Performance Evaluation And Control Of Organisations - Free Samples

Question: Discuss about the various approaches to performance evaluation and control in various types of organisations. Answer: Introduction: A value chain is a concept which lies upon various activities which are used by the company to deliver the best quality product to its clients. Basically, value chain helps the organization to add the value in the products of the company. Through it, various aspects of the company such as marketing, production, provision etc are analyzed. This study is done to get the better balance between entire resources which are available and for satisfying the needs of the stakeholders. Basically, value chain unites in a proper framework and a management style that mainly focus over the worth; it motivates the team and individual to work properly, consideration over the culture and environment of the organization. Company profile: For this study, Hawker Siddeley has been taken into consideration. This company is mainly engaging into the manufacturing of aircrafts. This company has acquiesced various small firms and currently this is one of the biggest aircraft manufacturing companies. This company has been founded in 1934 as the name of Hawker Siddeley Aircraft Company. The main vision of the company is to be leader in international defence, Security Company and aerospace. Consequently, the main mission of the company is to enhance and safeguard the clients vital interest and also deliver the growth to the value of the shareholder. Managerial highlights of the company depict about the growth of the company and the various strategies which have been opted by the company to manage the value of the shareholder. Further, the main product of the company is aircraft and various services related to aircrafts. The staff function and the line function of the company depict about the various aspects of the production of the company (annual report, 2016). Line function of the company is concern about the advancement of the operations of the company and as well as staff function of the company is concern about the support and advisory functions. Value chain: Value chain is a model which is developed by Michal porter to manage the production of a company. In this model, business gets raw materials, which adds value of raw material through numerous procedures to produce a finished product and then the end product is sold to the customers. The overall goal of value chain is to deliver the maximum value of least possible cost and also help the company to make competitive advantages (Peters et al, 2011). In case of Hawker Siddeley, it has been found that the company is managing the value chain in a best manner; the process of value management starts from receiving the raw material and ends up by selling the end product to its customers. Through the analysis over the company, it has been observed that company has managed a good value chain to maximise the worth of resources and reduce the total cost of the company. Planning: Further, the process of value chain of Hawker Siddeley has been analyzed. Through the study over the company, it has been observed that the various business strategies shave been adopted by the company such as better working capital management, suppliers choice , market choice etc to manage the value chain of the company and maximise the worth of resources and reduce the total cost of the company (Miller and Mork, 2013). It has been found that the current ratio and the working capital have been managed by the company to manage the entire resources of the company and manage the performance of the company. the current scenario of the company depict about a great value chain of the company as various issues have been reduced from the operations of the company and the extra cost of the company has also been reduced by the company. Currently the gross margin of the company has been 18.46% and in last year, it was 18.65%. Further, it has also found that the brumby aircraft Australia and Jabiru Aircrafts are the business competitors of the company. It has been found that these two companies are also performing their operations in manufacturing the aircraft. It has been found that both the companies are giving the huge competition to the Hawker Siddeley (Miller and Jones, 2010). Further, it has been found that company is not required to threat from the potential rivalries. Due to the reason that huge amount is required by the companies to enter into this industry and start producing the aircrafts. Thus the company is not required to threat from the potential rivals. Lastly, it has been found that the company is required to collect information about various aspect and particulars to prepare and manage a better budgeting report. It has been found that for preparation of a better budget report of manufacturing budget, information about raw material units, their price, indirect labour, direct labour, employee benefits, manufacturing supervision, insurance, property tax, depreciation, factory rent, repairs and maintenance, small tolls etc is required. Further, it has been found that for preparing the selling budget, cost of sales of the product, various categories of the product, sales amount, distribution and administration expenses etc must be analyze (Centi, Quadrelli and Perathoner, 2013). (Morningstar, 2017) Controlling: Further, the controlling process of the company has been analyzed and it has been found that the Hawker Siddeley is performing well in the market. In the process of planning, it has been analyzed that what are the aspects which must be taken into consideration while preparing the budget plans of manufacturing and selling. Than it has been found that it is required for the company to monitor the manufacturing and selling plans in a proper manner so that the best plan could be made and after implementing that plan, company