MGT490 Week 3 Assignment

Part 3 - Financial Analysis

Nearly every problem or issue confronting an organization has a financial or
budgetary impact. For instance, staff turnover has not only a direct cost on
recruitment expenses, training costs, and productivity, but also an indirect
cost related to the loss of organizational learning. In Part 3:

 Detail the financial implications to the organization related to your

problem or issue What are the organizations current financial capabilities?
What are some of the financial strengths and weaknesses?

 Explain the additional costs that may arise if the problem or issue is not
resolved effectively.

 Discuss any ethical issues that are associated with the financial
implications and identified problem.

The complete instructions for Parts 1, 2, 3, and 4 of the Final Paper can be
found in Week 5 Final Paper page.
The Part 3 – Financial Analysis paper

 Must be two to three double-spaced pages in length (not including title

and references pages) and formatted according to APA style as outlined in
the Writing Center’s APA StyleLinks to an external site. resource.

 Must include a separate title page with the following:

o Title of paper

o Student’s name

o Course name and number

o Instructor’s name

o Date submitted

 For further assistance with the formatting and the title page, refer to APA
Formatting for Microsoft WordLinks to an external site..

 Must utilize academic voice. See the Academic VoiceLinks to an external

site. resource for additional guidance.
 MGT490 Week 3 Assignment

 Must include an introduction and conclusion paragraph. Your introduction

paragraph needs to end with a clear thesis statement that indicates the
purpose of your paper.

o For assistance on writing Introductions & ConclusionsLinks to an

external site. as well as Writing a Thesis StatementLinks to an
external site., refer to the Writing Center resources.

 Must use at least two scholarly sources in addition to the course text.

o The Scholarly, Peer Reviewed, and Other Credible Sources Links

to an external site. table offers additional guidance on
appropriate source types. If you have questions about whether a
specific source is appropriate for this assignment, please
contact your instructor. Your instructor has the final say about
the appropriateness of a specific source for a particular
assignment.

 Must document any information used from sources in APA style as

outlined in the Writing Center’s Citing Within Your PaperLinks to an
external site. guide.

 Must include a separate references page that is formatted according to

APA style as outlined in the Writing Center. See the Formatting Your
References ListLinks to an external site. resource in the Writing Center for
specifications.

Part 3 - Financial Analysis

 MGT490 Week 3 Assignment

Student’s name

Course and number

Institution’s name

Instructor’s name

Date submitted

The fiscal implications for any organization related to staff turnover can be significant.

The direct costs such as recruitment and training expenses can be costly and the indirect costs

such as lost organizational learning can be difficult to quantify. Organizations must assess their

current financial capabilities and identify both their strengths and weaknesses to properly

address the issue. This assessment should include an examination of current resources,

budgeting priorities, and the potential for utilizing external financial assistance. For instance, a

big business may have to spend a significant amount on recruitment, retraining, and lost

productivity, while a smaller organization may struggle to cover the cost at all. It’s important to

consider the organization's financial capabilities and strengths and weaknesses when

determining the best course of action (Allen, Bryant & Safari an O'Reilly Media Company

2012). It's also important to consider any potential financial risks, as they will affect the
 MGT490 Week 3 Assignment

organization's bottom line. Moreover, there may be additional, indirect costs such as the loss of

organizational learning.

Organizations need to be aware of the current financial capabilities and the potential

financial implications associated with a given issue or problem. Financial analysis should

include an assessment of financial strengths and weaknesses to identify potential risks and

opportunities. MAP International is a well-established non-profit organization that is dedicated

to providing medical assistance to those in need. The organization's financial situation is

important to assess to ensure that resources are being used in the most efficient way possible. It

is important to consider the financial implications of any issue or problem when it arises, as this

helps to maintain a solid financial foundation. The current financial capabilities of the

organization are strong, with a total income of $1.2 billion in 2018, and $1.739 billion in 2019

(Department 2020). The organization’s current financial capabilities include investments in

fundraising and marketing, grant writing, and diversifying sources of income. Its financial

strengths include a well-established reputation and excellent networking opportunities, while its

weaknesses include a limited budget and difficulty in identifying new sources of funding. The

financial implications of staff turnover for MAP International include recruitment and training

expenses, as well as the loss of organizational learning, which can have a long-term impact on

the organization’s financial health.

Without a solution to the issue, additional costs may arise in terms of wages, benefits,

and other overhead costs related to the hiring of new employees to fill the positions vacated.

Additionally, there may be a loss of business opportunities due to the inability to take on new
 MGT490 Week 3 Assignment

clients due to the lack of personnel or inadequate training. The financial implications of not

addressing the problem or issue can be far-reaching and have a damaging effect on the

organization's bottom line. In addition, there may be costly legal ramifications if the problem is

not remedied promptly. To ensure a positive outcome and avoid further losses, it is essential to

recognize the various elements of a problem or issue and its financial implications. For instance,

if staff turnover is an issue, organizations must consider the recruitment and training costs of

new employees, as well as the potential loss of organizational knowledge due to the lost

expertise of the departing staff. In addition, there will be an increased workload for those

remaining in the organization, leading to overtime costs and further frustration for already

overstretched employees (Organization for & Organization for Economic Co-operation and

Development 2015). All of these additional costs can be avoided by implementing effective

staff engagement strategies to ensure employee satisfaction and reduce turnover. Other costs,

such as those related to customer service, may be incurred if customers are unhappy with the

quality of the product or service. Furthermore, a failure to act can lead to reputational damage,

as customer loyalty and trust can suffer as a result. The cost of resolving a problem or issue is

often higher than the cost of preventing it.

Ethical issues must be considered when analyzing any organization's financial matters.

There are potential conflicts of interest related to budgeting and budgetary decision-making, as

funds can be allocated or withheld to benefit certain parties or ideologies. Additionally, the lack

of transparency in financial matters can lead to fraud or other unethical practices. The financial

implications of any problem or issue should be weighed carefully with consideration given to

any ethical implications that could arise as a result. Several ethical issues arise due to the
 MGT490 Week 3 Assignment

financial implications of a problem. For instance, if an organization is spending too much

money on staff turnover, it may be tempted to cut corners on training and recruitment to save

money, which can lead to hiring unqualified candidates or not providing enough training to

ensure that new hires are properly trained. There is also the potential for organizations to

prioritize financial gains over the well-being of their employees if they are overly focused on

cutting costs. These ethical considerations must be taken into account when deciding how to

address a problem or issue with a budgetary impact. Ethical considerations must be taken into

account when dealing with financial issues such as salaries, benefits, and other organizational

decisions. This can include making sure that everyone is compensated fairly and that any

decisions made are in line with the organization's mission and values. Moreover, it is important

to ensure that any investments are made responsibly and will not lead to any potential conflicts

of interest or harm to stakeholders or the environment (Lütge & Jauernig 2014).

MGT490 Week 3 Assignment
 MGT490 Week 3 Assignment

Reference

Allen D. Bryant P. & Safari an O'Reilly Media Company. (2012). Managing employee

turnover (1st ed.). Business Expert Press. Retrieved February 20 2023 from INSERT-

MISSING-URL.

Department of. (2020). World economic situation and prospects 2020. United Nations.

Retrieved February 20 2023 from

https://www.vlebooks.com/vleweb/product/openreader?

id=none&isbn=9789213583296.
 MGT490 Week 3 Assignment

Lütge Christoph & Jauernig J. (2014). Business ethics and risk management. Springer.

https://doi.org/10.1007/978-94-007-7441-4

Organisation for & Organisation for Economic Co operation and Development. (2015). G20.

OECD. Retrieved February 20 2023 from INSERT-MISSING-URL.