...Accounting Information for Managers To Make Better Decisions 1 Abstract This paper analysis how the accounting information would support the decision making process. The main goal of an accounting system is to provide financial information about the organization including financial situation and the performance of the organization. The decision makers should know the situation of the organization either by comparing competitors or previous periods’ performance in order to achieve the objectives of the company and this being possible by using accounting information. In addition, this thesis studies the importance of having effective and efficient accounting system to make better decision as it relates to increase the profitability target of an organization. Organizations should replace their weak accounting system in order to ensure that each team member in the Accounts Department is conscious of their role to produce good accounting information (1, Okoli Margaret). The result of this paper describes that providing right information to the right people in time via management reporting to maximize the use of reports in decision-making. 2 Introduction Any organization should survive and excel in the fast paced and ever changing market. We are living in the digital era so information can be found everywhere via websites, databases documents, reports, and emails. However, it’s important to read the historical data-set during decision making process but providing report in quick &...
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...After studying this chapter, you should be able to 1. Explain why proper “problem definition” is essential to useful business research 2. Know how to recognize problems 3. Translate managerial decision statements into relevant research objectives 4. Translate research objectives into research questions and/or research hypotheses 5. Outline the components of a research proposal 6. Construct tables as part of a research proposal CHAPTER 6 PROBLEM DEFINITION: THE FOUNDATION OF BUSINESS RESEARCH Chapter Vignette: Deland Trucking Has a “Recruitment” Problem David Deland, who has owned his trucking business for 20 years, struggles with the spreadsheet in front of him. His recruitment specialist sits glumly across from his desk, pondering what kind of response to give to the inevitable question, “Why are our recruitment costs so high?” Next to the specialist sits James Garrett, a business research consultant who has been hired by the Deland Trucking Company to get a handle on the recruitment expenses the company has seen skyrocket over the last six months. “I just don’t get it,” David sighs in frustration. “We have seen a 45 percent increase in our trucker recruitment advertising costs, and our trucker intake and orientation expenses are killing us! James, I just don’t understand what is happening here.” James and the specialist have had some initial discussions, but there is no easy way to reduce those costs without reducing the number of truckers that Deland hires. “Perhaps we can...
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...internal and external challenges in implementing its overall growth strategy. In order to move forward with cost-cutting measures, Global Communications must communicate lay-off plans to its affected employees. These measures will eliminate jobs in the United States. In turn those jobs will be outsourced to foreign labor sources in India and Ireland where the labor is highly skilled and cost efficient. The management team failed to utilize the union as a powerful support system in broadcasting the lay-off announcement. Due to Global Communication’s lack of communication with the union, management now faces a potentially volatile situation. Damage control measures need to be identified, evaluated and analyzed in order to minimize the negative impact that the union will have on customers, employee morale and the general public. Situation Analysis Issue and Opportunity Identification Global Communication’s management team had a difficult decision to make in order for the company to survive the advancing telecommunication market. The management team devised a growth strategy which required the introduction of new services into the domestic market and expansion into the global markets through a partnership with an international satellite provider. The strategy called for aggressive cost-cutting measures which would result in the United States technical support center closing down and employee lay-offs. The company would outsource the technical support...
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...Chapter 1 [Central Theme of AIS] - You must know a business organisation’s objectives to understand that business as a system and to understand the actions and interactions of that business’s components or subsystems. System – A set of interdependent elements that together accomplish specific objectives. It must have organization, interrelationships, integration, and central objectives. Subsystem – The interrelated parts that have come together, or integrated, as a single system. Information System – Man-made system that generally consists of an integrated set of computer-based components and manual components established to collect, store, and manage data and to provide output information to users. Accounting Information System – Specialised subsystem of an information system designed to produce understandable, predictive, neutral, comparable, accurate and complete information efficiently and effectively for accountants. - IS can be crucial to an organisation’s success by facilitating day-to-day operations processes and by providing useful information for the organization’s management. [16] It is important to an organization as it facilitates operational functions and supports management decision by providing information that managers can use to plan and control the activities of the firm. It can also use decision models to present output information for decision making. Components Organization – needed to show sustain the hierarchy of each system and subsystems...
