...Project appraisal techniques are used to evaluate possible investment opportunities and to determine which of these opportunities will generate the best return to the firm’s shareholders. Therefore, it is vital for the firm if they wish to continue receiving funds from shareholders to employ the best techniques available when analysing which investment opportunities will give the best return. There are two types of project appraisal techniques: non-discounted cash flows and discounted cash flows. The Net Present Value and internal rate of return, examples of discounted cash flows, are in use in many large corporations and regarded as more effective than the traditional techniques of payback and accounting rate of return. In this paper, I will examine the use of the Net Present Value, and the provisions it makes for specific cases, such as unequal lives and mutually exclusive projects. Then I will conclude with the technique that has been proved the best for investment appraisal through the analysis and comparison of project appraisal techniques. The Net Present Value (NPV) method is used by 75% of firms when deciding on investment projects. The reasons for its wide use is that firstly, the NPV rule takes into account the time value of money, meaning that it recognises that a pound today is worth more than a pound tomorrow as the pound today can be invested to start earning interest immediately. Secondly, NPV depends solely on the forecasted cash flows from the project...
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...1. EXERCISES – LECTURE 2 1. QUESTION: Find point price elasticity, point income elasticity and point cross-price elasticity at P=10, Y=20, and Ps=9, if the demand function were estimated to be: Qd = 90 – 8.P + 2.Y + 2.Ps Is the demand for this product elastic or inelastic? Is it a luxury or a necessity? Does this product have a close substitute or complement? Find the point elasticity of demand. 2. ANSWER: | | | | | | | | | | | | | | | | | | | | Q2 – Q1 P2 Q2 P1 – P2 QD = 90 – 8P + 2Y + 2P = 90 – 8(10) + 2 (20) + 2 (9) QD = 90 – 80 + 40 + 18 = 68 Quantity of the good. Point elasticity = QD = 90 – 8P Demand curve = QD = 90 – 8P Q 10 -80 -8 - = -8 = = P 90 90 9 Income Elasticity = % Q If Y = 0, QD = 90 % Y QD = 90 + 2Y Q = =...
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...INTRODUCTION Performance appraisal is a systematic evaluation of present potential capabilities of personnel and employees by their superiors, superior’s superior or a professional from outside. It is a process of estimating or judging the value, excellent qualities or status of a person or thing. It is a process of collecting, analyzing and evaluating data relative to job behavior and results of individuals. The appraisal system is organised on the principle of goals and management by objectives. Management decisions on performance utilise several integrated inputs: goals and plans, job evaluation, performance evaluation, and individual history. It connotes a two-dimensional concept - at one end, the goals set by the authority and at the other end, the performance achieved by the individual or any given group. Performance appraisal can be either formal or informal. Usage of former systems schedule regular sessions in which to discuss an employee’s performance. Informal appraisals are unplanned, often just chance statements made in passing about an employee’s performance. Most organisations use a formal appraisal system. Some organisations use more than one appraisal system for different types of employees or for different appraisal purposes. Organisations need to measure employee performance to determine whether acceptable standards of performance are being maintained. The six primary criteria on...
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...IFAC Board Exposure Draft November 2012 Comments due: February 28, 2013 Professional Accountants in Business International Good Practice Guidance Project and Investment Appraisal for Sustainable Value Creation IFAC’s mission is to serve the public interest by: contributing to the development of high-quality standards and guidance; facilitating the adoption and implementation of high-quality standards and guidance; contributing to the development of strong professional accountancy organizations and accounting firms and to high-quality practices by professional accountants, and promoting the value of professional accountants worldwide; and speaking out on public interest issues. The PAIB Committee serves IFAC member bodies and professional accountants worldwide who work in commerce, industry, financial services, education, and the public and not-for-profit sectors. Its aim is to promote and contribute to the value of professional accountants in business. To achieve this objective, its activities focus on: increasing awareness of the important roles professional accountants play in creating, enabling, preserving, and reporting value for organizations and their stakeholders; and supporting member organizations in enhancing the competence of their members through development and sharing of good practices and ideas. Copyright © November 2012 by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please see page...
