(Solution) CIPD 5C002 ways that Technivara could measure financial and non-financial performance

Solution

Q6 AC 3.1: Appraise two different ways that Technivara could measure financial and non-financial performance, providing one example of each.

Financial Performance: Return on Investment (ROI)

The most recognised financial performance measures used to evaluate the efficiency of an investment or to compare the profitability of other investments is the return on investment (ROI) sign (Andru, 2011). They define it as the calculate of the excess of the investment’s gross returns over the initial investment and then expressed this as percentage. As Technivara develop projects, programs, or commercial initiatives, organisations may easily discover how much of their resources have been used to produce profit using this form of evaluation.

Advantages and Limitations of ROI

• Return on investment (ROI) is a relative strength because it is simple to compute and comprehend, providing stakeholders with a rapid way to gauge the performance of investments. Technivara investment plan or project may be compared to others in a straightforward manner.
• One of the many shortcomings of return on investment (ROI) in Technivara is that it does not take into account the fact that money is not the same at any two periods in time, which impacts evaluations of investments over the long run.achieve financial success. It makes it simple to compare several investments or projects side by side.

Non-Financial Performance: Balanced Scorecard

Quality (2022) states that the Balanced Scorecard is an effective framework for strategic management that goes beyond financial metrics to assess performance. In order to provide a holistic view of Technivara‘s performance, it makes use of many concepts, including financial and non-financial, business and shareholder, and past and future.

Advantages and Limitations of the Balanced Scorecard……….

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