Category: Performance

Introduction

This paper is an individual report of my role as a marketing manager for the simulated company (2). In this report, I evaluate the companys performance across different developmental stages, which are divided into eight periods. In each one of them, information relating to the companys performance in previous periods, factors influencing strategic and operational decisions, internal and external organisational dynamics, and the key figures used in decision-making are provided. Based on the broader evaluation of the companys performance, an assessment of its economic growth and crises that affected each period is provided. The assessment is provided in the log below.

Insights

Conclusion

Based on the insights provided in this report, no major crises affected the companys growth throughout the eight periods reviewed. The progress made in the simulated company is also consistent with most of the findings highlighted by different researchers who have explained the intrigues of small business development. Since the insights presented in this report were based on my role as a marketing manager, sales and revenue considerations influenced most of the strategic decisions made in the company. Collectively, these insights point to the need to embrace a contextualised strategic development process when developing company plans.

Reference List

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The Research Question

The study of organizational behavior has encompassed a great deal of attention to the effectiveness of performance appraisal methods and processes. One facet of effectiveness concerns feedback from employees about their appraisals.

Keeping and Levy (2000) maintain that the study of employee reactions to appraisals has been singularly plagued by an absence of theory (let alone a cohesive body), a fragmented range of study instruments, and overlapping instruments in use for measuring the same construct. Anticipating there may be a confusion of labels and constructs, the authors aimed to isolate the measurement properties of the varied reactions employees have about their appraisals.

Prior Findings/Background Information

In addressing themselves to this question, Keeping and Levy decry the persistent gulf between theorists focused on the psychometric properties of performance appraisal scales and I/O psychologist-practitioners who believe that employee reactions are critical to perceived appraisal effectiveness. But the criteria used to define employee reactions are already somewhat dated, the authors contend, notwithstanding advances in both measurement knowledge and operationalization of constructs.

Hence, Keeping and Levy aimed for better insight into the standard criteria: satisfaction, fairness, perceived utility, and perceived accuracy. The first question they address is whether these several appraisal criteria are truly standalone constructs or whether they can be traced back to some other, as yet unidentified, overarching construct. Second, the authors address themselves to the contextual facets of appraisal. Third, they investigate bias effects owing to either method or negative/ positive affect.

Predicted Results

There were no a priori hypotheses as such since the study aimed to characterize or filter which of several scale measures in use bore the best relationship with the construct of effect about the appraisal.

Methodology

The study involved a cross-sectional study of employees in a mid-western business organization. The sample consisted solely of those who had received a performance appraisal within two months prior to the survey and participated in a discussion about it. The study instrument was a mailed self-administered 94-item survey that ended with items about positive and negative affect concerning the performance appraisal. Relying on best practices in the field, scales that had most frequently been employed in the past, the research team used questions eliciting: satisfaction with the appraisal session itself, satisfaction with the appraisal system as a whole, perceived utility of appraisal, perceived accuracy of the same, procedural and distributive justice, and positive or negative affect.

Findings

Absent any formally stated predictions, the authors nevertheless conceded that they had expected the high inter-correlations that resulted among the eight sets of appraisal reactions. However, the correlations between positive and negative affect, on one hand, and appraisal reaction measures, were modest: in the.20 to.32 range.

On taking further analytic steps that included structural equation modeling, estimating for single-factor and hierarchical models, and a straightforward chi-square test of the differences yielded by varied modeling approaches, Keeping and Levy suggests, among others that a hierarchical model is possible for a second-order construct they labeled appraisal effectiveness. The six appraisal reaction constructs correlate significantly and positively with the expected underlying construct. In addition, the hierarchical model is claimed to be more parsimonious, a positive finding.

On a technical note, the research team found from the chi-square analysis that a hierarchical model explained results at least as well as the disaggregated modified measurement model. Keeping and Levy find that the six extant appraisal effectiveness scales do have satisfactorily high factor loadings with their individual underlying constructs.

Secondly, the finding of correlated errors amongst system satisfaction, session satisfaction, and procedural justice seemed to be explained from the constant appearance of the item stems, The procedures used to evaluate my performance was& and or The process used to evaluate my performance was&. The authors suggest that rates are commonly unable to distinguish between appraisal procedures and processes.

Keeping and Levy dismiss methods effects bias as inconsequential while advancing implications they held to be key: a) the qualitative criteria tested are both accurate and appropriate; b) appraisal reaction measurements currently in use are quite good but could stand improvement in point of overlapping constructs; and, c) neither positive nor negative effect unduly bias the outcomes of response to performance evaluations.

