...Assignment on Management Accounting Course Code: ACN 2215 Topic: Effects of ERP in Internal Decision Making Enterprise resource planning (ERP) ERP is most frequently used in the context of software. As the methodology has become more popular, large software applications have been developed to help companies implement ERP in their organization. Think of ERP as the glue that binds the different computer systems for a large organization. Typically each department would have their own system optimized for that division's particular tasks. With ERP, each department still has their own system, but they can communicate and share information easier with the rest of the company. Benefits of ERP When the idea was first introduced, ERP was an attractive solution for many large companies because it offered so many potential uses. There are some particular benefits are identified easily, like: ➢ The same system could be used to forecast demand for a product, order the necessary raw materials, establish production schedules, track inventory, allocate costs, and project key financial measures. ERP "acts as a planning backbone for a company's core business processes. ➢ A typical ERP system manages functions and activities as different as the bills of materials, order entry, purchasing, accounts payable, human resources, and inventory control, to name just a few of the 60 modules available. ➢ As needed, ERP is also able to share the data from these processes...
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...The effects of performance on decision making authority Christian Schumacher I. Introduction Authority-- a superior’s legitimate ability to demand obedient behavior from one or more subordinates within a specified realm of actions—is a central feature in human organizations and established as solution to fundamental organizational design challenges within a decision-making framework (e.g. Simon, 1947; Weber, 1922). The problem of the centralization or decentralization of decision rights concerns the locus of the authority to make decisions affecting the organization. (Colombo & Delmastro, 2008) The question of the determinants of the allocation of decision rights in firms has received considerable attention from different streams of economists and strategy scholars over the last couple of decades. The information processing stream ( see Radner & Marschak, 1972; Harris & Raviv, 2002; Sah & Stiglitz, 1986) contends that hierarchical organizations that centralize the decision-making function can suffer from organizational failures, consisting in leaks that arise in transmitting information from the top to the bottom of the hierarchy and vice versa. Benefits of delegation than arise because of inefficiencies in intra-firm communication (Keren, Levhari, & Kerent, 1979) implementation delays (Radner, 1993), fully exploitation of economies arising from local capabilities and specialization tasks (Bolton & Dewatripont, 1994) and high opportunity costs of highrank managers (Harris...
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...Effects of Unethical and Irrational Decision Making at Enron DePaul University Managers and employees are often faced with ethical problems. The decisions that are made in regards to handling those problems can define an individual's career and determine the ultimate fate of their organization. In this discussion, examples of decisions that were made by Enron employees will be discussed that will exemplify this point. The first decision that will be discussed is the decision that Jeff Skilling, President and Chief Operating Officer of Enron, made when he decided to ask Enron's accounting firm, Arthur Anderson, to use the mark to market accounting method. It was a very intelligent and rational decision at the time that it was approved by Arthur Anderson and the Securities & Exchange Commission. However, it eventually opened the doors for greed and fraud and led to intentional misrepresentation. If Jeff Skilling's initial intentions were to misrepresent financial statements, then the decision would have been very unethical and irrational. The mark to market accounting method allowed the company to book revenue based on the present value of net future cash flows. Simpler put, the accounting method gave Jeff Skilling the opportunity to claim any amount of revenues that he wanted. Consequently, this gave Enron the power to control their own stock price which led to an escalation of commitment which is, "staying with a decision even when there is clear...
