There are many factors that have significant effect on generating managers and successful businesses and organizations. Such factors are related to benchmarks that a company can use to determine if the company has been doing well during the past year or years. The most important of them all is the net income or we can call it by the name turnover. The main purpose for people to put up a business, whether the organization is a partnership, a corporation or even single proprietorship, is to generate net income in order for the business to continue survive for many years.
Another benchmark that must be considered is the effect of daily expenses on the net income. When the expenses increase, this will result to a decrease in net income. But when the expenses decrease, the result will be an increase in net income. The chief executive manager in the XXXX Company has indicated that they have problems in staffing. The company is in real need of experienced staff. Staffing is the process of hiring skilled workers and maintaining present skilled workers. Even if the skilled worker is asking and is being paid higher than a newly hired or inexperienced work applicant, the skilled worker will be worth the higher pay because the skilled worker can work faster and create better quality products than newly hired employees. Most customers prefer to buy a high quality product at a higher price because the customers believe that such items will last longer and satisfy the delicate high quality services.
One way of lessening expenses is to hire part time staff during peak seasons. It is the time when many customers arrive. In this case, it usually happens during Christmas vacation and other important events.
A third benchmark that ought to be taken into account is the increase or decrease in net sales that the company has generated during the past year or years that it has been in business. When the net sales will increase, the net income will also increase. But when the net sales will decrease, the sad result is that the net income will automatically be lesser.
To improve the operational and financial aspect of the business some measures that were taken was the training and retraining of employees. This has contributed much to the improved performance of the employees, according to the chief executive manager interviewed. Competitive salaries comparable with the competitors are given to well performing employees to retain their loyalty. Furthermore, annual salary increases based on performance will encourage employees to outperform the benchmarks or quotas agreed upon during general meetings between management and employees affected.
Another action that was taken to improve its operating and financial performance was the up to date study of the products, marketing plans and current market share of company's competitors. The study will help much to increase the net income of the company.
Another step taken by this executive is to keep a database of present customers. Constant communication with the clients regarding company offers that would satisfy the clients' needs was a priority strategy of the executive here. This has been made