Is it practical to evaluate a manager's performance based on controllable or non-controllable costs? Why,?
967284
It is practical but not the only way to measure performance. It's the manager's job to control costs, so their decisions matter unless the situation is totally out of their hands.  For instance the water rate hike in 2006.  Rates doubled!  So the manager's decisions relative to cost go hand in hand.  Does the manager make good cost decisions as related to their role?  Is the situation unforeseenable or uncontrollable?  IE Katrina?
201499
That's a big topic but here are some thoughts to consider. \n\n- Have specific goals and standards for employees. Much easier to evaluate and they will perform better, too. Most people want to do well. If they know what is expected, it's easier for them to do what you want.\n\n- Give specific feedback and EXAMPLES along with judgements. E.g.: "Communication skills with other departments need improvement" would be so much better is you also said, "Examples: In August, Stella reported that Tom had asked for an attendance report but later, we learned that he really needed the report listed for the R&D group only." \n\nThe more specifics you use, the better. To do this, you need notes! Which brings me to:\n\n- Keep notes all year. You want to note positive and negative instances over the long term.\n\n- Give feedback constantly. Don't wait until annual review time. If an employee is ever surprised by something in a review, it is almost always indicative of a manager's problem!
730442
In what regards? \n\nBy measuring success in general, you are better able to assess what is working and what is not.
54179
it depends on what you mean by "efficient"\n\nin general, markets do seem to move in a "random walk" and seem so efficient it's hard to outperform them.\n\nthere are statistics that say 75%+ of fund managers FAIL to outperform the market.... that is, most managers do LESS than the "average"(market)\n\nalthough some do much better.  oh well.
723576
This sounds a great deal like management motivation jargon. Is synergy involved? Do you have to think outside the box?  Is it blue skies thinking at all? Mo Mowlem, (RIP) says that blue sky thinking is shorthand for w*nking. She is right as well. If any managment at all starts with any of this sh*t, it is time to look elsewhere for work as that company is going down the tubes. The final nail in the coffin will be when marketing men start controlling company policy. The next step after that is a P45.
266265
Pros:\n* Best monitor of a business's profitability.\n* More information than the cash method and a greater focus on outputs.\n* Better quality of management and decision making.\n* Greater comparability of management performance results.\n* Cost of capital assets are spread over the useful life of these assets.\n* More effective and reliable assessment of the financial health of the organization.\n* Shows how an organization has financed its activities and met its cash requirements.\n* Allows users to evaluation the organization's ability to finance its activities and meet its liabilities and commitments.\n\nCons:\n* Developing accounting policies.\n* No set or defined standards regarding siginficant accrual accounts (revenues, accounts payables, accounts receivable).\n* Identifying and valuing existing assets.\n* Establishing accounting systems.\n* Developing the necessary skills and providing training for both the preparers and users of financial information.\n* Significant cost to implement.\n* The cash method is comparatively simple and objective.\n* It requires greater professional judgement (i.e. estimates for uncollectible accounts receivable, depreciation, etc.)
1059059
That question that u have asked is a very important now a days in decision making. Because lot of people are making wrong decision simply because they are not aware of that.\nTo make or buy u have to make an analysis that is called "Break even analysis". In that analysis u have to make the costs in two groups one is fixed costs and the other is variable costs.\nIf u have already recovered the fixed costs and u r going to sell further units than u can sell ur product. But there are certain limitations that u have to look after.\nThe advantages of making a product are to utilise the production capacity of machinery and the labour.\nThe disadvantage of making a product is that if ur cost of making a product is more than the price that is available in market than u have to change ur decision.