Other Comments/Critique

Keeping and Levy confine themselves to an analysis of the validity of existing perceptual and affect measures concerning performance appraisal and whether there is a unitary construct that underlies these measures.

When one shifts to the practitioner side of the I/O psychology field that the authors had alluded to, we realize from Jawahar (2006, p. 14) that merely understanding satisfaction with the appraisal process overlooked many important elements. The results of a longitudinal study suggested and it does stand to reason that doing well on an appraisal will lend a positive bias towards that appraisal and the evaluation system it is part of. Even more important, where the leadership of an organization is concerned, is that satisfaction with appraisals are negatively associated with employee turnover and positively correlated with organizational commitment, job satisfaction, commitment toward, and satisfaction with, the rater-manager.

This viewpoint and the high probability of positive effects strongly suggest that an organization had best invest time and effort to ensuring the fairness of performance appraisals. Just as critical, one hazard is training and coaching employees for consistently superior performance and superb outcomes because the employer reaps many valuable benefits in the medium and long term.

Works Cited

1. Jawahar, I.M. An Investigation of Potential Consequences of Satisfaction with Appraisal Feedback. Journal of Leadership & Organizational Studies, 2006b, 13 (2): 14-28.
2. Keeping, Lisa M. and Paul E. Levy. Performance Appraisal Reactions: Measurement, Modeling, and Method Bias. Journal of Applied Psychology 2000, 85(5): 708-723

Sales

Gaps sales grew significantly between 2000 and 2004, signifying a period of economic success. Notably, this tendency contradicts the display in the text, which claims that sales slowed in 2000 and hardly grew in 2001. The claim that sales growth slowed but did not stop can explain 2000, but the rise in 2001 directly contradicts the claim that sales grew only 1%. In the next two years, the sales began increasing due to the appearance of the new director, Paul S. Pressler. However, they peaked in 2004 and started slowly declining until 2007, when a sharp drop occurred. This change can be attributed to the leadership of Glenn Murphy, who assumed the CEOs position at the time. However, the new executive was eventually able to recover the companys sales and return them to the level close to that at his arrival by 2012.

Operating Profit

Gap began the period of 2000-2012 with a steep drop in its operating profits, caused by its misjudgment of fashion trends in 2000. The company was able to recover in 2001, and the new CEO, Paul S. Pressler, continued the trend of improving operating profits in 2002 and 2003. However, similarly to sales, operating profits peaked then and began declining to a level similar to those before the managers appearance. He was able to start recovery but was replaced by Glenn Murphy in 2007. Murphy concentrated on increasing operating profits, continuing the growth steadily until 2011. At that time, the staff replacements and other issues, such as the emergence of large competitors who were able to outsell Gap led to a drop in the KPI, but the value recovered to its 2010 level in 2012.

Gross Margin

Gaps gross margin dropped significantly in 2001, most likely due to the aforementioned failure of the company to follow the trends that made sales and discounts necessary to liquidate the goods. It began recovering in 2002 when Pressler took the lead. However, like the other statistics, the KPI peaked in 2004 and began declining afterward. The fall continued until 2007 when Murphy assumed leadership and began working on recovering profits. The efforts were successful until 2009 when both Inditex and H&M overtook Gap as the largest specialty apparel retailer. The effect manifested in full force in 2011, with a steep drop to the gross margin. However, Gaps management was able to stabilize the situation somewhat, and the decline was less severe in 2012, though still present.

Average Store Size

Gap expanded its stores considerably in 2001, likely expecting its rapid expansion to continue, but the misjudgment came as a surprise. As such, its growth slowed, but continued nevertheless, as Presslers policy was to close underperforming stores and open new ones, though slower than before. The increases continued throughout Presslers entire tenure in the company except for a small drop in 2006, where the companys performance began declining, and the CEO was fired. Fisher was able to continue the trend, but Murphy started to shrink stores as part of his cost-saving policy. He began investing in online sales, which did not require physical store space to occur, and so the companys brick-and-mortar locations continued shrinking throughout the period until 2012. The drop in 2008 is likely sharper than that in 2009 due to the increasing prominence of Inditex and H&M, which forced Gap to cut costs quickly. Its recovery enabled the company to conduct the process more steadily later.

