Empowerment and Goal Setting Essay Example | Topics and Well Written Essays - 500 words

Empowerment and Goal Setting - Essay Example It is management's responsibility to create an environment in which that knowledge is brought out and used for the benefit of the people and the organisation. An employee's ability to solve problems, make decisions and take actions based on those decisions, management has often encouraged the first two but has failed to allow the third. (Holbeche 2004, p.60). Three organisations utilising the empowerment process are Delphi Packard (Delphi), Virgin Mobile and Ritz Carlton Hotels, all three organisations are applying the process differently and with differing results. Delphi is applying empowerment as stated in the Holbeche quote from a management perspective, the lead engineer responsible for the day to day engineering management of the Ford Transit Project, has been empowered to request overtime for contractors and permanent staff. The necessity for it and the amount of time required needs to be agreed by senior management. The lead engineer also has the responsibility for giving appraisals and assigning staff responsibilities. All of which merely removes some of the repetitive tasks from the HR department. In opposition the junior staff at Delphi have been given more empowerment as an engineer can act on his decision to make changes to the system without the need to consult the lead engineer.

Management accounting and control (s-12 -1-4)) Coursework

Management accounting and control (s-12 -1-4)) - Coursework Example In this control model, there are several actions that ought to be subjected to control as argued by Otley and Berry (1980). In their argument, the authors point out four conditions of control. i. Existence of clear organisation’s objectives ii. The outputs of the budgetary process should be measurable iii. The effect of the control actions must be predictable iv. The organisation should be able to implement a corrective action throughout the budgetary process. Existence of clear organisation’s objectives Management of public and large private organisations is sometime hard to attain the desired ends. Activities and various operations should be monitored closely and action should be taken in order to achieve the intended objectives. Objectives drive an organisation in pursuing any activity. It dictates what ought to be done at specific period of time. An organisation has objectives and subsidiary objectives that influence its course of actions. Setting clear objectives i s one of the functions of modern management both in private and public sector. Measurement of goal attainment both financially and in terms of meeting demands of stakeholders is paramount. The issue of goal attainment cannot be achieved without confronting the issue of organisation’s effectiveness and efficiency, which means have direct effect on organisation’s budget (Bunce et al., 1995). The extent to which clear objectives apply in the context of budgeting As suggested by Otley and Berry (1980), objectives for budgetary process under control must exist; otherwise without them the control process is meaningless to the organisation. Well defined objectives compel an organisation to work without certain resource and time constraints. Most organisations around the world defined their objectives which ought to be achieved within budgeted resources. The objectives act a guide to the utilization of the existing resources as reflected in the budget. The authors further sugg est that the budgeting control process is influenced directly by the objectives to be attained during a specified period of time. It is demeaning for organisation to spend its resources on unbudgeted things since it will undermine the attainment of well defined objectives. Without objectives, the budgeting process will be aimless hence the entire concept of budgetary control becomes inappropriate. As the business operations progresses, an organisation continually monitors the world around and compares its current state with its objectives. Is the organisation in the correct route in respect to its budgeting process? Is its spending within the appropriate budget limit? Is the organisation avoiding resource strain? The objectives helps an organisation makes a budgetary observations by the use of measurable aspects of budget. The outputs of the budgetary process should be measurable Most literature advocate for adoption of performance based budgeting (PBP) as a primary way of attaining efficiency in the management of public resources. The sole aim of this concept is to link performance information with effective management and allocation of public or organisational resources. It emphasizes the significance of singling out measurable outcomes and effectively allocating resources to facilitate the realization of these outcomes. According to Otley