Issues in Employee Performance - The Berkeley Restaurant Essay

Issues in Employee Performance - The Berkeley Restaurant - Essay Example Current paper focuses on the potential use of employee performance theories and models for improving organizational performance; reference is made to The Berkeley, a high end London restaurant. The specific restaurant is part of the Berkeley Hotel in London, Knightsbridge (The Berkeley Hotel 2012). The specific business is quite successful; still, emphasizing on employee performance could further enhance the performance of the organization. In any case, challenges that are common in all performance management systems would not be avoided; however, the organization’s experience on performance management, as explained below, could help to control the relevant risks. 2. Strategies for improving employee performance in The Berkeley restaurant 2.1 Aligning staff goals and organisational goals The relationship between employee performance and organizational goals is revealed through the definition of performance management. In the study of Marchington, Wilkinson and Sargeant (2002) the performance management is described as ‘the policies that focus on employee performance as a means of fulfilling organizational goals and objectives’ (Lowry 2002, p.129, in Marchington, Wilkinson and Sargeant 2002, p.318). ... of the employees’ (Schryver 2002, p.40). It is implied that employee performance can negatively affect the performance of the organization, meaning the case that employees are not able to support the achievement of organizational goals. Moreover, according to Houldworth, Jirasinghe and Group (2006) organizational goals can be achieved only when employees have understood organizational goals and when they are given the chance to participate actively in the organization’s daily operations. In other words, high employee performance is depended on the ability of each organization to align staff goals and organizational goals (Houldworth, Jirasinghe and Group, 2006, p.182). The terms on which this alignment is based are not standardized, meaning that each organization can use different practices for achieving the above target. The promotion of teamwork across the organization could help employees to contribute more in the achievement of organizational goals (Houldworth, Jira singhe and Group 2006, p.182). This practice could be also used in the restaurant under examination, taking into consideration the characteristics of the particular business. Teamwork could be promoted in The Berkeley but up to a particular level, especially in regard to the lower levels of workforce, having in mind the fact that the activities of all employees in the restaurant’s key unit, the kitchen, should be continuously monitored by the Chef; the latter would have to define the terms of teamwork according to the skills of staff but also the restaurant’s needs, as related to its daily menu. Hutt and Speh (2012) note that the increase of value of each organization can be

Corporate finance Essay Example | Topics and Well Written Essays - 2000 words - 6

Corporate finance - Essay Example Company’s capital structure can comprise of majority of equity or debt component, an equal combination of both or only one of them. Each approach includes its own advantages as well as disadvantages. The hypothesis on capital structure from the Modigliani & Miller is considered as one of the significant developments or progress in the area of corporate finance (Miller, 1988). The report will highlight the main foundations and implications of Modigliani & Miller approach towards the capital structure. It will also focus on how this theory is related to the purpose of weighted average cost of capital (WACC) for a company. Further, the report will take into consideration the practical applicability and usefulness of the theory in real life business. There are five assumptions of this approach which involves: no taxes; transaction price/cost for selling and buying securities and also the cost of bankruptcy is nil; there is evenness of information which means that the investor will have the right to use the similar information that the corporate would and it also means that the investors are required to behave rationally; the borrowing cost is same for companies as well as investors; and financing of debt does not involve any effect on the firm’s earnings before interest and tax (EBIT). The approach of Modigliani & Miller signifies that the value of leveraged company (i.e. the company having the mixture of equity and debt) is similar to the unleveraged company’s value (i.e. the company which is completely financed by means of equity) if the future prospects and the operating profits are same. It further explains that if the investor buys leveraged firm’s share, it would rate him on the same scale as purchasin g the unleveraged firm’s share (Casamatta, 2003). The theorem of Modigliani & Miller makes the basis of contemporary corporate finance. It defines that this