Category: Management

Audit Program Advantages And Disadvantages

In this tutorial, we will learn about audit program advantages and disadvantages is a set of instructions that are followed for the proper execution of the audit.

 A detailed written audit program contains the various steps and procedures required after the development of the audit plan. The audit program includes that are generally employed to determine what and how much evidence must be collected and evaluated. It also lays down the responsibilities for the whole audit team for carrying out different tasks. 

The prepared audit program may be revised if needed by the prevailing circumstances. An audit program largely depends on the size of the organization and other relevant factors. Minimum essential work to be done in the standard plan and rest is according to the circumstances. Auditing will be carrying out in both the public and corporate sectors. 

Advantages of Audit Report:

  • That helps in ensuring all the essential areas appropriately covered during an audit.
  • The audit program is instrumental in distributing the audit work properly among the audit team members according to their talent.
  • It helps in setting all the things in advance, so the uniformity of work can be achieved.
  • It helps in distributing the work among the assistants by their competence and experience level.
  • It provides the instructions to the audit staff and reduces the scope for misunderstanding.
  • It helps fix the responsibilities for the work done among the audit staff as the job done may be traced to the individual staff member.
  • Before signing the report, the final review, and the auditing program is also beneficial for this purpose.
  • It helps in assessing the progress work by ascertaining what part of audit work has completed and how much work is left.
  • It serves as evidence against the charge of negligence.
  • On completion of an audit, it serves the purpose of an audit record, which may be useful for future reference.

Disadvantages of Audit Program:

Various problems of audit program are as follows:

Rigidity: 

The audit program loses its flexibility as it cannot be the same for different types of organizations. Each business has separate problems, so a single or same audit program cannot be laid down for every kind of business.

Reduces the initiative of efficient staff:

 It kills the effort of capable persons. The Assistant cannot suggest any improvements in the plan.

Audit work becomes mechanical: 

The audit program is automatic that ignores many other aspects like internal control.

New areas may overlook: 

That time, new problems arise during the audit that ignored in the audit program.

The remedy of disadvantages:

  • The solution in such situations is that the audit program should be flexible must always be open to changes and improvements.
  • Audit staff should be encouraged to draw the auditor’s attention to any defects in the program.
  • The audit staff should be encouraged to explore thoroughly unusual transactions and not get restricted to the audit program.

 

AUDIT PLAN

AUDIT PROGRAM

Lays down the audit strategies for conducting business.It is an outline of how the audit is to be done, who is to do what works, and within what time.
Plans should be made to cover, among other things. It lays down the following audit procedures to be followed.
Acquiring knowledge of accounting systems, policies, and internal control procedures. Checking of overall disclosure and presentation of all items in the final accounts.
We are establishing the expected degree of reliance to be placed on internal control.verification and valuation of assets, liabilities, and ledger scrutiny.
We are determining the nature, timing, and extent of the audit procedures to be performed.Evaluation of internal control and preparation and submission of an audit report.

 

Human Resource Management

In this tutorial, we will learn about human resource management is the part of the control that is concerned with the people at work and their relationship with an enterprise.

It is a process of management that is directly concerned with the organization’s human resources. The term human resource can be defined as the skills knowledge training and experience that a manager should have to manage any organization.

If a strategic approach to the effective management of people in a company or organization, they help their business gain a competitive advantage. May be designed to maximize employee performance in the service of an employer’s strategic objectives. Human resource management is primarily concerned with the management of people within organizations, focusing on policies and systems.

HR departments are responsible for overseeing employee-benefits design, employee recruitment, training and development, performance appraisal, and reward management, such as managing pay and benefit systems. HR also concerns itself with organizational change and industrial relations, or the balancing of corporate practices with requirements arising from collective bargaining and governmental laws.

HR professionals manage the human capital of an organization and focus on implementing policies and processes. They can specialize in finding, recruiting, training, and developing employees while maintaining employee relations or benefits.

Training and development professionals ensure that employees are trained and have continuous development. May has done through training programs, performance evaluations, and reward programs.

