Question

8. Mention two out of four reasons why you have to establish measures in a company

Answer 1

The two reasons why you have to establish measures in a company are as follows :

a. It provides the direction for a company, while helps to drive he strategy effectively like for example financial measures are necessary to know the sales and revenue, cash flows, dividends, return on investment etc through which how company is doing financially in the market place can be know while the appropriate strategies can be establish to improve the financial performance of the company.

b. Employee performance and growth can be known through the measures as their turnover ratio, absenteeism, average year of service etc will be measured while appropriate learning and growth, training opportunities can be provided as employees are the human assets of the company hence their personal goal achievement must be taken care of.