Responsibility accounting is a system under which managers are given decision-making authority and responsibility for each activity occurring within a specific area of the company. Under this system managers are made responsible for the activities of segments. These segments may be called departments or divisions. Responsibility accounting is a system of control where responsibility is assigned for the control of costs. The persons are made responsible for the control of costs. Responsibility accounting implies a system of accounting whereby the performance of various people is judged by assessing how far they have achieved the predetermined targets set for the divisions, departments or sections for which they are responsible. Each person is responsible for his area of operation. Responsibility accounting is similar to any other system of cost such as standard costing or budgetary control but with greater emphasis towards fixing of the responsibility of the persons entrusted with the execution Continue reading
Modern Management Concepts
Blue Ocean Strategy – Summary and Examples
Strategy involves standing out from the competition and making choices that give the company a unique and valuable position by offering distinctive products and services. Competitive advantage and profitability can be achieved simultaneously by approaches that create consistent internal synergies and combine a company’s operational activities efficiently. Strategies are formed at various levels of the organization. However, a typical organizational structure incorporates strategies at 3 specific levels: corporate, business and functional. Corporate strategy defines a company’s holistic growth and management direction pertaining to its various businesses, products and services. Business strategies, on the other hand, are established at the divisional levels and typically focus on enhancing the strategic business unit’s competitive position in its industry. Functional strategies aim to maximize resource productivity and are typically set by functional departments within each SBU to improve competencies and performance. The profitability of a company depends on three primary factors which include the Continue reading
Role of Organizational Climate in Facilitating Innovation
One of the most important roles that the leaders play within organization settings is to create the climate for innovation. Organizational climate is a key factor in innovation implementation. Building up an innovative culture in an organisation is one of the important tasks of an innovative leadership. At the same time, creative organizational climate is one of fundamental elements that leads to success of innovation. Doing so successfully will certainly further secure and strengthen the leadership, which initiates innovative climate in the first place. This success will also bind more followers to the leadership because of its respective contributions for innovation, or in another word future success. A leadership should have a quality and skills to manoeuvre the internal environment of an organisation to create a favorable climate for innovation. Although there is no direct influence between organizational climate and innovation, a favorable climate can naturally drive people to seek Continue reading
Business Continuity Management (BCM) According to ISO 22301
Doing business is a great thing if everything runs perfectly. As we all know there is no such thing as a perfect way of doing anything. This is true in the business arena. Things are going to happen which is not in the best interest of the day to day operation of any business. Natural disasters such as hurricanes, tornadoes, floods, fire, and volcanoes can happen at any given time. Your business could be a victim of a serious data breach. All of the previously mentioned scenarios can seriously affect how business is run. To counteract those on foreseen events every company should have a continuity disaster recovery plan. Planning for the worst case and how the company is going to limit their downtime. The ultimate goal of the disaster recovery plan is to limit every potential risk and get the organization running as close to normal in the shortest Continue reading
How to Manage Innovation?
When we think about innovation one question arises in the mind: Does the innovation come naturally? Or it may be taught. The answer is that everyone can be creative and innovative the only requirement is to encourage the innovation among people. Innovation is real work and it can & should be managed like any other corporate function but that does not mean it is the same as other business activities. Indeed, innovation is the work of knowing rather than doing. Buzz today is to encourage and manage innovation through innovation management. One strategy to build up an innovative organization is getting people to accept that the way they work just might not be the best. The most important thing is to help people broaden their perspective. Innovation is like a sky with horizons defined. These horizons can only be broaden through innovation. There is no agreed definition of Innovation Management. Continue reading
Importance of Innovation Strategies in Organizations
Innovation is significant in terms of bringing new ideas within the operational procedures that are effective for increasing the company performance and overall company productivity. Companies develop innovation strategy in order to implement appropriate innovation tactics, which prevents the company from facing any financial or situational crisis. Appropriate innovation are also beneficial for mapping the unique value proposition of the company for the target customer market. It is important to conduct appropriate innovation planning, in order to organize the innovation initiatives in the organization, in order to create a positive impact on the organization. According to the experts, the impact of the innovation depends on the strategic choices made by the organization. One of the most common method bringing innovation in the organization is to incorporate technological benefits in the company operations. However, in order to ensure the success of innovative ideas in the organization, the management has to take Continue reading