Situational Audit Evaluation
Financial: Ranking
Return on Equity 1 2 3 4 5
Economic Value Added 1 2 3 4 5
Sales per Employee 1 2 3 4 5
Operating Cash Flow 1 2 3 4 5
Production: Ranking
Capacity Used 1 2 3 4 5
Labor Used 1 2 3 4 5
Material Used 1 2 3 4 5
Quality Control Rate 1 2 3 4 5
Organization: Ranking
Staff to Manager Ratio 1 2 3 4 5
Turnover Rate 1 2 3 4 5
Productivity Index 1 2 3 4 5
Development per Employee 1 2 3 4 5
Marketing: Ranking
Market Share 1 2 3 4 5
Advertising 1 2 3 4 5
Customer Retention Rate 1 2 3 4 5
Technology: Ranking
Current Capabilities 1 2 3 4 5
Time to Respond Rates 1 2 3 4 5
Ability to meet implementation targets 1 2 3 4 5
Competition: Ranking
Cost Comparisons 1 2 3 4 5
Quality Comparisons 1 2 3 4 5
(Evans, 2000)
The next section of HRM to look at is the recruitment of the people that are going to be working on the bowls project. This is the most important aspect of the human resource team. Evidence of this being that on average the cost of replacing an employee is on average is close to £4300 (CIPD, 2003b). For this the group has chosen that the best way to get as big a pool to pick from they have advertised the position in the local paper and on local job search engines. This method means that you will get the greater response to the post. In doing so it meant the group has best chance of getting the right person for the job (De Cenzo, Robbins, 2002). When advertising the job the group did well to put in a comprehensive job description. With this it enabled Marsh sport to be able to know what the purpose, duties and responsibilities of the vacant position was (Beardwell & Holden, 2001). The Human resource set up for the bowls project was effect in what it wanted to achieve.
The next element that is needed to be looked at is the financial side of the 50+ project. Finance is described as “the science of the management of money and other assets” (Steen et al., 2006). Finance involves the raising, caring for and spending of all the money that comes into an organisation (Watt, 2003). The financial departments of organisations are set up to run day to day income and expenditure, produce financial reports and create budgets (Fried et al. 2003).
The main financial problem in the lawns bowls program is the budget for the running of the event throughout the year. A budget is “financial plans that involve the allocation of funds to strategically important operations and activities” (Stewart, 2007). Creating a budget is beneficial as it is an easy form to get information across to the other section of the organisation, Hernandez (2002) states “it compels managers of sport organisations to the future operations of the organisation in concrete and specific terms, fosters cooperation, coordination, and communication among key persons responsible for the results of the organisation. Provides framework to evaluate performance, creates impact of the strategy / project. This will help in indicating any strengths and improvement areas needed for future implementation of the programme. Success criteria need to be established and also what sources of information will be gathered for this must be in place before any implementation is undertaken cost-consciousness”
When making up of the budgets it involves working out the total income and expenditure for the upcoming year were you can do so. For the groups income it is the money they make from participation in the activity. The expenditure for the group is the buying of the equipment, and cost for the halls and the staff to run the sessions. Looking at the budget which has been drawn up by the group it seems that they have calculated for the all of the expenditure which will be coming out throughout the years. The only problem that budget has is that it is through the lack of income it is not able to catch up with the expenditure of the program for four years. This makes the budget very uneven and program not feasible as an option. There was also the fact the group had not taken in account the government tax that was put on to anything that is earned in the business and this could bring down the total in come as well. This was over looked by the finance department of the 50+ group.
The finance team also has to look at the cash flow forecast for the program. Cash flow is traditional defined as “simple adjustments to earnings data i.e. (net income plus depreciation and amortization working capitol from operations) (Bowen et al. 1986) cash flow forecast is made up for each month of the year rather than one big one. The different aspects included in income part of the cash flow forecast are the income from participants. The expenditure would then be broke down into smaller portions. For the group they were broke down to staffing cost, equipment, hall hire and refreshments. This form of finance was not performed by the group. This would be the cause for them not realising that they are not going to make enough money over the year till to late in the process.
The third element that is being looked at is the marketing in the program. Marketing is key to the promotion of any program running successfully. Marketing is described as “Marketing is concerned with the establishment and maintenance of mutually satisfying exchange relationships” (M.Baker, University of Strathclyde) or “Marketing consists of individual and organisational activities that facilitate exchange relationships in a dynamic environment through the creation, distribution, promotion, pricing of goods services and ideas” (Dibb, Simkin, Pride & Ferrell 2001). The marketing in sport took its biggest leap forward in 1984 due to the Los Angeles Olympic Games, and has built up into the multi billion dollar business it is now (Shannon, 1999).
