Performance Measures
In this text, I concern myself with performance measurement. In addition to a performance measure of my choice, some of the other performance measures I will discuss include EVA, OI, and operating leverage. In so doing, I will not only compute the said performance measures but also reflect on their advantages and disadvantages. My companies of choice for this discussion are Apple Inc. And Google Inc.

Performance Measures: Computations

Formula

Apple

Google

Degree of Operating Leverage

% Change in EBIT/

%Change in Sales

eturn on Investment

Operating Profit / Total Assets

Economic Value Added

NOPAT -- (WACC * Investment)

Gross Profit Margin

Sales -- COGS / Sales

Degree of Operating Leverage (DOL)

Operating leverage in the words of Stickney and Weil (2007) "refers to the tendency of net income to rise at a faster rate than sales in the presence of fixed costs" (p. 792). In that regard therefore, a business with a DOL that happens to be high could be more risky than…...

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References

Albrecht, W.S., Stice, E.K., Stice, F.D. & Swain, M.R. (2010). Accounting: Concepts and Applications (11th ed.). Mason, OH: Cengage Learning.

Maher, M.W., Stickney, C.P. & Weil, R.L. (2007). Managerial Accounting: An Introduction to Concepts, Methods and Uses (10th ed.). Mason, OH: Cengage Leaning.

Stickney, C.P. & Weil, R.L. (2007). Financial Accounting: An Introduction to Concepts, Methods and Uses (12th ed). Mason, OH: Cengage Learning.

Link Between Performance Measures and Reimbursement Quality performance measures are critical and used for various purposes in the healthcare field including regulation, surveillance, and clinical care improvement (Adirim et al., 2017). The existing quality performance measures in the healthcare sector are classified into three categories i.e. outcome, structure, and process. However, quality performance measures seek to address the areas of quality across the continuum of care. Over the past few years, quality performance measures are increasingly linked to reimbursement given the emergence of the concept of pay for performance. In this regard, performance is linked to reimbursement in terms of enhancing patient satisfaction, best practices, and metric-driven outcomes. Payment for healthcare services is rapidly evolving to reward value through evaluating and paying for quality and spending performance (Ryan & Rodgers, 2018).
There are some challenges and benefits of the relationship between quality performance measures and reimbursement. Some of the benefits of this…...

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References

Adirim et al. (2017, January). A New Era in Quality Measurement: The Development and Application of Quality Measures. Pediatrics, 139(1). Retrieved from  

Ryan, A.M. & Rodgers, P.E. (2018, March 1). Linking Quality and Spending to Measure Value for People with Serious Illness. Journal of Palliative Medicine, 21(2), S-74-S-80. Retrieved from  https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5756459/ 

https://pediatrics.aappublications.org/content/139/1/e20163442 

Transfer Pricing-SLP
The relevance of financial ratios cannot be overstated when it comes to the measurement of an entity's performance. It should, however, be noted that not all performance measures can be expressed as a ratio. This text concerns itself with various other performance measures: operating leverage, eturn on Investment (OI), EVA, and gross profit margin.

Transfer Pricing-SLP

Operating Leverage

According to Shim and Siegel (2008, p. 198) "operating leverage, a measure of operating risk, arises from the company's use of fixed operating costs." As the authors further point out, a simple indication of the said financial measure would be the "change in sales on earnings before interest and taxes" (Shim and Siegel, 2008, p. 198). It is important to note that a high degree of operating leverage is seen as an indicator that small changes in sales result in significant changes in not only EBIT, but also return on equity, return on assets…...

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References

Brigham, E.B. & Ehrhardt, M. (2013). Financial Management: Theory and Practice (14th ed.). Mason, OH: Cengage Learning.

Kalpan Financial Limited. (2012). Performance Management. Retrieved from  http://kfknowledgebank.kaplan.co.uk/KFKB/Wiki%20Pages/Financial%20Performance%20Indicators%20%28FPIs%29.aspx#Maximising_x0020_shareholder_x0020_wealth_0_1_0_1_1_0_0_0_0_0_0_0_0_0_0_0 

Shim, J.K. & Siegel, J.G. (2008). Financial Management (3rd ed.). Hauppauge, New York: Barron's Education Series.

categorize each of the performance measures in Table 2 as belonging to one of the four perspectives (to start you off, we've put the three financial goals in the table already).
Learning/Growth

Internal Business Processes

Customer Service

Financial

Improving the customer's experience

Number of new products per client

Employee training

New accounts

New loans created

Cross Marketing

New product development

Loan balances

Deposit balances

Non-interest income

(Albright, 2001) ("What is the Balance Scorecard," 2012)

Then, following the procedure described in Figure 1 of the article (p. 58), you are to connect these objectives and measures into two or more causal chains, indicating how the achievement of one objective leads to the potential achievement of another such that ultimately one or more of the financial performance objectives are achieved.