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The work is concentrated on the disclosure of the principle elements contributing to HR processes; the author managed to highlight the key steps on the way to pay for performance culture establishment. The work outlined the following stages in the goal reaching: compensations planning, goal alignment, and performance management. It is necessary to underline the fact that the effects of the elements integration are illustrated in the form of high profits and revenue, top talent retention, and high quality of companys business performance.

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The article reflects the peculiarities of systematical strategic fit demonstrating the idea that it helps any company to concentrate on the representation of employees and evaluate them through humanistic way. It should be noted that the authors underlined the role of systematic performance appraisal on the basis of methods and criteria forming its functioning in the business running.

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The manufacturing performance is motivated by the financial incentive plans on the basis of traditional dimensions, such as, quality, productivity, etc. The article is focused on the combination of intrinsically motivating jobs with incentive plans; it was shown that in case of plans extensive usage, the jobs never contribute to manufacturing performance. The work underlines the principle implications for performance motivating at innovative plants.

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The book is aimed at the disclosure of practical management development and know-how being updated and modernized in this sphere. It is necessary to stress that the work gives an opportunity to analyze corporate marketing organizations and sales organization design. It discloses the solutions to the most complicated problems faced in business sphere through human resource management improvement.

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Hersch outlined the basic role of pay for performance in the world of commerce on the basis of central concept, stating that quality measures adoption are to be connected with reimbursement, rather than administered price arrangements. The author managed to underline the idea of pay for performance P4P place part in business advertising campaign and grabbing customers attention.

Is pay-for-performance in crisis. (2002). Business Europe, 42, 1-2.

A pay for performance system is concentrated on the organizational effectiveness improvement; it should be noted that the system highlights the results of agencies operations and disclose the private sector of business functioning. The work presents the peculiarities of the pay for performance place in modern world of governmental fights for new business talents.

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The organizational learning capability promotion is fulfilled through compensation strategies, as it was analyzed on the principles of Spanish companies operationbs. The author of the study disclosed the following objectives of the compensation strategy: fixed pays and incentives, short and long incentives, group and individual ones, the pay of skill based and job based character.

OConnell, K. (2007). The Importance of Strategically Designed Compensation Plans. Benefits & Compensation Digest, 20-25.

It is necessary to underline the fact that modern organizations are pressured to the strict following of sophisticated compensation plans; the author managed to demonstrate strategically important planning process. The work is considered to be the reflection of motivation and strategy combination and its role in the compensation plans development.

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The work is focused on the disclosure of US large corporations facing the growth in the 19^th century; the author highlighted the difficulties of management hierarchies as the principle problems in the relationships between the management and functional management. The source gives a historical overview of organizational proposals evolved in management in previous decades in order to underline the effectiveness and drawbacks of their usage.

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The article discloses the analysis of political and economical discourse on the basis of intercultural cooperation. The author managed to demonstrate the valid social reflection of the USA through cultural and national investigation. Besides, it was shown that expectations approved through the travelling can be grounding reasons for similar politics and economy perception.

Veilleux, R. F., & Petro, L. (1988). Tool and Manufacturing Engineers Handbook . Toronto: Society of Manufacturing Engineers.

The work is focused on the illustration of practical processes application; the author underlined the significance of process selection, extrusion, material selection, management, quality and rational molding. The work presents manufacturability design information allowing identifying the peculiarities of manufacturing engineering tools and their effectiveness in operational processes.

Survey Forecasts: Early look at 10 Pay. Report on Salary Surveys, 9(7), 1-15.

The work presents the detail analysis of business reports and surveys underlining the role of questioning in management and its impact of economic growth. It should be stressed that the author demonstrated the forecast methods used in modern economics sphere in order to identify appropriate strategic steps and theories to be developed for quality management improvement.

A performance review or appraisal is an essential process that contributes to the overall effectiveness of an organization, both in the short and long term. Roads and Transport Authority (RTA) is a company that considers its performance thoroughly and constantly monitors employee performance (How We Work). This appraisal activity aims to sustain organizational productivity and to boost the individual productivity of each RTA worker. To assess effectiveness, various performance goals have been determined. Notably, after the initial evaluation, the results are discussed with every individual, and the supervisor defines the particular strengths and weaknesses of each employee (Akampurira 2). RTA also employs this approach as a basis for salary-related decisions. Overall, the purpose of the appraisal is to compare the current performance of an employee with the one he or she had shown previously. In terms of RTA, the company conducts annual reviews; however, each worker is responsible for the constant monitoring of his or her own work through self-assessment. Importantly, for short-term projects, constant monitoring should be conducted based on actual employee needs.

