Budgeting, Control Systems, and Organizational Dynamics
Financial Budget: Sources and Uses of Cash
Financial Budget | Sources and Uses of Cash |
Cash flow or cash budget | All sources of cash income and cash expenditures in monthly, weekly, or daily periods |
Capital expenditures budget | Costs of major assets such as a new plant, machinery, or land |
Balance sheet budget | Forecast of the organization’s assets and liabilities |
Operating Budget: Planned Operations in Financial Terms
Operating Budget | Planned Operations in Financial Terms |
Sales or revenue budget | Income that the organization expects to receive from normal operations |
Expense budget | Anticipated expenses for the organization during the coming time period |
Profit budget | Anticipated differences between sales or revenues and expenses |
Nonmonetary Budget | Planned Operations in Nonfinancial Terms |
Labor budget | Hours of direct labor available for use |
Space budget | Square feet or meters of space available for various functions |
A controller is responsible for helping line managers with their control activities, for coordinating the organization’s overall control system, and for gathering and assimilating relevant information. Many businesses that use an H-form or M-form organization design have several controllers: one for the corporation and one for each division.
Audits are independent appraisals of an organization’s accounting, financial, and operational systems. The two major types of financial audits are the external audit and the internal audit. External audits are financial appraisals conducted by experts who are not employees of the organization. Strategic control generally focuses on five aspects of organizations—structure, leadership, technology, human resources, and information and operational control systems. The grapevine is an informal communication network that can permeate an entire organization. Grapevines are found in all organizations except the very smallest, but they do not always follow the same patterns as, nor do they necessarily coincide with, formal channels of authority and communication.
TPS are applications of information processing for basic day-to-day business transactions. Customer order taking by online retailers, approval of claims at insurance companies, receipt and confirmation of reservations by airlines, payroll processing and bill payment at almost every company—all are routine business processes. Typically, the TPS for first-level (operational) activities is well defined, with predetermined data requirements.
(MISs) support an organization’s managers by providing daily reports, schedules, plans, and budgets.(manager level)
DSS are interactive systems that locate and present information needed to support the decision-making process.(Problems)
ESS: Quick, easy, upper-level managers!
Power: legitimate (particular position), reward (rewards salary+), coercive (force compliance by threats/sanctions/punishment), referent (loyalty, charisma, identification), expert (knowledge)
Interrole: jefe dice trabaja de noche para success y coworker dice NO. / Intrarole: jefe dice manager que ponga presión en empleados para cumplir reglas, empleados quieren cambiarlas / Intrasender: jefe: no podeis hacer overtime 2hr late, le pide a alguien que lo haga)
Stages of development: 1) forming (interpretation, behaviors), 2) storming (structure, interaction), 3) norming (share acceptance role), 4) performing (enact role, goal performance)