Question

When managing the performance of an organization, the leadership is always balancing between the risks and rewards of using financial and non-financial information as well as internally and externally sourced information, in its performance report.

(b) Elaborate on the benefits and issues of using the following information:

i. financial information versus non-financial information. (6.5 marks)

ii. internally sourced information versus externally sourced information.             (6.5 marks)

For each set of information, there should be at least two advantages and two disadvantages provided (no tables allowed, your answers should have proper headers and paragraphs and word count should be a minimum 350 words, not exceeding 450 words.            Marks will be awarded for format.                                               

Answer 1

sol:

i) All business choices need info that's money and non-financial in nature.Financial and non-financial info should be taken along as they assist businesses assess a choice from totally different views.

Financial info is any info that may simply be expressed in financial values. It is knowledge concerning the financial transactions of an individual or business. This info is use to derive estimates of credit risk by creditors and lenders.

Examples of money info

total sales of a corporation
expense figures like advertising prices or
dollar values of assets like land and building
Non money info is any info that can't be expressed in terms of cash. but it will still have impact on higher cognitive process of companies.

Examples of Non money info

environmental effects
political things and
social responsibilities.
ii) Internally sourced info

All organisations generate a considerable quantity of data with reference to their operation. This internal info is important to the booming management of the organisation. the knowledge is also on the market from variety of sources among the organisation, for instance:

Marketing and sales info on performance, revenues, markets shares, distribution channels, etc.
Production and operational info on assets, quality, standards, etc.
Financial info on profits, costs, margins, cash flows, investments, etc.
Internal documentation like order forms, invoices, credit notes, procedural manuals.
Externaly sourced info

An external supply of data is bothered with what's happening on the far side the boundaries of the organisation. This covers Associate in Nursingy documentation with reference to a subject matter space made as a outline or elaborated report by bureau external to an organisation. Such info is also gettable from government agencies or non-public info suppliers. Examples may include:

census figures
telephone directories
judgments on proceedings
computer users’ yearbook
legislation, for example

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