Question

Think about your own experience within organizational bureaucracies. Give an example from this experience of one successful approach using financial and budget control strategies, and one disaster (bad experience) with financial and budget control strategies. Conclude with a brief summary of why one was successful and the other not. Be sure to use the ideas and language of the text and readings to support your description.

Answer 1

Working in an organisation is like socialising with a group of people working together in a friendly business environment for a certain common goal, with divided responsibilities more or less on each head in the group. Yes, there is a need for a hierarchy of authority, division of labours, and a routine for everything in the organisation to get the business and keep it on track.

Business is about taking a risk to make a profit. It always prone to speculations. So to run a business effectively a businessman can try to minimise the risk of the profit. And for that, a businessman has certain risk minimizing tools called controls. These controls are the measure to know or estimate the result beforehand to make decisions. Major decision making controls are: A) Financial Control, B) Budget Control

Financial Controls: This is a control technique to measure the financial cost of raising fund for business, return on investments and dividend.

Budget Controls: This a control technique in a business where the actual results are compared by the budgeted results to draw out the variance and its reason for further controlling of cost or production or to revise the budget, as the case the prefers.

If the business controls are appropriately applied and followed by the financial and accounting experts of the business it will give most probable positive results for the business. This is what I have witnessed in the organisation. All that needed is a good management.