Friday, June 28, 2013

Business processes refer to the set of logically related tasks and behaviors that organizations develop over time to produce specific business results and the unique manner in which these activities are organized and coordinated.

Developing a new product, generating and fulfilling an order, creating a marketing plan, and hiring an employee are examples of business processes and the ways organization accomplish their business process can be a source of competitive strength.

Wednesday, June 26, 2013

Delegation is a concept describing the downward transfer of formal authority from one person to another.

Superiors delegate, or pass, authority to subordinates to facilitate work's being accomplished.
Authority is a manager’s tool that can be described as the right to commit resources (that is, to make decisions that commit the organization’s resources) or the legal right to give orders or to tell someone to do or not to do something.

Authority is the “glue” that holds the organization together. It provides the means of command. There are three types of authority.

  1. Line authority
  2. Staff authority
  3. Functional authority

Line Authority defines the relationship between superior and subordinate.
Staff Authority is the authority to serve in an advisory capacity.
Functional Authority is the authority to make decisions on specific activities that are undertaken by personnel in other department.
The informal organization is a network of personal and social relationships that arises spontaneously as people associate with each other in the work environment.

It is a self-grouping of people because of shared interests, social and educational backgrounds, personalities and shared needs. The informal organization cuts across the formal organization chart.

Tuesday, June 25, 2013

The resources used to produce goods and services are the factors of production. The elements of factors of production are land, labor, capital, and entrepreneurship.

Monday, June 24, 2013

Value chain is the sequence of business functions in which customer usefulness is added to products or services.

1. Research and development: Generating and experimenting with ides related to new products, services, or processes.

2. Design of products or services: Detailed planning and engineering of products, services or processes.

3. Production: Acquiring, coordinating and assembling resources to produce a product or deliver a service.

4. Marketing: Promoting and selling products or service to customers or prospective customers.

5. Destination: Delivering products or services to customers.

6. Customer service: Providing after-sale support to customers.

Sunday, June 16, 2013

Financial accounting focuses on reporting to external parties such as investors, government agencies, banks and suppliers.

It measures and records business transactions and provides financial statements that are based on generally accepted accounting principles (GAAP). Managers' compensation is often directly affected by the numbers in these financial statements.

Consequently, managers are interested in both management accounting and financial accounting.

Saturday, June 15, 2013

Management accounting measures, analyzes, and reports financial and non-financial information that helps managers make decisions to fulfill the goals of an organization.

Managers use management accounting information to choose, communicate and implement strategy. They also use management accounting information to coordinate product design, production, and marketing decisions and to follow set principles or rules.