Managing Resources: Money & People

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1.  What financial measurements should be prepared to measure company procedures?

There are 3 methods of measuring financial performance:

  • Measuring sales volume
  • Measuring profits
  • Measuring cash generated

2. What are the categories and steps in preparing a financial budget?

  • The 11 categories to preparing a financial budget are: sales, cost of goods sold, gross profit, operating expenses, operating profits/loss, other income and expenses, pretax income, income taxes, net income, EBIT, EBITDA.

4. Describe the break even technique in the decision-making model to determine profit and loss.

  • It a mathematical formula used to help determine whether a certain volume of output will result in profit or loss. Break-even occurs when the total revenue is equal to the total costs. P(x) = F + V(x)

6. Why is building a corporate culture to match a companys mission important?

  • Its important because companies that do build a corporate culture to match a companys mission perform on a much higher scale and are often times much more successful. The book refers to Michael Dell as an example. He succeeded where others did not because he was able to lead his organization on a mission where everyone was involved and clear concise goals were established.

7. Select six leadership attributes that you feel are the most important when building a strong culture. Why?

  • Freedom:  Youre not forcing too much control over the individual/ suffocating them
  • Empowerment: Lets the employee know we can trust in their skills to handle issues
  • Honesty: An honest and open environment builds confidence in the work environment
  • Support: Should know that their ideas will never go unnoticed/ unsupported
  • Alignment: Having clear goals makes it easier foe the employee to follow the same goals
  • Teams: Should never feel as if they have to accomplish a difficult task(s) on their own

8. Name three important factors that you must take into account when hiring key people.

  • Matching Values
  • Check references
  • Hire professional recruiter for key positions

3 thoughts on “Managing Resources: Money & People”

  1. I like your post, and especially the part where you bring in Michael Dell to illustrate your point about how a company’s mission statement is important to build corporate culture. I absolutely agree that honesty, in leadership, is important to building a strong corporate culture. Would you say communication is an important trait as well?

  2. I also think your post was good. I agree that corporate culture is very important and the employees are key to a company’s success. It’s the boss’ responsibility to create a good company mission & goals that are clear and attainable but it is the employees who are involved in the day to day activities and are in contact with the customers.

  3. I didn’t mention “freedom” as one of the most important attributes when building a strong culture but I definitely think it’s essential too. Giving certain freedom and also empowering employees is important because it encourage initiative from the employee and gives them control over situations they may face, in this way the employee also is aware that he/she play an important role in the company.

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