One of the most frequently mentioned problems of businessmen is encapsulated in the phrase, “If I only had more time…” This concern is a common problem among all busy people. It seems that no one has enough time. Time is the most precious yet most limited resource of the businessmen. It is a unique quantity-the businessmen cannot store it, rent it, hire it, or buy it. With its supply being inelastic, it is totally perishable and irreplaceable. Everything requires it and it passes at the same rate for everyone. While important throughout the life of the venture, time is particularly critical at start-up and during growth and expansion of the venture. No matter what the businessman does, today’s ration of time is 24 hours, and yesterday’s time is already history. What is Time Management? Managing time means investing time to get what you decide you want out of life, includingContinue reading
Modern Management Concepts
Responsibility Reporting
The essence of responsibility accounting is the collection of costs according to responsibility centers in order that variances from standard costs and budgets can be identified with persons, and based on the causes of variances, corrective actions may be initiated. Reports are prepared to inform a responsibility center manager how well he has performed in terms of costs. The purpose is not to indicate failure or to find fault. Responsibility reporting is the crucial phase of responsibility accounting. Responsibility reporting requires grouping and defining responsibility within an organization structure, determining and assigning costs to appropriate levels and activities and placing a strong emphasis on cost controllability. Reports prepared under responsibility accounting may be known as performance reports. These reports are prepared with the purpose of: informing each manager of his achievement in controlling costs of his center; pointing out each manager’s accountability for costs incurred; and presenting cost informationContinue reading
Responsibility Accounting
Responsibility accounting is a system under which managers are given decision-making authority and responsibility for each activity occurring within a specific area of the company. Under this system managers are made responsible for the activities of segments. These segments may be called departments or divisions. Responsibility accounting is a system of control where responsibility is assigned for the control of costs. The persons are made responsible for the control of costs. Responsibility accounting implies a system of accounting whereby the performance of various people is judged by assessing how far they have achieved the predetermined targets set for the divisions, departments or sections for which they are responsible. Each person is responsible for his area of operation. Responsibility accounting is similar to any other system of cost such as standard costing or budgetary control but with greater emphasis towards fixing of the responsibility of the persons entrusted with the executionContinue reading
Responsibility Centers
Responsibility accounting focuses attention on responsibility centers. A responsibility center is a sub-unit of an organization under the supervision of a manager who has the responsibility for the activities of that responsibility center. Each sub-unit has certain activities to perform and its manager is assigned the responsibility and / or authority to carry out those activities. Responsibility center is the segment of business with reference to which information will be communicated to pin point responsibilities. In the words of Anthony and Races, “A responsibility center is like an engine in that it has inputs, which are physical quantities of material, hours of various types of labor, and a variety of services; it works with these resources usually; working capital and fixed assets are also required. As a result of this work, it produces output, which are classified either as goods, it they are tangible or as services, if they areContinue reading
Action Research in Organizational Development
Action research is another view of the organizational change process. It is an organizational change process that is based on a research model specifically one that contributes towards the betterment of the sponsoring organization and contributes to the advancement of knowledge of organizations in general. In Action Research, the change agent is usually an outside person, who is involved in the total change process, from diagnosis to evaluation. This person usually contracts with the sponsoring organization to engage in organizational research, whereas the typical change agent is called in to make a specific change. Action Research in organizational development provides a scientific methodology for managing planned change. Kurt Lewin described action research as “a comparative research on the conditions and effects of various forms of social action and research leading to social action” that uses “a spiral of steps, each of which is composed of a circle of planning, action,Continue reading
Involvement and Participation in Organizational Change
Involvement and participation are perhaps the most powerful techniques management can use to gain acceptance of change. Commitment to carry out these decisions is intensified. Personal satisfaction derived from the job is increased. The extent of personal involvement can range from merely being informed, to discussing problems and voicing opinions and feelings to actually making and implementing decision. At the most superficial level, some participation occurs when one is designated to receive information either written via distribution lists or in face-to-face briefings. At a slightly more intensive level, participation can be gained through individual or group consultations. This process is no more than an extension of the face-to-face discussion. In the process of soliciting inputs, the managers carry this approach to step further. Those present are asked to make suggestions about how the change might be accomplished. Alternately a problem might be assigned to a group for analysis and recommendedContinue reading