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...Effects of Economic Uncertainty on Business Decision Making Market uncertainty has never been higher. Business observers, CEO’s and policymakers have repeatedly raised concerns about the uncertainty of doing business during the ongoing financial and economic crisis of 2007. No one is sure whether or not people who do business with Uncle Sam will be left out in the cold. This kind of uncertainty can play havoc with business and with the economy at large. The Patient Protection and Affordable Care Act (PPACA), widely recognized as Obamacare, was signed into law by President Barack Obama in March 2010. It is intended to decrease the number of uninsured Americans and lower the overall cost of health care in the U.S. Most business owners are concerned about the program’s potentially harmful effects on the cost of employee health care coverage. Charlie McCrudden, vice president of government relations for the Air Conditioning Contractors of America, said “There’s a lot of uncertainty about what contractors will do about providing health care for their employees…” (Anesi). As uncertainty continues to grow in the markets, so do the changes in employment practices. During challenging economic times, many businesses are opting to hire temporary and contract workers as opposed to full time employees. Not only does this hiring practice affect employment rates and the economy as a whole, but is also affects those seeking work and financial stability. Uncertainty and ambiguity...
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...Running Head: EMPLOYMENT-AT-WILL; MAKING ETHICAL DECISIONS WITH POTENTIAL LEGAL EFFECTS Employment-at-will: Ethical Decisions with Potential Legal Effects Rosalyn S Hicks Leg 500 Law, Ethics and Corporate Governance Professor Augustine Weekly November 2nd, 2013 As the Chief Operating Officer, it is essential that the needs of the company be examined, strategies be devised and a plan to execute these strategies be developed. Managing day to day operations of the organization requires an open and honest relationship with the Chief Executive Officer. Staying on top of production quotas is just one area that the COO ventures into. Preparing for an Initial Public Offering, IPO, requires knowledge of personnel issues, identifying emerging markets and identifying operational risks and environmental sustainability. The first sale of stock to the public has to be backed by the assurance that the organization is growing in a positive direction so that the shareholders are confident in their investments. As the COO of a company trying to go public, recognizing that this move requires being regulated by the Securities and Exchange Commission (SEC), is an important step in growing the company. Addressing internal issues is the first step in preparing for the first IPO. Personnel issues, such as an employee’s public dissatisfaction with some facet of the company operations could do the company great harm. How the COO handles employee concerns or behaviors will also give investors...
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...Managers without enough qualifications and their effect on decision making process in airline MRO service organizations Viviana A. Martin Embry-Riddle Aeronautical University Abstract The trend of selecting or promoting managers that do not have direct experience in the areas they manage in technical positions appears to be taking place in many companies today including airline MRO services organizations. In order to be successful in a competitive marketplace, management must make effective decisions to maximize the output of their organization, minimize waste and mistakes, and keep morale up. As such, it is imperative to understand which ‘type’ of manager should be placed in each management role; an effective leader that may not have intimate knowledge of the area they manage, or a manager that fully understands the inner workings of the organization that may not be as effective of a leader. This paper seeks to examine management qualifications and their effect in the decision making process and how that impacts organizations. This paper also reviews both decision making in airline services organizations and management types to provide an understanding of the decision making process and factors that can affect that process in airline MRO services organizations. Keywords: organizational behavior, decision making, technical management, general management. Managers without enough qualifications and their effect on decision making process in airline MRO services organizations ...
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...“PEER INFLUENCE: THE EFFECT OF PEER GROUP TOWARDS THE DECISION-MAKING OF 2ND YEAR AB POLITICAL SCIENCE STUDENT” SOCIAL PSYCHOLOGY Course: Bachelor of Science in Psychology- II Names: Balmes, Sharmaine D. Dagohoy , Jasmine D. Jalocon, Clarice P. Abstract: Introduction Group influence occurs when one's emotions, opinions, or behaviors are affected by others. Group influence takes many forms and can be seen in conformity, socialization, peer pressure, obedience, leadership, and persuasion. The actions, reactions, and thoughts of an individual are influenced by other people or groups. A useful framework of analysis of group influence on the individual is the so called reference group—the term comes about because an individual uses a relevant group as a standard of reference against which oneself is compared. Reference groups come in several different forms. Peer group is defined as a small group of similarly aged, fairly close friends and sharing the same activities. In general, peer groups or cliques have two to twelve members, with an average of five or six. Peer groups provide a sense of security and they help adolescents to build a sense of identity. (http://inside.bard.edu/academic/specialproj/darling/adolesce.htm, 2004) In actuality, peer influence is more complex than our stereotype of the negative influences from friends. First, peer influence can be both positive and negative. While we tend to think that peer influence leads teens to engage in unhealthy and...
