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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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 centralized and the decentralized types of networks.
a.  Effective performance is a function of type of network and type of tasks undertaken.
1)  The centralized networks were usually faster and more accurate at performing simple, routine tasks.
2)  The decentralized networks were usually faster and more accurate at performing complex tasks.
b.  Group moral in the decentralized networks was consistently higher than in the centralized, regardless of task assignment.

Organizational communication channels
A.  Communication channels are various patterns of organizational communication flow that represent potential established conduits through which managers and other organization members can send and receive information.
B.  Vertical communication is a communication that flows from a higher level to one or more lower levels in the organization.
 
1.  Downward communication is a vertical communication that flows from a higher level to one
or more lower levels in the organization.
a.  Most downward communication involves information in one of five categories:
1)  Job instructions related to specific tasks.
2)  Job rationales explaining the relationship between a task and other organizational
tasks.
3)  Procedures and practices of the organization.
4)  Feedback on individual performance on assigned tasks.
5)  Efforts to encourage a sense of mission and dedication to the goals of the organization.
b.  Downward communication is prone to distortion.
1)  Faulty message transmission may occur because of sender carelessness, poor
communication skills, and the difficulty of encoding a message for a number of receivers.
2)  Overuse of one-way communication methods means that manager get no feedback
3)  Filtering of communication may occur through withholding, screening, or manipulating information to enhance personal power.
c.  The effectiveness of downward communication can be increased by using multiple channels, by repeating the message, and by encouraging feedback.

2.  Upward communication is the vertical flow of communication from a lower level to one or more higher levels in the organization.
a.  Forms of upward communication include individual and group meetings with superiors, memos and reports, suggestion systems, grievance procedures, and employee attitude surveys.
b.  The information disseminated through upward communication typically pertains to:
1)  Progress of current work projects
2)  Serious unsolved problems and situations in which subordinates need help from superiors.
3)  New developments arising within or affecting the work unit or organization suggestions for improvements and innovations.
4)  Employee attitudes, morale, and efficiency
c.  Upward communication can be distorted.
1)  Subordinates filter information that they send upward.
2)  Managers do not expend enough effort to encourage upward communication.
d.  Management by wandering around (MBWA)is a practice whereby managers frequently tour areas for which they are responsible, talk to various employees, and encourage upward communication.

C.  Horizontal communication is lateral or diagonal message exchange either within work-unit boundaries, involving peers who report to the same supervisor, or across work-unit boundaries, involving individuals who report to different supervisors.
1.  Horizontal communication can take the form of meetings, reports, memos, telephone conversations, and face-to-face discussions.
2.  Horizontal communication usually relates to:
a.  Task coordination
b.  Problem solving
c.  Information sharing
d.  Conflict resolution
e.  Peer support
3.  There are three impediments to necessary, work-related horizontal communication.
a.  Rivalry among individuals or work units may cause individuals to hide information.
b.  Specialization may cause individuals to be concerned mainly about the work of their own unit and to have little appreciation for the work and communication needs of others.
c.  Motivation may be lacking when subordinate horizontal communication is not encouraged or rewarded.

 D. Informal communication, better known as “the grapevine,” is communication that takes place without regard to hierarchical or task requirements.
1.  Informal communication within organizations differs from formal communication.
a.  Formal communication is vertical and horizontal communication that follows paths specified by the official hierarchical organization structure and related task requirements.
b.  Formal communication relates to position in the organization; informal communication depends upon personal relationships.
2.  Grapevines can be configured in a number of ways.
a.  In the single-strand chain, communication moves serially from person A to B to C and so on.
b.  With the gossip chain, person A seeks out and tells others.
c.  When following the probability chain, person A spreads the message randomly, as do individuals F and D.
d.  In the cluster chain, the most predominant form, person A tells three selected individuals, and then one of these tells three others.
3.  Grapevines have a number of characteristics.
a.  They are fast.
b.  The data produced ranges from 50 to 90 percent accurate.
4.  Grapevines are most harmful when they carry false rumors and gossip.  
5.  Grapevines might serve positive organizational purposes.
a.  They may serve to transmit organizational rules, values, and morals.
b.  They may serve to disseminate organizational traditions and history.
c.  They may help to reinforce formal messages, to test new proposals, and to obtain feedback about employee feelings and ideas.
d.  They may help to foster innovation by facilitating communication among various parts of the organization.

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