Planners must then identify alternative courses of action for achieving objectives. The structure is usually represented by an organization chart, which provides a graphic representation of the chain of command within an organization.
The products of strategic thinking are goals and strategy. When auditing is done internally, the organization sets up an internal audit committee to examine on a regular basis the fairness and authenticity of transactions. What function does planning serve? In most situations, outside auditing is mandatory; sometimes auditors are appointed by the government or the donor agency.
Two traditional control techniques are budget and performance audits. One is the prices paid for various items purchased by the organization, and the other is the quantities of the items used. Management could design the classification system based on grouping all the various costs into A, B or C categories.
It is very important for management to see that all actions comply with the agreed procedures and policies. In particular, attention is focused on: Specifically, these criticisms stem from the observation that the P-O-L-C functions might be ideal but that they do not accurately depict the day-to-day actions of actual managers.
Strategic planning generally includes the entire organization and includes formulation of objectives. Planning requires that managers be aware of environmental conditions facing their organization and forecast future conditions.
Tactical planning Intermediate-range planning that is designed to develop relatively concrete and specific means to implement the strategic plan.
Many larger organizations use multiple methods of departmentalization. Know the dimensions of the planning-organizing-leading-controlling P-O-L-C framework. The other two types of audit - generally termed performance audit - are desirable under current conditions.
The audit process - broadly speaking - has four elements: Developing accounting controls The recording of transactions should not be just for the purpose of preparing financial statements but should be so developed that significant information for planning and control is produced simultaneously.
The effectiveness of a budgetary control system depends on timely availability and supply of information, and good accounting controls ensure this availability.
The major functions of this committee would be to: Development of accounting controls will revolve closely around creating responsibility accounting centres.
Although controlling is often thought of in terms of financial criteria, managers must also control production and operations processes, procedures for delivery of services, compliance with company policies, and many other activities within the organization.
The organization may get its operations audited by an outside agency or appoint an internal committee, or a combination. This should not be seen as negative variance.
What function does planning serve?Planning is the function of management that involves setting objectives and determining a course of action for achieving those objectives. Planning requires that managers be aware of environmental conditions facing their organization and forecast future conditions.
Two traditional control techniques are budget and performance audits. Conflicting Roles in Budgeting for Operations more consistent with the purposes of planning and coordination. reliance on other elements of the management control system can be helpful in.
Planning and Budgeting: Planning and budgeting are essential for management control. Effective planning and budgeting require looking at the organization as a system and understanding the relationship among its components. Higher productivity and greater operational efficiency because of better work planning and coordination.
From a planning perspective, a budget is the glue that makes the different parts of the organization fit together. It harmonizes the enterprise’s strategy with its organizational structure, its management and personnel, and the tasks that need to be done to implement strategy.
Budget Management, Planing, Coordination and Control Element of an Organization PAGES 1. WORDS View Full Essay. More essays like this: budget management, control element of organization, coordination of organization, budgets.
Not sure what I'd do without @Kibin - Alfredo Alvarez, student @ Miami University. Strategic planning generally includes the entire organization and includes formulation of objectives.
Strategic planning is often based on the organization’s mission, which is its fundamental reason for existence. An organization’s top management most often conducts strategic planning.Download