Recommendation Email

[Your City, State, Zip Code]

[Email address]

Date:

To

To: John

CC: Ann

Mountain Top View Inc. Company.

Common Management Problems

Dear John and Ann

Every business aims at popularizing its brand, achieving a substantial customer base, and consequently increase revenues and profits. The management plays a major role in ensuring the achievement of increased revenues and profits. Primarily, every business management analyzes market metrics, research data, and use them in strategic processes. However, there are problems encountered by management for every business as experience by Mountain Top View Inc. Company.

Success or failure of a strategic business plan underly in the use or misuse of metrics or misinterpretation of analytical data. For instance, the company has a weak managerial system. Managers work Monday to Friday, each at their allocated stores. The decentralization is prone to less informed strategic decisions. Besides, there are too many workers, and some work remotely. Therefore, the company’s human resource is likely to be less productive and burden resource allocation. Centralized management is better since employees report to one office and work within schedules. That way, it is easy to monitor employees’ performance and enhance personal and professional growth (Verburg et al. 184). The change should portray prudence to avoid negative implications. For instance, they should inform remote employees that working at the office will increase their productivity and leverage personal and professional growth. Otherwise, they may think that the management is after a fault and sacking them.

A centralized management scheme and enough human resource make it possible to align everyone into the company’s business plan, vision and mission. Also, it is easy to measure individual performance towards the achievement of goals of the company. John and Ann should utilize centralized management as the best avenue for noticing weak departments and allocate more resources for R&D to them. For instance, at the current market performance, store one should perform better after additional resources for R&D is implanted. Store three may require owners in hiring more competent human resource, and allocate more resource to R&D since its profit margin is very low.

Both the management and owners should appreciate that performance measurement and the metrics are the foundations of business activities, performance, benchmarks and strategic planning. Some performance measurements crucial for Mountain Top View Inc. include cost-effectiveness, efficiency, revenue per employee, CVP, schedule and budget variance, ROI, and RCE (Star et al., 2016). In addition to their available metrics, the company may consider net promoter score, sales revenue, net profit margin, and monthly recurring revenue. Both metrics and performance measurement may be collected from the company books of account and inventories, then analyzed using business theories or analytical tools such as simulators or calculators. All company employees and executive should access and interpret the data, to inform individual participation towards achieving the company’s goals and objectives. Besides, each department should have a clear view of its contribution to the business goal, and its reliance on other departments. For instance, CVP should inform the marketing department of its importance in ensuring the growth of the company brand and its dependence on the finance department for resource allocation.

The human element should be incorporated in the measurement of performance and metrics since simulations are insensitive to real-time events. For instance, the human element can factor tastes and preferences, or financial market news, whose impacts difficult to simulate or factor into the calculation. Besides, data concerning efficiency for each employee should be incorporated into the metrics, after performance evaluation. Management should also establish key performance index for all employees and departments to avoid prejudice during strategic planning. In that light, managers should avoid discrimination or prejudice, as it is unethical, and might result in the recording of inaccurate data.

Thanks, and Regards

[Name]

Works Cited

Star, S., Russ-Eft, D., Braverman, M. and Levine, R. (2016). Performance Measurement and Performance Indicators. Human Resource Development Review, 15(2), pp.151-181.

Verburg, Robert M. et al. “The Role Of Organizational Control Systems In Employees’ Organizational Trust And Performance Outcomes”. Group & Organization Management, vol 43, no. 2, 2017, pp. 179-206. SAGE Publications, doi:10.1177/1059601117725191. Accessed 13 Dec 2019.