ...
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...9-911-412 R E V: MAY 2 8 , 2 0 1 2 ________________________________________________________________________________________________________________ Professor Thomas Piper prepared the original version of this note, “Assessing a Firm’s Future Financial Health,” HBS No. 201-077, which is being replaced by this version prepared by the same author. This note was prepared as the basis for class discussion. Copyright © 2010, 2011, 2012 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1- 800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu/educators. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. Assessing a Company’s Future Financial Health Assessing the long-term financial health of a company is an important task for management as it formulates goals and strategies and for outsiders as they consider the extension of credit, long-term supplier agreements, or an investment in a company’s equity. History abounds with examples of companies that embarked on overly ambitious programs and subsequently discovered that their portfolios of programs could not be financed on acceptable terms. The outcome was frequently the abandonment of programs mid-stream at considerable financial, organizational, and human cost. It is the responsibility of management to anticipate a future...
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...The Role of Accounting Information in Assessing Corporate Performance in Nigeria. May,2012. Table of content. Abstract. Section 1: Introduction 1.1 Background to study 1.2 Problem Analysis 1.3 Aims and Objectives of the study 1.4 Significance of the study. 1.5 Research Questions 1.6 Hypothesis 1.7 Scope and limitation of the study. Section 2: Literature Review 2.1 General Review of Relevant Literature. 2.2 Theoretical framework 2.3 Conceptual Scheme/ Model Section 3: Methodology 3.1 Data and Statistical Tools for Analysis. Section 4: Presentation of Data Analysis Section 5: Discussion of Findings Section 6: Summary and Conclusions References. ABSTRACT. This study is an attempt to examine the role of accounting information on corporate performance. We critically examine the relevant literature that investigates the role of financial accounting information as the direct and indirect use of externally reported financial accounting data in performance assessment. Specifically, we focus on the role of accounting data in prevalent control mechanisms (primarily in executive compensation contracts) and the underlying causes that led to the shift of contracts towards option awards. Accounting information are among the most effective tools to reduce the incidences of corruption, from its supply side, because they promote values such as accountability, transparency, fairness and responsibility...
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...Table of Contents: Table of Contents: 1 Performance Management at Siemens 2 Introduction: 2 Analysis of Siemens current situation: 3 Task 1 4 Setting Performance Targets of Team to Meet Strategic Objectives 4 1.1 Evaluating Tools and Techniques Available To Set Team , Performance Targets: 4 1.2 Assessing the value of team performance tools to measure future , team performance: 5 1.3 Assessing the Link between Team Performance and Strategic Objectives: 6 Task 2 6 Agreeing team performance targets to contribute in meeting strategic objectives 6 2.1Need to encourage individual commitment to team performance in achieving organisational objectives: 6 2.2 Evaluating team performance plan evaluation in meeting organisational objectives: 8 2.3 Relating the application of delegation, mentoring and coaching to the achievement of the organisational objectives: 8 2.4 Required performance targets within teams against current performance: 9 Task 3 9 Monitoring actions and activities defined to improve team performance 9 3.1 Evaluation of team performance against agreed objectives of the plan: 9 3.2 Evaluating the impact of team performance in contributing to meeting strategic objectives: 10 3.3 Assessing the process for monitoring team performance and initiating changes: 11 Task 4 12 Contribution of influence and persuasion to...
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...for summarizing the factors that affect the firm’s financial performance as measured by ROA. The model decomposes of two components: 1. Net Profit Margin – is simply how much profit (after tax) a firm makes divided by its net sales. It reflects the profits generated from each sales. 2. Asset Turnover – is the retailer’s net sales divided by its assets. This assesses the productivity of a firm’s investment in its asset and indicates how many sales are generated by each dollar of sales. This two components is determined by two set of activities, profit management and asset management, and that high ROA can be achieved by various combinations of net profit margin and asset turnover Retailing View Summary: Federal Department Stores vs. Costco Federated Department Stores operates two national department store chains, Macy’s and Bloomingdales’s. Like other department store chains, Federated offers a wide variety of fashionable apparel and home furnishings, a relatively high level of customer service provided by its sales associates and an attractive shopping environment. Costco’s warehouse stores, in contrast, offer limited assortment of food and general merchandise in a self-service, warehouse environment. Profit Margin Management Path Information used to examine the profit margin management path comes from the retailer’s income statement, which summarizes a firm’s financial performance over a period of time. Income Statement for Federated Department...
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