Process

The specific steps the line managers should take in the process of conducting assessments include:

• Gaining an understanding of UAE laws as well as RTAs practices in terms of performance reviews;
• Planning the interviews to be done with employees;
• Preparing the worker for the assessment (including delivering interview details to the individual);
• Conducting the appraisal;
• Processing information and raising awareness of the individual regarding his or her performance; and
• Making recommendations for a pay raise (Akampurira 8).

Varied Performance Results

Identifying good and poor performance is an important task for each manager because both types of performance impact the individual, unit, and enterprise performance. In particular, when an employee displays a significant improvement, the manager should ask the worker to conduct a self-evaluation to determine how the employee could enhance his or her quality of work. On the other hand, poor assessment is rather challenging since wrongful or insensitive managerial conduct could lead to even weaker performance and future results (Akampurira 8). Thus, it is crucial that line managers work jointly with the staff and ask them to define their strong points first and then think critically about what factors have been hindering their efficiency. Then, it is advisable that the employee outline possible methods to boost his or her performance.

Available Information

Regarding the preparation for the actual appraisal, the employee should be made aware of the topics, criteria, or details included in the review. This preparation should be done beforehand by the line manager to make sure the person under evaluation is knowledgeable about the procedure (Akampurira 9). Further on, the human resources staff responsible for compiling the standardized form should delegate the particular content of the upcoming appraisal. In this way, an effective review both supports administrative decision-making and provides workers with feedback for their own further analysis.

Works Cited

Akampurira, Abraham. Performance Appraisal. Anchor Academic Publishing, 2014.

How We Work. RTA, 2017, Web.

Baldrige Award Importance: Video Review

It is worth noting that participation in the Baldrige award is an asset gained by both the winner company and the participants because taking part in it motivates companies to improve the quality of their services. As a result, many of the enterprises can make a breakthrough in quality changes and become highly competitive. Moreover, the feedback received from the competent auditors helps to improve the service provision continuously.

Statement

It should be stated that CEOs statement can be considered credible enough for several reasons. According to the videos, the Baldrige criteria were initially adopted by the company to outline the strategy for quality improvements within the healthcare facilities. Besides, they were used as a starting point to promote performance excellence at both levels simultaneously  the leadership and the staff. Further on, the strategic plan was used as a framework to improve the key performance indicators and to determine the future direction for improvement. It was stated that the emergency department employed the principles the very first because there was a need to reduce the wait times to become competitive. After significant changes evidenced in the unit, it became clear that the application of the Baldrige criteria would enable the healthcare institution to improve the provision of care drastically. Therefore, it can be assumed that receiving the award was not the initial intention for the implementation of the Baldrige framework. However, it is reasonable to presume that an award of such significance is a certain competitive advantage. Only one company could receive it; thus, it would serve as evidence of the exceptional quality of service provision and care. Having such certification might be a decisive factor for patients choosing among several different institutions.

St. Davids Healthcare Plan

St. Davids Healthcare plan has consistently covered the measures of excellent performance. In particular, when planning the execution of this approach, many factors have been elaborated. For example, the institution has considered ways to utilize the information obtained from patients to improve strategic planning. Apart from that, it was analyzed whether the chosen strategy would address the existing barriers effectively on both levels the internal and external ones. The leadership considered how to employ the action plan to engage all the key stakeholders in the process. Importantly, one of the major parts of the implementation process was measuring the effectiveness of the proposed course of action.

Also, the strategic plan dwelled upon the essential categories, which had to be enhanced equally effectively. To be more precise, such domains as leadership, strategy, customers, measurement and knowledge management, workforce, operations, and results were reviewed comprehensively and in detail. The videos reflected vividly the way these seven criteria were met by the healthcare institution.

UAE Hospitals and Main Conclusions

After watching the videos, it became clear that several aspects should be reconsidered by the majority of healthcare facilities in the UAE. For instance, it is essential to reinforce cooperation among different units and managerial levels. This way, the care would be more holistic. Besides, the leadership should rethink their approaches. Following the example of St. Davids Healthcare, all the employees at all care levels should be empowered and given the autonomy to contribute to their work to a greater extent including the auxiliary staff. In the case of the award-winner, all the employees were dedicated to performing their duties and enhancing the quality of service. Thus, to be able to achieve corporate goals, the leadership should engage all key stakeholder groups.

