Management by objectives (MBO) is a systematic and organized approach that aims to increase organizational performance.
In other hand.
Management by Exception (MBE) is a "policy by which management devotes its time to investigating only those situations in which actual results differ significantly from planned results.’’
A process of monitoring , comparing ,correcting performance and taking action to ensure desired results.
It sees to it that the right things happen, in the right ways, and at the right time
Management by objectives (MBO) is a systematic and organized approach that aims to increase organizational performance.
In other hand.
Management by Exception (MBE) is a "policy by which management devotes its time to investigating only those situations in which actual results differ significantly from planned results.’’
A process of monitoring , comparing ,correcting performance and taking action to ensure desired results.
It sees to it that the right things happen, in the right ways, and at the right time
Frederick W. Taylor (1856-1915)
Father of “Scientific Management.
attempted to define “the one best way” to perform every task through systematic study and other scientific methods.
believed that improved management practices lead to improved productivity.
Three areas of focus:
Task Performance
Supervision
Motivation
Scientific management incorporates basic expectations of management, including:
Development of work standards
Selection of workers
Training of workers
Support of workers
MOTIVATION IN HUMAN RESOURCE MANGEMENT; WHAT IS MOTIVATION, NEED FOR MOTIVATING EMPLOYEES, PROCESS OF MOTIVATION, TYPES OF MOTIVATION- INTRINSIC AND EXTRINSIC. MOTIVATION THEORY. METHODS OF MOTIVATION.
S&A Knowledge Series - Budget & budgetary controlsDhruv Seth
In continuation of our knowledge series please find attached an update on "Budgets and Budgetary Controls".
In light of the current humanitarian and possible economic turmoil, it becomes imperative for us to have an effective budget and controls for the same. This would ensure we stick to our expenses envisaged at the start of the year and exercise great control over our costs.
Frederick W. Taylor (1856-1915)
Father of “Scientific Management.
attempted to define “the one best way” to perform every task through systematic study and other scientific methods.
believed that improved management practices lead to improved productivity.
Three areas of focus:
Task Performance
Supervision
Motivation
Scientific management incorporates basic expectations of management, including:
Development of work standards
Selection of workers
Training of workers
Support of workers
MOTIVATION IN HUMAN RESOURCE MANGEMENT; WHAT IS MOTIVATION, NEED FOR MOTIVATING EMPLOYEES, PROCESS OF MOTIVATION, TYPES OF MOTIVATION- INTRINSIC AND EXTRINSIC. MOTIVATION THEORY. METHODS OF MOTIVATION.
S&A Knowledge Series - Budget & budgetary controlsDhruv Seth
In continuation of our knowledge series please find attached an update on "Budgets and Budgetary Controls".
In light of the current humanitarian and possible economic turmoil, it becomes imperative for us to have an effective budget and controls for the same. This would ensure we stick to our expenses envisaged at the start of the year and exercise great control over our costs.
The Advantages of Budgeting A budget is a document that fo.docxtodd801
The Advantages of Budgeting
A budget is a document that forecasts the financial results and financial position of a business for
one or more future periods. At a minimum, a budget contains an estimated income statement that
describes anticipated financial results. A more complex budget also contains an estimated
balance sheet, which contains the entity’s anticipated assets, liabilities, and equity positions at
various points in time in the future.
A prime use of the budget is to serve as a performance baseline for the measurement of actual
results. Budgets may also be linked to bonus plans in order to direct the activities of various
company employees. A budget may also be used for both tax planning and treasury planning.
Despite these valid uses, there are also a number of problems with budgeting that have given rise
to a movement dedicated to the elimination of budgets.
Budgeting has been with us a long time, and is used by nearly every large company. They would
not do so if there were not some perceived advantages to budgeting. These advantages include:
▪ Planning orientation. The process of creating a budget takes management away from its
short-term, day-to-day management of a business and forces it to think longer-term. This is
the chief goal of budgeting, even if management does not succeed in meeting its goals as
outlined in the budget – at least it is thinking about the company’s competitive and
financial position and how to improve it.
▪ Model scenarios. If a company is faced with a number of possible paths down which it can
travel, you can create a set of budgets, each based on different scenarios, to estimate the
financial results of each strategic direction.
▪ Profitability review. It is easy to lose sight of where a company is making most of its
money, during the scramble of day-to-day management. A properly structured budget
points out which aspects of a business generate cash and which ones use it, which forces
management to consider whether it should drop some parts of the business or expand in
others. However, this advantage only applies to a budget sufficiently detailed to describe
profits at the product, product line, or business unit level.
▪ Assumptions review. The budgeting process forces management to think about why the
company is in business, as well as its key assumptions about its business environment. A
periodic re-evaluation of these issues may result in altered assumptions, which may in turn
alter the way in which management decides to operate the business.
