Measuring and Controling Value Created in Endesa - 604 Words

1. Refer to ENDESA ¡Ã‚ ¦s current business strategy. In what primary economic activity is ENDESA engaged? (HINT: the primary economic activity is not the generation and sale of electricity or related activities). Why is it necessary to understand the strategy and primary economic activity in order to manage ENDESA ¡Ã‚ ¦s financial activities? Managers should ensure that selected performance measurement system fits the unique requirements and business strategy of the firm. In general, primary economic activity of the company and its performance focus should dictate the selection of performance measurement model. ENDESA strategy is  ¡Ã‚ §one of acquiring business units, using its expertise to develop as much value in the unit as possible and then†¦show more content†¦After subtracting all economic costs from operating profits after taxes EVA reveals the true economic surplus available for further investment. Traditional cash flow analysis can easily disregard companies with negative cash flows because main purpose of traditional cash value metric is to control cash generation. In contrast, the main purpose of EVA is to optimize resource allocation. At difference to accounting measures, EVA highlights the gap in performance, and hence, aligns the interests of managers and shareholders. The link between shareholders value and economic profit of the company becomes more transparent. At difference to traditional accounting measures of corporate profit, EVA fully accounts for the company ¡Ã‚ ¦s overall capital costs. It includes both, the direct cost of debt capital and the indirect c ost of equity capital. The cost of capital is the minimum return required to pay shareholder ¡Ã‚ ¦s equity . EVA can therefore determine whether or not the business is creating value but it can also indicate how much value is created at different business levels. In contrast, by employing accounting perspective, in terms of traditional metrics for performance measurement, managers cannot fully consider the required shareholder ¡Ã‚ ¦s return on invested capital. In addition, accounting principles are often easy to manipulate and can vary from one countryShow MoreRelatedCase Study for Management Accounting36912 Words   |  148 PagesPRACTICES Table of Contents Case 1: Case 2: Bal Seal Engineering Robin Cooper Bill’s Custom Planters William Stammerjohan Deborah Seifert Dublin Shirt Company Peter Clarke in assoc. with in assoc. with Paul Juras Wayne Bremser ECN.W William Lawler Endesa Gary M. Cunningham Scott Ericksen Francisco J. Lopez Lubian Antonio Pareja Kincaid Manufacturing Jon Yarusso Ram Ramanan Osram.NA John Shank Lawrence Carr William Lawler Pleasant Run Children’s Home Brooke E. Smith Mark A. McFatridge Susan B. HughesRead MoreCase Study for Management Accounting36918 Words   |  148 PagesPRACTICES Table of Contents Case 1: Case 2: Bal Seal Engineering Robin Cooper Bill’s Custom Planters William Stammerjohan Deborah Seifert Dublin Shirt Company Peter Clarke in assoc. with in assoc. with Paul Juras Wayne Bremser ECN.W William Lawler Endesa Gary M. Cunningham Scott Ericksen Francisco J. Lopez Lubian Antonio Pareja Kincaid Manufacturing Jon Yarusso Ram Ramanan Osram.NA John Shank Lawrence Carr William Lawler Pleasant Run Children’s Home Brooke E. Smith Mark A. McFatridge Susan B. Hughes

My Grandmother - Original Writing - 1701 Words

I was born on July 2nd, 1997 to Mandy Dollich and Terry Reno. My mom grew up with very religious grandparents and not so religious parents. My grandma, her mother, and my grandpa, her father, we hippies and the â€Å"cool† parents. The liked to throw parties and to have fun especially my grandfather. He told me that one time he got so drunk that he had to have my mom, who at the time was only eleven, drive him home. My Great Grandmother, though, was extremely religious and she took my mom s church every Sunday morning for the service as well as for the night services. She also got my mom involved in the youth group and in the choir. So my mom, despite her rambunctious parents, grew up to be a Christian. My father and his side of the family consider themselves to be Christians as well. They, however, are not as hardcore as most people say they should be. They don t go to church often or pray before meals. They didn t feel like they had to put on a big show to prove that they b elieve in God. My mother never married my father and a few years after I was born she started dating Dennis Dollich who is now my stepfather. His family, especially his mother, are what people would call â€Å"holy rollers†. they are the type of family that goes to church every Sunday and prays before every meal. They are very much the type of people that will talk about got to anyone who will listen. As a young kid, my mother worked a lot and my dad was never in my life much, so my stepdad sShow MoreRelatedMy Grandmother - Original Writing947 Words   |  4 PagesOf course you always hear people talking about how great their grandmother or grandfather are, I too feel the same way about my grandmother. I see her as more than my grandmother, she’s a role mole, my best friend and also like a sister when I need her. She’s always been a loving and caring person. Not for only her friends and family, but also strangers. People she has never met a day in her life she would be willing to go give her last too. You don’t find to many people like her too often. ThereRead MoreMy Grandmother - Original Writing1168 Words   |  5 Pages2013 and I was at my grandmas house. It was a tradition that Jiwe go to the zoo lights and the spaghetti factory. But this was one of the worst days of my life. I was sitting there petting my grandma s dog he was a boxer mix, and usually he is a really nice dog but today he must not have liked blonde little girls because it happened in an instance. He attacked me . I screeched and I pushed my little sister out of the way into the kitchen.. My mom was in my grandma s bedroom waking my sister up fromRead MoreMy Grandmother - Original Writing1180 Words   |  5 PagesOne summer morning, the aroma of breakfast sausages lured me into the cabin’s kitchen, the place of great food and even greater messes. â€Å"Hey, Mary, turn around and stick out your tongue.