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Single Entry and Double Entry Accounting

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Single entry accounting/Cash accounting. This system records only cash movement of transactions and that too up to the extent of recording one aspect of the transactions. This means that only receipt or payment of cash is recorded and no separate record is maintained (about the source of receipt and payment) as to from whom the cash was received or to whom it was paid. Double entry book keeping/Commercial accounting. Double entry or commercial accounting system records both aspects of transaction i.e. receipt or payment and source of receipt or payment. It also records credit transactions i.e. recording of Electricity Bill or accruals of Salary payment etc. This concept will be explained in detail in the next lectures but for the time being it should be noted that in cash accounting date of receipt / payment of actual cash is important while in commercial accounting the date on which the expense is caused (whether paid or not) as well as the spreading of the cost of c
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CONTROLLING FOR ORGANIZATIONAL PERFORMANCE

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What Is Organizational Performance? Performance is the end result of an activity. Managers are concerned with organizational performance— the accumulated end results of all the organization’s work processes and activities. Measures of Organizational Performance Employees need to see the connection between what they do and the outcomes. The most frequently used organizational performance measures include organizational productivity, organizational effectiveness, and industry rankings. 1.  Organizational productivity is the overall output of goods or services produced divided by the inputs needed to generate that output. It’s the management’s job to increase this ratio. 2.  Organizational effectiveness is a measure of how appropriate organizational goals are and how well an organization is achieving those goals. TOOLS FOR MONITORING AND MEASURING ORGANIZATIONAL PERFORMANCE Managers might use any of the following types of performance control tools: financial controls, info
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CONTROLLING ORGANIZATIONAL PERFORMANCE THROUGH PRODUCTIVITY AND QUALITY

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Types of Controls A.  Controls can be classified according to their timing or place in the productive cycle. 1.  Feed forward control focuses on the regulation of inputs to ensure that they meet the standards necessary for the transformation process. a.  The emphasis is upon preventing problems. b.  Other names for feed forward control are “preliminary control,” “pre-control,” “preventative control” and “steering control.”   2.  Concurrent control involves the regulation of ongoing activities that are part of the transformation process to ensure that conform to organizational standards. a.  Checkpoints are in place to determine whether to continue the process, take corrective action, or stop worked altogether. b.  Other names for concurrent control are “screening” and “yes-no control.” c.  This type of control is not appropriate for work that requires creativity or innovation.   3.  Feedback control is regulation exercised after a product or service has been completed in order
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Designing Control Systems

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Designing Control Systems Since control is the process of monitoring activities to ensure they are being accomplished as planned and of correcting any significant deviations. There are three different approaches to designing organizational control systems. A. Market control is an approach that emphasizes the use of external market mechanisms to establish the standards used in the control system. B. Bureaucratic control is an approach that emphasizes organizational authority and relies on administrative rules, regulations, procedures, policies, standardization of activities, well-defined job descriptions, and other administrative mechanisms to ensure that employees exhibit appropriate behaviors and meet performance standards. 1.  Bureaucratic control has advantages. a.  Unlike market control, bureaucratic control does not require that all requirements be specified in advance. b.  Bureaucratic control is useful for keeping recurring, relatively predictable activities running smoothly
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REVISITING CONTROL PROCESS

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REVISITING CONTROL PROCESS Let us take the control process as the three-step process of measuring actual performance, comparing it against a standard, and taking managerial action to correct deviations or inadequate standards.   A. Measuring. Measuring is the first step in the control process. 1.  How we measure is done through four common sources of information that managers use. Each of these sources has its own advantages and drawbacks. a.  Personal observation b. Statistical reports c. Oral reports d. Written reports 2.  What we measure is probably more critical than the how. Both objective and subjective measures are used. B.  Comparing is the next step in the control process. 1.  It determines the degree of variation between actual performance and the standard. 2.  It’s critical to determine the range of variation, which are the acceptable parameters of variance between actual performance and the standard. C.  Taking managerial action is the final step in the con
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CONTROLLING AS A MANAGEMENT FUNCTION II

