Impact of Finance on Business Decisions (Appraisal Methods)

Impact of Finance on Business Decisions Task C Introduction In this assignment I will be looking at two businesses's which will need to be compared to find out which method it should be taken. These calculations will show me what way they should go so it would benefit them profitably wise, either on a long or short-term basis. The calculations would show me the term for 3 years and what I will be making and what I will be losing. From the calculations calculated I will make a decision on what stages could be best suitable for them to make the payback. The business Lee Ltd has the funds to put forward for a "Transport Project" or a "New Networking Project". It is up to them to see what project is best suitable for them and which one they would go for. The firm has a decision whether they want to go along with Transportation or Network Project the figures show... Appraisal Methods For every business to know where they should invest their money it is essential to research what they should do. This is either by investing in a long term project, invest in a machinery to see whether that equipment will come to any use and provide goods more then it actually cost. There are different types of appraisal methods which include... * NPV (Net Present Value) * PBP (Payback Period) * ARR (Account Rate of Return) Calculations Transport Project - NPV (Net Present Value) Net Cash

  • Word count: 1621
  • Level: AS and A Level
  • Subject: Business Studies
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Appraisal HRM

. Introduction Employees are necessity of every business, good Employees performance is essential for every business to run successfully. In order to maintain and improve employees performance and productivity employers have to manage and appraise employee's performance periodically. Performance Management and Performance Appraisal are very important tools; it helps to motivate employees to work hard and improves overall company's productivity. In this report we will analyze and discuss the followings. * What it means by Performance Management as compared to Performance Appraisal. * Three methodology of Performance Appraisal that is important and useful * A comparison of Performance Appraisal System used by Casio Electronics and Virginia Commonwealth University health system. Casio Electronics is a Japanese electronic devices manufacturing company founded in 1946 with its headquaters in Tokyo. Casio is best known for its Calculators, Audio Equipments, PDAs, cameras, musical Instruments and watches (Wikipedia, 2007). The VCUHS is the only academic medical center in central Virginia. As the regional teaching institution, they offer access to some of the most advanced state-of-the-art treatments and technologies available. Their medical staff includes internationally recognized physicians, dozens of whom have been recognized among the best doctors in the country

  • Word count: 2028
  • Level: University Degree
  • Subject: Business and Administrative studies
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Suitable appraisal system

Suitable Appraisal system Performance appraisal can be defined as a planned official interface between an employee and supervisor that occurs periodically as an interview, in which the work performance of the employee is assessed and discussed, with a purpose to recognize weaknesses and strengths in addition to opportunities for improvement, rewards and development of skills. (North, 2007) This essay intends to advise the suitable appraisal system for the functional employees, Professional employees and directors of the company. It will explain generally about appraisal system, purpose, need for appraisal, its requirements and various methods of conducting appraisal for different group of employees. Furthermore it will highlight the various drawbacks in each case and their possible solutions. It is a common human nature to evaluate the work done by the employees. There had been informal system of performance appraisal since long, but formal appraisal has recently been introduced. Currently Performance appraisal (PA) has become important practice of Human resource (HR) management universally. It is an organizational change lever and management control tool for assessing employee performance. (Redman and Wilkinson, 2006, p.155) Today PA has become more widespread. It includes all

  • Word count: 4666
  • Level: University Degree
  • Subject: Business and Administrative studies
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Appraisal and performance management

Introduction: Definitions of Performance Management In the perfect world, we would all achieve our employer's objectives effectively, without being supervised (overseen), helped or developed in any way. Without some form of monitoring, guidance and control, we would not know how we are doing and nor will the employer. So, an employer needs some kind of system to address this issue. That is where managing performance comes in. Performance Management A business needs to ensure its employees are performing effectively. It will wish to: * Identify areas which are unsatisfactory * It may wish to find areas where employees need to be trained and developed. The term 'Performance Management' came into use in the 1980s. It refers to the practice of setting targets, measuring performance against these and suggesting courses of action. An increasingly important way of getting feedback on employee performance is through appraisal. Appraisal is also known as 'Appraisals- Performance Reviews'. The person who is appraising is called the 'appraiser' and the person being appraised is the 'appraisee' as defined by Lewis, R. andivitt, (2000) Adcock, F. & Birth, I. Trivitt, (1988) has stated the benefits of performance appraisal as being: * It helps to identify training needs. * It may reveal other problems for example, there may be workplace difficulties with other staff (e.g. It

  • Word count: 1121
  • Level: University Degree
  • Subject: Business and Administrative studies
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Performance Appraisal.