Features Of Human Resource Development:

  • It is an inherent part of management.
  • Pervasive function
  • Scope of HRD.
  • It is concerned with all categories of personnel from top to bottom.

Importance\Objectives Of Human Resource Management:

  • To ensure optimum utilization of resources.
  • To ensure maximum development of human resources through welfare opportunities and salary hikes.
  • Identify and satisfy individuals by offering various monetary and non-monetary rewards.
  • Ensure respect for human beings by providing services and welfare activities to personnel.

Steps involved in HRM:

  •  Human resource or workforce planning.
  • Recruitment, selection, and placement of personnel.
  • Training and development of employees.
  • Appraisal of performance of employees.
  • The motivation of the workforce
  • Remuneration to employees.
  • The social security and welfare of societies.

QUALITIES OF A HUMAN RESOURCE (HR) MANAGER:

Essential Qualities of an HR Manager:

  1. In physical health, vigor, and address.
  2. Judgmental, mental strength, and adaptability.
  3. Educational general acquaintance.
  4. Technical peculiar to the function.

Significant Qualities of an HR Manager:

  1. He should be mentally alert.
  2. He should have a personal approach to human problems.
  3. He should be competent to make decisions.
  4. He should be patient in listening to the issues of the employee.

FUNCTIONS OF HR:

Managerial Functions

Planning:

It requires that managers be aware of environmental conditions facing their organization, forecast future requirements, and decide to advance the policies that will drive the employees towards the achievement of organizational goals.

Organizing:

It is a grouping of personnel activity into functions according to the delegation of authority.

Direction:

HR must have the ability to identify the need for employees and the means and methods to satisfy those needs.

Controlling involves performance appraisal of employees, critical examination of employee records, and suggesting ways to improve employee performance.

OPERATIVE FUNCTIONS

Employment:

It includes assessing the human resources requirement into an organization and then selecting the right kind of employee fit for that position.

Remuneration:

The employees must give a fair amount of salary, which is consistent with the amount of their work done.

Industrial Relations:

The HR manager has full information relating to personnel and working knowledge of various labor enactments; he helps in collective bargaining, joint consultation, and settlements of disputes.

Advisory Functions

Top Management: 

He may advise on achieving and maintaining good human relations and high employee morale.

Departmental Heads: 

He offers advice on recruitment and selection, placement, training, etc.

Coordination

In this tutorial, we will learn about coordination is the function of management, which ensures that different departments and groups work in synchronization.

It refers to the orderly synchronization of group efforts to provide unity of action in pursuit of ordinary people. It is the essence of management. It is the function of control, which ensures that different departments and groups work in sync. Therefore, there is a unity of action among the employees, groups, and departments.

The act of coordinating, making different people or things work together for a goal or effect. The resulting state of working together; cooperation; synchronization. The ability to organize one’s senses and physical movements to act skillfully.

Definition Of Coordination:

“If the coordination is the effort to assure a smooth interplay of the functions and forces to different parts of the organization to the end that its purpose will realize with the minimum of friction and a maximum of collaborative effectiveness.” ‘Tead’

Features Of Coordination:

  • It is the primary responsibility of the management and achieved through managerial functions.
  • It is relevant for only group efforts.
  • It is directly proportional to the degree of integration in the performance of various services.
  • It is a continuous and dynamic process.
  • It is not a distinct managerial function, and the exercise of each administrative function involves coordination.
  • It considers an organization as a system of cooperative group efforts. It recognizes the diversity and interdependence of organizational sub-systems and the need to bring about fusion and synthesis in the shots.
  • It is a managerial responsibility. Its main job is to achieve organizational objectives. It is the exclusive responsibility of the manager. As he has the overall picture of the enterprise, only he is in a better position than others to perform this function.

Importance\Merits Of Coordination:

It helps to bring together the human and physical resources of the organization. It helps to make maximum utilization of resources. These resources are used to achieve the objectives of the organization. Coordination also minimizes the wastage of support in the organization.