▪ Performance evaluations. Senior management can tie bonuses or other incentives to how
employees perform in comparison to the budget. The accounting department then creates
budget versus actual reports to give employees feedback regarding how they are
progressing toward their goals. This approach is most common with financial goals,
though operational goals (such as reducing the scrap rat.
Topic: The CEO’s Memo to Budget Managers; Type: Memo; Subject: Accounting and Finance; Academic Level: Masters; Style: APA; Language: English (U.S); Number of pages: 3 (double-spaced, Times New Roman, Font 12); Number of sources: 1
Chapter 8Responsibility Concepts and Sound Decision-Making Ana.docxchristinemaritza
Chapter 8
Responsibility Concepts and Sound Decision-Making Analytics
Image of multicolored canvas painting.
istockphoto
Learning Objectives
Understand concepts in responsibility accounting.
Be able to provide a framework for rational business decision making, and understand how to apply these concepts for specific types of situations.
Apply capital budgeting methods and discounted cash flow concepts.
Know how to make proper long-term investment decisions.
8.1
Responsibility Accounting Concepts
In general, managers should be held accountable for the results of their decisions and business execution. Without accountability based on performance-related feedback, the business will not perform at its best, and areas in need of improvement may not be identified on a timely basis. Business feedback is often based on financial results. You have already seen how budgets and variances are used to help identify areas for improvement. Because managers are accountable for their decisions, actions, and outcomes, their performance measures should align around the department, product, division, or other business for which they are responsible. In other words, the attribution of responsibility tends to follow the organizational structure of the business.
Sometimes, a business has a highly dispersed design, with decisions nested with lower level managers. Other businesses generate decisions only at the upper levels, and lower level personnel are basically charged with execution of defined actions. Proper implementation of responsibility accounting concepts stipulates that performance measures be aligned with the business organization structure. In other words, accountability should map to responsibility. Proper design of performance measurement systems therefore requires that the management accountant carefully consider the organizational structure. Sometimes performance measures are only appropriate on an aggregated basis, such as where the organization is structured as a top–down, command-and-control, centralized decision-making entity. As lower level managers are given increased authority, so too should the accountability system be modified to provide more disaggregated performance measures. Although quite logical, this presents measurement challenges.
Different types of units must be evaluated using alternative models. For example, some units do not generate any revenue. They exist to provide support services to other departments within the entity. Other business segments may have clear cost and revenue functions, and they might be evaluated on their profits. Given this observation, it is common for businesses to characterize areas of specific responsibility as cost centers, profit centers, or investment centers.
A cost center usually lacks clear revenue functions. Typical departments that are regarded as cost centers include accounting, human resources, maintenance, and most administrative groupings. Cost control is the key eval ...
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[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
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In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
2. Management by Exception is an employee
empowerment and management style, policy or
philosophy wherein managers intervene only
when their employees fail to meet their
performance standards or when things go wrong.
The idea behind it is that management's
attention will be focused only on those areas in
need of action
If the personnel are performing as expected, the
manager will take no action.
MBE normally involves substantial delegation by
the manager to his team.
3. The MBE is similar to the vital signs
monitoring systems in hospital critical care
units (ICUs).
When one of the patient's vital signs goes
outside the range programmed into the
machine, an alarm sounds and staff runs to
the rescue.
If the machine is quiet, it's assumed that the
patient is stable, and they will receive only
regular staff attention.
4. These are the critical things that must be in place to make MBE
work:
1. An appropriate budget to measure performance against. This
budget must be well designed, so that the business will meet
its strategic objectives if the plan is conformed with.
2. A matrix of exception amounts and who will be notified. In
some cases, different levels of variance will be brought to the
attention of different levels of management. E.g. a Rs.5,000
variance might be reported to a department manager, while a
Rs. 50,000 variance is brought to the attention of the
functional V.P.
3. A timely and accurate reporting system. Information needs to
be accurately captured and compared to the overall budget on
a regular basis. Exceptions need to be noted so that
information can be sent to the correct team members.
Once these items are present, the process can be rolled out to all staff.
Anything that falls outside the budget by an amount as defined in the matrix of
exceptions will be sent to the appropriate level(s) of management for review
and action. Otherwise, staff is in charge of decision making.
5. Some advantages of MBE would include:
The process focuses management time and
attention on the most critical variances, which
should be a more efficient use of time.
The process allows staff to handle daily
operations per the business plan independent
of management; managers only step in when
variances reach the threshold. This should
give management more time for other
functions, such as strategic planning.
6. Some disadvantages of MBE would include:
The process assumes the budget is well designed,
and that there are no issues that need to be
addressed if results match the budget.
The process assumes staff cannot handle variances;
instead management must be brought in.
The process assumes that management's attention
should be focused on 'mistakes'. When staff manages
to the defined plan, nothing happens. When things
vary, management swoops down to fix them. This can
be very un-motivating to staff.