Answer to Question #258569 in Management for floyd

Question

Recommend any four (4) ways in which Klaus can exercise both periodic and occasional control within his division. You may choose any amount from either category (periodic or occasional), as long as you ensure you cover at least one from the one category). Provide Klaus with useful and practical ideas which he will be able to implement immediately.

Answer 1

Discussion

Control is a function of management which helps to check errors in order to take corrective actions. This is done to minimize deviation from standards and ensure that the stated goals of the organization are achieved in a desired manner. Controlling helps managers monitor the effectiveness of their planning, organizing, and leading activities. Controlling also determines what is being accomplished that is, evaluating the performance and, if necessary, taking corrective measures so that the performance takes place according to plans. Control focuses on measurable results within an organization. For example, from the business world include the number of hits a website receives per day e.g 100.

Each organizational unit should have processes and procedures in place to ensure financial control and management in compliance with organization guidelines and policies. Below are some useful control and practical ideas which Klaus can implement immediately;

• Establish Performance Standards

Performance standards are generally created by the management team. Performance standards are the goals or expectations for how the company should operate. The standards can be physically measurable, or they can be personality or human-based standards.

• Internal Controls

Internal control is a process of checks and balances designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting and compliance.

• Delegation of Authority

Managers with approval authority may delegate that authority under various circumstances, e.g., for backup purposes, for periods of absence, due to a large volume of transactions, etc. Managers who delegate authority must ensure that the delegate understands the approval responsibilities as outlined in the Transaction Review section.

• Separation of Duties

A good system of checks and balances necessitates that the following business processes be performed by different individuals in the department: Processing transactions (e.g., creating requisitions, preparing expense reports, journaling, etc.), authorizing transactions, monitoring activities (e.g., review and reconciliation), physical custody of assets (e.g., equipment, cash, etc.)

In small work units, full segregation of critical duties may not be possible. In these circumstances, departments should segregate duties as much as practical in consultation with the Financial Service Center.

Reference

Pothiwala, P., & Levine, S. N. (2010). Analytic review: thyrotoxic periodic paralysis: a review. Journal of intensive care medicine, 25(2), 71-77.