Measuring Organisational Performance

In: Science

Submitted By peterg5545
Words 5402
Pages 22
Diploma in Management Studies
Measuring organisational performance

ACFI 5030 Financial Planning
Alexandra Charles
Department of Accounting and Finance
Scott Flatters P08103408

Date: 23/01/10
Assignment part A.docx
Scott Flatters P08103408

Table of Contents
1 Introduction 5
2 Financial report overview 6
2.1 What are the 2008 figures showing? 6
2.1.1 Business Review 6
2.1.2 Risks and Uncertainties: 7
2.1.3 Turnover 7
2.1.4 Profit Loss and Balance sheet 8
3 Ratio Analysis 9
3.1 Liquidity Ratios 9
3.1.1 Current ratio 9
3.1.2 Acid Test / Quick Ratio 11
3.2 Profitability Ratios 12
3.2.1 ROCE Ratios 12
3.2.2 Gross Profit Ratio 13
3.2.3 Mark-up Ratio 15
3.2.4 Net Profit Ratio 16
3.3 Efficiency Ratios 18
3.3.1 Stock Turnover Ratio 18
3.3.2 Fixed Asset Turnover Ratio 19
3.3.3 Trade Debtor Collection Period 20
3.4 Investment Ratios 22
3.4.1 Earnings per Share 22
3.4.2 Dividend Cover 23
3.4.3 Gearing 24
4 Key issues 26
4.1 Current state of business 26
4.2 Looking forward 26
5 Conclusions 28
6 Appendices 30
6.1 Profit and Loss details and Balance Sheet details 2005-2008 31
6.2 2008 figures for AMPY Automation Digilog Ltd. 39
7 References 59

Table of Figures
Figure 21 Key Performance indicators 2008 6
Figure 22 Turnover by segment and geographical market of destination 7
Figure 31 Current Ratio 10
Figure 32 Cash flow cycle example 10
Figure 33 Acid Test Ratio 11
Figure 34 ROCE Ratio table 12
Figure 35 ROCE Ratio 13
Figure 36 Gross Profit Ratio 14
Figure 37 Mark-up Ratio 15
Figure 38 Net Profit Ratio 16
Figure 39 Stock Turnover Ratio 18
Figure 310 Fixed Asset Turnover Ratio 20
Figure 311 Trade Debtor Collection Period Ratio 21
Figure 312 Earnings per Share Ratio 23
Figure 313 Gearing Ratio 24

Introduction
Landis+Gyr has been trading for more than 100 years with 4000 employees worldwide, AMPY…...

Similar Documents

Organisational Quality and Performance Management

...MODULE 3 Organisational Quality and Performance Management (M3) CASE STUDY BBC Broadcasting & Presentation CASE: BBC BROADCASTING & PRESENTATION EXECUTIVE SUMMARY 4 QUESTION 1 – DISCUSS THE ISSUES OF MEASUREMENT IN AN ORGANISATION SUCH AS THIS ONE, AND EVALUATE THE APPROACH TAKEN TO MEASUREMENT ‘RECOMMENDED’ BY THE BBC. 6 • MISSION STATEMENT 6 • MEASURABLE OBJECTIVES 7 • CRITICAL SUCCESS FACTORS & KEY PERFORMANCE INDICATORS 7 QUESTION 2 – HOW SHOULD THE SENIOR TEAM IN BBC BROADCASTING & PRESENTATION DEVELOP THEIR THINKING TO SUSTAIN THE MOMENTUM OF TOTAL QUALITY/BUSINESS EXCELLENCE? 8 Conclusion: 13 Bibliography 14 EXECUTIVE SUMMARY The document provided is based on the case study of “BBC Broadcasting & Presentation” and the associated questions pertaining to the paper and reflects an in-depth study of the organisation and integrated application related to “Organisational Quality and Performance Management (M3)” and would include comments or suggestions for / or within the context of the description of the case. It is summarised as follows: Broadcasting & Presentation is the department responsible for the promotion and on-air branding for all the BBC’s channels, which includes commercial channels and public service. Currently there are almost 600 staff employed and 25% of the department’s income derives from new business – launching of new commercial and public service channels. As a result a need arose to understand how the...

