Leadership Management Report: Financial Planning, Performance & EQ

This report analyzes leadership management principles, focusing on financial planning, performance management, and emotional intelligence within the context of a case study involving a bicycle manufacturing company. The report examines a master budget, identifies discrepancies, and proposes a contingency plan to mitigate risks. It details the development of performance management processes, including action plans and key performance indicators (KPIs), and reflects on emotional intelligence, including personal experiences and strategies for improvement. The report also addresses specific issues such as budget changes, cost principles, and the integration of emotional intelligence within the workplace. It includes elements of a complete assignment brief, problem, assessment tasks, and procedures.

Running head: leadership Management
Topic: Leadership Management
Name of the Student:
Name of the University
Author note:

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Table of Contents
Introduction......................................................................................................................................2
Plan Financial Management Approaches........................................................................................2
Develop and manage Performance-management process...............................................................8
Reflection on your emotional intelligence.......................................................................................9
Conclusion.....................................................................................................................................11

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Assessment Task-1
Introduction
According to the case study provided of Big Red Bicycle is associated with
manufacturing of bicycle. According to the business the management has set its strategic plan
which aims at to earn $1,000,000 before tax expenses. Moreover, the company is trying to
achieve its competitive advantage by expanding their business by manufacturing into foreign
market. The key focus area of the paper is to assess a master budget which is prepared by the
management of the company. The paper further would demonstrate the clarifications and
discrepancies and further formulating a contingency plan that will be helpful to carry out the risk
that may act as an obstacle for the companies. The paper also focuses on development of
performance management and emotional intelligence.
Plan Financial Management Approaches
Analysis of budget
According to the details provided in the master budget prepared by the management the
amount of sales is $750,000, this is the estimated value in each year. For the year 2011-2012, the
master budget of the company will be compared with the actual expenses and revenues. It is
found out that the sales amount as per the mentioned budget is $600,000, which is during the 1st
quarter of the year; the same is identified for the 2nd quarter which is amounted $900,000. It is
again observed that the sales under the budget are evenly spread but in actual it is not feasible as
the sales of any company generally fluctuates based on the economic condition, demand and
manufacturing quantity. However, the salethat is observed largely varies from the expectation of
the management which owes to economic slowdown in the market. The repair expenses overall

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maintenance which is estimated in the budget is $11,250 is vague and allocated in 4 quarters, by
showing the overall expenses equally in the 4 quarters is also unrealistic as it may so happen that
the in any quarter the company may expense higher amount towards maintenance and repair.
However, the same time it is also observed that there may not be expenses. Moreover, it is
observed that the sales commission is 2% of sales which seems unreal.
Therefore, is required for the sales manager to have a clarification report from the
company management that why did they spread the repair expenses and maintenance over the
quarters 4. The other expense must focus on the other expenses and shall aim on the realistic
basis as all the expenses will show them to estimate the real value of profit. Moreover, the sales
manager must be required to put the correct values which will be based on the real sales and
must change the sales values.
Changes in the budget
Changes that can be made in the budget are as follows:
The company management should make the important changes in the recording criteria of repair
expenses and maintenance as it is vague and unreal that the particular amount of these expenses
will be incurred in every quarter.
It is found that the commission of firm on the sales is for each of the centers which is budgeted
as same, it must be changes to actual one. The firm must implement innovative or new plan for
each centre particularly based on its overall production and their sales level. Moreover the sales
employee centre A should be provided with maximum wages which will keep them motivated.

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It is observed that in the budget the sales are evenly spread, but in real it is somehow not
feasible, as we know the sales of the company’s shows fluctuations based on factors such as
manufacturing quantity, economic condition and demand. Therefore, the sales budget must be
taken into consideration and made the necessary changes to actual one.
3. a. The two issues for clarification:
 Increase in cost, figures of the budget
 Inappropriate sales figure shown in the budget.
b. Negotiate two changes
 Need to improve the cost figures in the budget and as per the current trends in the market.
 Need to improve the profit estimates which are set by the management of the company
and the sale should be realistic.
c. Double entry and cost principles of accounting
d. Fringe benefits tax assessments act 1986
Good and service tax 1999
Income tax assessment act 1997
e. The principles and techniques of managing the budget items

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Annularity- In this principle, the money is spent in all the departments and executives for almost
one year. The amount which is left and not spent during the budget year, the approval is lapsed
and is not spent anywhere until the money is further approved for the next budgeted year.
Standard costing principle must be used by the company which will identify the variance or
differences between the actual cost of goods that are produced and the cost that should have
occurred for actual goods produced.
Preparation of Contingency Plan
Contingency plan 1
Contingency Plan
Company name: Big Red Bicycle Pty Ltd
Person developing the plan: Sales Manager of Sales Centre A
Name: Mark West
Position: Sales Manager
Risk Identified: Variance among the actual profit and budgeted profit by 20%
Strategies/ activities to minimize the risk By when By when
In order to achieve competitive advantage from
the competitors the management must
implement modern and innovative techniques
which will increase the business sale.
10th December Sales Manager
Expanding the business over the oversea
market. So that it can expand and can generate
28th February Production Manager

