Solution Risk and its management briefly defined: In most simplistic terms, when the actual outcome varies from the expected outcome, it is called risk. For example, if you buy shares of a company @ AED 50 per share. There is a risk of this price being different than AED 50 when you wish to sell it. It could go to AED 55 or drop to AED 45 at the time of sale. This is risk. The idea of risk management is to minimize the negative impact of downside and capitalize upon the upside potential. F...

Solution 3LDO L&D and the Organisation 1.1 Different reasons why organisations are established An organisation can be identified as different people including institutions or association coming together to attain a particular set purpose. Through this, they are able to attain collective goals and different functions in a coordinated manner. Therefore, some of the reasons why the organisations are established include; Working collaboratively for increased achievements- this is e...

Question Activity 1 1a. Agree an opportunity to evaluate an L&D activity/session. In conjunction with any other key stakeholders of the session, determine the criteria you will use as the basis of the evaluation and the related information you will need to collect. 1b. Use appropriate methods and evaluation tools to collect the required information. 1c.Analyse the information and draw evaluation conclusions. Activity 2 Following Activity 1, produce an Evaluation Report in which ...

Activity 1 1a. Agree an opportunity to evaluate an L&D activity/session. In conjunction with any other key stakeholders of the session, determine the criteria you will use as the basis of the evaluation and the related information you will need to collect. 1b. Use appropriate methods and evaluation tools to collect the required information. 1c.Analyse the information and draw evaluation conclusions. Activity 2 Following Activity 1, produce an Evaluation Report in which you explain:...

Monitoring and control of finance employed is as important as the planning, acquisition and utilization. Organizational priorities stem from the overall vision and mission of the organization and travel down to policy, longer term objectives that eventually translate into operational goals and daily routines. As we discussed in the previous sub task A.C.3.2 budget is a very efficient way of setting priorities and targets. This budget is nothing but a short term goal that links with the strategic...

The distribution of finance or allocation of resources is a policy decision that covers operational (short term) and investing and financing (long term) needs of the business organization. The objective of both short term and long term financing is to ensure solvency of the company and meeting of long term objectives and also fulfillment of short term operational needs which are in line with the long term objectives and overall business vision of the organization. Both short term and long term p...

An organization needs financial resources to run the operations. These resources form different types ranging from internal to external and then come in many kinds. The type of source of finance that any particular organization uses depends upon the need, objective, size, policy and capital structure of the organization. Below are highlighted some main sources of finance: Internal sources: As the name signifies, these sources are generated from within the organization and could come from ei...

Since budgetary process involves entire organization and its functions, conflicts often arise among different functions. The objective of budgeting is not to get functions work in isolation. Rather budget should be goal congruent meaning all functional budgets should be in harmony with the overall business strategy and mission of the management. Below are few examples of how conflicts can arise and how to minimize them:   Please click the paypal icon below to receive CMI Level 5, Unit...

Building on the example of XYZ Company in task A.C.2.2 the management will now look for reasons that lead to unfavorable variance. One of the following could be the reason: Budget estimates were built on unrealistic assumptions In efficiency of the workers and the foremen that resulted in laborers sitting idle or taking unnecessary breaks Inefficiency of procurement function in negotiating the hourly rate The above variance analysis is reflective of a report at the end of a product...

The below variance analysis shows that to produce 46 500 concrete blocks XYZ Company over spent AED 52 250 on labor cost or 7% overall. A further analysis by block type reveals that block type B, C and D have unfavorable variance while block A and E have favorable variance. Also notice there are two type of variances i.e., hours spent and hourly rate. Block type B and D have labor hour variances meaning the actual hours spent on these block types are more than budgeted. While block type C and E ...