Words: 1990 - Pages: 8

Measuring Sustainability Performance in Higher Education

...Measuring sustainability Performance in Higher Education: Implementing a Sustainability Scorecard By Toni Washington Gov’t & Not for Profit – ACC 410 Prof. Sandra Smith March 14, 2012 1. Determine how SU specifically gained support for implementing the STARS model and whether this was good management practice. In the beginning, when SU began the participation in the STARS pilot program, some of the faculty was not interested in participating. SU gained support for implementing the STARS model once people began to understand the importance of it and how it would help each campus and the individual departments. Some felt that the students should have been able to participate in the pilot program rather than just certain student organizations. 2. Determine the most difficult challenge faced by SU in implementing the STARS model. The most difficult challenge faced by SU in implementing the STARS model was getting the faculty to participate. Some did not respond to the survey nor did they provide any information pertaining to their teaching or research. It was probably mainly due to the fact that they did not understand what was meant by sustainability-focused or related teaching and research pertaining to particular programs. 3. Analyze whether or not SU’s participation in the STARS pilot study will/did add value to the institution. SU’s participation in the STARS pilot study did add value to the institution by pointing out the different...

Words: 483 - Pages: 2

Measuring Organisational Performance

...Diploma in Management Studies Measuring organisational performance ACFI 5030 Financial Planning Alexandra Charles Department of Accounting and Finance Scott Flatters P08103408 Date: 23/01/10 Assignment part A.docx Scott Flatters P08103408 Table of Contents 1 Introduction 5 2 Financial report overview 6 2.1 What are the 2008 figures showing? 6 2.1.1 Business Review 6 2.1.2 Risks and Uncertainties: 7 2.1.3 Turnover 7 2.1.4 Profit Loss and Balance sheet 8 3 Ratio Analysis 9 3.1 Liquidity Ratios 9 3.1.1 Current ratio 9 3.1.2 Acid Test / Quick Ratio 11 3.2 Profitability Ratios 12 3.2.1 ROCE Ratios 12 3.2.2 Gross Profit Ratio 13 3.2.3 Mark-up Ratio 15 3.2.4 Net Profit Ratio 16 3.3 Efficiency Ratios 18 3.3.1 Stock Turnover Ratio 18 3.3.2 Fixed Asset Turnover Ratio 19 3.3.3 Trade Debtor Collection Period 20 3.4 Investment Ratios 22 3.4.1 Earnings per Share 22 3.4.2 Dividend Cover 23 3.4.3 Gearing 24 4 Key issues 26 4.1 Current state of business 26 4.2 Looking forward 26 5 Conclusions 28 6 Appendices 30 6.1 Profit and Loss details and Balance Sheet details 2005-2008 31 6.2 2008 figures for AMPY Automation Digilog Ltd. 39 7 References 59 Table of Figures Figure 21 Key Performance indicators 2008 6 Figure 22 Turnover by segment and geographical market of destination 7 Figure 31 Current Ratio 10 Figure 32 Cash flow cycle example 10 Figure 33 Acid Test Ratio 11 Figure 34 ROCE Ratio table 12 Figure 35 ROCE Ratio 13 Figure...

Words: 5402 - Pages: 22

Planning and Measuring Performance

...Planning and Measuring Performance MGT 521 Rita Marlow January 19, 2013 Wal-Mart was the company I used in my Organizational Planning assignment and I feel that this organization is successful in reaching their goals because they have good leaders who are capable of putting processes in place and determining which standards would be best to use in evaluating their company goals. There are many different ways of evaluating these standards to make sure that the company goals can be reached and it is important for leaders to make sure they are effective in measuring the company’s performance by utilizing the proper tools. Improvements in merchandise can be accomplished by setting standards such as requesting better quality from your suppliers. If the quality of the merchandise you are receiving is poor, you can either work with your current supplier to try and get a better quality product from them or change suppliers. A good friend of mine is a Purchasing Coordinator and his main functions in his position are to continually work with his suppliers in regards to cost, lead times, and quality of product. He has developed a good relationship with our suppliers which increase the company’s chance of getting a better price and better quality product. A tool that would be most effective in regards to determining which supplier offers the best quality would be benchmarking. Benchmarking would be very effective because it would give you an overview of various...

