Question

Open ended essay. Functional area strategies are particularly important in the Capsim competition. As such, you need performance metrics for each functional area (R&D, marketing, production, HR, finance) to know how that functional area is performing. Pick two functional areas, and list at least two performance metrics each. (You don't need the actual results (numbers) from Capsim, just the metrics.) (This relates to the product / functional area performance report; from the lecture on Capsim performance reports). (10 points). ?

Answer 1

I am selecting human resource management ( HRM) and Financial management ( FM) as two important functions of any organization. Now , i shall be discussed some of the important metrics of performance in these areas,

1) HRM

Employees turnover: I want to measure how many employees were left during a particular year. It will indicates the policies and well established procedures of the organization.

Retention ratio: It will be important to measure the people hired and no. Of people retained at the end of the year.

2) Financial management

Internal rate of return :

It depicts the actual financial strength of any investment proposal. It is based upon the discounting factor.

Divided payout ratio :

It means in a given financial year, what amount of money were distributed to the equity shareholders after reducing the expenses . It can be seen as good indicator to the financial health of any organization .