ACCG 301 Organisational Control and Planning
Importance of control.
Control improves Goodwill
Quality control improves the quality of the products. Cost control decreases the cost of the products. Therefore, the organisation can supply good quality products at lower prices. This increases the goodwill of the organisation.
2. Control minimises Wastage
Control helps to reduce the wastage of human, material and financial resources. This increases the profits of the organisation.
3. Control ensures optimum utilisation of resources
Control helps the organisation to make optimum utilisation of the available resources. This also increases the profit of the organisation.
4. Control helps to fix responsibility
Control helps to fix responsibility of a particular job on a particular person or a particular department. So, if there are any mistakes then a particular person or a particular department will be held responsible for it.
5. Control guides operations
Control fixes certain standards. All the work has to be done according to these standards. So control, acts like a traffic signal. It guides all the operations of the organisation in the right direction.
6. Control motivates employees
In control, the employees' performances are evaluated regularly. Those who show good performances are rewarded by giving them promotions, cash prizes, etc. This motivates the employees to work hard, and it also improves their morale.
7. Control minimises deviations
Control minimises the deviations between a planned performance and actual performance.
8. Control facilitates Delegation
Control helps the superiors to evaluate the work of their subordinates. So, the superior can concentrate on the very important work, and they can delegate the less important work to their subordinates. Thus, it facilitates delegation.
9. Control facilitates Co-ordination
Control facilitates co-ordination between the different departments of the organisation. Whenever, there are any deviations, different departments come together to take collective and corrective steps.
10. Control increases efficiency
Efficiency is the relation between returns and cost. If there is a high return at low cost then there is efficiency and vice-versa. Control leads to high returns and low cost. Therefore, it increases efficiency.
ACCT16500 Financial Accounting & ReportingControl improves Goodwill
Quality control improves the quality of the products. Cost control decreases the cost of the products. Therefore, the organisation can supply good quality products at lower prices. This increases the goodwill of the organisation.
2. Control minimises Wastage
Control helps to reduce the wastage of human, material and financial resources. This increases the profits of the organisation.
3. Control ensures optimum utilisation of resources
Control helps the organisation to make optimum utilisation of the available resources. This also increases the profit of the organisation.
4. Control helps to fix responsibility
Control helps to fix responsibility of a particular job on a particular person or a particular department. So, if there are any mistakes then a particular person or a particular department will be held responsible for it.
5. Control guides operations
Control fixes certain standards. All the work has to be done according to these standards. So control, acts like a traffic signal. It guides all the operations of the organisation in the right direction.
6. Control motivates employees
In control, the employees' performances are evaluated regularly. Those who show good performances are rewarded by giving them promotions, cash prizes, etc. This motivates the employees to work hard, and it also improves their morale.
7. Control minimises deviations
Control minimises the deviations between a planned performance and actual performance.
8. Control facilitates Delegation
Control helps the superiors to evaluate the work of their subordinates. So, the superior can concentrate on the very important work, and they can delegate the less important work to their subordinates. Thus, it facilitates delegation.
9. Control facilitates Co-ordination
Control facilitates co-ordination between the different departments of the organisation. Whenever, there are any deviations, different departments come together to take collective and corrective steps.
10. Control increases efficiency
Efficiency is the relation between returns and cost. If there is a high return at low cost then there is efficiency and vice-versa. Control leads to high returns and low cost. Therefore, it increases efficiency.
ACCT33400 Auditing and Assurance Services
Advantages of Planning
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1.Planning facilitates management by objectives.
a.Planning begins with determination of objectives.
b.It highlights the purposes for which various activities are to be undertaken. c.In fact, it makes objectives more clear and specific.
d.Planning helps in focusing the attention of employees on the objectives or goals of enterprise. e.Without planning an organization has no guide.
f.Planning compels manager to prepare a Blue-print of the courses of action to be followed for accomplishment of objectives. g.Therefore, planning brings order and rationality into the organization.