Words: 610 - Pages: 3

Effect of Health and Safety Issues on Organisational Performance

...Developing Country Studies ISSN 2224-607X (Paper) ISSN 2225-0565 (Online) Vol 2, No.9, 2012 www.iiste.org Impact of Health and Safety Management on Employee Safety at the Ghana Ports and Harbour Authority Ruby Melody Agbola ⃰ Department of Management, Central University College. P.O. Box 2305, Tema, Ghana * E-mail of the corresponding author: rubyagbola@yahoo.co.uk Abstract The Ghana Ports and Harbour Authority (GPHA) has been plagued with series of fatal accidents and catastrophes claiming the lives of many employees in recent years. The purpose of this study is to examine the Safety and Health Management Systems (SHMS) implemented by the GPHA, assess the effectiveness of these measures in reducing accidents and death; and evaluate the impact of accidents and work-related illnesses on the employee safety at work. The results reveal an organisation fraught with poor health and safety management practices, poor training in safety know-how, lack of information on dangerous chemicals and hazardous materials, lack of monitoring and enforcement of safety rules, unavailability of essential safety equipments, with adverse effects on employees and the organisational performance. GPHA must increase education and create awareness of the importance of health and safety, ensure collection and storage of data for effective monitoring and evaluation of safety performance. Keywords: Ghana, Ports, Harbour, Safety, Health 1. Introduction The health and safety (H&S) of employees is a very...

Words: 7529 - Pages: 31

Codes of Conduct and Their Affect on Organisational Performance

... Codes of Conduct and their affect on organizational performance Introduction According to Wikipedia, A code of conduct is a set of rules that listed all the responsibilities of or proper practices for the staff of the organization. All the employees in the organization should follow the code of conduct and have a common behavioral characteristics and work habits. This behavior has a common, internal communication and coordination will make it easier to achieve, for enhancing internal cohesion, improve efficiency across the organization, has a positive impact to the corporate image. Nowadays, codes of conduct are being rapidly adopted in the organization all around the world. The effects of codes of conduct on employee’s perceptions and behavior have been thoroughly addressed. According to Jill(2013), the Internal Control-Integrated Framework, issued by the Committee of Sponsoring Organizations (COSO) in 1992, defined Internal control into five elements: control environment, risk assessment, control activities, information and communication, and monitoring. In this five elements, the control environment is the most critical, but also the most difficult to effectively manage and evaluation. The COSO framework also points out that the control environment could help the organization to set the acting style and work atmosphere in order to motivate employees to form a line with the overall characteristics of the enterprise control consciousness. This kind of control...

Words: 1042 - Pages: 5

Planning and Measuring Performance

...Planning and Measuring Performance Brandi Charette MGT 521 February 11, 2013 Linda Kulka Planning and Measuring Performance Fannie Mae is a lending company who has been providing mortgage lending options to working families for over 70 years. Their mission is to “ensure that working families have access to mortgage credit to buy homes they can afford over the long term or that they can secure quality rental housing” (Fannie Mae, 2013). Strategic and operational plans help an organization plan out their goals and how they are going to achieve those goals. The main objectives of strategic plans are to look at the vision of the organization and their priorities in regards to an evolving environment and to make sure that the organization’s members are aiming for the same goals. Operational planning is outlining the day-to-day activities of the company. Both of these need to compliment each other in order for the organization to be successful. One of the strategic goals is to demonstrate shareholder value. Fannie Mae can demonstrate this by showing that they are creating revenues that are above all costs. They are “one out of three companies to have produced double-digit growth in operating earnings per share in each of the last 15 years” (Fannie Mae, 2013). A standard for this goal would be maintaining a clear profit yearly without extending the budget. Financial controls would be in order to monitor the financial well being and activities throughout...

Words: 790 - Pages: 4

Measuring Supply Chain Performance

... system efforts to supply chain members and outside stakeholders (Fawcett and Clinton 1996). Furthermore, researchers have found that measuring supply chain performance in and of itself leads to improvements in overall performance (Bello and Gilliland 1997). The treatment of performance in research settings, however, is perhaps one of the thorniest issues confronting academic research today (Neely 1998) because of debates about issues of terminology, level of analysis (i.e. individual, work unit, or organization as a whole), and conceptual bases for assessment of performance (Ford and Schellenberg 1982). Research efforts on supply chain performance are summarized in table 1. 3.1. Financial performance A common measure of business performance is referred to as the financial performance because it centres on the use of simple outcome-based financial indicators that are assumed to reflect the fulfilment of the economic goals of the firm. Financial performance has been the dominant model in empirical strategy research (Hofer 1983, Venkatraman and Ramanujam 1987). Typical of this approach would be to examine such indicators as sales growth, profitability, earnings per share, and so forth. The inadequacies of using solely financial performance measures in manufacturing and supply chains, however, have been well documented in the academic literature (Skinner 1971, Hall 1983, Johnson and Kaplan 1987, Dixon et al. 1990, Geanuracos and Meiklejohn 1993, Chen and Lee 1995, Medori et al. 1995,......

