外文翻譯--績(jī)效評(píng)估、經(jīng)濟(jì)增加值和管理行為-在線(xiàn)瀏覽
2025-07-31 06:04本頁(yè)面
【正文】 The EVA is closely related to NPV. ?The Net Present Value of the project is the present value of the economic value added by that project over its life? (Damodaran, 2020). Godrej Soaps group of six panies is one of the early adopters of EVA. Godrej had a multistep variable bonus plan, where three levels of targets were outlined. A salesperson who had reached level I would never aspire to do more unless he was sure to touch level II, because he would not get any additional bonus for being midway. It would be more beneficial for him to report it in the next financial years39。s figures suffered as a result. There was clearly gap in munication between the management and the employees. “A measure was needed that would align the interests of the employee, the pany and the shareholder”. Godrej Market Value of Equity Market Value Added Book Value of Equity Book Value of Equity Market Value Lost Market Value of Equity Company The usage of EVA Godrej As a measure that aligns the interests of the employee, the pany and the shareholder TCS As a performance measure linked to pensation Infosys As a tool to tell its clients that the value delivered by Infosys is greater than what the client pays for. Marico As a signaling device to tell its employees that capital is important. Dr. Reddy39。 Managerial Behaviour At the Godrej group, the entire business planning process is driven by EVA which will be applicable to about 2,500 employees. EVA will be the main financial parameter by which we measure our performance. It will be also used in all capital expenditure decisions including acquisitions. The objective is to make all employees think like owners which would lead to an entrepreneurial culture this should be strongly supported by an openended variable remuneration scheme. This plan provides design flexibility, ensures alignment between employees and shareholders, and significant motivation can be achieved with reasonable retention risk and shareholder cost . Exhibit 3. The Use of EVA at Select Indian panies Tejpavan Gandhok, managing director of Stern Stewart India argues “If you seek to maximize EVA in the long run. People will be much more bottomline conscious andconscious about sustainable results because their own in centives are tied to getting a part of the action. The real benefit from EVA es from making it a way of life inside the pany. Essentially, the parison between EVA and ESOPs is in terms of their relative effectiveness in inducing the desired managerial behaviour. In small startups, employees would be more keen to be rewarded by ESOPs. In large and diversified organisations I suspect EVA would be preferred by employees. (Jagannathan,2020). At TCS, about 1,000 employees have left in the first quarter 202005 financial year. This, according to sources in the pany, is a result of the salary model based on the economic valueadded (EVA) that was rolled out two years ago. Those exiting, they maintain, are primarily the nonperformers. The EVA model – involving assessment, retraining and exit discussions – moves on a twoyear cycle and the last quarter was the first one when its impact kicked in. Under a new fivetier appraisal system, a large percentage of those who have left were classified as nonperformers. They were given low rankings for the second year in a row and failed to show signs of improvement despite undergoing a mentorship program me. Sources in TCS, however, said it was a conscious move by the pany to enhance resultorientation among its employees. Accor ding to the new EVAbased system, every employee?s salary has a fixed and a variable ponent. The variable ponent of the pay takes into account the performance of the individual and the pany (Sinha, 2020) . 8. The EVA, MVA and firm value: Empirical Evidence While Joel stern(2020) argues ?EVA provides a signal to the investors that this management is more likely to achieve the expected return on book capital employed, and might warrant higher price to earnings ratios be cause they are likely to engage in less potential waste?, Empirical studies have outlined mixed findingssome of them diametrically opposite. ‘ There is only limited support
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