Analysis Essay Example | Topics and Well Written Essays - 250 words - 6

Analysis - Essay Example This article considered an application of ABC method in practice. As the case study related, Teva Ltd. benefitted from considering this method over more traditional ones because it helped her to reduce the unused capacity and finally to improve its production. EVA (economic value added) can be defined as an indicator of financial performance, and is computed by the difference between operating profits and a capital charge. It can be sustained that EVA is a true measure of economic profit, which takes into account all costs, implying also the cost of capital. Another measure is MVA (market value added), and it is an indicator of the wealth of the company. It is computed as the difference between market value of common stock, preferred stock, debt and the total capital. Basically, it is the difference of the amount investors can take out and the amount invested by them. Considering EVA in valuation has also drawbacks. One of them is the fact that EVA does not consider the growth opportunities of the company. To solve this issue, management should take into account the MVA method. The article discussed the use of EVA and MVA in valuation of a company’s investments. Although, probably in practice an NPV and IRR methods are easier to implement, EVA could be a more appropriate indicator to measure performance and to make the appropriate decisions when running a company. To recap, EVA is the difference between net operating profit and capital charges, whilst MVA is the difference between market value and invested capital. EVA is preferred to MVA mainly because it is more amenable to periodic performance management. Using EVA in valuation brings benefits such as resolving budgeting issues, easiness of the making decision process, and accountability of management for all economic outlays. Basically, EVA solves some of the conflict of interest between management and shareholders by encouraging managers

Human Resources course essay Example | Topics and Well Written Essays - 750 words

Human Resources course - Essay Example Maslow’s hierarchy of needs theory is one of the most popular theories of motivation. Many organizations across the globe formulate their strategies of motivating employees drawing help from Maslow’s hierarchy of needs theory. According to Maslow, there are five needs that are fundamental and commonly felt by all people. The needs identified by Maslow include physiological needs, safety needs, love and belongingness needs, self-esteem needs, and the need to self-actualize (Cherry, 2013). Maslow arranged these needs in a hierarchical order so that when placed upon one another, they take the form of a pyramid. Needs range from essential to optimal as one moves from the base to the top of the pyramid. Thus, physiological needs like food and air are the most fundamental needs as an individual cannot survive without them whereas the need to self-actualize is the least essential. Maslow’s hierarchy of needs theory asserts that an individual does not feel a higher-level need unless all lower-level needs in the pyramid have been satisfied. Considering the issue from the perspective of Maslow’s hierarchy of needs theory, money is not the only factor that can help the employees accomplish their needs. For example, let’s suppose an employee who feels the need of love and belongingness. There is a company that offers him a handsome salary but requires him to stay away from his family at a far-away station. Another company offers him a lower salary but provides the employee with the facility to work from home. The employee would go for the second company rather than the first because staying and working from home would fulfill his love and belongingness needs. There are a variety of ways in which managers can motivate employees. These include providing employees with medical and accommodation facilities, and offering employees more leaves as a sign of appreciation so that they can stay longer with their families. Many