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sales from secondary market.
Contingency Plan
Company name: Big Red Bicycle Pty Ltd
Person developing the plan:Sales Manager of Sales Centre A
Name: Mark West
Position: Sales Manager
Risk identified: Inappropriate balances showing in the Budget
Strategies/activities to minimize the risk By when By whom
Implementation of the commission which will be based on
upgraded charge that would provide benefits on their
performance
25thDecember Operational
Manager
To keep motivated to the managers, introduction of commission
system will be beneficial to reach higher targets.
5thJanuary CEO,COO and
top
management

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Develop and manage Performance-management process
As evident, after reviewing the Australian hardware vision strategic objectives, the objectives
and policies which must be addressed in integrated performance management processes that
would be developed for implementation are:
This policy are abided by industrial law privacy act 1988 (Cwlth), Anti-discrimination Act 1977
(NSW) and Fair Work Act 2009 (Cwlth).
The objectives that must be followed are
Developmental opportunities for employees are recognized and must be implemented effectively
Employee development principles and practices are applied across the organization
In a systematic manner the employee is developed generally based upon their needs and that
development is cost-effective.
Performance management
objectives
To build competent and skilled employee
To motivate employees based on their merit
To maintain a positive work ambience
Action Plan
Action Resources Strategy Timeline
Training all store
managers-product
knowledge customer
Online session,
trainers
Training and
development courses
Within 6 months

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Practical course on
customer relation
management
Survey or on job
training
CRM courses Within 3 months
Fill the gaps through
test and exams
Study materials Online test Within 2 months
Role Play Between two managers: Line Manager and Chief Operating Officer
Chief Operating Officer- Hey, How are you doing?
Line Manager- Well I doing good and everything is fine.
Chief Operating Officer- Okay that’s good, the reason why I called for this meeting is to know
discuss about the performance of the company and you are aware of the KPI tool. I want to
ensure certain objectives and processes for developing effective KPIs.
Line Manger- Yes, sir I am aware of the fact that the company’s performance is very important
in order to keep pace with the competitive environment. Sir, it would be beneficial if our
objectives for KPIs are used in the SMART criteria.
Chief Operating Officer- Yes exactly, you are correct it must be smart therefore; I want you to
clarify clear objectives. So what do u think and suggest about the new objective and processes.
Line Manager- Sir, according to the present situation first we must focus on the revenue
improvement and cost reduction first and therefore, a financial metrics needs to be maintained.
Secondly, customer satisfaction is another aspect we need to focus on and thus a customer
metrics which involves the scorecard measures like customer lifetime value, customer
acquisition cost, net promoter score.
Chief Operating Officer- Yes you are right but in order to achieve this objective we need to
process the above objectives effectively so how do u think you will assess them?
Line Manager- Sir for the financial metrics, the budget index can be used LOB revenue versus
target, the day sale outstanding and LOB expenses versus Budget. For customer satisfaction the
service quality performance KPI is beneficial like it shows the cycle time, number of escalations,
number of reminders, customer rating service and number of customer complaints.
Chief operating Officer- Well that’s a good approach towards implementing KPIs, we will look
forward for next meeting for evaluation.

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Reflection on your emotional intelligence
The three instances where I had felt stressed was the first time when I joined in a
company which was in a different country. At work situation were worse as I felt left out in the
team as I was new and it was quiet uncomfortable for me to adjust with the new team. The
second instance was at work when I was unable to reach the target and I got scolding from my
team leader. The third instances were during my training session where the trainer was quiet rude
enough and used harsh words on me while training.
It was the time when I got stressed due to my colleague as I was unable to concentrate on
my own task and my colleague was intriguing on me continuously. I felt really angry and I
shouted on my colleague and that was the instance when I knew that I must adapt emotional
intelligence and effective communication skills as I could have spoken to him very politely
without creating any disturbance.
Communication style that is effectively adapted by the employees and employer in the
organizational, honesty and empathy is the key instances in the organization which demonstrates
management of emotion as an example to follow.
The three actions to improve emotional intelligence are:
Self-awareness
Building empathy
Good communication skills
Honesty

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Conclusion
It can be deferred from the following paper that emotional intelligence plays a crucial role in
organization. The changes budget is highly effective in increasing the sale revenue in the
organization. The development of performance management would help the organization to
implement integrated performance management in the organization.