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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ANALYZING ORGANIZATIONAL ENVIRONMENT AND UNDERSTANDING ORGANIZATIONAL CULTURE II

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The Task Environment

The task environment is that segment of the external environment made up of specific outside elements (usually organizations) with which an organization interfaces in the course of conducting its business. The task environment depends on the products and services the organization offers and the locations where it conducts business. The organization may be more successful in affecting its task environment than it is its mega-environment.

Elements of the Task Environment:
1.  An organization’s customers and clients are those individuals and organizations that purchase its products and/or services. It is becoming increasingly important to stay in touch with customers’ needs.
2.  An organization’s competitors are other organizations that either offers of have a high potential of offering rival products or services.
a.  Organization needs to keep abreast of who their competitors are and what they are doing.
b.  Ways to track what competitors are doing include obtaining information from commercial data bases, specialty trade publications, news clippings from local newspaper, help-wanted ads, published market research reports, business reports, trade shows, public filings, advertisements, and personal contacts.
3.  An organization’s suppliers are those individual organizations that supply the resources (such as
raw materials, products, or services) the organization needs to conduct its operations.
4.  An organization’s labor supply consists of those individuals who are potentially employable by the
organization. 
Organization may have to shift their location if labor supplies dry up in some areas and increase in others.
5. Various government agencies provide services and monitor compliance with laws and regulations at local (e.g., consumer affairs), state or regional (e.g., health department), and national (e.g., CBR) levels.

Organization’s Relationships with Stakeholders:

1. Stakeholders are any constituencies in the organization’s external environment that are affected by, or have a vested interest in, the organization’s decisions and actions
2.  Stakeholder relationship management is important for two reasons:
a.  It can lead to improved predictability of environmental changes, more successful innovation, greater degrees of trust, and greater organizational flexibility to reduce the impact of change.
b.  It is the “right” thing to do, because organizations are dependent on external stakeholders as sources of inputs and outlets for outputs and should be considered when making and implementing decisions.
 
3.  Stakeholder relationships are managed using four steps:
 
a. Identify external stakeholders
b.  Determine the specific interests of each stakeholder group
c.  Decide how critical these interests are to the organization
d.  Determine what specific approach managers should use to manage each relationship.

The Organization’s Culture
Just as individuals have a personality, so, too, do organizations. We refer to an organization’s personality as
its culture.

Organizational culture is a system of shared meaning and beliefs within an organization that determines, in large degree, how employees act. This definition implies several things.

1.  Culture is a perception that exists in the organization, not in the individual.
2.  Organizational culture is a descriptive term. It describes rather than evaluates.
3.  Seven dimensions of an organization’s culture have been proposed:
a.  Innovation and risk taking(the degree to which employees are encouraged to be innovative and take risks)
b.  Attention to detail(the degree to which employees are expected to exhibit precision, analysis, and attention to detail)
c.  Outcome orientation(the degree to which managers focus on results or outcomes rather than on the techniques and processes used to achieve those outcomes)
d.  People orientation(the degree to which management decisions take into consideration the effect on people within the organization)
e.  Team orientation(the degree to which work activities are organized around teams rather than individuals)
f.  Aggressiveness(the degree to which people are aggressive and competitive rather than easygoing and cooperative)
g.  Stability(the degree to which organizational activities emphasize maintaining the status quo in contrast to growth)

Employees “learn” an organization’s culture in different ways:
1.  Organizational stories are one way that employees learn the culture. These stories typically involve a narrative of significant events or people.
2.  Rituals are repetitive sequences of activities that express and reinforce the key values of the organization, what goals are most important, which people are important.

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