Words: 17828 - Pages: 72

Employee Motivation and Organisational Performance

... ........................................................................................................................... 11 1. Introduction Company XYZ, an Information Technology company, has recently gone through a hostile takeover from a competitor. This has affected employee morale and stress levels on the policy changes and organisational structure changes that may follow. The period following the takeover has observed low productivity and organisational performance. This report aims at addressing the issue through employee motivation. The report describes and analyses the benefits, methods and suggests the most suitable options available to improve employee motivation within the organisation. This report makes use of the existing academic journals and recent studies to illustrate how organisational performance is linked to employee motivation and how a motivated workforce can change the course of an organisation. 2. Benefits of Employee Motivation Employees are the most important asset for any organisation. The importance of having a motivated workforce is emphasised in the case of knowledge industries. Information Technology sector being the most prominent among the knowledge industries relies on their motivated workforce for success and survival. Honore cites Hellreiger’s definition of motivation as the forces acting on or within a person that invokes behaviour in a specific direction in pursuit of goals (Honore 2009). The throughput from......

Words: 2957 - Pages: 12

Planning and Measuring Performance

...Planning and Measuring Performance I will be evaluating the three appropriate standards on the goals of Verizon Wireless that I discussed in an earlier assignment during week three here participating in Management 521 course. Verizon Wireless three appropriate standards in my bias opinion are the mission statement, goals, and objectives. I will also mention the tools will be utilized measuring the company’s performance against the determined standards. Verizon Wireless mission statement states: "As a leader in communications, Verizon's mission is to enable people and businesses to communicate with each other. We are also committed to providing full and open communication with our customers, employees, and investors." Verizon Wireless also has a vision statement: "Verizon's commitment to top quality service is well known. Verizon is the pre-eminent service provider in the industry. Our legacy of customer service -- bolstered by the nation's largest and most reliable network -- is unparalleled. And, we continue to make strong progress in delivering on our promise to be the nation's best provider of quality local, data and long distance services." The organization statement of purpose protocol is always in effect throughout the daily routines of all it company’s employees. Executive management constantly is reminding everyone on the company’s mission and vision and the goals the company is striving for. The goals the organization sets are high but attainable. The main goal of...

Words: 705 - Pages: 3

The Impact of Hrm on Organisational Performance

...Essay Title: ‘Assess the state of the evidence in favour of HRM’s impact on organisational performance. Do the supporters of HRM’s strategic contribution have enough of a case?’ Word Count: 3,105 Abstract The evidence in favor of HRM’s impact on organizational performance is growing, however some doubt has cast on these studies. Thus, this essay suggests that the evidence of HRM-performance linkage is weak because theoretical and methodological issues remain among most of these studies. So, this essay will mainly analyze theories concerning on HRM and firm performance relationships and methodological problems in empirical studies. As there are flaws in both theories and the process of studying the relationships, this essay concludes that the evidence in favor of HRM’s impact on organisatioanl performance is weak. It seems that it is better to pay more attention to the HRM’s theories and methodologies in order to further the understanding the correlation between HRM and firm performance. TABLE OF CONTENTS 1. Introduction 4 2. Evidence of previous studies 5 3. Theoretical evidence 8 3.1 Categorizing theories 9 3.1.1 Strategic theories 9 3.1.2 Descriptive theories 11 3.1.3 Normative theories 11 3.2 Conceptual theories 13 4. Methodological issue 15 4.1 Measurement of HRM 16 4.2 Measurement of performance 17 5. Conclusion 18 1. Introduction Human resource managers have been worrying about the inability to prove their...