Performance Appraisal Introduction: Managers don't do different things! They do things differently! (Source: "You can win" by Shiv Khera). Every individual according to me has a particular role to perform in the society. Society comprises of people from different cultures having different ethnics & values. To cope with the expectations of the society for an individual is a responsible task. By saying this, I mean it should be understood that unless an individual does not perform his best, it is difficult for him to achieve his desire results. The prime objective of every organization is to make profits & these profits could be achieved by the role every employee plays in their respective work profile. It is the contribution of the employees and the management that can help the organization to prosper. However it is the key responsibility of the management to guide and monitor their employees so as to get optimum performance from them. To ensure that all the employees put their wise efforts in uplifting the organization, it is very important that the employees are motivated and rewarded as and when required in the management's perspective. Human resource management is a sensitive department in an organization which has to balance the organizations goal and the employee's satisfaction. Organization should evaluate the employee's performance on timely basis then be it a small

  • Word count: 1926
  • Level: University Degree
  • Subject: Business and Administrative studies
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Performance Evaluation and Appraisal

Essay on Performance Evaluation of Telecommuters REQUESTED BY: LINDA BAMFORD MONDAY 13 AUGUST 2007 PREPARED BY: MICHEL SCHRECK The aim of this essay is to discuss the advantages and disadvantages associated with telecommuting, more specifically how managers should evaluate employees who work outside their sight. The first part of this essay discusses the theoretical aspects of performance management and evaluation. It explains the difference between performance appraisal and performance management and discusses possible formal and informal forms of performance evaluation, including the 360 - degree method. In the second part, advantages and disadvantages associated with telecommuting will be discussed. Advantages for individuals engaged in telecommuting include autonomy/independency, flexible working hours and improved time management. Disadvantages telecommuters may face include impaired feeling of belonging, feelings of isolation, no separation between spheres of work and home and a lack of self - discipline. Some of the advantages for organisations are increased productivity, access to a larger range of employees, decreased absence levels, higher levels of motivation and cost savings. Disadvantages discussed of telecommuting for firms include a lack of control for managers who tend to centralize, high investments in training and supervision, harm to the

  • Word count: 3460
  • Level: GCSE
  • Subject: Business Studies
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Investment Appraisal

Investment Appraisal Project 1 Opening a new location near Bristol - £30,000 Project 2 Purchase two more boats - £30,000 Quantitative Factors for Project 1 Year Net Cash Flow Cumulative Cash Flow 0 (£30,000) (£30,000) £8,000 (£22,000) 2 £8,000 (£14,000) 3 £8,000 (£6,000) 4 £8,000 £2,000 After 3 years £6,000 is still needed In year 4 £8,000 is received Payback will therefore be: £6,000 x 12 = 4.5 = 4 years and 4 1/2 months £8,000 The annual rate of return for project 1 would be £2,000 ÷ 4 = £500 £30,000 ÷ £500 = 60% Discounted Cash flows Year Discount Present Value 0 (£30,000) 0.98 £7,840 2 0.96 £7,680 3 0.94 £7,520 4 0.93 £7,440 £480 Net Present Value (NPV) = 480 x 100 = 1.6% 30,000 Quantitative Factors for Project 2 Year Net Cash Flow Cumulative Cash Flow 0 (£30,000) (£30,000) £12,000 (£18,000) 2 £9,000 (£9,000) 3 £7,000 (£2,000) 4 £5,000 £3,000 After 3 years £2,000 is still needed In year 4 £5,000 is received Payback will therefore be: 2,000 x 12 = 4.8 = 4 years and 5 months 5,000 The annual rate of return for project 2 would be £3,000 ÷ 4 = £750 £30,000 ÷ £750 = 40% Year Discount Present Value 0 (£30,000) 0.98 £11,760 2 0.96 £8,640 3 0.94 £6,580 4 0.93 £4,650 £1,630 Net Present Value (NPV) = 1,630 x 100 = 5.4%

  • Word count: 799
  • Level: GCSE
  • Subject: Business Studies
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Investment Appraisal for Quinn Limited.