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...Tutorial: Introduction to accounting. Decision making and the role of accounting Learning Objectives: Discuss the nature of decisions and the decision making process. Outline the range of economic decisions made in the marketplace. Apply information to make basic economic decisions. Exercise 1.6 Factors in making a business decision Consult the business section of a local newspaper, or the The Australian Financial Review, or a business journal, such as BRW (Business Review Weekly), and find an appropriate article detailing an important business decision that has been made in the last month. Based on the article, determine the factors that were taken into account in arriving at the decision. Discuss the effects that such a decision will have on various interested parties or stakeholders. Factors to be taken into account in arriving at a business decision include: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Nature of the business entity. Goals of the business entity. Resources available to the entity. Parties involved in the decision-making process. The management level required for the decision to be made. Possible gains or losses anticipated to be experienced by the business entity. Possible alternatives which could be employed by the business entity. The best or worst case scenario for the entity in adopting a certain business decision. Identifying all possible groups both internal and external to the business entity who may be affected. Identifying...
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...ijcrb.webs.com SEPTEMBER 2010 VOL 2, N O 5 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS The Impact of Information Technology (IT) on Decision-Making Process in the Public Sector Dr. Mohamad Noor Al-Jedaiah Assistance Prof. Abstract M.I.S Department Al Ahliyya Amman University This paper aims to identify the impact of information technology on the decision-making process in the public sector. By citing international experiences (The Taxation System in Europe Union) and the Solid Waste Association of North America as case studies, the most important findings were: (a) Public sector has to gather complex information through using technological equipment and software. (b) Public sector organizations can build their own information systems. (c) Information systems provide a significant help to the decision maker, and enable to exchange information with other governments. Keywords: Impact , Information Technology (IT) , Decision-Making Process ,Public Sector 1. Introduction Nowadays, organizations, individuals and the whole society are effected by the information and communication revolution, in their thinking manners, doing things, leadership styles of businesses, and even their life style. Organizations, either in the public sector or private sector are working to achieve their planned objectives through implementing strategies and plans that enable them to achieve these goals efficiently. Information now is available to any user in a wide range;...
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...Mismanaged Layoffs can go ‘Horribly Wrong’ the collaboration process to dissect the article: Mismanaged Layoffs can go “Horribly Wrong.’ The team assessed the situation outlined in the article, evaluated the information through group formation, and built consensus through dialogue. By clearly defining the problems, the team was able to generate solutions, evaluate alternative answers, and has determined the best possible resolution. Recommended Solution The team has concluded that the best possible solution involves direct feedback from employees. Circumstances involving possible layoffs should revert to options offered to employees that discuss ways to improve their salaries, benefits and reduce hours at work. Employee involvement in decision making will help motivate employees. Feedback is always critical for any organization to improve employee performance. When used in conjunction with setting of goals, feedback will always provide employees with progress of improving their performance. Moreover, feedback helps to provide solutions to different kinds of problems that occur in the workplace. This is important as it helps to improve job satisfaction while helping employees to understand different kinds of dynamics. Research shows that feedback can be used as a platform where employees become engaged in activities that occur in the workplace. This is beneficial to improvement of performance and also ensuring that things get done effectively in the workplace (Durai, 2010). ...