408831
any organization, whether a govnernment or a private one, can be performance-based. \n\nbeing performance-based simply means you employ a systematic approach to iimprove the performance of the company and its employees through an ongoing process of establishing strategic performance objectives; measuring performance;\ncollecting, analyzing, reviewing, and reporting performance data; and using that data to drive performance improvement.\n\nbeing performance-based has many advantages.\n\n1. being performance-based helps the company focus on strategic goals, in the reaching of the goal, not in the number of activities.\n \n2. It provides a mechanism for accurately reporting performance to upper management and stakeholders. Performance-based management takes the guess work out of "How are we doing?" because all work is planned and done in accordance with the strategic performance objectives, the end result is an accurate picture of individual, program, and organizational performance.\n\n3. it brings all "interested" parties into the planning and evaluation of performance. Performance-based management brings customers, stakeholders, employees (i.e., those who do and/or are most familiar with the work), and management together to plan strategies and goals and to evaluate results. It is the antithesis of the "command and control" style of management of the past. The key word is involvement.\nPerformance-based management involves those who should be involved in the process.\n\n4. It provides a mechanism for linking performance and budget expenditures. At the beginning of the cycle, performance-based management provides a framework for showing what goals will be accomplished and what resources will be necessary to accomplish those goals. At the end of the cycle, it shows what was actually accomplished and what resources actually were used to achieve those results. Thus,\nperformance-based management takes the uncertainty out of budget allocations and provides an effective accounting for dollars spent.\n\n5. It represents a "fair way" of doing business. Performance-based management represents fairness. Decisions on budget allocations, employee promotions, work assignments, reward and award distribution, and the like are based on objective performance planning/results, not on appearance, personality, or other forms of favoritism.\n\n6. It provides an excellent framework for accountability. Performance-based management ensures accountability for results.
1005460
You didn't mention if this new manager was also selling. If he is, great. Have your top sales person offer to match him sale for sale. That should embarrass him into either quitting or coming up with a more reasonable figure. Or, who knows? Maybe he is right. Either way, everyone will find out. Chances are, especially if one comes from outside of their industry, that the manager doesn't know how to sell. That is usually the case. In that case take the top salesperson's monthly average and add about 20%. I don't care what the product is cable or airplanes, that's doable. BTW, why did they hire from outside the company? Another problem might possibly be that they want people to quit that are close to collecting retirement benefits. It happens all the time.
679613
Depends on the size of the factory, and what it's doing.  I'd have to imagine there would be a HUGE variance in cost among different factories.
634292
It depends on what you want to optimize.\n\nIf you want time to production optimized, assign weights based on the activities ability to delay the timeline.\n\nIf you want cost to be optimized, weight based on time and cost functions.
628911
In economics, business, and accounting, a cost is the value of inputs that have been used up to produce something, and hence are not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in order to acquire the thing. This acquisition cost may be the sum of the cost of production as incurred by the original producer, and further costs of transaction as incurred by the acquirer over and above the price paid to the producer. Usually, the price also includes a mark-up for profit over the cost of production.\n\nEffectiveness means the capability of, or success in, achieving a given goal. Contrary to efficiency, the focus of effectiveness is the achievement as such, not the resources spent, so anything that is effective is not necessarily efficient.\n\nAn ordinary way to distinguish between effectiveness and efficiency:\n\neffectiveness: doing the "right" things \nefficiency: doing the things "right"
91380
Analygous estimating - ie using previous tasks of a similar nature to guide your estimate\nParametric estimating - where you estimate based on a rate eg. it take $100 to create one widget, so it will take $500 to produce 5 widgets\n\nThe project manager should be the one who faciliates the cost estimating at a task level and then consolidates the information to produce an overall project budget.  The project manager might also produce a top-down estimate based on actual project costs from previous projects.
476534
management is not only mathematics , it is also experience and knowledge .\nwhen you want to know the cost of your product , you have to use mathematics to calculate the manpower cost , machines cost and material cost .\nin the same time you have to give a price can make a competition with other companies and takes  costumer satisfaction .
1029218
Professional advice about how a company can save money is only going to be successful if all levels of management are encouraged to share responsible strategies.\nSteven Berger said most managers want more accountability.
493439
The system doesn't necessarily reward managers when they correct non-career ending errors.  To correct them OFTEN is to give evidence that they are incompetent.  So, it's a human inclination to just let them slide.  There are no incentives, if any, negative incentives (in some cases).\nAlso, many people refuse to admit they are wrong, and they'll justify, rationalize their previous actions, even when current (new) facts prove them wrong.\nIf you want to learn more about the subject, read "Judgment in Managerial Decision Making Judgment in Managerial Decision Making by Max H. Bazerman.  He's a leading expert on the topic.
198752
I'll address cost control first.  It's the necessary means to reduce/manage the money being attributed to unneeded out flow of money.\nInventory management is a tool that is able to accurately analyze and address cost control concerns.  Such as:\n1. do you have too much of an item?\n2. do you have too little of an item?\n3. how much of an item do you actually need to have to keep sales/production at a high level of return on investment?\n\nThere are some things that one cannot control but so much, such as basic opperating costs.\nInventory management helps out to faciliate better control of what you are more able to change at a moments notice.\n\nHope this helps.