Improving the customer experience will lead to an increase in the total number of new accounts. This will help with cross marketing and it will enhance deposit balances. The below diagram is illustrating how these areas are interconnected.…...

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Resources/AbouttheBalancedScorecard/tabid/55/Default.aspx

Albright, T. (2001). Tri-Cities Community Bank: A Balanced Scorecard Case. Strategic Finance, 83(4), 54-60.

Slater, R. (2003). Jack Welch. New York, NY: McGraw Hill.

STANDARD-ASED COSTING AND PERFORMANCE MEASURES FOR TODAY'S MANUFACTURING ENVIRONMENT
This paper outlines the various defect of the standard-based costing method and how they do not effectively measure manufacturing environment of today. It has 8 sources in Turabian style.

Cost control is needed by businesses to plan the actual cost it might incur on the production of certain commodities. The budget is an overall costing system but sub-division is needed if and when the company requires detailed cost structure of the department. This is necessary for achieving the overall goals of the organization.

In production organizations, such as manufacturing companies, the basic concern of the management is to have smooth operations with the least cost possible. There the existence of cost is measured by the tangible output each component of the department produces. Income is compared to the cost incurred. A system that is set for measuring the performance level of the tangible assets…...

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Bibliography

Davies, Ieuan, 03-01-1997. Are we going in the right direction? (production management techniques). Vol. 75, Management Accounting (British), pp 52(1). Lucas, Mike, Standard costing and its role in today's manufacturing environment.. Vol. 75, Management Accounting (British), 04-01-1997, pp 32(3).

Bear, Robert; Mills, Roger; Schmid, Felix, 12-01-1994. Product costing in advanced technology environments. (cost accounting in manufacturing environments). Vol. 72, Management Accounting (British), pp 20(3).

Lucas, Mike, 04-01-1997. Standard costing and its role in today's manufacturing environment.. Vol. 75, Management Accounting (British), pp 32(3).

Dugdale, David; Jones, Colwyn, 05-01-1996. Accounting for throughput.(part 2, practice). Vol. 74, Management Accounting (British), pp 38(5).

By the nature of their work, they have access to a lot of valuable information that can be used to provide measures in performance assessment systems. Additionally, management accountants are already oriented towards many actions that focus on improving efficient, productivity and profitability. Management accountants therefore have the expertise needed to understand what measures are best aligned with the company's objectives. If they are involved in the development of assessment systems, the systems will be stronger.
For the most part, the measures in performance assessment systems are reliable and accurate. The emphasis that these systems has on quantitative analysis means that most measure are not subject to much subjectivity. The systems are, however, only as good as the quality of the measurement processes. If there are faults in the measurement process then there will also be faults in the data, and ultimately in the interpretation of that data. It is…...

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Works Cited:

Gjerde, K. & Hughes, S. (2007). Tracking performance: When less is more. Management Accounting Quarterly. Retrieved December 13, 2011 from  http://findarticles.com/p/articles/mi_m0OOL/is_1_9/ai_n31141879/?tag=co%20ntent;col1 

Mudde, P. & Sopariwala, P. (2008). Examining Southwest Airlines' strategic execution: A strategic variance analysis. Management Accounting Quarterly. Retrieved December 13, 2011 from  http://findarticles.com/p/articles/mi_m0OOL/is_4_9/ai_n31151644/pg_2/?tag=content;col1

Performance Measurement for Project Management
Every enterprise which employs a diverse and multifaceted workforce to facilitate organization, production, and service, from major international corporations to local community churches, utilizes a concept known as performance management to maximize their efficiency and effectiveness. The field of performance management has been defined by managerial researchers as a "strategic and integrated approach to increasing the effectiveness of companies by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors" (Armstrong and Baron, 1998), and the technique has been used since the 1970's by businesses seeking to improve their organizational results. For the sake of the MGM Grand Hotel and Casino's proposed luxury tour bus renovation project, it is essential to examine the complex issue of performance management from the varying perspectives of the different stakeholders involved, including the project's sponsors (MGM Grand Hotel and Casino),…...

