Solution
| Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section. Word count: Approximately 400 words |
| Measuring Financial Performance: Cash Flow Business operations track cash flow as their essential financial metric because it enables them to monitor money transactions throughout a business (CIPD, 2018). By conducting an analysis it becomes possible to understand how well a company handles liquidity and operational efficiency and executes short-term necessities. Companies demonstrate financial stability through positive cash flow but negative cash flow signifies that a company is not fulfilling its basic operating expenses. The measurement of cash flow permits the organisation to understand its potential for extending loans while implementing technological advancements and paying operational costs. Financial reports show full accounting data through cash flow statements by tracking operational revenue and investments and financing activities to demonstrate complete organisational health status. Appraisal of Cash Flow Measurement Business financial stability improves when organisations adopt cash flow as a performance indicator to get accurate real-time perspectives. The Cash flow measurement provides unadulterated financial data because profits measure differs due to accounting method variability. The future financial requirements needed for continuous business operations can be predicted through this organisational capability. Multiple performance-oriented restrictions affect the procedure used to measure cash flow. The profit analysis is not possible under this method because high cash flow organisations may show negative profits when their expenses exceed revenue. Market conditions along with economic downturns create so much impact on cash flow that diminishes its viability for consistent long-term evaluation. People professionals utilise cash flow data to forecast workforce requirements through cost assessment for new recruitments and staff training initiatives and compensation packages implementation (HR Magazine, 2023). The implementation of financial constraints by Human Resources results in people strategies that synchronise organisational needs with financial security objectives. Measuring Non-Financial Performance: Legal Compliance Legal compliance refers to an organisation’s adherence to laws, regulations, and industry standards. A business that protects employee rights through ethical practises and prevents legal consequences maintains benefits from the GBIM (2024) guidelines. Organisations use audits and policy reviews and regulatory reporting to create the methods for compliance evaluation. Employee safety and financial statement readiness have equal importance with legal compliance for AML operations. The outcome of routine compliance cheques allows Riyadh Bank to meet legal requirements while protecting both its market position and shareholder value. Appraisal of Legal Compliance Measurement Strategic compliance monitoring by organisations produces risk reduction as their main organisational benefit. Organisations which respect legal standards manage to avoid both monetary fines and legal conflicts and maintain their good reputation. Organisational credibility receives improvement when personnel develop trust as well as customers because an organisation implements solid compliance protocols. However, compliance measurement presents challenges. Measurement of sustainable compliance demands organisations to track regulatory changes while changing their approach through measures that could exhaust significant resources. The assessment of employee engagement together with customer satisfaction needs specific metrics beyond compliance metrics because their assessment methods differ. The combination of fair treatment standards and diversity programmes and employment laws forms the basis for professional metrics that demonstrate HR policy accuracy according to legal requirements. The monitoring of compliance helps HR professionals protect their workplace from potential risks and create fair ethical practises throughout their organisation (HR Magazine, 2023). |
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