Evaluating the Roles of Management

Management
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August 2, 2021
1 The top managers of an organization typically use various financial indicators to assess the performance of their organizations. Discuss at least four types of financial measures and describe when each would be chosen by management.
1 Understanding the various metrics used to assess the financial performance and productivity of an organization is essential for any manager. It allows him to have a better insight into how the organization is reaching its goals and how to improve it using various strategies that are appropriate for any contingency. Accordingly, some of the financial measures that managers can use for this are Return-on-Investment, Debt-to-Equity Ratio, Profit Margin Ratio, and Inventory Turnover.
First, the Return-on-Investment ratio provides an overview of how fast and effective the company is in turning profits relative to its expenses for development and investment. Second, the Profit margin ratio provides how much money remains as profits for the company after the costs have been deducted. Third, the Debt-to-equity ratio provides an insight into how dependent the company is on 'leverage' by comparing its shareholder equity and total liabilities. Finally, the Inventory turnover provides an insight into how fast certain items are sold after being accounted for in the inventory.
2 Explain the three levels in the planning process for the Corporate level, the Business Level, and the Functional Level of management and give an example for each. Also, mention how they are linked with each other and why planning is essential for each of the three levels of management.
2 The three levels in the planning process are conducted and implemented between different sectors of an organization. First, the planning at the corporate level is more dedicated to 'organizing' the organization. Thus, this usually pertains to broader agenda like the company's goals and mission. Accordingly, this level includes the managers responsible for utilizing these broad trajectories and determining the appropriate course of action for the lower levels. Second, the business level plan is more focused on long-term objectives that would help align divisional goals with the company's overall objectives as created above. Third, the function level is geared towards the implementation process wherein the manager's role and responsibility are outlined to help guide their respective divisions. Accordingly, when creating a strategic plan, all of these three levels must be interconnected and aligned to serve as a guide for everyone in optimizing their contributions to the company.
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* Discuss the concepts of Herzberg's motivator-hygiene theor...