о Jake Dante Wednesday By implementing the different formats of control, (beauracratic, market, clan) a company can implement a certain standard in which the organization will operate at. As qualitative data is coming in for constant improvement, an organization can use feedback control to correct deviated incorrect standards as well as use concurrent control methods to carry out the task force from the data. If the data coming back doesn't come up with a conclusive result, an organization can use the tool of management and accounting audits to verify the quantitate data. Another tool used is activity-based costing, a method to identify activity and allocate costs across departments for specific business processes based on amount of time a worker in working on a specialized task. Other tools used to control are balance sheets, assets, liabilities, stockholders' equity, profit and loss statements, current ratios, debt-equity ratios all of which are used to regulate control, return on investment, and management myopia. These systems maximize potential and minimize dysfunctional behavior. Managers use balanced Scorecard systems which combines financial, customer, business process and learning and growth for performance measurement as well. 5 Reply O Barry Bonilla Wednesday Ways to control expenses according to the text are by using different tools and controls such as balance sheets which can help get a sense of the company's overall finances, profit and loss statements also help to track income and expenses. By using that with financial ratios you can see how much funds are available for constant improvement. Effective control systems are also a great way to ensure constant improvement of employees and of the company. The text also mentions a balanced scorecard that looks at four different measures, finance, customers, business, and employee growth. I think for a company to be successful in any of these areas there has to be a certain level of equal success in all of those areas. 5 Reply There are different ways that are best suited for controlling areas of expense, and I believe choosing a method overall depends on the needs of the company. According to the chapter, there are different ways to present a system of control and depending on the company there could be a system where all of these formats are implemented through different systems but, I believe that if there is a company that works very well with using one format across the board, it may be best for them to do so. I definitely agree with the text's point about using different tools in order to balance financial, and profit/performance-related standards. The way to control for constant improvement is by staying consistent in the methods used in controlling expenses and constantly measuring how effective those methods are while being able to adapt if necessary. A few of the many Tools of control that could be used are balance sheets, profit/loss statements, budgets, and one that stood out to me the most "balanced scorecard." Edited by Annisse Murillo on Nov 28 at 1:17pm 5 Reply O Jake Dante Yesterday I agree, there is no steadfast universal solution in regard to understanding a companies needs and tools used to collect data to implement into further understanding of an organizations needs. These tools used for constant improvement. To keep control of the data and interpret correctly will justify actions an organization has to make that may not be favorable to certain parts of the organization. 5 Reply 0 Candice Zeng : Wednesday Budgets and financial controls are effective ways to control the expense including operations and overhead. First of all, senior managers are expected to set general targets for the entire company at the beginning of the budget process and lower-level and mid-level managers actually develop the budgets and submit them for approval. When the budgets are consolidated, senior managers can decide whether the company's budget objectives are being met. Besides, managers use activity-based costing (ABC) to allocate costs, which provides a more realistic picture of how the company is actually allocating its resources. Since ABC can highlight where wasted activities are occurring, managers can act to correct the problem. In addition to budgetary control, the financial tools that help control overall organizational performance include the balance sheet and the profit and loss statement. Wednesday Revenue refers to the total income that a company has earned over a period of time. Managers can break down the revenue based on departments and see the overall performance of each department. By doing so, the managers will be able to better analyze the income as well as make predictions. One of the tools that is widely used by the companies is forecasting and optimization model. First of all, the company will collect and sort data in order to observe the pattern and trend. And then through mathematical algorithms, the data pool will be weaved into the forecasting process and make optimization model, which tells the company the best plan for future growth. Another tool is balance sheet and profit and loss statement, which are two financial statements that company usually has. Balance sheet often shows the current state of the company, including the amount the company owns and that invested by the shareholders. Profit and loss statement provides a way to compare the expenses and the revenues. Edited by Wallis Huang on Nov 29 at 5:00pm Reply Jake Dante Yesterday Proper use of the tools are vital for the managers, by having data to compare where the company is currently standing and where it wants to go based off of its goals and how much money the company has made or lost over the short and long term measurements of their goals. 5 Reply Candice Zeng Wednesday Managers can exert control over revenue by using balance sheet, the profit and loss statement, key financial ratios. First of all, balance sheet can used to show the financial picture of a company at a given time. Balance sheet consists of three elements, including assets, liabilities and stockholders' equity. Summarizing balance sheet items over a long period of time can help managers to have a deeper insight into overall performance and areas and then make some proper adjustments. Then, the profit and loss statement is an itemized financial statement of the income and expenses of a company's operations (p. 330). Controlling by profit and loss is most commonly used for the company. Besides, using key financial ratios is an effective tool for checking a company's overall performance and showing a company's strengths and weaknesses. 6 Ranky
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