When a business is set up, the owners are hopeful that at the end of the day they can reap profits by basically changing their setbacks to strongholds. They also hope to make use of the available opportunities to eliminate the threats they face. All these are possible only if the managers have the best knowledge of their market and their business trends. Examination of the trends plays this significant role in providing this information required for further action. In addition to that, internal reviews offer a fair chance for every individual within the organization to come in terms with the business requirements and consequently embrace their roles.

QUESTION

The chapter (four) is on inward review or assessment. Internal and external reports are closely associated only that inward review analyses only the internal aspects of an organization. It concentrates the strengths and weaknesses in particular areas of an enterprise, for instance, managerial, finance, accounting, administration, etc. when undertaking inward review of an organization, each of the specific sectors some of which I have listed are keenly examined. These sectors are crucial for they form the initial guide in the drafting of the goals the business seeks to achieve and other essential elements that determine the growth and future progress of the organization. These examinations are necessary as they aid the managers to overcome weaknesses and capitalize on the strengths of the organization.

When a business is set up, the owners are hopeful that at the end of the day they can reap profits by basically changing their setbacks to strongholds. They also hope to make use of the available opportunities to eliminate the threats they face. All these are possible only if the managers have the best knowledge of their market and their business trends. Examination of the trends plays this significant role in providing this information required for further action. In addition to that, internal reviews offer a fair chance for every individual within the organization to come in terms with the business requirements and consequently embrace their roles.

Past studies have shown that internal reviews and examinations of businesses are more important than external examinations. The reason attributed to this is that when an internal audit is done, it exposes the issues affecting an organization more than any other considerations.

ANSWER

The Significance of Inward Review in Assessing Organizational Performance

Introduction

Inward review, also known as internal assessment, is a crucial process that focuses on analyzing the internal aspects of an organization. It involves a comprehensive examination of various sectors within the enterprise, such as managerial, finance, accounting, administration, and more. By identifying strengths and weaknesses in these areas, inward review provides valuable insights for drafting organizational goals and determining future growth and progress. This essay explores the importance of inward review and highlights its significance compared to external examinations in understanding and improving organizational performance.

Analyzing Internal Aspects for Improved Performance

When a business is established, the owners aspire to overcome setbacks and transform them into strengths, while leveraging available opportunities to mitigate threats. In this pursuit, managers need to possess comprehensive knowledge of the market and business trends (Bhidé, 2022). Internal reviews play a crucial role in gathering the necessary information to inform strategic decision-making. By examining market trends, managers gain valuable insights into customer preferences, industry dynamics, and competitive forces. Armed with this knowledge, organizations can proactively adapt to market changes and position themselves for success.

Inward review is equally important for creating a shared understanding of business requirements among all individuals within the organization. By engaging employees in the review process, it fosters a sense of ownership and enables them to align their roles with the overall business objectives. This inclusive approach not only enhances employee motivation and engagement but also encourages the exploration of innovative ideas and solutions to address internal challenges.

The Superiority of Internal Reviews

 Internal assessments uncover hidden inefficiencies, bottlenecks, and operational gaps that external examinations may overlook. Organizations can proactively devise strategies to overcome these shortcomings by shining a spotlight on internal weaknesses (ACCA – https://www.accaglobal.com, n.d.). Additionally, internal reviews facilitate the identification of underutilized resources and untapped potential, enabling managers to leverage existing strengths for competitive advantage.

Furthermore, internal examinations promote a culture of continuous improvement within the organization. By regularly assessing internal performance, organizations can set benchmarks, establish targets, and monitor progress toward achieving their goals (Ettorchi-Tardy, 2012). This iterative process enables managers to adapt strategies, reallocate resources, and optimize performance in a dynamic business environment.

Conclusion

Inward review plays a vital role in assessing and improving organizational performance. By analyzing internal aspects, such as managerial capabilities, financial systems, and administrative processes, organizations can identify strengths and weaknesses that inform strategic decision-making. Internal reviews offer valuable insights into market trends and business requirements, enabling organizations to adapt to changing environments and capitalize on emerging opportunities. Moreover, internal examinations hold greater significance than external assessments as they uncover specific internal issues and facilitate the development of tailored solutions. Embracing the practice of inward review fosters a culture of continuous improvement, allowing organizations to overcome weaknesses, capitalize on strengths, and achieve long-term success.

In conclusion, organizations that prioritize inward review as an integral part of their assessment process are better equipped to navigate challenges, leverage opportunities, and sustain growth in a competitive business landscape.

References

ACCA – https://www.accaglobal.com. (n.d.). Using the work of internal auditors | ACCA Qualification | Students | ACCA Global. https://www.accaglobal.com/gb/en/student/exam-support-resources/fundamentals-exams-study-resources/f8/technical-articles/internal-auditors.html 

Bhidé, A. (2022, April 19). The Questions Every Entrepreneur Must Answer. Harvard Business Review. https://hbr.org/1996/11/the-questions-every-entrepreneur-must-answer

Ettorchi-Tardy, A. (2012, May 1). Benchmarking: A Method for Continuous Quality Improvement in Health. PubMed Central (PMC). https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3359088/