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...Topic: “The effects of road traffic congestion on residential decision- making of inhabitants of the city of Accra- A case study of communities along three congested routes” Transportation is essentially a response to the mobility needs of people, and this must be done in a timely fashion in order for people to realize its full benefits. Consequently, transportation plays a crucial role in the socio-economic and politico-cultural development of people and their communities. However, there are some related problems (such as congestion, mobility gaps, urban sprawl, and emissions amongst others) that come with it. In Ghana, transportation is almost synonymous with road transport as it is the major means by which peoples’ mobility needs are answered on daily basis. Road traffic congestion in the city of Accra has almost become an’ acceptable norm’ since residents have to live with this phenomenon every passing day of their lives. The factors responsible for this trend are as follows: growth in the population of Accra over the last 15 years (and this has been estimated to double in the next 20 years) associated with a continuing trend of reduction in population density; expansion in built-up area; growth in per capital income (which has also been estimated to have increased five folds over the last 15 years) with a concomitant increase in car ownership. Currently over 70% of major roads in Accra and Kumasi-the two biggest cities in the country- are said to be congested and should the...
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...actions or make decisions". White (2005) it defined BIS as information systems that provide information and improve its quality that supports decision making and achieves business goals. It divided BIS into two parts: 1) data warehouse 2) access to data, data analysis and reporting. KalKaota &Robinson, (1999) business intelligence systems infrastructure components that support the quality of decision making: 1. Key information technology related to store data (Extraction, transforming...
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...Discuss some the factors which influence our thinking, judgement and decision-making Our everyday lives are filled with many choices and decisions which will impact on our lives both in the short and long-term. Our perception of the impact of these decisions on our own lives and those around us will affect how much time and effort is given to arriving at these decisions. There are several factors which impact on thinking, judgement and decision-making and it is important to note that often these occur simultaneously rather than as individual areas but in order fully understand the entire process we must analyse the factors in each individual area. While it is neither practicable or possible to consider all the factors in every decision, knowledge of the factors, process and how they interact can be of critical importance. By understanding the factors, we can ascertain how we make decisions and by gaining knowledge on the entire process, we can ultimately arrive at better decisions by being conscious of our thought and application process. How we think and apply our thought process to the decisions often determine the paths we choose to take. There are two systems, or modes, which determine how we think (Kahneman, 2011). The first system is fast, automatic, emotional and frequent and the second system is slow, logical, infrequent and conscious. The title of the Kahneman’s book, Thinking, Fast and Slow, gives us an indication of the two systems. The first system, thinking...
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...RELATION OF PERSONALITY FACTORS AND DECISION-MAKING STYLES OF HAKIM SABZEVARI UNIVERSITY MANAGERS FATEMEH BAHRAMI*, MOHAMMAD AMIRI*, ESLAM PARANDVAR* *Hakim Sabzevari University, Assistant Professor at Department of Educational Psychology, Sabzevar, Iran. **Hakim Sabzevari University, Department of Educational Psychology, Sabzevar, Iran. ***Hakim Sabzevari University, Department of Educational Psychology, Sabzevar, Iran. Pinnacle Research Journals http://www.prj.co.in 46 ABSTRACT The present study was conducted in order to examine the relationship between the personality traits and the decision making styles of the managers of Hakim Sabzevari University. The statistical population includes all the managers of Hakim Sabzevari University who are in-charge of different positions. The number of managers is seventy people, 60 subjects based on Morgan Table were selected using simple random sampling method. The instruments used in the present study are Scott and Bruce General Decision Making Styles Questionnaire (1995) and NEO personality traits questionnaire. In order to analyze the data, description and inferential statistics including Pearson, step by step regression, t test, unidirectional ANOVA and Tokay follow-up test were used. The results indicated that: the marital and single status did not affect the decision making styles of the manager and education and experience only affected the avoidance decision making styles. The extroversion and consciousness...