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References

Armstrong, M., & Baron, A. (1998). Performance management: The new realities. London: Institute of Personnel and Development.

Dudek-Burlikowska, M., Szewieczek, D. The Poka-Yoke method as an improving quality tool of operations in the process. Journal of Achievements in Materials and Manufacturing Engineering 36/1 (2009) 95-102.

Schwalbe, K. (2011). Information technology project management. (6th ed.). Boston: Course Technology Ptr.

In a good performance management system the manager plays a vital role. He is responsible to not only identify the employee strengths and weaknesses but also to acknowledge good performance and to provide developmental suggestions. The later part is very important, as it does no good to just spot the deficiency of an employee without providing positive suggestions for improvement. The employees for their part must be encouraged to provide their valuable input during every stage of the process. For example, some organizations even collect feedback from employees to evaluate the performance of their superiors. Thus, an appraisal denotes not just the supervisors assessing their subordinates but also rating from team members, rating by employees of their superiors, review by the HR department etc. Once such active and collaborative participation is achieved then the performance appraisal process attains its chosen objective, that of increasing the overall employee performance.
Performance appraisal…...

Measure
You Get What You Measure

The phrase "you get what you pay for" is pretty easy to understand, but "you get what you measure" is a little more difficult -- measuring doesn't actually procure or "get" anything other than a measurement, and of course you get the measurement that you take -- that's self-evident, right? In the business world, though, people often seem to think that they can get whatever results they want simply by suiting the measurement to suit their own purposes, even if this doesn't really measure what they imagine it to. Measurements of the security of an investment, for example, are useless if they don't actually measure the likelihood of the investment failing or growing. Measures of market size are irrelevant if the market measured isn't specific to the product or service being marketed, price comparisons are invalid if substantial product differences exist, etc. The willingness to delude…...

Performance Assessment Systems in Organizations
Many companies conduct performance assessment systems to cope with the current fast-paced global economy. The assessment reflects on companies past outcomes known as lagging indicators as well as the current leading indicators to inform the management on the latest developments. These indicators appropriately analyzed, reported and evaluated, help the companies achieve higher profits.

The use of leading indicators is increasingly getting popular with many companies and businesses today. According to Gjerde and Hughes (2007), computed deviations with standard cost systems give the management timely data on shortfalls of production allowing them to put emphasis on the unfavorable outcomes and take corrective measures to enhance profits.

In the case of South West Airlines, they put in place a performance assessment system that saw it successfully execute a cost leadership strategy. The liner recorded a growth in operating income using the performance assessment system and took advantage of the…...

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References

Gjerde, K.P., & Hughes, S.B. (2007). Tracking performance: when less is more. Retrieved March 25, 2012, from www.findarticles.com:  http://findarticles.com/p/articles/mi_m0OOL/is_1_9/ai_n31141879/?tag=co%20ntent;col1 .

McCunn, P. (1998, December). The Balanced Scorecard…the eleventh commandment .

Management Accounting, pp. 34-36.

Mudde, P.A., & Sopariwala, P.Z. (2008). Examining Southwest Airlines' strategic execution: a strategic variance analysis. Retrieved March 25, 2012, from www.findarticles.com:  http://findarticles.com/p/articles/mi_m0OOL/is_4_9/ai_n31151644/?tag=content;col1

Quality Performance Measurement
Public Evaluation Program

In this paper, we are going to be conducting a literature review of public evaluation programs. During the process, there is a focus on misunderstanding the needs of stakeholders and the programs / reforms. Together, these elements will illustrate the overall scope of what is taking place and the long-term effects it is having on everyone.

Misunderstanding the Needs of the Public

One of the biggest challenges with any public performance evaluation is the misuse of data. This is problematic, as officials believe they are effectively delivering a variety of services for a fraction of the costs. Yet, in reality, the lack of competition invites bloated salaries and inefficiency. Administrators will try to correct the situation, through looking at a variety of sources to understand what is happen. They are unable, to gain greater insights, as politics and changing attitudes influence the outcome of the voters. This is…...

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References

Cheezum, R. (2013). Building Community Capacity. Journal of Community Practice, 21 (3), 228 -- 247.

Rondileni, D. (2003). Reinventing Government for the 21st Century. Bloomfield, CT: Kumarian Press.

