Answer to Question #218511 in Management for JITENDAR SINGH

Question

The finance manager of PQR Ltd. is of the opinion that, maximizing the profits of the company is the only way of making the company’s performance better. Do you subscribe to his opinion? If so, what are the reasons. If not, how do you justify his stand? 

Answer 1

A company’s performance can not be evaluated from profit maximization only but it can be done by :

1. Defining the Past, the Present, and the Future. Make use of outside resources to provide a picture of the organization's present condition and future in relation to market trends.
2. Choosing a Few Well-Defined Objectives. Prioritize one to five objectives.
3. Making a plan.
4. Putting the Right People in the Right Places.
5. Keeping track of activities and outcomes.