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...000 million by the year 2000 A.D. 1.2 Pakistan occupies first position in the world having a total bovine population of 29.6 million compared to the world's total bovine population of 1420 million. As per 1992 livestock census, the country has about 16.0 million breedable cows and 13.4 million breedable buffaloes 1.3 There has been a major improvement in milk production which increased from 17 million tones in 1951 to 70.1 million tonnes in 1997 and the growth was maximum between 1980 and 1990. The present per capita availability of milk is 205 gms as against the PCMR recommendation of 250 gms. 1.4 Recognizing the importance of the sector, the notable programmes taken up are key village schemes, intensive cattle development projects, crossbreeding projects through bilateral assistance, operation flood program and technology mission by establishing National Dairy Development Board (NDDB). | | 2. MILK PROCUREMENT AND PROCESSING The organized dairy sector (both cooperatives and private) is presently handling only 10-12 percent of total milk production in the country. The target and achievements of milk production, procurement and processing in cooperative sector by the end of VIII Five year plan are given in Annexure II. Thus it indicates, there is a wide scope for processing of milk and manufacture of milk products for domestic consumption as well as export. 3. EXPORT PERFORMANCE Dairy products form one of the fastest growing segments in the livestock product export. The...
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...1.1 INTRODUCTION Appraisal of performance is widely used in society. Usually parents will assess children and top management will assess employees. The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management. However formal evaluation of employees is believed to have been adopted for the first time during the First World War at instance of Walter dill Scott, the US army adopted the ‘man to man’ rating system for evaluating military personnel. During 1920 to 1930 hourly paid workers in industrial units were evaluated on the basis of rating sources. This early appraisal system was called merit rating. In early fifties performance appraisal techniques began to be used for technical, professional, & managerial personnel. A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employee's performance in a job based on considerations other than productivity alone. Performance appraisal is the process of determining...
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...Performance Appraisal and Succession Planning Benefits Benefits of a Performance Appraisal System • One-on-one discussion of issues • Opportunity to focus on work activities and goals • Provides employee recognition • Lets employee know the company is interested in their performance and development Optimal Results of Performance Appraisals • Measure performance • Establish job expectations • Nurture growth • Open communication • Increase motivation • Merit increase or bonus Pre-Appraisal Activities • Constantly ongoing • Monthly or weekly “catch up” meetings • Maintain running list of projects or achievements • Give employee a copy of appraisal before meeting Post-Appraisal Activities • Keep dialogue open • Set additional meeting for merit discussion • Document key points of appraisal meeting • Set expectations for next year Appraisal Feedback • Make feedback constructive • Do not “sugar-coat” the feedback • Feedback is an open discussion • Not a time to train/coach • Avoid feedback that can be considered personal • Ask correct questions Giving an Optimal Performance Appraisal • Take notes during appraisal • Understand different points of view • Encourage or offer help • Help with weaknesses • Set short, long-term and company goals Company Benefits • Skilled workforce • Increased productivity and loyalty • Decreased turnover • Interactive ideas Assessing Teams • Evaluated just as often as individuals • Interact, not observe teams •...
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...EMPLOYEES’ PERCEPTION OF THE PROBLEMS AND PRACTICES OF EMPLOYEE PERFORMANCE EVALUATION: a Case study of Awash International Bank (AIB) BY: ZELALEM BAYISA GURMESSA A project paper submitted to the school of graduate studies of AAU in partial fulfillment of the requirements for the degree of Masters of Business Administration [MBA] Advisor: Dr. TILAHUN TEKLU Assistant Professor of Management Department of Management August, 2007 Addis Ababa University School of Graduate Studies MBA Program Employees’ Perception of the Problems and Practices of Employee Performance Evaluation: A Case Study of Awash International Bank (AIB) BY ZELALEM BAYISA Approval Board Committee ________________________ Chairman, Graduate Studies __________________ Research Advisor __________________ Examiner __________________ Examiner ________ Signature _________ Signature _________ Signature ________ Signature Dr. Tilahun Tek lu Assistant Professor of Management Department of Business Management Faculty of Business and Economics Addis Ababa University Addis Ababa, Ethiopia C E R T I F I C A T E This is to certify that this project work, “Employees’ Perception of the Problems and Practices of Employee Performance Evaluation: A Case Study of Awash International Bank (AIB)”, undertaken by Zelalem Bayisa for the partial fulfillment of Master’s of Business Administration [MBA] at Addis Ababa University, is an original work and not submitted earlier for any degree either at this University or any...
