he topic of this report is Control. Find a article (from internet or newspapers) about a company (U.S company) and highlight on the article what you think they are important to relate about control of managing. The report have to sure that explain How to measuring performance of managing in that company? What are the challenges in performance management? - That article have to print out and highlight on there. Write a 1 page report.
Financial statements provide vast information used to gauge the viability of companies. When financial statements are provided in a timely and accurate manner, it supports the company’s growth since outside businesses and potential business partners use the information financial information to decide on whether or not to venture into a business with a particular company. Investors look at the financial ratios with the financial statement data to value equity of companies. I used New York based visual Studio company to ascertain the control factors of the company.
When the financial statements are valued and assessed, the companies are able to ascertain equity investment, debt rating of the company credit worthiness and potential cash flows and net income. Through the assessment of valuable financial statements of Visual Studio Company, such as income statement, balance sheet and statement of cash flows, the company is able to ascertain its current financial statement and therefore ability to determine its solvency and liquidity, while maintaining its revenues. The statements of cash flow helps companies determine their operating expenses, investing and financing activities.
Another important aspect of companies is the ratios, which help companies compare performance with other companies. Current asset, inventory turnover, returns on equity and net profit margin are the major ratios used in companies to value the performances.
However, despite the highlighting of performance components, companies still fail. Performance managements fail due to lack of integration that result into unharmonious teams. Likewise, performance management team fails to design specific challenges to address particular needs. This in terms results to a lack of uncoordinated stakeholders hence failing. On the same note, lack of leadership support to implement and support the performance management system may cause failure in the implementation of management system. (Brown, 279)
While the companies strive to achieve the objectives, incompetent performance management system demoralize the attitudes and skills required to improve the system. In addition to incompetence, lack of communication and causes the delay in the implementation of the of performance management. Communication is a very crucial factor in the entire performance of the management system.
According to Brown, Resource development policies and management strategies should be proactive and developmental conscious. When management system is maintained and retained at its best, it encourages excellence while discouraging poor performance and mediocrity hence ensuring company performance. Performance management should be evaluated logically as an essential component of a successful management structure to ensure operational, human resource and management changes. (340)
Michael, F. Brown, National Performance Management Advisory Commission, 2008