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Showing posts with the label PLANNING AND DECISION MAKING

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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PLANNING AND DECISION AIDS-II

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1.  TECHNIQUES FOR ALLOCATING RESOURCES. Resources are the assets of the organization and include financial, physical, human, intangible, and structural. 1)  Budgeting A budget is a numerical plan for allocating resources to specific activities. Budgets are popular because they’re applicable to a wide variety of organizations and units within an organization. There are four different types of budgets. a  A revenue budget is a budget that projects future sales. b  An expense budget is a budget that lists the primary activities undertaken by a unit and allocates a dollar amount to each. c  A profit budget is a budget used by separate units of an organization that combines revenue and expense budgets to determine the unit’s profit contribution. d  A cash budget is a budget that forecasts how much cash an organization will have on hand and how much it will need to meet expenses. These budgets are based on the assumption of a single specified...
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PLANNING AND DECISION AIDS-I

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This session and the one follows shall introduce the planning tools and techniques that managers have at their disposal to assist them in performing the management functions. Management Science or Operation Research is a management perspective aimed at increased decision effectiveness by use of sophisticated mathematical models and statistical methods. TECHNIQUES FOR ASSESSING THE ENVIRONMENT Several techniques have been developed to assist managers in assessing the organization’s environment.   Environmental Scanning Environmental scanning is the screening of large amounts of information to anticipate and interpret changes in the environment. It’s used by both large and small organizations, and research has shown that companies with advanced environmental scanning systems increased their profits and revenue growth.   SWOT analysis is an analysis of an organization’s strengths, weaknesses, opportunities, and threats. It brings together the internal and external 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 t...
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ORGANIZATIONAL DESIGN AND ORGANIC VS. MECHANISTIC VS. VIRTUAL STRUCTURES

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1.  Job rotation is the practice of periodically shifting workers through a set of jobs in a planned sequence. a.  One purpose of job rotation is to combat boredom, but its success is short-lived if tasks are too simple. b.  Another purpose of job rotation is cross training so that there is maximum flexibility in job assignments. c.  A related purpose is employee development so that employees increase their capabilities and understanding of various aspects of the organization. d.  A potential problem is that rotating individuals may be treated as temporary helps and their loyalty perceived as questionable. 2.  Job enlargement is the allocation of a wider variety of similar tasks to a job in order to make it more challenging. a.  Job enlargement broadens job scope, the number of different tasks an employee performs in a particular job. b.  The problem is that if additional simple tasks are added, worker boredom may persist. Too, lower efficiency...
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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 diffe...
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