  • Unity in Diversity
  • Teamwork or Unity of Direction.
  • Functional differentiation.
  • Specialization
  • Congruity of goals
  • Reconciliation of goals.
  • Differentiation and integration.

Limits\Demerits Of Coordination:

  • Lack of administrative talent
  • Misunderstanding

Types of Coordination: 

Coordination is the combination of all activities and forces that operate and interact within and outside the enterprise. Based on the scope, coordination can be internal or external.

Internal: 

In exists within the enterprise among the different units. About the relationship between all the managers, among departments of the enterprise, among branch offices, plants, sections, and other parts of an enterprise.

  • Horizontal (coordination between people at the same level.)
  • Vertical (coordination between people at a different level)

External: 

An enterprise should aim at meeting the needs of the community. To accomplish the social objectives of an enterprise, adequate and effective coordination is indispensable outside the organization. These forces must be recognized at the right time and prevent the creation of a conducive atmosphere for the smooth running of the enterprise. 

It is established to coordinate the activities of managers, executives, divisions, branches, and other workers. Work in proper harmony, group task activity, and working schedule should continuously be changed according to changing circumstances are the essential things for effective internal coordination.

It is coordination established to coordinate the activities of employees of the organization and the people outside the organization. Outsiders include market agencies, government, customers, competitors, etc.

Recruitment

In this tutorial, we will learn about recruitment as searching for the right candidate for the job and encouraging them to apply.

It is a process of searching for the right candidate for the job and encouraging them to apply. It is a positive function; as a result, the collection of candidates in response to the vacancy is advertised.

A study on the recruitment process of attracting, shortlisting, selecting, and appointing suitable candidates for jobs within an organization. Recruitment can also refer to processes involved in choosing individuals for unpaid roles.

Sources Of Recruitment: 

It is the use of one or more strategies to attract or identify candidates to fill job vacancies. May involve internal and external recruitment advertising, using appropriate media, such as job portals, local or national newspapers, social media, business media, specialist recruitment media, professional publications, window advertisements, job centers, or various ways the internet. 

Alternatively, employers may use recruitment consultancies or agencies to find otherwise scarce candidates—who, in many cases, maybe content in the current positions and are not actively looking to move. This initial research for candidates—also called name generation—produces contact information for potential candidates, whom the recruiter can then discreetly contact and screen.

Internal Sources   

 

 External Sources

 

It is a quick process.It is a lengthy process.
It is economical.It involves cost since vacancies have to be published.
 The choice of candidates is limited.Organizations can hope for talented candidates.
The scope of fresh talent is scarce.External workers feel dissatisfied when external sources are used.

Direction: 

Directing involves supervision, communication, leadership to subordinates, and motivating them to constitute their best. It is another function of management, and It initiates with issuing orders and instructions to the assistants and getting things done by them along with their satisfaction. It is a continuous function.

Essential Elements Of Direction:

  • Issuing orders and instructions.
  • Guiding counseling and teaching the subordinates the proper way of doing the job.
  • They are supervising the work of their assistants to ensure that their performance conforms to the plan.
  • We are maintaining discipline and rewarding effective performance.

PRINCIPLES OF DIRECTION:

Harmony Of Objectives:

The objectives of various individual subordinates should be synchronized to achieve maximum prosperity.

Unity Of Command: 

A subordinate should receive orders and commands from one superior only at a given point in time. The principle is necessary to avoid confusion and conflict.

Unity Of Direction: 

Every group of activity must have a single objective to be achieved by everyone. Every category of work, there should be one plan of action and should execute under the overall control and supervision of one head or superior.

Direct Supervision: 

We are maintaining direct contact with the subordinates, which motivates them for effective functioning.

Democratic Leadership:

Superior should encourage his subordinates to participate, thus respecting their views and opinions.

Follow Up:

Superior should take a follow up of the work done to complete it within the stipulated time.

Importance\Merits\Functions Of Direction:

  • It provides stability and balance in the organization.
  • We are facilitating changes in the organization.
  • It attempts to bring out the maximum from individuals.
  • We are initiating action.
  • It integrates employee’s efforts.

