Hello, I need help with the following questions. Positive feedback and comments

Question

Hello, I need help with the following questions. Positive feedback and comments will be left, if both questions are answered properly. Thank you so much for your time!

Questions:

1. Besides sales and expenses, identify five other important control measures for a business. Include at least one nonfinancial measure.

2. Suppose a company at which executives were rewarded for meeting targets based only on profits and stock price switches to a balanced scorecard that adds measures for customer satisfaction, employee engagement, employee diversity, and ethical conduct. How if at all, would you expect executives’ performance to change in response to the new control system? How, is at all, would you expect the company’s performance to change?

Explanation / Answer

1. A business organization possess various important control measures and the proper functioning of such measures help an organization achieve success. The financial control measures are always important because at the end of the day it is the measure of profit or loss that actually explains the situation of an organization.

2. The change in the approach of the organization will need change in the attitude of doing business because mere numbers and statistics will not matter anymore, instead the mentality and satisfaction level of the stakeholders has to be prioritized. The executives in the previous system did not care about the employee issues in order to achieve more numbers but now the employees have to be treated well. Ethics and values have always been important in an organization and each and every organization possess some regulations which supports the ethical and this has to be practiced more often. There are instances when it has been observed that the organization has made a profit but customers are not happy due to some reason or the other, which will not be entertained any more and a customer has to be satisfied.

The performance of the organization will change because the change in the reward system will have a very big impact. It may seem that the changes proposed may have a negative impact on the turn over of the business which is not at all true because the success of an organization depends on three stakeholders namely employee, employer and clients and this process aims at making each and everyone happy. The organization may make a loss in a particular item or product but as a whole they will gain from the practices because it is the ideal way to do business. In addition the brand value of the organization will increase and the customers will prefer the brand over its competitors and also the employees will prefer such an organization where there is scope of engagement and diversity. Failure of such an organization is actually difficult because business is all about engagement of the stakeholders in order to achieve mutual goals

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.