† I stopped in my tracks as I watched my aunt, Maggie, grab her older sister’s tongue with the cooking tong. After a painful cry, Mary quickly swatted Maggie with a dish towel. â€Å"Hey, you’re the one that always says to grab life by the tongue!† Maggie retorted. With a quick giggle, I ran to Mary’s waist and gaveRead MoreMy Grandmother - Original Writing1175 Words   |  5 Pageswoke up from my nap feeling much better and smelling food I was indeed hungry. I got out of the bed and headed to my nana room. I pushed open her bedroom door. My nana was sitting up watching the news. I loved looking at my grandma that way. I was sad because I know in due time the lord will be calling her home soon. I smiled as I entered her room and went laid in the bed next to my grandma with my head in her lap. My grandma began running her soft small old fingers through my hair. My grandma alwaysRead MoreMy Grandmother - Original Writing Essay1691 Words   |  7 Pagesfound myself sitting across from my grandmother named Nancy Parish whom my family nicknamed â€Å"Meme†. We met at her favorite lunch spot, Nordstrom’s cafà ©, which was a halfway point between my apartment and her log cabin home. My sixty-seven-year-old grandmother told me she was tickled pink and delighted that she was being interviewed for my final paper. For this interview, I decided to focus on her marriage to my grandfather named Wade whom we nicknamed â€Å"Papa Wade†. My grandfather passed away from lungRead MoreMy Grandmother - Original Writing946 Words   |  4 Pages We sat in my grandparent’s living room. 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Developing and Managing Performance Reward System

Question: Describe about the Developing and Managing Performance for Reward System. Answer: Introduction The purpose of this task is to prepare a report to the HR director and CEO of Wellton NHS Trust regarding Individual Performance Related Pay (IPRP). IPRP is a standard based reward system through which employers can pay remuneration to the employees as per their performance. This report emphasizes the importance of IPRP in NHS business operation. Employees in NHS have several job roles and therefore, responsibility delegation is one of the major factors in this industry. The purpose of implementing such payment structure is to empower motivation of the workforce (Hutchinson 2013). In this process, the company will provide remuneration based on the performance of the employees. Now, in this industry, the performance parameters may vary based on department to department. Therefore, this report will emphasize on barriers of IPRP implementation in NHS. Moreover, there are certain advantages and disadvantages of this reward structure. This report also emphasize on critical evaluation of I PRP. Based on the barriers identified, alternative payment structure will be proposed through this report. Ability, Motivation and Opportunity As per the theory of AMO, the performance standard of an employee depends on three elements Ability, Motivation and Opportunities. This particular theory has suggested that the human resource management of a company must act to improve the ability of the employees by motivating them with the best possible ways (Memon and Kinder 2016). In order to increase the ability of the employees, NHS or HRM at NHS can introduce proper reward system and attract high quality employees who can guide the existing employees of the organization. At the same time, the AMO theory also suggests that the HRM of the organizations must provide enough opportunity of career growth to the employees. The recruitment of highly skilled employees helps the existing employees to improve their knowledge and skills, which ultimately enhance the growth opportunities of the employees. Theories of motivation There are several theories that help to understand the factors behind the motivation of the employees within the organizations. Among all the theories, the expectancy theory and Maslows need hierarchy theory are very important. The theories are discussed below: Victor H. Vroom has developed the expectancy theory in the year of 1964. As per this particular theory, the performance of the employees is improved with the increased level of effort from the employees end (See Appendix, Figure 1). According to the theorist, the performance of an employee is dependent on several factors like, skills, experience, knowledge and personalities of the employee (Vrangbk et al. 2016). At the same time, the theory also stated that there is a positive relationship between motivation and performance of the employees. This means, in order to improve the performance of the employees, the organization needs to motivate them by improving their knowledge, skills and personalities. On the other side, the Hierarchy theory of motivation by Maslow, suggested that the motivation of the employees depends on their needs. The theory has talked by five levels of need, which can be seen in the following