Words: 3635 - Pages: 15

Measuring Project Performance

...Measuring Project Performance It’s happened to nearly every project manager sometime in their career. They’re given the requirement to provide detailed performance reporting on a project and end up spending most of their time entering hours worked into work packages in Microsoft Project and estimating percent complete on these packages – on a daily basis. Whether the requirement for that level of reporting was real or perceived, the project manager finds that he’s unable to manage the day to day activities of his project because he’s too busy trying to measure the project’s performance. It’s happened to nearly every project manager sometime in their career. They’re given the requirement to provide detailed performance reporting on a project and end up spending most of their time entering hours worked into work packages in Microsoft Project and estimating percent complete on these packages – on a daily basis. Whether the requirement for that level of reporting was real or perceived, the project manager finds that he’s unable to manage the day to day activities of his project because he’s too busy trying to measure the project’s performance. When a successful company invests time, money, and other resources in a project, its primary concern is always what it is getting in return for its investment. It is the responsibility of the project manager to ensure these projects stay on schedule and within their approved budget. Performance measurement provides the project...

Words: 1118 - Pages: 5

The Effect of Merger and Acqusition on Organisational Performance.

...THE EFFECT OF MERGER AND ACQUSITION ON ORGANISATIONAL PERFORMANCE. (A case study of Equity Indemnity Insurance Co. Ltd) CHAPTER ONE INTRODUCTION 1.0 BACKGROUND OF THE STUDY Every organisation is set up with a vision to be profitably productive so that the interest of every stakeholder is satisfied; consequently the performance of every organisation is graded on various performance parameters to determine how well the company is doing when compared with its set goals and the performance of other companies. The following are areas of expectation of good performance. o The organisation’s vision objective and associated plan – how much of this is seen in reality of the organ’s operation / result. o The organisation’s structure, values and culture – which are what, distinguish one organisation from the other even though they are in same market/industry. o The sector and market in which the organisation operates and the organisation’s share of the market. o The organisation’s competitive strength this being able to take more share of the market and determine price movement. o The financial strength and investment potential of the organ to venture into new areas/ development of existing market and pelt. Many organisations have had problems in driving the above fully to the advantage of their organisation hence have consistently not improve in their performance when assessed by the stakeholders in the organisation. The Annual General...

Words: 15959 - Pages: 64

Effects of Puchasing Control on Organisational Performance

... obtained by displaying goods for sale with a market price. In choosing this method, procuring entity may consider: (a) the cost of valuing the assets; (b) wages and other administration costs; (c) the direct and indirect costs of warehousing; (d) the extent to which the procuring entity may be expected to warrant the condition of fixed price sale. (e) the cost of advertising; and(f) the tender committee shall approve the use of this procedure Disposal to employee .etc. 58 (1) Pursuant to section 131 of the Act, a disposal to employee, board member and committee of the public entity may be made where- (a) the items are of low value ; (b) there is no likely benefit or financial advantage to a procuring entity, in using any other disposal method (c) where the personal use of disposal of asset would directly benefit the performance of a public officer in the execution of his or her duties within a procuring entity; or (d) the employee is possession of the asset to be disposed is given the first priority to purchase the same (e) Items are in remote locations, where any other method of disposal would be impracticable (f) An employee, board member or committee shall    30 Not be permitted to purchase more than one similar it emunder a single disposal process. (g) An employee, board member or committee involved in initiating the disposal process, valuation or managing the disposal process shall not participate in that particular disposal as a bidder. (2) The disposal...

Words: 1477 - Pages: 6

Measuring and Managing Performance at a Hospital

...Measuring Performance at Midshires Hospital At the Midshires hospital management can use quantitative and qualitative data to measure performance. Quantitative data is measured through numbers and statistics. Management at the hospital use quantitative data by rating staff performance out or 100. Qualitative data is written this can come in the form of opinions and surveys, management can use this to evaluate the performance of staff as management can get patients to fill out questionnaires on their performance. Management at the Midshires hospital can give their staff targets to reach to measure performance. For example the diabetes ward may have a numerical target to reach in order to not receive disciplinary measures. Staff at the hospital may be given targets to reach to gain a reward or bonus for exceeding targets, this will increase both motivation and performance as staff will aim to complete the target so they can get or bonus or avoid disciplinary. When setting out these goals management will need to make sure the targets is S.M.A.R.T. Specific – The target has to be clear. For example management at the hospital may want to improve waiting times at the hospital; management can break this down by looking at what departments spend longest treating their patients and retraining them to help them become more efficient. Measurable – The targets set by the hospital need to be time specific so the department can measure their progress. The hospital can do this by...

Words: 1404 - Pages: 6