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Control as a management process A.  Controlling,one of the four major functions of POLCA management, is the process of regulating organizational activities so that actual performance conforms to expected organizational standards and goals.  1.  Controlling is largely geared to ensuring that the behavior of individuals in the organization contributes to reaching organizational goals. 2.  Controls encourage wanted behaviors and discourage unwanted behaviors. B.   A control system is a set of mechanisms that are designed to increase the probability of meeting organizational standards and goals.   C.   Controls can play five important roles in organizations. 1.  Control systems enable managers to cope with uncertainty by monitoring the specific activities and reacting quickly to significant changes in the environment. 2.  Controls help managers detect undesirable irregularities, such as product defects, cost overruns, or rising personnel turnover. 3.  Controls alert managers to pos
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CONTROLLING AS A MANAGEMENT FUNCTION I

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Introduction and Overview of Controlling Regardless of the thoroughness of the planning done, a program or decision still may be poorly or improperly implemented without a satisfactory control system in place.   Controlling is that process of regulating organizational activities so that actual performance conforms to expected organizational goals and standards. While interrelated with all of the other management functions, a special relationship exists between the planning function of management and controlling. Planning, essentially, is the deciding of goals and objectives and the means of reaching them. Controlling lets manager tell if the organization is on track for goal achievement, and if not, why not. A well-developed plan should provide benchmarks that can be used in the control process.   Controls serve other important roles including helping managers cope with uncertainty, detecting irregularities, identifying opportunities, handling complex situations, and decentraliz
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How Technology Affects Managerial Communication

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Two developments in information and communication technology seem to be having the most significant impact on current managerial communication: networked computer systems and wireless capabilities. Networked Systems 1. An electronic mail system is a mail system that allows high-speed exchange of written messages through the use of computerized text-processing and communication networks. a.  Electronic mail has advantages. 1)  It is a time-saver. 2)  It leads to exchanges of information among managers who previously did not communicate. 3)  Managers tend to receive new types of information through these systems. b.  Electronic mail has a couple of disadvantages. 1)  It eliminates the nonverbal cues that serve as aids in face-to-face communication. 2)  It is easy to vent anger and frustrations over email that would never be communicated through regular written communication channels. 3)  It leads to an excess of irrelevant mail. 2.  Voice mail is the recording systems which en
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COMMUNICATION NETWORKS AND CHANNELS EFFECT OF ICT ON MANAGERIAL COMMUNICATION

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Organizational communication network It is the pattern of information flow among task group members. Five major network structures have been identified.   1.   The three centralized networks are structured so that most messages must flow through a pivotal person in the network. a.  In the wheel network, all messages must flow through the individual at the center of the wheel. b.  In the chain network, some members can communicate with more than one member of the network, but the individual in the center of the chain still tends to control the messages. c.  In the Y network, the member at the fork of the “Y” usually becomes the central person in the network.   2.  The two decentralized networks permit freer communication among the various members. a.  In the circle network, each member can communicate with the individual on either side. b.  In the star network, each member can communicate with any other member.   3. Some general differences have been found between the centralize
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ORGANIZATIONAL COMMUNICATION

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Formal versus Informal Communication 1.  Formal communication refers to communication that follows the official chain of command or is part of the communication required to do one’s job. 2.  Informal communication is organizational communication that is not defined by the organization’s structural hierarchy. a. Informal communication systems permit employees to satisfy their needs for social interaction. b.  Informal communication systems can improve an organization’s performance by creating alternative, and frequently faster and more efficient, channels of communication. Direction of Communication Flow 1.  Downward communication—flows from a manager to employees and is used to inform, direct, coordinate, and evaluate employees. 2.  Upward communication flows from employees to managers a.  Upward communication can be used in order to keep managers aware of how employees feel about their jobs, their coworkers, and the organization in general. b.  The organizational culture influences
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UNDERSTANDING MANAGERIAL COMMUNICATION