2.Planning minimizes uncertainties.
a.Business is full of uncertainties.
b.There are risks of various types due to uncertainties.
c.Planning helps in reducing uncertainties of future as it involves anticipation of future events. d.Although future cannot be predicted with cent percent accuracy but planning helps management to anticipate future and prepare for risks by necessary provisions to meet unexpected turn of events. e.Therefore with the help of planning, uncertainties can be forecasted which helps in preparing standbys as a result, uncertainties are minimized to a great extent. 3.Planning facilitates co-ordination.
a.Planning revolves around organizational goals.
b.All activities are directed towards common goals.
c.There is an integrated effort throughout the enterprise in various departments and groups. d.It avoids duplication of efforts. In other words, it leads to better co-ordination. e.It helps in finding out problems of work performance and aims at rectifying the same. 4.Planning improves employee’s moral.
a.Planning creates an atmosphere of order and discipline in organization. b.Employees know in advance what is expected of them and therefore conformity can be achieved easily. c.This encourages employees to show their best and also earn reward for the same. d.Planning creates a healthy attitude towards work environment which helps in boosting employees moral and efficiency. 5.Planning helps in achieving economies.
a.Effective planning secures economy since it leads to orderly allocation ofresources to various operations. b.It also facilitates optimum utilization of resources which brings economy in operations. c.It also avoids wastage of resources by selecting most appropriate use that will contribute to the objective of enterprise. For example, raw materials can be purchased in bulk and transportation cost can be minimized. At the same time it ensures regular supply for the production department, that is, overall efficiency. 6.Planning facilitates controlling.
a.Planning facilitates existence of certain planned goals and standard of performance. b.It provides basis of controlling.
c.We cannot think of an effective system of controlling without existence of well thought out plans. d.Planning provides pre-determined goals against which actual performance is compared. e.In fact, planning and controlling are the two sides of a same coin. If planning is root, controlling is the fruit. 7.Planning provides competitive edge.
a.Planning provides competitive edge to the enterprise over the others which do not have effective planning. This is because of the fact that planning may involve changing in work methods, quality, quantity designs, extension of work, redefining of goals, etc. b.With the help of forecasting not only the enterprise secures its future but at the same time it is able to estimate the future motives of it’s competitor which helps in facing future challenges. c.Therefore, planning leads to best utilization of possible resources, improves quality of production and thus the competitive strength of the enterprise is improved. 8.Planning encourages innovations.
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Acct 16300 Introduction Of AccountinginShare2
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________________________________________
1.Planning facilitates management by objectives.
a.Planning begins with determination of objectives.
b.It highlights the purposes for which various activities are to be undertaken. c.In fact, it makes objectives more clear and specific.
d.Planning helps in focusing the attention of employees on the objectives or goals of enterprise. e.Without planning an organization has no guide.
f.Planning compels manager to prepare a Blue-print of the courses of action to be followed for accomplishment of objectives. g.Therefore, planning brings order and rationality into the organization.
2.Planning minimizes uncertainties.
a.Business is full of uncertainties.
b.There are risks of various types due to uncertainties.
c.Planning helps in reducing uncertainties of future as it involves anticipation of future events. d.Although future cannot be predicted with cent percent accuracy but planning helps management to anticipate future and prepare for risks by necessary provisions to meet unexpected turn of events. e.Therefore with the help of planning, uncertainties can be forecasted which helps in preparing standbys as a result, uncertainties are minimized to a great extent. 3.Planning facilitates co-ordination.
a.Planning revolves around organizational goals.
b.All activities are directed towards common goals.
c.There is an integrated effort throughout the enterprise in various departments and groups. d.It avoids duplication of efforts. In other words, it leads to better co-ordination. e.It helps in finding out problems of work performance and aims at rectifying the same. 4.Planning improves employee’s moral.
a.Planning creates an atmosphere of order and discipline in organization. b.Employees know in advance what is expected of them and therefore conformity can be achieved easily. c.This encourages employees to show their best and also earn reward for the same. d.Planning creates a healthy attitude towards work environment which helps in boosting employees moral and efficiency. 5.Planning helps in achieving economies.
a.Effective planning secures economy since it leads to orderly allocation ofresources to various operations. b.It also facilitates optimum utilization of resources which brings economy in operations. c.It also avoids wastage of resources by selecting most appropriate use that will contribute to the objective of enterprise. For example, raw materials can be purchased in bulk and transportation cost can be minimized. At the same time it ensures regular supply for the production department, that is, overall efficiency. 6.Planning facilitates controlling.