Introduction

This paper seeks to analyze and discuss the financial statements of a publicly-traded company. The company chosen is Lowes Home Improvement Store.

Brief Company background

Founded in 1952 and having its base in Mooresville, North Carolina, the company is registered under the name Lowes Companies, Inc., and its subsidiaries functions as home improvement retailers, which may be found both in the United States and Canada. As the company is engaged in a wide range of products and services for home decoration, maintenance, repair, remodeling, and property maintenance, customers could found Lowes home improvement products to include appliances, lumber, flooring, millwork, paint, and building materials.¹ Other products include fashion plumbing, lighting, tools, seasonal living, lawn and landscape, cabinets, countertops, rough electrical, nursery, hardware, and other home environments, and building materials products. The Company is noted for serving homeowners and renters on a do-it-yourself and do-it-for-me provision. Its other customers buy for personal and family use; and still, other customers include those in the commercial business, which include repair and remodeling contractors, painters, plumbers, electricians, landscapers.²³ Such customers also include commercial and residential property maintenance professionals. To reach its customers more, the company also makes its products available both through retail stores and online. As of this writing, the company is already operating not less than a thousand home-improvement stores that are found in almost all of the United States.

Profitability

Some profitability ratios⁴ of the company for the last three years ending.

February of each year are shown below:

Profits measurement is one way to gauge management effort to increase the value of the stocks as a higher increase would have the greater probability of providing stockholders with dividends and assured higher values of stocks. In terms of profitability⁵, the company exhibited a slightly increased profitability for the years under review with net profit margins that were reflected at 0.07, 0.06, and 0.06 for the years 2007, 2006, and 2005 respectively. Profitability ratios in terms of return of assets confirm the same with the ratios of 0.11, 0.11, and 0.10 for the years 2007, 2006, and 2005 respectively. As for the return on equity, it was almost there same for three years except that the increase in ratio was felt only in 2007 as compared with the two ratios when the increases were noted in 2006. It may be inferred that the company is doing well with a net profit margin of about 6% or more, which would indicate that the company can earn about six dollars for one hundred dollar revenues. If these net profit margins were related with the gross profit margin of 0.35, 0.34, and 0.34 for the years 2007, 2006, and 2005 respectively, one could see that the company must be operating efficiently in terms of controlling its operating expenses with not so big gross profit margin. In other words, the company manages well its gross profit by not spending so much on gross margin.

A companys profitability may also be viewed in terms of comparing the return on equity with the risk-free investment which may be approximated by the rate of return from a US treasury bill which is assumed to be between 4% to 5%. Since the return on equity represents the net income divided by the total stockholders equity, the same rate could be practically compared with the treasury bill rate as an alternative investment by a would-be investor. Since the companys return to equity is almost 20% for the last three years, it would mean the investors who became stockholders of the company have all the reasons to be thankful to have made their investment in the company since the rate is about four times the rate that they would have earned had they placed their money to US treasury bills.

Liquidity

Liquidity measures the capacity of management to pay currently maturing obligations. Good liquidity⁶ for the company assured short-term creditors that they are paid on time and therefore prevents working capital problems for the company. Such a sign of effective management has more chances of bringing up the stock prices of the company. The increase in the stock price of the company is one of the best pieces of evidence of a well-performing company since the stockholders would be increasing their wealth as a result. This standard of measuring the company management effort in reaching success in creating shareholder wealth could be seen in the current ratio of the company which got reflected at 1.27,1.34 and 1.22 for the years 2007, 20067, and 2005 respectively. The ratio of more than 1.00 is sufficient to guarantee liquidity yet the company has exhibited more than 1.00, hence it could be considered as highly liquid. Since the company has greater than 1.00 current ratios for the last three years, it may be argued that the company may not have the problem of settling its currently maturing obligations empirically and therefore a good reason to assure the same creditors in the future.

To understand further the companys liquidity, as measured by current ratio, which is computed by dividing current assets with current liabilities, it would be interesting to look at what consists most of its current assets. The following data shows the very high portion of inventory to current assets:

It may be pointed out that the companys inventory constitutes about an average of 85% of the currents for the past three years. This would indicate the companys liquidity must be viewed in terms of making first the sale to convert inventory to accounts receivable and then to cash. Although this could be a qualification as to the type of liquidity that the company has, it must also be pointed out that almost 50% of its currents liabilities are accounts payable but their absolute amounts are less than the absolute amount for inventory, hence, it may still be argued that companys liquidity is still above the normal level.