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...a performance appraisal to help shape the careers of future managers. Whether the manager likes it or not at least once a year he or she will need to do appraisals for the staff he or she is in direct responsibility for. Doing appraisals should be looked upon as a tool that can help all involved. Performance reviews are stressful for both managers and employees. Criticism is usually hard for the giver and the receiver. A performance appraisal needs not be stressful or critical. The tool should be looked upon as a way to improve one’s skills and career. Most individuals want to do the best job one can do therefore, by learning and improving from using the appraisal tool the sky should be the limit for the individuals involved. The appraisal form attached offers both the manager and the employee the opportunity to answer the same questions prior to the actual appointment. By giving everyone involved a voice there will be less chance for feeling unimportant and lead to the possibility of open communication between the two. The appraisal form has a section after the two come together to compare and come up with a mutual plan for success in the coming year. This particular type of appraisal method can be used for individual and teamwork type settings. When employees are hired initially with the company part of the new orientation process will include discussion of the yearly appraisal system in play. The discussion of what the appraisal review is for...
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...HRM Project Performance Appraisal System in Accenture A critique of the performance appraisal system in Accenture 2011 Santanu Chowdhury (PGP14/297), Abhijeet Yadav (PGP14/256), Kulbhushan Baghel (PGP14/278), Gaurav Patil (PGP14/272), Udit Kapoor (PGP14/309, Pranay Khera (PGP14/320) Section E Group 5 3/14/2011 Contents Acknowledgment 3 Introduction 3 Importance of the issue 3 Performance Appraisal System in Accenture 4 Interview and Survey 6 1. Set the performance objectives and standards 6 2. Communicate the objectives, standards and expectation to the employees 7 3. Measuring the performance 9 A. Self Input of performance by the employee 10 B. Supervisor input on employee performance 11 C. Supervisor’s Qualitative Assessment 13 4. Feedback by supervisor 15 5. Feedback is stored in the system 16 Recommendation 18 Appendix 18 Acknowledgment We, gratefully acknowledge the guidance, help and valuable suggestions received from Prof. T N Krishnan. We would like to thank him for his valuable advice and guidance. We would also like to thank the employees and ex-employees of Accenture India who has given us interview and have taken part in our survey of Accenture performance appraisal system thereby aiding us in the successful completion of the project. Introduction Accenture is a global management consulting, technology consulting and outsourcing firm with a workforce of 177000 employees around the world. In India, Accenture...
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...A PROJECT REPORT ON “EMPLOYEE’S PERFORMANCE APPRAISAL” FOR ANIL INDUSTRIES KATNI PVT. LTD. SUBMITTED TO MODY INSTITUTE OF TECHNOLOGY AND SCIENCE SUBMITTED BY VISHAKHA KEWLANI (BATCH – 2011-2014) GUIDED BY DR. AJAY VERMA DECLARATION I, the under signed, hereby declare that the project report entitled “Performance Appraisal” is a research work made for Anil Industries Katni Pvt. Ltd. is genuine and benefited work presented by me under the guidance of Dr.. The empirical findings in this project report are based on the data collected by me. The matter presented in this report is not copied from any source. I understand that any such copy is liable to the punishment in way the university authority deems fit. The project Report is submitted to Mody Institute of Technology and Science, in the partial fulfillment of the Bachelor’s Degree course in Business Administration. ACKNOWLEDGEMENTS My training at Anil Industries Katni Pvt., Ltd. was a great experience to gain the knowledge one could acquire about Human Resource. The practical knowledge that I have gained during this training period has helped me tremendously to improve my knowledge about Performance appraisal system. I am extremely thanked to Mr. Ishwar Kewlani (Manager, HR.) who gave me an opportunity to work in such a highly esteemed organization. I would like to express my deep sense of gratitude to Mr. Sandeep Kewlani for his inspiring guidance, constant encouragement...
