- 12/02/2013
- Posted by: essay
- Category: Free essays
Capital investment decisions. Capital investment decisions are defined as capital budgeting in finance. The aim of the capital investment decisions includes to allocate the firm’s capital funds most effectively. Right decisions should be chosen to provide more clear vision of the situation and to organize more effective investments. Nowadays, to be successful in allocation of the firm’s capital funds most effectively can stand creativity, knowledge and the right perception of our global world and global business. Only understanding the situation, the demands and having modern ideas will guarantee the success.
There exist various criteria for selection of the right decision for capital investment. Its main aim is to increase the value of firm. It can require different improvements along with choosing the most suitable project.
Agency problems. Conflict arising when agents are allowed to supervise the interests of other people use the authority or power for their ownbenefit instead. The conflict is a problem, which exists in almost every organization, as an example- in business, church, or government. Organizations try to solve it by instituting measuressuch as tough screening processes, incentives for good behavior and punishment for bad.
What Does Agency Problem Mean? Agency problem can be identified as a conflict of interest. There is always a certain risk about it. That conflict usually occurs between creditors and management having different aims.
Human Resource is a resource, that is considered to be the most vital for organizations of this century. This resource is responsible for each decision taken, every work done and, as usual each result. Employees should be managed in a proper way and motivated. They also should reseive a good compensation for their work.
Management compensation. Management compensation, usually, is an organized practice, which involves balancing the work-employee relation. It works in providing monetary and non-monetary benefits to employees. Nowadays exist plenty of ways to make rewards and management compensation, although not all of them are suitable. Today, an individual employee performance is valued, the uniqueness, the creativity and innovations and needed each day. The work- employee relation works in the sphere of providing monetary and non-monetary benefits to employees. In this century, companies began to value and individual performance, as they now understand how important it is, how motivation is really needed and what should be improved in the future.
Measurement of performance. Performance measurement reflects a process and usually requires the use of statistical evidence and qualified professionals, to exactly determine progress towards specific defined organizational objectives, chosen to grow.
There are made several performance measurement cliches, such as “what gets measured gets done” and also “if a person doesn’t measure results, he can’t tell success from failure and thus he can’t claim it,” that is why these cliches show that to identify a sertain strategy there shoul be done careful strategic measurements, supervising the projects or operational process measurements. Of course carefully and cleverly measured and planned ideas and actions determine the success of the organization and its prosperity and its way in the future. Clever time managements helps a lot inside the organizational atmosphere and provides better results and more innovative ideas in the perspective of achieving organizational’s main goals. As soon as an organization understands its pure goals and main strategies, I should focus on measurement of performance, as one of its main components.buy term paper
The exact improvement in individual, group, or organizational performance won’t happen if there is no feedback on the performance. For an employee, the performance measures create a connection between their behavior and the organization’s goals. This point is one of the most important and it determines the achievement of the goal. This link between the behavior of the person and the organizational goals goes on a long way with upcoming results. And, as a fact, strategic performance measures effectiveness of an organization’s strategies.
Conclusion
Human Resources is one of the most necessary resources for organizations all over the world nowadays. People are responsible for their activities and every decision taken, each and every work done and the results in general. Employees should be managed and motivated properly, because if they are, it will be the greates reward for the company, as it will receive visible results and better productivity. Corporations nowadays are very popular and they dominate our world, by being complete leaders in business, they exist all over the word and, as usual, they are aware of the most modern technologies and they are very powerful. In today’s global world it is easier for the corporations to keep the majority of activities under control and to dictate the rules and to make up new.
The major characteristic of the corporate form of business organization is a sharp line of distinction between the business and the owners.
Financial management is aimed to plan future of organization with the aim of creating a positive cash flow. It usually includes administration and maintenance of finances. Financial management is one of the main items in the whole system to rule, and it should be ruled carefully and looking into the future.
As a fact, strategic performance measures effectiveness of an organization’s strategies. It also determines organization effectiveness. Usually, risk concerns the deviation of one or more results of one or more future events from their expected value. Risks are the problem, the insecurity which has to be taken no doubt. It should be carefully calculated and foreseen by professionals.
In general, the whole system of corporate finance shall be carefully supervised and evaluated for its perspective to have good results and serve for the sake of humanity, including active social responsibility.
Bibliography
1. Fundamentals of Corporate Finance, Standard Edition by Stephen Ross, Randolph Westerfield, and Bradford Jordan (Hardcover- Feb. 24, 2009).
2. Van de Walle, Steven and Roberts, Alasdair, “Publishing Performance Information: An Illusion of Control?” Performance Information in the Public Sector: How it is Used, Van Dooren, W., Van de Walle, Houndmills: Palgrave, 2008.
3. Rees, R.,. The Theory of Principal and Agent—Part I. Bulletin of Economic Research, 1985
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