Financial Leverage

If liquidity assures short-term solvency, good financial leverage also assures long-term stability of the company as against possible solvency in the long run. Said financial leverage is measured in terms of debt to equity⁷. Lowes Home Improvement Store has shown also a sustained strong financial leverage for the past three years given the debt to equity ratios of 0.77, 0.72, and 0.74 for the years 2007, 2006, and 2005 respectively. A less than 1.0 debt to equity is normally an indication of a stable company.

Conclusion

Based on the premises analyzed as far as the companys profitability, liquidity, and financial leverage of the company are concerned, it may conclude that the Lowes Improvement Store is a good company to invest in. When viewed in terms of whether its present stockholders should keep their stocks, the response will be in the affirmative. On the other hand, if the decision-maker is contemplating buying the stocks of the company, such prospective investor is encouraged considering that the chance for earning profits from investing in the company is higher than keeping the money in the bank.

Work Cited

Bernstein (1993) Financial Statement Analysis, IRWIN, Sydney, Australia.

Brigham and Houston (2002) Fundamentals of Financial Management, Thomson South-Western, USA.

Lowes Companies, Inc. (2007), Company Website. Web.

Meigs and Meigs (1995) Financial Accounting, McGraw-Hill, London, UK.

Yahoo Finance (2007) , Financial Statements, 2007. Web.

Research Method

To answer the research questions, it is essential to adopt a specific approach that is likely to be helpful for this study. Since the questions listed in this paper do not require answers based on clear statistics and numbers, it is possible to suggest that descriptions and recommendations for further research on the topic will be sufficient. Additionally, suggestions for solving the identified problems and shortcomings will also be part of the answers. Therefore, the chosen method is the qualitative literature review.

Overall, it is a rather valid choice for searching for the necessary evidence and answering the questions. This method will allow to gather valuable information, analyze different authors views, and gain a complex and rich understanding of the topic under study. Since the diversity and team performance topic is well explored by professional researchers, it is possible to find relevant information and compare various points of view while ensuring that the data is credible and trustworthy. Additionally, the literature review method will be helpful in identifying existing gaps and providing suggestions regarding future studies.

As for the information sources that are used in this research, they are numerous peer-reviewed articles and scholarly papers written on this topic. Precisely these works are typically biased-free, trustworthy, credible, and relevant. Moreover, all the chosen papers have the necessary information explained in detail and proved by tables, citations, and figures. Their own lists of references may be helpful for the current research or in case this papers readers decide to explore the issue deeper or refer to the primary sources. Finally, secondary data analysis is applied to systematize the finding and draw specific conclusions that will answer the research questions.

Discussion

This section of the paper is devoted to discussing and analyzing the information found in the reviewed literature to provide answers to the research questions. Since there are three of them, the issues will be explored in turn. Each finding or evidence will be cited, and credit will be given to the original research.

Effects of Diversity on Team Performance

To begin with, it is essential to notice that the literature review showed a certain level of disagreement between the researchers about whether diversity has positive or negative influences on team performance. For example, in their empirical research paper, Churchill and Valenzuela (2019) state that higher levels of ethnic and linguistic heterogeneity are associated with poorer firm performance (p. 2079). The authors explain this fact by noticing that companies KPIs typically depend on several mechanisms of influence, involving social networks, trust, and discrimination (Churchill & Valenzuela, 2019). Unfortunately, precisely these valuable components are usually weaker or absent in ethnically diverse communities, be it a firm, college, or other groups of people. Further, Marx et al. (2021) have almost the same opinion regarding this topic. Their field experiment on team diversity shows that horizontal ethnic diversity decreases performance, while horizontally homogeneous teams tend to organize tasks more efficiently (Marx et al., 2021, p. 1). Finally, Lees (2019) panel data analysis shows that increased minority representation lowers agencies goal achievement (454). Therefore, not all researchers believe in the positive effects of diversity on the effectiveness and performances of different groups of people.