diagram: Figure 1: Maslows need hierarchy (Source: Arnaboldi Lapsley and Steccolini 2015) This particular theory has suggested that motivation of the people is not related to the reward system; rather the motivation is related to the needs of the people. At the first level, the people are motivated by the physiological needs, which are fulfilled by providing the basic requirements like, food, shelter and clothing (Memon and Kinder 2016). When this need is fulfilled, the motivation depends on the safety needs, which can be fulfilled by providing security to the people. The next need is the belonging needs, which is fulfilled by good relationship at the workplace and family (Arnaboldi Lapsley and Steccolini 2015). After that, the people or employees seek the prestige and the accomplishment feelings and that motivate the employees or people. The last need is the self-actualization need, which can only be fulfilled by the employees (See Appendix, Figure 2). Advantages and Disadvantages of Individual Performance Related Pay (IPRP) in NHS In NHS, employees need to perform as per the organizational performance benchmark. There are several departments will different responsibilities. Therefore, successful implementation of IPRP would help the company in improving overall organizational performance. Through this process, it is possible to increase employee benefits as well as employee performance (Wright 2004). However, monetary benefit is not only the empowerment tool. According to Hutchinson (2013), the employers need to evaluate performance based on the job types (See Appendix, Figure 3). It would help the companies to understand the appropriate performance measurement tool. The theory of motivational hierarchy derived by Maslow shows that there are several factors that influence motivation of an individual. On the other hand, it is difficult to evaluate performance quality based on different performance parameters. In this industry, employees need to communicate with the service users and resolve potential issues. Fo r example, if one employee has good communication skill and low process knowledge, it would difficult for the employee to satisfy the service user (Rose 2014). In such case, considering communication skill as performance measurement tool would lead the organization toward wrong direction. Following are the advantages and disadvantages of IPRP implementation in NHS. Advantages Through IPRP, it is possible to provide direct incentive to the employees for achieving certain objectives. This process would help to provide recognition to the employees through tangible reward (Arnaboldi Lapsley and Steccolini 2015). In this process, employees will improve the performance for improving their reward. Providing rewards to the good performing staffs will improve employee retention for the company. This process helps in goad setting and achieving broad objectives. Disadvantages Wrong implementation of IPRP may cause discrimination practice within the organization. This approach would prevent the organization to exploit other motivational tools, as this process is completely based in monitory reward (Trebble et al. 2015). This process depends on the judgment given by the line managers. A low quality judgment by the line managers would lead the organization toward wrong direction. This process may harm teamwork culture of the organization. Improving performance through IPRP The process of IPRP helps to set individual performance scale. In this process, it is possible to empower performance quality and motivation of the workforce in an effective manner. The However, the term motivation is not only limited to the monitory benefits. An organization can empower motivation of workforce with a range of motivational tools such as incentive trips, holidays and recognition (Memon and Kinder 2016). In IPRP, it is possible to pay the employees based on their performance. In this manner, employees will be motivated to improve their performance as well. The process of performance evaluation is the back bone of implementation process of IPRP (Hutchinson 2013). On the other hand, employer will pay for which an employee is eligible. It reduces organizational cost and increasing profitability. IPRP in trust business environment In trust business environment, there are several departments with different responsibilities. For example, in case of NHS, the trusts are ambulance trust, acute trust and mental health trust. In this kind of business environment, the organization needs to empower performance for different position (Wankhade 2015). Here, it is important to understand the performance evaluation process for each department. It would help to improve implementation process of IPRP. Barriers in implementation of IPRP Nowadays, Individual Performance Related Pay (IPRP) is the globally acknowledged management strategy, through which organizations are improving their performance quality (Mannion et al. 2015). However, there are some potential barriers, which may prevent an organization from successful IPRP implementation. Following are the barriers of IPRP. Poor judgmental skill of managers In IPRP, it is the responsibility of the managers to evaluate performance quality of the employees based on certain parameters. Firstly, the parameters should be well defined and secondly, the judgment of the manager should be appropriate (Vrangbk et al. 2016). Wrong judgment of manager would affect motivation of a performing employee. This could affect the overall moral values of the workforce. As per the Maslows hierarchy theory, recognition is the most appropriate toll, which can empower