Critical Issues Module 2 Paper - Coursework Example

Though these activities may be short-term, activity based cost reduction activities should provide a better alternative for cost management of the ongoing activities. To implement cost reduction activities in the organization, the top senior managers should be committed. The board should be willing and ready to provide the necessary resources needed. Performance management and activity-based cost reduction models is the key to success of every organization. In non profits organizations such as the Innovations theatre, Reginald Foster Dance Troupe, Century Child Care, and Center Neighborhood Settlement, performance management and activity-based cost reductions models have been applied to achieve the success of the organizations (Walsh, 2002).

In the Innovations Theatre the board and the staff members perform the activities with the sole purpose of achieving organizational success. The board is clearly aware of their duties and hence seeks development for the theatre. They also articulate the vision of the theatre and work towards achieving their vision by incorporating the other workers. Duties are assigned to different groups of people. The board has also engaged in activity-based cost reductions such paying a membership fee and other annual membership dues.

These will go a long way in facilitating the company’s activities. They have also expanded the theatre by establishing new home theatre. The organization also recruits new members to the board who have financial ability and other professional talents that would be helpful to the organization (Firstenberg, 2009). The member is also expected to have a high social civic standing a factor that will make the organization gain some social status. There is a free flow of communication between the workers and the board members and the workers decisions are highly valued during the meetings. This