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Management Accounting 2 - Essay Example

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Management Accounting 2

The present CEO of the company, Sylvia Trott had realized that the company is inclining towards past achievements and the employees were not satisfied with this behaviour of the management towards them. So in order to measure the performance of the company, a sustainability approach has been adopted to identify certain key performance indicators of the company, such as: a) Social Indicators, b) Economic Indicators, and c) Financial Indicators. a) Social Indicators: The social indicators of WealthWise are the satisfaction level of the employees, percent of female employees in the top tiers of the management, number of employees recruited, who used to unemployed teenagers, ethical ranking that were given by the customers for the sales staff, and the number of native employees in the company. b) Financial Indicators: The major financial indicators that were considered are the return on investments, insurance premiums, and the net profit of the company. c) Economical Indicators: The economical indicators were the practices, and policies that the company implemented for the local suppliers and the expenses to maintain them, the method of recruiting or hiring the native staffs, and the projects that were developed for the benefit of the public. The mission of WealthWise during its inception was to offer environmental and social benefit to the people along with profit maximization. Further, with the progress and growth of the company, the mission of WealthWise extended to assist the customers in achieving a desired lifestyle through financial planning. Apart from this, employee satisfaction is also important because if the employees were dissatisfied then they cannot satisfy their customers. The philosophy of the company is to reflect financial growth, trust and strength through growing upwards, communicate positively, with energy, so as to achieve its mission (WealthWise, 2013a) In order to achieve the mission by the company, all the major performance indicators have to be considered. The social and the environmental benefit can be provided to the customers and society through assessment of the level of employee satisfaction, issues like gender parity in the top tiers of the company, pay scales, and performance evaluation techniques for the employees (Ladley, 2010). The mission to grow and generate revenue can be achieved by observing the financial indicators of the company, which consist of gross insurance premiums that the company can generate through insurance sales, the return of the company on investment, and the net profit. Apart from this, the economic indicators would provide a view of the effects of policies, practices of WealthWise, relationship with the suppliers, hiring process, etc (Rose, & Hudgins, 2010). Answer 3 Performance indicators are the elements that are assessed to evaluate the performance of the company. The term key performance indicators (KPIs) are used by the companies to scrutinize the success factors of various activities of the company. The KPIs can be quantitative, directional, financial, actionable, and practical. In case of WealthWise few KPIs, such as economical, financial and social, were considered for evaluating the performance and ...Show more

Summary

Management Accounting 2 Name of the Student University Table of Contents Answer 2 3 Answer 3 4 Answer 4 7 Reference 11 Answer 2 WealthWise is an Australian company involved in offering insurance and investment services to the customers since 1986. The company was floated by Jeannette Dai, who initiated the business with the intention of contributing to the society through social work, and not just profit maximization…
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