Business – 5.2 Sources of finance – Selecting the source of finance | e-Consult

Each source has distinct strengths and weaknesses when judged against three criteria:

• Objectivity: The degree to which the source is free from personal bias.
• Relevance to managerial performance: How directly the source measures the responsibilities of a store manager.
• Practicality: Cost, time required to collect and analyse the data.

1. Sales figures and KPI dashboards

• Objectivity – Very high; numbers are factual.
• Relevance – High for financial targets, but may overlook non‑financial aspects such as staff development.
• Practicality – Data are automatically generated; low additional cost.

2. Customer satisfaction surveys

• Objectivity – Moderate; responses can be influenced by external factors (e.g., product availability).
• Relevance – Directly reflects service quality, a core managerial duty.
• Practicality – Requires survey design and periodic distribution; moderate cost.

3. Peer‑review questionnaires

• Objectivity – Low to moderate; peers may be reluctant to give negative feedback.
• Relevance – Provides insight into teamwork, leadership, and internal processes.
• Practicality – Time‑consuming to administer and collate; may need anonymity safeguards.

4. Self‑assessment reports

• Objectivity – Low; managers may over‑state achievements.
• Relevance – Useful for understanding personal goals and perceived challenges.
• Practicality – Easy to collect, but must be triangulated with other sources for credibility.

For a balanced appraisal, the retailer should combine the highly objective sales data with customer surveys for service quality, and supplement both with peer and self‑assessments to capture leadership and developmental aspects.