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...The first issues led to another issue of the HRM policy goal. According to Brunetto, Wharton and Shacklock (2011), since the employees did not have much involvement of into the decision making process, they would not have high commitment to the organization goals. This is because the employees do not understand what is the goal the organization wanted to achieve, and if the organizational goal is clarified, they also want to know whether the decision is matched with their personal objectives. From the lacking of acknowledgement and understanding, staffs would somehow do it as the duties they are paid to operate for or worst as they would deny participating in the procedure; hence, the organization’s objective would be under-qualified or even fail to achieve. In the employees’ side, the situation might raise the conflict between the organization and employees, or between employees who were interested in the adjustment and who were not. According to Rilkoff (2012), Canterbury Hospital did not provide selection and training process or establish job design which support to employees to get used to the working procedures as well as new adjustments, in this case is the generating of new committee. Therefore, most of the employees did not know what they were going to do when the hospital selected people to be in the committee. Moreover, many people who were working in the hospital have skills only in medical fields; thus, it is difficult and takes time for people to acknowledge the...
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...Japan and the U.S. share a low-growth economy configeration and their management styles are beginning to merge. Management Styles: American vis-a-vis Japanese Charles Y. Yang THE JAPANESE STYLE of management has in recent vears been drawing a great deal of attention from American managers because of its apparent ability to insure organization stability in the face of unexpected external changes. At the same time, a slower rate of economic growth in Japan is compelling Japanese executives to .search for improvement iu management efficiency by focusing their attention on the American type of management. FALL 1977 This trend to draw on each other's strengths in order to better cope with growing external pressures is significant because both eountries now share a similar socio-economic situation characterized by a low rate of economic growth, a high degree of vulnerability to external variations and an advanced stage of technological development. A comparative analysis of the quality of management must first determine what is to be measured. 23 If the criterion is profit performance, most of the major Japanese companies compare favorably with leading American firms, and that is where the comparison ends. What is more meaningful is to measure the extent to which the underlying factors have contributed to profit perfonnance in the past, and how they will continue to function in the new socio-economic setting. These underlying factors consist of entrepreneurial...
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...An Analysis of Personal Ethics and Decision Making University of Phoenix COM 526: Managerial Communication Group MIAA0CWRK6 Barbara Nagle, MA August 11, 2008 An Analysis of Personal Ethics and Decision Making I am running late to work. I have a meeting scheduled with senior management at the start of the business day to propose a new project. The project will generate new revenue for the organization. I am two blocks from the office, and the meeting starts in five minutes. As I approach an intersection, I see the traffic light change from green to yellow. Two cars in front of me pass through the traffic light while it is yellow. I know I will not be able to traverse the intersection before the traffic light changes to red. No other vehicles appear to be crossing the intersection. What do I do? What would you do? Every day one faces decisions resembling the one presented in one’s personal and professional lives. Often one has little or no time to deliberate the alternatives. How does one analyze the available choices and make a decision? What guides the decisions? – Personal ethics. Ethics can be described as a set of values that guide individual or group conduct. One’s “set of values” is derived from one’s personal experience, one’s culture, and one’s workplace (Taft, 2007). Thus, personal, cultural, and organizational values influence one’s decision making process. Types of Values Personal values originate from one’s background...
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...Strategic Knowledge Management What is it and why is it important? Summary Knowledge is re-usable. Knowledge is different from information. Both are needed for effective decision making. Knowledge of a domain helps identify which information is relevant. Strategic Knowledge Management addresses the four major weaknesses in the strategic decision making process. Strategic Knowledge Tools require explanatory power. Fuzzy logic provides this. 1. Knowledge - What is it? A successful business makes good decisions, implements them well - and then learns from the experience in order to do better next time. To make a good decision, one needs not only information about the specific instance, but also an understanding of the domain. In other words, one needs a set of principles, models, templates or other abstractions. These abstractions are then re-usable for making new decisions with different information. Knowledge is re-usable - unlike information which relates to specific instances. Knowledge is a set of re-usable abstractions that assist understanding and provide meaning to decision-making. Information is about specific instances and is the raw material of particular decisions. For instance: Consider a civil engineering business that builds bridges. Its knowledge is in its understanding of how to build bridges, how to manage projects, how to handle finance etc. This knowledge is re-usable. Its information is about specific bridges, budgets...