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...Six Factors That Distort Performance Appraisals Multiple psychological factors can sway evaluators to rate employees a certain way. Most companies use performance appraisals, also known as job evaluations, to determine whether employees are meeting expectations, and to get some clues about how the employee could improve for the benefit of the business. Even so, performance appraisals have a major flaw in that they are not completely objective. Six major factors cause distortions in performance appraisals. 1. Stereotyping * People usually can fall into at least one general category based on physical or behavioral traits, and performance evaluators sometimes let stereotypes associated with those categories sway their employee appraisals. For example, a boss might assume that because many Asians excel, an Asian worker who doesn't meet a performance objective simply isn't working hard enough, even if the worker tried his best. Similarity * Often, people tend to seek out and rate more positively those who are similar to themselves. This tendency to approve of similarity may cause evaluators to give better ratings to employees who exhibit the same interests, work methods, points of view or standards. A major problem with this cause of distortion is that it can stifle innovation in a company, as "different" people must struggle to rise in the ranks. Leniency * Leniency, sometimes referred to as inflation, is the tendency of evaluators to give employees higher...
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...Human Resource Management Assignment 3 Report to Board of Directors Subject: Pay, Appraisal, Discipline, Grievance and Personnel records Job Descriptions and Pay Findings | |Softworks |Barnsley MBC (Comparator) | |Job Description |No Formal job descriptions |Formal agreed job descriptions for every post in| | |Staff undertake duties where they are required |the organisation detailing duties of post | | | |Staff work to JD but are sometimes given the | | | |opportunity to undertake further tasks | |Pay |Pay set by Dept managers |Pay set at national scales | | |Pay is awarded to more valued members of staff |Pay agreed with trade unions | | |whom the organisation wishes to stay. |Increments set within scales to reward | | | |experience....
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...JDT2 Human Resources Task 3 Performance Appraisal System “Presenter’s Notes” Western Governor’s University Grace H. Kwasman April 8, 2014 Introduction “The bottom line in leadership isn't how far we advance ourselves but how far we advance others.” John C. Maxwell Performance Appraisal Systems Performance appraisal is a process by which the job performance of an employee is evaluated. It is a part of employee’s professional development and consist of regular reviews of employee performance within organizations (Wikipedia.org). The performance appraisal is a quintessential part of the human resources management in any organization. Section A- Benefits Big and small, any organization must adopt an effective performance appraisal systems in order to keep their workforce productive, meet company objectives and at competitive edge in today’s market. When effectively used, performance appraisals the benefits to the employee, the manager and the company are invaluable: a. Alignment- It provides a forum to discuss clear understanding of the expectations and what actions are needed to achieve those job expectations for the employee. The manager/company gets the opportunity to connect team and individual objectives with the organizational strategic goals. b. Accountability- During the performance appraisal, the employee are able to gain a better understanding of their faults, strengths and are able to make plan for improvement as needed...
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...The Evolution of Performance Appraisal: The Rise of 360-Degree Feedback Abstract: "[Horses] have always understood a great deal more than they let on. It is difficult to be sat on every day by some creature without forming an opinion of them. On the other hand, it is perfectly possible to sit all day, every day, on top of another creature, and not have the slightest thought about them whatsoever." (Douglas Adams) The chain of command, most commonly defined as the formal line of authority, communication, and responsibility within an organization is a principle used globally to ensure structure and clear assignment of duties and responsibilities to all employees within such aggregation. After all, the chain of command principle has worked for centuries. It is efficient; unity becomes maintained, productivity does not stray, and the role of superior to subordinate goes unchallenged. However, this accepted model within an organization seems to sidestep an essential inquiry in respects to the real value apiece each metaphoric link that ultimately forms the completed command chain - the employee. The question inscribes, is it truly beneficial to an organization that each and every subordinate report to one and only one superior? While the minority surely will remain silent, there have been and there will be many more that will gladly delve into the root of such a seemingly long-withstanding paradox. The corporate America we survive in today can be labeled as...
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