At the same time, other evidence suggests that positive impact is still possible. For instance, in agencies where people of various cultures and ethnicities are initially well treated, there is a strong positive relationship between diversity and performance (Lee, 2019). Furthermore, the latter can be enhanced by vertically diverse teams because they appear to put in more effort (Marx et al., 2021). Hunter-Johnson and Al-Asfour (2021) explore the topic from the veterans point of view and state that organizations can receive a vast number of benefits by hiring a veteran. These benefits include competitive advantage, a diverse employee pool, enhanced performance, and creativity (Hunter-Johnson & Al-Asfour, 2021). Finally, Varhelahti and Turnquist (2021) explored the relationship between communication in virtual project team meetings and occupational, linguistic, and cultural diversity. It appears that the latter facilitates communication and promotes the better performance of the team.

As for younger generations, culturally diverse schools tend to increase students positive perceptions of diversities and increase their current classroom and further workplace performances (Igwebuike, 2006; Schwarzenthal, 2019). It is also interesting that among male academic staff in public administration, there is a significant negative relationship between gender diversity and turnover intentions (Nielsen & Bo Madsen, 2017, p. 77). Consequently, despite numerous positive influences of diversity on employees and students performance, not all people support the inclusion of persons of different nationalities, ages, genders, and cultures, undermining the power of diversity.

Major Disadvantages Experienced by Dissimilar Team Members Operating in Otherwise Homogeneous Units

Unfortunately, even though there is a significant promotion of diversity in the workplace and classrooms, representatives of different minorities usually have to face negative attitudes and other disadvantages that reduce the efforts of authorities and social organizations. To begin with, younger people working together with older generations are not taken seriously due to a lack of years of experience (Amayah & Gedro, 2014, p. 42). Therefore, their creativity and initiative are often cut short at the initial stage, and certain stereotypes held by other workers negatively affect their professionalism.

Further, Churchill and Valenzuela (2019) emphasize that diverse representatives tend to be discriminated and treated with lower respect and trust, which also reduces the overall performance of a team. What is more, despite the expected consideration for veterans, they are often misunderstood and stigmatized within a civilian workforce, which results in misconceptions and misinterpretation regarding transfer of professional experience and training (Hunter-Johnson & Al-Asfour, 2021, p. 86). Consequently, veterans usually face employment challenges, minimal career development, and exclusion. Further, it is common for females to be discriminated by men and thus become dissatisfied with their jobs (Nielsen & Bo Madsen, 2017). To conclude, the current increased promotion of workplace and classroom diversity does not guarantee that representatives of minority groups will not face challenges, discrimination, and other severe disadvantages mentioned in this subsection.

The Necessity to Manage Diversity for Team Performance

For leaders of different communities, it is vital to manage diversity to make sure that no one on the team is discriminated, humiliated, or excluded, which may reduce the whole teams performance. As mentioned by Farmanesh et al. (2020), ill-considered and ineffective attempts of managers to diversify the workforce can result in diversity fatigue, which in turn negatively affects the communication between dissimilar team members and majority representatives. Further, it is necessary for leaders to manage diversity and make it a shared value so that other employees have no chance to spread stereotypes with impunity (Adediran, 2018). Byrd (2018) raises the problem of diversity branding and insists on the necessity for leaders not only to emphasize their valuation of diversity but also manage it properly to avoid disadvantages faced by dissimilar workers and increase performance. One of the possible ways to do that is suggested by Fleischmann and Burgmer (2020) and is called affirmative action. Since attitudes toward affirmative action are generally negative, this is a great topic for further research on diversity and team performance and the elimination of discrimination.

References

Adediran, A. O. (2018). The journey: Moving racial diversification forward from mere commitment to shared value in elite law firms. International Journal of the Legal Profession, 25(1), 65-89.

Amayah, A. T., & Gedro, J. (2014). Understanding generational diversity: Strategic human resource management and development across the generational divide. New Horizons in Adult Education & Human Resource Development, 26(2), 36-48.

Byrd, M. Y. (2018). Diversity branding strategy: Concealing implicit stereotypes and biased behaviors. Advances in Developing Human Resources, 20(3), 299-312.

Churchill, S. A., & Valenzuela, M. R. (2019). Determinants of firm performance: Does ethnic diversity matter? Empirical Economics, 57, 2079-2105.

Farmanesh, P., Vehbi, A., Zargar, P., Sousan, A., & Bhatti, F. (2020). Is there always a positive relationship between workplace diversity and organizational performance, or does diversity fatigue imply a suppressing effect? South East European Journal of Economics and Business, 15(1), 14-26.

Fleischmann, A., & Burgmer, P. (2020). Abstract thinking increases support for affirmative action. Sex Roles, 82, 493-511.