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... |ID:1204040094 |Date: 06/12/2013 | |Tutor: Nguyen Dang Hoang |Tutorial: Tut3FB12 |Word count: 1458 | |Title of report: THE IMPACTS OF MANAGEMENT BY OBJECTIVES ON ORGANIZATIONS | |The two primary articles: | | | |The effects of Management by objectives on performance and satisfaction in a public sector organization. | | | |The influence of Management by objectives on employee performance and organizational | |productivity. | | ...
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...RUNNING HEAD: DECISION-MAKING January 11, 2009 Problem Formulation and Identification Every organization uses its own decision-making style. Some organizations prefer to use a rational style, which centers on facts and figures, and logical and scientific approaches to their problems. Other companies use an intuitive style, which focuses on emotional aspects of problems and gut feelings. Recently, a group of business students observed how decisions are typically made at their own places of employment. Kori at Prescription Solutions, Jacob at Combined Arms Training Center, Isela at Housing Authority of the City of El Paso, and Micah at Brown-Forman where each examined the strategy most often employed at their organizations. It was found that while each has its own particular style, there were many similarities. These working students also found that each style uses its own set of strengths and weaknesses, and explored how a problem can be described to stakeholders in a manner that is sensitive to their perspectives with various style approaches. Rational Decision-Making Rational decision-making is “a deliberate and logical approach” (Robbins, 2004, p. 21). When faced with a decision, a rational thinker will “emphasize facts, details, and rational cause-effect logic” (Robbins, 2004, p. 21). When a decision must be made, Prescription Solutions’ upper management executives consider three logical business factors: customer satisfaction...
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...examine the critical thinking process as applied to University of Phoenix’s nine decision making steps in one of the author’s recent workplace experiences (Decision Making Step, 2010). Utilizing Critical Thinking and Decision Making Steps to Assess a Workplace Decision In August 2010, the author, acting as an assistant manager with a retail auto parts store was faced with a workplace situation that required the utilization of critical thinking. Identify the Problem Identifying the problem is the first step in the decision making process. Critical thinking removes biased thoughts and emotions from the identification process in order to establish a factual statement of the problem (Kirby & Goodpaster, 2007). In the author’s case, a problem was identified: a subordinate was disrupting store functions and affecting local public image. Define Criteria, Goals, and Objectives The second step in decision making processes is to define one’s intent. The criteria, goals, and objectives of a debate will guide one’s debate by determining what should be accomplished. Once again, critical thinking is utilized to eliminate potential avoid potential bias by constructing a factual stance on an issue (Rainbolt & Dwyer, 2008). The author’s objective as assistant manager was to objectively restore store functions and public image. Evaluate Effect of the Problem Evaluating the effect of the problem establishes the potential consequences and results of a...
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...Abstract The aim of this study is to investigate the effect of participative management on employee satisfaction, employee commitment, and turnover. The analytical data are based on the survey of 31 private sector employees. Pearson correlation coefficient results show that both employee satisfaction and employee commitment are effected by participative management, while turnover is not effected by participative management. Introduction The concept of employees’ participation in decision making "Participative management" (PM) has been a focus of research and practice for many years. It is widely believed that the employee participation in decision making process may affect employee’s job satisfaction; employee productivity, and employee commitment towards the organization and they all can create comparative advantage for the organization in order to stay in top of their competitors. Thus, to gain employees’ commitment and to get their job done properly, individual employee should not be treated in isolation, but must be involved in issues related to concerning them and the organization. When employees are involved in decision making there will be greater organizational commitment, staff absenteeism is reduced, improved performance, reduced turnover and greater job satisfaction. The main intention of this study is to investigate the relationship among job satisfaction, employee commitment and turnover and to study their effect on participative management. Theoretical Background ...
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