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...To: Bjorn Borg Regarding: Easton management and production As a team, explore the factors that Easton management should consider before making their final decision. Write a 1-page memo to Bjorn Borg describing the analysis that the company should perform. Be sure to address the following in your analysis: What role might contribution margin per unit of limited resource play in this decision? The equation for the contribution margin per unit is: unit sales price- unit variable cost this is basically used to solve the equation when there is an unknown. For example if you have a cost structure and estimation of the sales volume for the up coming period the equation therefore predicts the profits for that period and another example would be if the firms cost structure and the equation indicates the required sales volume to achieve a targeted level of profit it the targeted profits are zero then the equation would be Q (sales volume) = FC/ Unit contribution margin. Should the marketing department be involved in the decision-making process? How important is consumer demand? Yes its very important that the marketing department be involved in the decision making process because they are involved in the forgoing of a plan for the firms marketing activities and it could pertain to one item or many throughout the business. It is important to consumer demand because they conduct the research to where this product would be most successful and useful and who will be...
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...Chattanooga Case Study Jack Welch Management Institute Dr. Tocci JWMI 510: Leadership in the 21st Century 11/16/2014 Executive Summary The Chattanooga Ice Cream Division (CIC), one of the largest regional manufacturers of ice cream in the U.S., currently faced a major dilemma that could potentially impact the viability of the long-standing company. The division’s President and General Manager, Charles Moore, just received news from their third largest customer that they were switching to another competitor brand and therefore terminating their contract with CIC for at least two years. The customer revealed that their decision was based on variety of factors, but it was no secret that CIC had fallen behind their competition. Ice Cream consumption in general was on a steady decline and CIC found itself to be a dinosaur of brands amongst new premium and super premium brands who manufactured innovative mix-in flavored ice cream varieties, and healthier frozen yogurt options. CIC, with its production of mid-priced, basic ice cream flavors was losing its popularity. Moore calls an emergency meeting with his department leads. With just 90 days until the loss of their major client, Moore seeks the input and expertise of his top executives. To his dismay, this fragmented group of individuals engages in public conflict during the meeting and no census is reached on how the company will counter-act the loss of revenue of their third largest client. With little time to lose, Moore has...
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...Rony Matamoros Chapter 1 1. Companies that see research as the fundamental first step in any business decision will create proprietary methods for conducting research. a. At what hierarchy level of business decision-making do these companies operate? -Top tier, Companies that see research as the fundamental first In any business decision will create propriety methods for conducting research. b. At what level do you (or your business) operate today? -Base tier, This tier comprises those managers’ who primarily use instinct and tuition rather than research knowledge to facilitate their decisions making. Most small companies find themselves in this tier based on the perception that any more formalized research might be too expensive to employ and because their resources will not accommodate this type of decision making. c. Explain what hierarchal level do you believe would be optimal (or your business)? -Top tier level would be the more optimal level for my business, top tier level organizations can see research as the fundamental first step in any course. This level goes well beyond the tried and true methodologies and use creative combinations of research techniques to gain deep insights to aid in their sophisticated decision making. Chapter 2 2. Research ethics (not business ethics) a. What is the goal of research ethics? -The goal of research ethics is to prevent anyone from being harmed. b. What is the purpose of an informed...
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...People still resist change, even though the amount of change in their work lives has increased. New and faster technology, redefined values, and shifting customer demands are changing the way businesses operate in the twenty-first century. The delivery of goods, services, and spare parts will be done by e-commerce organizations. In the majority of developed countries, the population is aging. Human resources are being transformed from a specialized, stand-alone function to a broad, corporate competency. HR policies and program initiatives will have to be responsive to market conditions and global business structures. Organizations are becoming flatter, leaner, and more flexible in order to keep up with technological advances and to become and/or remain competitive in the global marketplace. Work tasks and processes are less likely to be fixed entities determined by management. More and more organizations are working to push responsibilities to the lowest level possible in an effort to increase commitment, task variety, organizational flexibility, and employee ownership of work outcomes. Additionally, work is more and more likely to be designed and performed by teams either...
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