Hunter-Johnson, Y., & Al-Asfour, A. (2021). Lets connect: Diversity, inclusion and career development of veterans within the civilian workforce. American Association for Adult and Continuing Education 2020 Conference.

Igwebuike, J. G. (2006). Legal and policy implications for faculty diversification in higher education. The Negro Educational Review, 57(3-4), 189-201.

Lee, H. (2019). Does increasing racial minority representation contribute to overall organizational performance? The role of organizational mission and diversity climate. American Review of Public Administration, 49(4), 454-468.

Marx, B., Pons, V., & Suri, T. (2021). Diversity and team performance in a Kenyan organization. Journal of Public Economics, 197, 1-22.

Nielsen, V. L., & Bo Madsen, M. (2017). Does gender diversity in the workplace affect job satisfaction and turnover intentions? International Public Management Review, 18(1), 77-115.

Schwarzenthal, M., Schachner, M. K., Juang, L. P., & van de Vijver, F. J. R. (2019). Reaping the benefits of cultural diversity: Classroom cultural diversity climate and students intercultural competence. European Journal of Social Psychology, 50, 323-346.

Varhelahti, M., & Turnquist, T. (2021). Diversity and communication in virtual project teams. IEEE Transactions on Professional Communication, 64(2), 201-214.

These days, there are numerous relevant questions in the field of public administration which should be researched thoroughly. One of them regards the connection between social responsibility and organizational performance. The importance of this topic may be explained by the fact that it appears an integral part of business regulation in any sphere. However, it should be admitted that companies frequently make mistakes in this regard. Mehralian et al. (2016) approached this problem and analyzed the influence of corporate social responsibility on organizational performance in the context of the pharmacy industry in Iran. The scientists concluded: that social responsibility is significantly associated with the integration of this responsibility into quality management programs (Mehralian et al., 2016, para. 1). Therefore, the necessity to provide an in-depth insight into the topic of social responsibility is evident, as the understanding of this aspect will be beneficial for market development in the long run.

Proceeding from the assumptions presented earlier, it is essential to estimate the impact of social responsibility on the outcomes and operation of companies more precisely. First of all, in order to pursue this aim, it is vital to analyze social responsibility among businesses in different spheres, government, stakeholders, and society in general. The second step implies an examination of the consequences of social responsibility awareness for business, government, stakeholders, and society. Thirdly, finding new fields where social responsibility should be encouraged will contribute to exploring this topic. In addition, it is assumed to draw the attention of a greater number of stakeholders to this issue. The last objective involves an analysis of contribution to national development. Consequently, the future research paper is intended to improve awareness of the necessity to adhere to social responsibility on different levels.

Reference

Mehralian, G., Nazari, J. A., Zarei, L., & Rasekh, H. R. (2016). The effects of corporate social responsibility on organizational performance in the Iranian pharmaceutical industry: The mediating role of TQM.Journal of Cleaner Production, 135, 689-698. Web.

Given the risk of not absorbing the fixed operating costs throughout a lean phase, a firm with high operating leverage risks increases operational risk. If production or sales were non-existent, operating charges would not accrue. As a result, operating risk is nil, and the degree of operating leverage will be equals to one before taxes and interest. Alternatively, considering a company with fixed operational costs. The corporation would still need to pay for the fixed running costs, such as property taxes, rent, fixed wages, and so on, regardless of whether it generates income. Operational risk is the possibility that the business may not fulfill these fixed costs, resulting in operating losses. Various variables that might lead to lower-than-anticipated earnings or losses are considered when a company assesses its business risk. The benefits of operating leverage increase in good times as sales increase, but they are accentuated in difficult times, creating a substantial business risk. A company with low operating leverage has a small financial risk because it cannot absorb the fixed operating costs throughout a lean phase.

The contribution margin represents the total income available after variable costs to pay for fixed expenses and generate profit for the firm. In addition, contribution margin may help a firm determine how many units it needs to sell to cover its fixed costs, how to price its product correctly, and how to do a break-even analysis. As a bonus, it also explains how to compute operating leverage. According to the Operating Leverage Calculation, companies can enhance their net income by growing sales to a certain extent by increasing their operating leverage (Chen et al., 2019). When it comes to calculating operating leverage, the company divides the Contribution Margin by the profit.

Reference

Chen, Z., Harford, J., & Kamara, A. (2019). Operating leverage, profitability, and capital structure. Journal of financial and quantitative analysis, 54(1), 369-392. Doi:10.1017/s0022109018000595