a.Planning facilitates existence of certain planned goals and standard of performance. b.It provides basis of controlling.
c.We cannot think of an effective system of controlling without existence of well thought out plans. d.Planning provides pre-determined goals against which actual performance is compared. e.In fact, planning and controlling are the two sides of a same coin. If planning is root, controlling is the fruit. 7.Planning provides competitive edge.
a.Planning provides competitive edge to the enterprise over the others which do not have effective planning. This is because of the fact that planning may involve changing in work methods, quality, quantity designs, extension of work, redefining of goals, etc. b.With the help of forecasting not only the enterprise secures its future but at the same time it is able to estimate the future motives of it’s competitor which helps in facing future challenges. c.Therefore, planning leads to best utilization of possible resources, improves quality of production and thus the competitive strength of the enterprise is improved. 8.Planning encourages innovations.
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a.In the process of planning, managers have the opportunities of suggesting
ways and means of improving performance. b.Planning is basically a decision
making function which involves creative thinking and imagination that
ultimately leads to innovation of methods and operations for growth and
prosperity of the enterprise. • Vision and Purpose
•When an organization plans well, employees at all levels know what the vision of the company is. They know what their work is supposed to achieve and how it is contributing to the short-term and long-term goals of the organization. Subsequently, employees have a sense of purpose as they work, which can improve employee morale. Proactivity
•In any organization, difficulties are bound to arise. Management has two choices regarding those difficulties. It either can deal with difficulties as they arise, or it can predict which difficulties are most likely and prepare for them before they happen. The first option isn't desirable because it takes time for management to gather resources to deal with the problem. When an organization anticipates problems given its situation and goals, it is able to ensure that the resources necessary for resolving the issues already are in place. This means the organization can deal with a problem more quickly and minimize its impact. Funding and Support
•When an organization looks for funding, volunteers and other forms of support, those who provide monies or other resources want to have evidence that they'll see some kind of return on their investment. Planning shows an investor or donor why the organization is likely to succeed and therefore can increase the likelihood that the investor or donor will see contributing as a safe venture. Evaluation Standards
•When an organization plans, it has an idea of the goals that the business and its employees need to meet. These goals provide a starting point for management to evaluate whether the organization is successful. For example, if an organization knows it needs $1,000 and sells shirts to raise funds, it knows it has enough money for its objectives if it sells $1,500 worth of shirts. Clarity and Cooperation
•Often conflict and lack of cooperation arise in an organization because those within the organization are not clear about what organizational members are supposed to do. Planning eliminates this problem because it creates clear job roles and expectations that align with the organization's overall goals.
•When an organization plans well, employees at all levels know what the vision of the company is. They know what their work is supposed to achieve and how it is contributing to the short-term and long-term goals of the organization. Subsequently, employees have a sense of purpose as they work, which can improve employee morale. Proactivity
•In any organization, difficulties are bound to arise. Management has two choices regarding those difficulties. It either can deal with difficulties as they arise, or it can predict which difficulties are most likely and prepare for them before they happen. The first option isn't desirable because it takes time for management to gather resources to deal with the problem. When an organization anticipates problems given its situation and goals, it is able to ensure that the resources necessary for resolving the issues already are in place. This means the organization can deal with a problem more quickly and minimize its impact. Funding and Support
•When an organization looks for funding, volunteers and other forms of support, those who provide monies or other resources want to have evidence that they'll see some kind of return on their investment. Planning shows an investor or donor why the organization is likely to succeed and therefore can increase the likelihood that the investor or donor will see contributing as a safe venture. Evaluation Standards
•When an organization plans, it has an idea of the goals that the business and its employees need to meet. These goals provide a starting point for management to evaluate whether the organization is successful. For example, if an organization knows it needs $1,000 and sells shirts to raise funds, it knows it has enough money for its objectives if it sells $1,500 worth of shirts. Clarity and Cooperation
•Often conflict and lack of cooperation arise in an organization because those within the organization are not clear about what organizational members are supposed to do. Planning eliminates this problem because it creates clear job roles and expectations that align with the organization's overall goals.
ACCT26000 Corporate Accounting
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