Creative Thinking

In this tutorial, we will learn about creative thinking is innovative, dissimilar, parallel, and the group to be imaginative does not, for the most part, the yield comes about.

The more significant part of us is not regular innovative masterminds. Letting oneself know and the group to be imaginative does not, for the most part, the yield comes about.

Some exceptional procedures are required to help us utilize our brains in an unexpected way to change our typical speculation handle.

The issue with inventive deduction is that nearly by definition, any thought that has not been analyzed will sound insane. In any case, a great arrangement will presumably stable crazy at first shockingly; that is the reason we regularly won’t put it forward.

Creative thinking:

  1. Is innovative
  2. Is dissimilar
  3. Is parallel

Produces numerous conceivable arrangements

Lack of creative thinking:

Lack of creative thinking is clear goals and objectives written down, accompanied by detailed, written plans of action when you become clear about what you want and how you are going to achieve it, your creative mind springs to life.

The brain: 

Keeping in mind the end goal to discover methods for being deliberately innovative, we should first see how the cerebrum functions.

Experimentation on the cerebrum has ended up being exceptionally troublesome, and it is just in the most recent couple of years, with cutting edge filtering innovation, that science has found quite a bit of what we now know.

Put permanently, and the cerebrum comprises of two halves of the globe joined by an extension of neural tissue called the Corpus Callous.

In irregular cases, a few people have conceived with a part corpus callous where the two parts of the cerebrum are not associated.

Part mind patients are fantastic subjects for contemplating how capacities are restricted and what part of the cerebrum they performed.

It has demonstrated that the inverse portion of the mind controls anatomical elements in one piece of the body; the cerebrum is cross.

In one test, a split cerebrum subject is to demonstrate the words ‘Cap Band’. Every eye sees the entire visual field.

The left half of the cerebrum handles the privileged visual field, and the right side of the mind prepares the left visual field.

At the point when the subject asked what has perused, they answer the band. When soliciting what sort from a group, the matter must figure Rubber-band, a Jazz band? The item has no clue what kind of band.

The conclusion is that the left half of the mind is the word handling side, and obviously, it is this side which peruses the expression ‘Band.’

The right side has gotten the impression of the name ‘Cap,’ yet due to the cut corpus callous, this is not transmitted to one side mind.

Since the subject can’t state that they have gotten the impression of the word ‘Cap,’ we can conclude that the correct cerebrum is not fit for word handling.

These comparative analyses permit a model of the mind to be drawn, demonstrating the localization of capacities between the two parts. This model is valid for the right given individuals.

There is less specialization of the two parts when the subject is left-handed.

 Blocks to creativity:

We may fear:

  1. Committing errors
  2. Looking absurd
  3. Being reprimanded
  4. Being distant from everyone else
  5. Being untouchable
  6. Aggravating convention
  7. Being connected with taboos

We may also suffer from:

  1. Left mind predominance
  2. Incongruent destinations
  3. Antagonistic vibe

Creative thinking techniques: 

Numerous strategies exist to animate imaginative deduction, and while the accompanying rundown is not thorough, the cases underneath can function admirably when tackling business issues. No extraordinary apparatuses are required.

Brainstorming:

The process

  1. Sort out the group, materials, and copyists.
  2. Select an executive.
  3. Express the issues we are attempting to tackle.

Restate the issue of various circumstances: 

How to decrease time?

How to accelerate?

Hinder the left cerebrum.

Have a warm-up session e.g.

 Other uses for:

A gumboot.

A light.

The brainstorming is a situation where a group of people meets to generate new ideas and solutions around a specific domain of interest by removing inhibitions.

People can think more freely, and they suggest as many spontaneous new ideas as possible.

All the opinions are noted down without criticism and after the brainstorming session. Fundamentally, no examinations permitted on any thought amid the course.

The administrator’s part is to keep the ideas coming, regularly quick and enraged, with individuals striking sparkles off each other.