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INTRODUCTION Communication between managers and employees provides the information necessary to get work done effectively and efficiently in organizations. In this and following lecture, basic concepts in managerial communications will be presented including: the interpersonal communication process, methods of communicating, barriers to effective communications and ways to overcome these barriers, communication flow and communication networks, and contemporary issues and challenges associated with electronic communications and information technology. The Nature of Managerial Communication A. Communication is the transfer and understanding of meaning. 1.  If no information or ideas have been conveyed or transferred, communication hasn’t taken place. 2.  For communication to be successful, the meaning must be imparted and understood. B.   Good communication does not require agreement with the message; just clear understanding of the message. C.  Managerial communication encompass
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TURNING GROUPS INTO EFFECTIVE TEAMS

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Work teams are formal groups made up of interdependent individuals, responsible for attaining goals. Organizations are increasingly designing work around teams rather than individuals. Why? Most of us are probably familiar with the concept of a team. However, we may not be as familiar with work teams. All work teams are groups, but only formal groups can be work teams. There are different types of teams. Four characteristics can be used to distinguish different types of teams.   1.  Teams can vary in their purpose or goal. 2. The duration of a team tends to be either permanent or temporary. 3.  Team membership can be either functional or cross-functional. 4.  Finally, teams can either be supervised or self-managed. 5.  Given these four characteristics, some of the most popular types of teams used today include the following: a. A functional team is a type of work team that is composed of a manager and his or her subordinates from a particular functional area. b. A self-directed or s
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GROUP CONCEPTS, STAGES OF GROUP DEVELOPMENT AND TEAM EFFECTIVENESS

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Work Group Inputs A.   Work group inputs are those that are necessary for the group to operate. B.  The composition of a work group has a strong bearing on the group’s ultimate success, so careful consideration should be made in making group assignments. 1.  Characteristics of members that influence group effectiveness include task-relevant expertise, interpersonal skills, and diversity in the makeup of the group to include sufficient individual skills and interest. 2.  Individuals may be attracted to a group because of friendships, interest in the activities of the group, shared values, the need for affiliation, and the need to fulfill objectives outside those of the group. C.   An input into the group is the members’ assumption of roles, set of behaviors expected of individuals who occupy particular positions in a group. 1.  Group task roles are roles that help a group develop and accomplish its goals. a.  The initiator-contributor proposes goals, suggests way of approaching
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UNDERSTANDING GROUP DYNAMICS IN ORGANIZATIONS

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INTRODUCTION Work groups are a common arrangement within today’s business organizations. Work is being restructured around groups of all kinds and in all sizes of organizations. Managers need an understanding of group behavior and the concept of teams in order to appreciate what groups can and cannot do within organizations and how groups function. Any one member in group can influence the behavior of the individuals in the group and teamwork. We will examine some basic characteristics of groups including the types of work groups, the development of informal groups, and the manner in which groups operate. UNDERSTANDING GROUP BEHAVIOR Groups exhibit different behavior—more than just the sum total of each group member’s individual behavior. In this section, we’re going to look at various aspects of group behavior. What is a Group? A group is defined as two or more interacting and interdependent individuals who come together to achieve particular objectives. 1.  Groups differ fr
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STRATEGIC LEADERSHIP MODELS

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CUTTING-EDGE APPROACHES TO STRATEGIC LEADERSHIP The most current approaches to looking at leadership are discussed. The research we’ve discussed has described transactional leader. What is the difference between transactional and transformational leaders? 1.  Transactional leaders are leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. 2.  Transformational leaders are leaders who provide individualized consideration and intellectual stimulation and possess charisma. 3.  Transformational leadership is built on top of transactional leadership. 4.  The evidence supporting the superiority of transformational leadership over the transactional variety is overwhelmingly impressive. a.  Transformational leaders motivate subordinates to perform at expected levels by helping them recognize task responsibilities, identify goals, acquire confidence about meeting desired performance levels, and understand how their need
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BEHAVIORAL AND SITUATIONAL MODELS OF LEADERSHIP