can achieve the goal. (Gereffi and Sturgeon, 2013) For controlling over the manufacturing and selling plans, it is required for the company to analyze the feasibility of the plan firstly than company could implement that plan only. Further, it has been found that the manufacturing and selling department must review the differences among budgeted and actual expenditure. They must resolve the issues of variances and then it must be investigated by the managers that the budget is offering the surplus report or deficit report. Further it is also suggested to the company to manage and prepare the reports after analyzing every related aspect so that the best budgeting plans could be made and after implementing that budget, company could be achieved the goals and objectives in such a manner. (Hollensen, 2015) In addition, the impact of balanced performance has been identified. It is a system of strategic management and planning which helps the organization to manage various aspects related to the company. Balance scoreboard is used by the manufacturing companies to identify the performance of various related aspects in such a manner that the company could achieve the goals and objectives. Through this report, it has been found that the balance scoreboard is required to manage by every manufacturing company to manage the performance of the related parties. For managing the financial perspective, balanced scoreboard address over the questions such as how the firm is viewed by the shareholders and which goals of the finance are needed according to the shareholders perspective in a company (Funk et al, 2010). The financial objectives of a manufacturing company depend over the stage of the company and the business life cycle. In addition, customer perspective depends over the type of customers, products and services expected by the customers from the company, the way company listens to the customers and make changes according to their feedback. How the company acquire and retail the new customers and the way through which company meets the requirements of the customer (Gereffi and Frederick, 2010). The main perspective of the customer is related to the market share, customer retention, acquisition of the customers, satisfaction level of the customers, profitability position of the customers etc. Further, the process and the learning and growth perspective of the company has been analyzed and it has been found that various aspects must be scored to analyze the growth, process and learning of the company (Baldwin and Venables, 2010). The main question is related to the skills of the company to learn, improve and make some innovation so that the objectives could be met. Further, the process and the learning and growth perspective must be focus over the calculative outcomes so that the company could go forward. Various aspect, such as the process of manufacturing, human capital, people issues, technology issues, information capital, organizational capital etc are analyzed in this perspective in Hawker Siddeley. Decision making: Lastly, the decision making process of the company has been analyzed and it has been found that the Hawker Siddeley is performing well in the market. In the process of decision making, company takes the decision about various aspects which are related to the various dilemma of the company. Than it has been found that it is required for the company to identify and analyze all thee related factor and then only the company must take the decision (Johnson, 2014). In this report and analysis over the company, it has been found that company had faced a dilemma to choose between the buying the raw material and manufacturing them into the companys plant itself. For this the buying price of the raw material has been analyzed and at the same time, it has also been identified that the how much cost would be occurred in the company if the raw material would be produced by the company. (amt in '000) Per unit Total Make Buy Make Buy Purchase price 40 40000 Direct Material 10 10000 Direct Labour 8 8000 Variable OH 9 9000 relevant Fixed OH 12 12000 Total Relevant cost 39 40 39000 40000 Difference in favour of buying 1 1000 Thus it could be said that company must buy make the product into the factory as the cost saving of AUD 1000000 will take place in that case (Fayard, Lee, Leitch and Kettinger, 2012). Further, it has been found that company had also faced a dilemma to choose between the diversifying the market or invest into the existing market. For this, various aspects have been analyzed by the managers of the company in terms of economy, information rate, FDI, competitors, feasibility etc and then a decision must be made by the manufacturing company. Through the chart, it could be said that it is better for the company to diversify its market into various other countries to manage the profit and enhance the worth of the stockholders. Conclusion: Thus through this report, it could be concluded that it is required for every company to manage and identify the various factors which could enhanced the value of the products and services of the company as well as the manufacturing company must take care the process from the process of value management starts from receiving the raw material and ends up by selling the end product to its customers. Through the analysis over the company, it has been observed that company has managed a good value chain to maximise the worth of resources and reduce the total cost of the company. Thus it could be concluded that the manufacturing companies could enhance their worth and value of stakeholders by looking over the value chain and manage it in a proper way. References: Baldwin, R. and Venables, A.J., 2010. Relocating the value chain: off-shoring and agglomeration in the global economy. Centi, G., Quadrelli, E.A. and Perathoner, S., 2013. 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