Sirianni, C. (2009). Investing in Democracy. Washington DC: Brookings Institution Press.

Stipack, B. (1979). Citizen Satisfaction with Urban Services. Public Administration Review, 39 (1), 46 -- 52.

performance management? Performance management is the company's goals equal the employee's activities and outputs. Defining performance, it specifies which aspects of employee's performance remain relevant to the business through job examination. Job examination or analysis means getting detailed data concerning jobs. Measuring performance involves measuring said aspects through performance evaluation. Performance evaluation is a method for managing performance. After evaluations, employees gain feedback and learn whether their performance has been effective or not.
Typically, businesses perform the process of performance management annually. Most of the reviews are for individual performance management while others are for pay decisions or establishing training priorities. In recent times, numerous business are moving toward ore streamline, frequent performance reviews. When examining the model of performance management, one may look at organizational strategies, individual attributes, and situation constraints, which all go to individual behaviors. From there it moves on to objective results. The three main purposes…...

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References

Sullivan, J. (2015). How Google Is Using People Analytics to Completely Reinvent HR. TLNT. Retrieved 19 February 2015, from  http://www.tlnt.com/2013/02/26/how-google-is-using-people-analytics-to-completely-reinvent-hr/ 

Whatmakesagoodleader.com,. (2015). Job performance appraisal. Retrieved 20 February 2015, from http://www.whatmakesagoodleader.com/Job-Performance-Appraisal.html#Contrast

performance bonuses at companies. There are four subjects. The first is about the use of bonuses -- would I make use of them? Then there is the question of evaluating people based on specific performance measures. Then there is the question of group bonuses and whether or not those are a good idea. Lastly I explain why I wouldn't institute a bonus program.
The role of the human resources department is to structure and implement the human resources strategy in such a way as to help the company to achieve its strategic objectives. There are a number of different ways that this can be achieved. One such way is through performance bonuses, which help to orient employees to specific types of behavior. This paper will analyze the issue of employee bonuses, taking a lot at some of the relevant data on the subject.

Use of Bonuses

Personally, as a manager, I would…...

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References

Kishore, S., Rao, R., Narasimhan, O. & John, G. (2013). Bonuses vs. commission: A field study. Journal of Marketing Research. Ahead of print.

Grinstein, Y. & Hribar, P. (2003). CEO compensation and incentives: Evidence from M&A bonuses. Journal of Financial Economics. Retrieved May 3, 2014 from  http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.212.2206&rep=rep1&type=pdf 

Woodbury, S. & Spiegelman, R. (1987) Bonuses to workers and employers to reduce unemployment: Randomized trials in Illinois. The American Economic Review. Vol. 77 (4) 513-530.

Cooke, W. (1994). Employee participation programs, group-based incentives and company performance: A union-non-union comparison. Industrial and Labor Relations Review. Vol. 47 (4) 594.

Synthesis
With the operational environment becoming ever more competitive, and against the backdrop of austerity in resource management, the importance of performance-based management (PBM) cannot be overemphasised. Indeed, PBM has increasingly become a common practice in organisations of different sizes -- small and large -- and in diverse sectors -- manufacturing and service, as well as public and private sectors (Ploom & Haldma, 2013; Lutwama, Roos & Dolamo, 2013; Rivenbank, Fasiello & Adamo, 2016; Wierzbinski, 2016). Organisations now rely on performance data to make decisions relating to various organisational processes, including strategic planning, internal management, resource allocation, reporting, as well as monitoring and evaluation.

Defining PBM can be quite problematic, with the term being often confused with performance measurement (Rivenbank, Fasiello & Adamo, 2016). In addition, performance management is often thought to involve only personnel management processes such as employee performance appraisal (Turk, 2016). Furthermore, contention exists over whether it should be…...

2. The first type of feedback -- that with respect to errors -- will come from supervisor appraisals. The supervisor is uniquely positioned to identify situations in which the generalist has erred, or failed to properly implement company policy. The supervisor has the understanding of the situations and the policies required to make the error determination. Supervisor appraisal is therefore necessary for this type of measurement.

For the second measure -- the ability to forge relationships, 360 degree feedback is the best method. This method solicits feedback from all around the employee. Given that the employee must forge relationships with and work alongside virtually all members of the organization, it is reasonable that the entire organization should contribute in some way to the performance appraisal, particularly with respect to the employee's ability to deal with them.

For the third measure -- positive contributions -- the employee should be measured by the supervisor.…...