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Identifying Leader Behaviors A number of researchers have focused on the question of whether specific behaviors, rather than traits, make some leaders more effective than others.   1.  If behavior studies turned up critical behavioral determinants of leadership, people could be trained to be leaders. 2.  Four main leader behavior studies are carried out. a.  University of Iowa Studies—Kurt Lewin and associates—studied three leadership styles: autocratic, democratic, and laissez-faire. b.  The Ohio State Studies identified two important dimensions of leader behavior—initiating structure and consideration. c.  University of Michigan Studies identified two dimensions of leader behavior—employee oriented and production oriented. d.  The Managerial Grid is a two-dimensional grid for appraising leadership styles using “concern for people” and “concern for production” as dimensions. 3.  Predicting leadership success involved more than isolating a few leader traits or behavior. This “failur
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MOTIVATING KNOWLEDGE PROFESSIONALS LEADERSHIP TRAIT THEORIES

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Motivating the “New Workforce i.e. Knowledge Professionals” Another current motivation issue revolves around motivating the “new workforce.” These special groups present unique motivational challenges to managers. These professionals possess specialty knowledge of markets, of customers, of supplier, of software, of hardware, of technology and are very important to run the organizations smoothly in 21stcentury.   Motivating professionals is one of these special challenges. a.  Professionals are different from nonprofessionals and have different needs. b.  Money and promotions are typically low on the motivation priority list for professionals. Job challenge is usually ranked high as is support and the feeling that they’re working on something important.   Special challenges in motivating professionals include their long-term commitment to their field of expertise, with greater loyalty to their profession than to their employer. Money and promotions are typically low on profession
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RECORD KEEPING AND SOME BASIC CONCEPTS

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We can maintain a diary of transactions and note the daily transactions like sale, purchase etc. in it. Problems Faced in Maintaining Diary of Transactions • How will we come to know the income and expenses from various sources? • We only have a sheet / page on which daily transactions are listed. • We do not know which product is selling better and which is not. Available Alternate One can go through all the transactions at the end of the month and note different types of transactions on different pages. So that every page gives complete detail for a different type of transaction like sales of different products and expenses of different types now try to go through these transactions and separate transactions of different types.   But what if the number of transactions is large? Is it really possible to go through hundreds or thousands of transactions at the month end and analyse them to obtain required results.  Sales and purchase are not always for cash. Some ti
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How Technology Affects Managerial Communication

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Two developments in information and communication technology seem to be having the most significant impact on current managerial communication: networked computer systems and wireless capabilities. Networked Systems 1. An electronic mail system is a mail system that allows high-speed exchange of written messages through the use of computerized text-processing and communication networks. a.  Electronic mail has advantages. 1)  It is a time-saver. 2)  It leads to exchanges of information among managers who previously did not communicate. 3)  Managers tend to receive new types of information through these systems. b.  Electronic mail has a couple of disadvantages. 1)  It eliminates the nonverbal cues that serve as aids in face-to-face communication. 2)  It is easy to vent anger and frustrations over email that would never be communicated through regular written communication channels. 3)  It leads to an excess of irrelevant mail. 2.  Voice mail is the recording systems which en
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BASIC CONCEPTS OF ACCOUNTING

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Financial accounting is the maintenance of daily record of All financial transactions in such a manner that it would help in the preparation of suitable information regarding the financial affairs of a business or an individual. The need for recording financial transactions arises because the individual or business wants to know the  performance of the business and to assist the person in making decisions related to the business. Transactions In accounting or business terms, any dealing between two persons involving money or a valuable thing is called transaction .   Human beings are social animals and are bound to adopt a community living style. Living in a community, essentially means that people interact with other people and are dependent on each other to fulfill their needs. Every person cannot fulfill all his needs like food, clothing, housing etc. on his own. He, therefore, depends on other people for his needs, in return to this providing others with some of theirs. It
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