Management of Human Resources (MBA) Essay Example | Topics and Well Written Essays - 750 words

Management of Human Resources (MBA) - Essay Example Building rentals accounted for 1.8% of sales in the late 1970's. This was the lowest level for major discounters. Additional building rentals of Wal-Mart took it up by only 0.1%. Wal-Mart was able to keep it's cost of goods as low as possible. It had a centralized purchasing network, and therefore purchased in bulk. It also had distribution centers and a good distribution network that ensured it's stores always had a consistent supply of stock. These steps further reduced cost greatly. Wal-Mart had Goodwill in cities where it was established because of their promotional strategy which was tailored by it's philosophy of "Everyday low prices". It had a high sales turnover and spent just 1.1% of it's net sales in the second half of the 1970's. Costs were greatly reduced here too. Wal-Mart undertook capital investments to improve labor productivity. Salaries and wage expense had declined to 10.1% of sales by 1985. This reduced cost, however employee incentives, like profit sharing were enabled to ensure employee satisfaction. Their employees put in their best to satisfy Wal-Mart customers in return. Cost is minimized as much as possible, allowing for continuous reduction in prices of commodities. The reduction in prices led to increased sales and a high rate of turnover, hence increased profits and more operating income for expansion and performance. How does Wal-Mart have superior profitability Exhibit 2 (page 10) is a financial performance that compares Wal-Mart's performance with that of it's competitors from 1974 to1984 in (%) 2. Wal-Mart has superior profitability because of the high percentage of sales. It was very competitive in terms of prices, Wal-Mart was able to sell at very low prices governed by it's philosophy of "Everyday low prices". It ran a lot of promotional sales and was able to balance this with a low cost profile. Increased sales brought in more profit, Wal-Mart had the highest return on equity of 33.0%, sales growth of 40.3% and earnings per share growth of 38.8%. How do Wal-Mart's retail prices compare to those of it's competitors Wal-Mart was very competitive in terms of prices. The store managers had the liberty to set prices as compared to their counterparts that didn't have. This latitude in price setting enabled prices to be set uniquely to a particular location, while having the overall objective of the organization in mind. In a comparism by Sachs in late 1983 and early 1983 on a location

Management Control Systems Case Study Example | Topics and Well Written Essays - 2500 words

Management Control Systems - Case Study Example The monetary measure becomes a common measure that is understood by all functions of the organisation. Also, profitability measure is essential to the success of all organisations. Thus, management monitors performance in terms of monetary value. Most especially, financial results provide a mechanism to suggest whether the business strategies implemented by an organisation benefited them. (Kimmel, Weygandt, & Kisco, 2000) This paper focuses on the management control systems established and implemented by a banking institution - Grameen Bank. Grameen Bank is a non-traditional bank that surpasses conventional banking practices of its contemporaries. In view of this, the paper will illustrate the different performance measurements that the organisation established as well as create a performance evaluation of the organisation. Grameen Bank is a micro-credit organisation that had initiated lending to the rural poor and was very successful that they rise above the normal banking conventions. Muhammad Yunus founded the bank in order to help the poor people in his country. He envisioned create an organisation that would alleviate the poor from poverty. He created the bank because no other banks shared his vision. In his speech as a Nobel Peace Prize Awardee, Yunus started the bank as a home-grown project that was run with the help of his students. Now, the Grameen Bank has increased in multitudes and the Grameen idea has spread around the world. Grameen-type programs are being implemented in almost every country. (Yunus, 2006) The target market of Grameen is the poorest of the poor in Bangladesh and most of their customers are responsible women of the poor families. Yunus developed a lending methodology where loans are paid in miniature weekly payments. The purpose of micro-credit lending is to detect problems early and increase borrowers' confidence. The objectives of the Grameen Bank are to extend the banking facilities to the poor people without collaterals but instead of mutual trust, accountability, participation and creativity. The organisation aims to become an enabler for the unutilized and underutilized manpower to create opportunities for self-employment. (Grameen Bank, 2009) Management control systems According to Kaplan & Norton (1996), what an organisation cannot measure, the organisation cannot manage. In order for an organisation to be successful in its business, they must know what to look at or the indicators that show the health of the organisation. It is part of the role of management to create strategies for the organisation in order sustain their existence as well as grow in their business environment. It is the nature of management to have control over the organisation. It is the function of management to define various measures to safeguard its assets; check the reliability and accuracy of accounting information; ensure compliance with management policies; and evaluate operating performance and efficiency. Without control, the people in the organisation will be functioning in chaos and without direction. Management control is one of the reasons that an organisation would look professional, systematic and trustworthy, inside and out. A management control