Posted: January 21st, 2021
According to the text, “A management control system is planned, ordered scheme of detecting deviations from goals and standard and making the appropriate corrections. It enables managers to readily asses where the firm actually is at a point in time relative to where it wants or expects to be”(Bierman, Ferrell & Ferrell, 2016). A company must have a strategy in order for it to run effectively and without this strategy in place a company will not have a focus to stay on top of things. For a company to run effectively and efficiently they set up controls to ensure they are achieving their goals for the organization. This process consist of establishing performance standards, measuring performance, comparing performance against standards, and deciding whether corrective action is required or if performance should be rewarded. The first process is the performance standards which is the beginning step. During this process they are measuring the effectiveness. Standards are set and analyzed in this process. The next step is the measuring performance which is done on a regular basis. The third step is comaring measured perfomace agaisnt established standards which five outcomes are possible:exceed, met, missed slightly, missed and badly missed. The last step is the evaluation process where managers notice success of performances. They give rewards of goals that were met which include acknowledgement by others, bonuses and good ratings, increase in pay and moving up in the organization.
The three types of control are the preliminary control which help to control quality and quantity of resources and try to fix the issue before it enter the system.The next is the screening control that regulates operations. The Last control is the feedback which deals with the financial part the output.
For a organization to function effectively they need to have controls into place to insure efficiency.
Four steps of control and the way they are treated in an organization, establishing performance standards which give the company an insight on how things will work from the beginning to the end, involves carefully collecting information about a system, process, person, or group of individuals to make necessary decisions about the` company. Measuring performance is the second step of control it deals with the type and effort that one puts into the group to make them feel as if they are a part of the organization, sometimes it is impossible to measure performance, most companies may measure performance by using testing or evaluation within the enterprise.
The third step of control was comparing the performance how to decide whether you consider doing the same type of function. The competitor can use alternative ways enacts more efficient financial scrutiny. The last step of monitoring evaluation and corrective action managers must determine what changes, if any are necessary and how to apply the to the group, frequently the workers and managers are often empowered to evaluate the own performance.
The thing that brings control to the organization is the three forms of operational control group preliminary when performance standards are met or nearly met, maintaining the status quo the current course of action may be the best response. Screening for any organization will cause you to go in depth of finding anything that seems to be out of place, analysis of the problem, make sure thing are well-balanced or fully developed. Any feedback an organization receive will eventually create good business. There must be a reason when being in business people will want to continue to come, the reaction that a company receives help the organization with the pros and cons, feedback will not always be perfect you should be able to control the negative as well as the active.
What is the primary financial control tool used to manage the operations of an organization and how can it equip managers with the information they need to make decisions? How are financial controls different for a global organization? Provide three examples.
Respond to at least two of your classmates’ posts. Evaluate their discussions by agreeing, disagreeing, or adding other ideas to strengthen or enhance the perspectives presented in their initial posts.
THIS IS THE TO PARAGRAPH YOU DO A SHORT RESPONSE TO.
There are several financial control tools which are budgetary control, analyzing financial statements, financial audits etc. But the primary financial control tool used to manage the operation of an organization would be budget. A budget is an annual, formal, written plan that directs future operations in financial terms (Bierman, Ferrell, & Ferrell, 2016). Budgets provides a procedure for measuring performance across different units within the organization. Budget help you keep up with resource status in the organization so you can evaluate the performance of managers and units. Budgets also help managers compare budgets figures with actual performance for calculating the variances. I don’t think financial control differ a whole lot for global organization, it just has a little more expected because of it expansion.
According to our text, “organizations typically use a number of financial control techniques, many of which are beyond the scope of this book” (Bierman, Ferrell & Ferrell, 2016). The organization uses what is known as budgets to help with financial planning for the company. The budget is what the organization uses to help them control the financial need of the company. The company that I work for has a budget that is allowed for the purchasing of supplies and materials that are needed for the teachers in the classroom. Each month the company have a budget that they have to meet and stay within.Some classes like the pre-k classrooms budget is a little more than the other classes because of the need is greater. In a global organization the financial control is different due to the extensive financial need of the company. The organization has more financial responsibilities to meet. The budget plan if different because of all the companies involved in the budget.
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