motivation of an individual. Therefore, a manager should use appropriate tool for performance evaluation, so that the manager can recognize the individual with appropriate tool (Hutchinson 2013). Poor communication In order to implement IPRP, the organization needs o communicate with the employees regarding the parameters based on which the company will reward performing employees (Mesabbah and Arisha 2016). Poor knowledge in performance evaluation parameters among employees may affect the IPRP implementation plan. Employees should understand the appropriate process based on which they would be appraised. Therefore, it can be said that poor organizational communication is a barrier to the successful implementation of IPRP. Alternative approach of IPRP The above evaluation of IPRP emphasizes the advantages and disadvantages of this process. Apart from that, it focuses on the barriers that could arise while implementing the plan. After understanding the process of motivation, it can be said that beside IPRP, the organization should implement other motivational tools, which are beyond monitory benefits. In this process, it will be possible to encourage the employees to reach to the top position of Maslows hierarchy model, which is self-actualization (Trebble et al. 2015). Moreover, the company should implement motivational tools for the low performing employees. It would help to increase overall organizational performance. The motivational tools for the low performing employees could be recognition for short-term objective achievements. It would help an organization to retain both the high and low performing employees for long-term success. According to the Herzberg's two factor theory, there are certain factors that dont have any im pact on satisfaction level, but can influence dissatisfaction of employees (Wankhade 2015). Therefore, the company should provide a clean and hygienic working environment to the employees in order to increase retention. The alternate plan proposed for improving the IPRP implementation will allow the organization to motivate all the employees from different department. In IPRP, the process depends on performance evaluation and rewards (Mannion et al. 2015). The alternative plan extends the process by adding a performance improvement plan for the low-performing employees. Communication with the employees, feedback generation from the employees and implementing motivational tools beyond monitory benefits are the steps involved in the alternative plan. Through the above steps, it would be possible to improve performance of the low-performing employees. Therefore, it would be possible to reward those employees once they meet the parameters form getting advantages of IPRP. Conclusion While concluding, it can be said that the IPRP (Individual Performance Related Pay) would help NHS trusts to empower the high performing employees. The barriers of IPRP implementation emphasize that it could harm the implementation process. Therefore, this report consists of an alternative plan through which the organization will be able to conduct successful implementation of IPRP plan. Apart from that, the alternative plan will help to train the low-performing employees and make them eligible for gaining advantages of IPRP structure. Recommendations In order to conduct successful implementation of IPRP, NHS should identify the most appropriate performance evaluation tool for each department. Apart from that, the company should think beyond motivation through monitory benefits. In order to empower performance quality of the non-performing employees, the company should implement incentive tools or recognition as motivational tool. It would help the company to improve overall organizational performance. After reaching a particular performance benchmark, the company can implement IPRP for the employees. Reference list Arnaboldi, M., Lapsley, I. and Steccolini, I., 2015. Performance management in the public sector: The ultimate challenge.Financial Accountability Management,31(1), pp.1-22 Hutchinson, S. 2013, Performance Management: Theory and Practice, London CIPD (Chapter 3) Mannion, R., Davies, H., Freeman, T., Millar, R., Jacobs, R. and Kasteridis, P., 2015. Overseeing oversight: governance of quality and safety by hospital boards in the English NHS.Journal of health services research policy,20(1 suppl), pp.9-16 Memon, A.R. and Kinder, T., 2016. Changing management roles in the Scottish NHS: implications for management learning and development.Public Money Management,36(1), pp.47-54 Mesabbah, M. and Arisha, A., 2016. Performance management of the public healthcare services in Ireland: a review.International journal of health care quality assurance,29(2), pp.209-235 Rose M 2014, Reward Management, London Kogan Page Trebble, T.M., Paul, M., Hockey, P.M., Heyworth, N., Humphrey, R., Powell, T. and Clarke, N., 2015. Clinically led performance management in secondary healthcare: evaluating the attitudes of medical and non-clinical managers.BMJ quality safety,24(3), pp.212-220 Vrangbk, K., Appleby, J., Klenk, T. and Gregory, S., 2016. Comparing the Institutionalisation of Performance Management Schemes for Hospitals in Denmark, Germany and England.Towards A Comparative Institutionalism: Forms, Dynamics And Logics Across The Organizational Fields Of Health Care And Higher Education (Research in the Sociology of Organizations, Volume 45) Emerald Group Publishing Limited,45, pp.81-106 Wankhade, P., 2015. Open Conference Systems The Logic of Target Setting: Case of Ambulance Performance Management System Wright A. 2004, Rewards Management in context, London CIPD