11. FINANCIAL BUDGET
- estimates the amount of cash needed to
support the expected level of activities during
the specific time period.
12. FINANCIAL ANALYSIS
-is the process of evaluating businesses, projects ,
budgets , and other finance - related
transactions to determine their performance and
suitability .
13. -A financial analysis will not only help you understand
your company's financial condition, helping you
determine its creditworthiness, profitability and ability
to generate wealth, but will also provide you with a
more- in-depth look at how well it operates internally
the most common types of financial are vertical
analysis, horizontal analysis, leverage analysis, growth
rates , profitability analysis, liquidity analysis,
efficiency analysis, cash , flow , rates of return,
valuation analysis, scenario and sensitivity analysis,
and variance analysis.
14. FINANCIAL AUDIT
-is the final element of financial control
which provides an independent an unbiased
evaluation of the data reported and the
procedures used. Primary types are internal
and external audits.
15. INTERNAL AUDIT
-Internal audit periodically appraises the overall
system to evaluate whether or not goals are
being achieved.
16. EXTERNAL AUDIT
-External audit is undertaken by people such as
certified public accountants, who report firm's
activities and provide an expert opinion that the
statements fairly represent the firm's condition.
17. OPERATIONAL CONTROL
-This is concerned with the management of the
transformation of inputs into outputs. There are
five key decision categories in operations control:
process, capacity, inventory, and quality control.
18. PROCESS CONTROL
- involves facility planning such as capital investment
decisions, purchase of plants or equipment. Capacity
controls involve a long-range forecast to the amount of
product or service being produced, generating alternative
capacity plans, scheduling operations, and deciding on a
plan for implementation. Controls are concerned with
predicting how much capacity is needed, and when and
where it is needed.
19. CAPACITY CONTROL
- Relates to forecast on the amount of product or
service being produced, alternative capacity
plans and scheduling operations.
23. TWO PRIMARY TYPES
*FORMAL BEHAVIORAL -
CONTROLS SUCH AS:
a. job analysis
b. b. performance appraisal
c. c. selection and training
d. d. staffing levels
24. *INFORMAL BEHAVIORAL -
CONTROLS SUCH AS:
a. Culture -consist of the shared beliefs, ideologies, and norms
that influence organizational decision making. Japanese firms
use the culture of the firm for controlling behavior by having
songs, uniforms, and teambuilding exercises. This helps to
build identification with and commitment to the firm and
thus increases the likelihood that individuals will act in the
best interest of the firm.
25. b. Socialization - refers to the process by which an
individual attains the attitudes, values and beliefs
of the organizational culture. Organizational
programs, rewards and rituals are means used by
organizations to socialize their members. It is
intended to get the individual to conform to the
accepted norms and behave in a way that
considered desirable by management.
26. EXECUTIVE POWER
- an important technique for influencing people
and for getting them to do what is desired.
27. INFORMATIONAL CONTROL
Management rely on information and reports to monitor
activities. They must have accurate information for
making decisions. Rapid growth of technology means it is
easier to process more pieces of information at a faster
pace. With the development of distributed networks, it is
now possible to get information from geographically
dispersed offices and foreign subsidiaries.
28. INFORMATIONAL CONTROL
- Management needs to define the objectives for
information control and systems development,
determines the estimates of the values and costs,
and evaluates the information quality and system
performance.