Investment Appraisal for Quinn Limited Compare and give recommendations as to which option for expansion would be the most beneficial to Quinn Limited and provide information on the sources of finance that could be used to fund the project. Option 1 Build a new factory for the purpose of fulfilling the 15-year contract at the end of which the factory will be sold. Option 2 Expand the current factory to include facilities to produce the new product. Introduction The aim of Investment appraisal is to help companies make decisions on which project they should invest in. The objectives of investment appraisal are to investigate whether: - ) Capital investment is justified in terms of the expected returns 2) Any alternatives exist which should be chosen 3) In cases of fund shortages which project should be undertaken There are four main methods of appraisal that should be looked at: - ) Net Present Value (NPV) 2) Accounting Rate of Return (ARR) 3) Pay Back 4) Internal Rate of Return (IRR) Net Present Value The first calculation we shall look at is Net Present Value. Net present value is a calculation of how much value the investment will result in. If the Net Present value is a positive amount then the project should be undertaken. When being used to determine which mutually exclusive project to undertake the project with the highest NPV should be chosen. Net

  • Word count: 2397
  • Level: University Degree
  • Subject: Business and Administrative studies
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Performance appraisal, management by objectives method.

Performance appraisal is the process of designing and negotiating the method and criteria for the appraisal of performance, applying the method, and giving evaluation and developmental feedback to the person concerned (Fisher et al, 2003:493). Following the job analysis on the Assistant Loans Manager for the ANZ Branch at West End Business Centre, an appropriate performance appraisal will be designed. Firstly, the purpose of the appraisal will be discussed. Followed by his will be the evaluation of which method is most suitable to use. Thirdly, the reason for rejecting the other options will be considered. Finally, this report will address issues, which need to be addressed by management for successful implementation of the scheme. The purpose of this performance appraisal is developmental as it aims to improve employee performance, employee relationships and identify training needs (Graham and Kramer, 1995:357). ANZ Business Centre at West End focuses on employee development and communication as opposed to creating barriers between the employee-employers relationship, which may occur in a performance appraisal with a promotional or remuneration purpose. By integrating a developmental approach, employees are motivated to achieve higher work standards, whereas a remuneration or promotion performance appraisal may overshadow the other benefits of a performance appraisal

  • Word count: 3251
  • Level: University Degree
  • Subject: Business and Administrative studies
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Human resource management in performance appraisal

GROUP 6 Shumaine Lyons Indira Lakhram Charles Kumi Oheme Jean Kumar Introduction Of Performance Appraisal The history of performance appraisal dates back to the early 20th century, it is traced to the pioneering time and motion studies of guy name Taylor. Performance appraisal began as simple methods of income justification. It was used to decide whether or not the salary or wages of an individual employee was justified. What is a performance appraisal? Performance appraisal is a measurement of specified areas of an employee's performance. It tend to view the an employee's work performance as a yearly ritual in which a manager or supervisor fill out form of each of their employees in their department, then it is presented on an one on one (manager, subordinate, or supervisor) with the employee. In an appraisal, managers are instructed to discuss an employee performance. It would include area that is positive and negative (areas that needs improvement). In an appraisal managers must conduct performance appraisals as one of their administrative duties. There are some advantages and disadvantages when it comes to performance appraisal. Some advantages that performance appraisal can be helpful for are helping managers and employees focus on the goal and achievement of an organization, for example, giving the company a good names when it comes to promotion, hiring process

  • Word count: 2462
  • Level: GCSE
  • Subject: Business Studies
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