The most important part of this element is the market research. Market research is designed to help companies find what gap there is in the market or what the consumer would want from them to provide for them. What it does do though is help to identify what the consumer wants and learn about the consumers’ attitudes and values. It also studies what influences peoples behaviour as a consumer (Hernandez, 2002). The group decide on researching what the current members of the 50+ program would want to see happen, and what they as consumers would like to see implemented. To discover this, the group decided to use the primary research method. The research method used was of questionnaires and of focus groups. These two methods meant that the group was able to gage what the feelings of the 50+ programs were and how it could be improved. The also handed out questionnaires’ to over 50’s who were not taking part in the Marsh sports through organisations as the British legion and local church groups. The group was also able to go out and do secondary research finding if there was any other organisations’ offering the same services as them by search the local area and looking at past records to see if there have been any other bowls clubs around the Aigburth area.
Marketing is a complex process and for it to be successful you have formulate the correct strategy to reach out to your target consumer group. The formula that is needed for this is called a marketing mix; the mix is made up of the four P’s, Product, Place, Price, and Promotion (Parkhouse, 2005). Product for the group was the bowls program that they were looking to run, place is also known as distribution this means in what area and when we well be running the club itself, the promotion for the program was the flyers handed out around the Aigburth area and finally price which was set to with the assistants of the primary research gathered from the questionnaires.
The final element to be looked at is the monitoring and evaluation of 50+ programs. Monitoring is “systematically collecting process information while you deliver a product or service” (Sport England), evaluation is “the impact of the strategy / project. This will help in indicating any strengths and improvement areas needed for future implementation of the programme. Success criteria need to be established and also what sources of information will be gathered for this must be in place before any implementation is undertaken” (Sport England). Monitoring and evaluation is essential to help make sure that the level of work is kept to high level throughout the other three elements. In monitoring you look at the different factors that go into monitoring each factor plays it on role in monitoring the organisation they are: Goals: are the objectives which the group has set themselves. Indicators: are the variables used to measure progress toward the goals. Targets: are the quantified levels of the indicators (Prennushi, 2001).
When you first look at trying to monitor evaluate the different sections of the organisation it is helpful to go the 5 steps to monitoring and evaluation. These steps are one choose of indicators, two draw up your monitoring framework, step three collect baseline data, step four collect regular data, step 5 Use the monitoring data(Sport England). The group went through each of these steps to help monitor and evaluate the other three elements. For human resource management the group took the first step and set up the indicators of which they could judge Human resource management. They could do this through the instructor they hired. In this the indicator how the instructor presented himself for each session, was he punctual, and his attendance for the sessions being run. The second and fifth step we can see in evidence in the marketing side of the project where can start to draw up the framework. The questionnaires being given out helped them to analyse the trends of consumers taking part in the over 50’s program. This is the basis to drawing up your framework for the second step. The group also set up regular review meetings so that all four areas can meet up to make sure that they are all working to the same goal. In finance we can see the other to steps to use these being collecting baseline data and collection of regular data. The finance part of the group completes the baseline data with the collection of expected expenditure and working out the possible income from the bowls activity. It collects regular from the cash flow forecast for the past’s months. This all links in with the two steps.
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The project group which have used the four elements for setting up an organisation have helped to show the benefits of each one in there own rights. Looking through the 50+ activity run by the project group you can see where the influence of the Human resource management and other elements has come into play. Each plays apart in the running of a successful program. The group functioned well as a team managing to gel to together all four the elements successfully and have a program able to be set. Without the cohesion and ability to use the four elements it would have made it hard them to get anywhere near as successful as they where. The only problems that seem to have a reason within the group are that the figures for the finance section of the project did not add up. The problem accrued with the fact that the finance part of the group failed to perform the monthly cash flow to rectify the problem of the business running at a loss. Other groups also made minor faults but it was the finance area that had the most negative impact on the group.
As sport has grown through the centuries so has the money making capability in sport. And no longer can sport just be a sport but also a business which needs management. Sports management is growing and is taking sport into the muti- billion dollar business. Sport management “is the study and practice involved in relation to all people, activities, organizations, and business involved in producing, facilitating, promoting, or organising any product that is sport, fitness, and recreation related; and, sport products can be goods, services, people, places, or ideas (Parkhouse, 2001)
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