1. Financial Statements: Are a planning document, but when results come in it becomes a controlling document. It is the formal record of financial activities, and it measures the performance of the organization. Stalk holders and investors see this document before investing in the organization. They are a summary of monetary data about an enterprise.
Financial statements are very important for manufacturing company as it helps in assessing the financial condition of the company. It also helps the manufacturing company in making financial plans. A manufacturing company can make a better decision regarding a product by analyzing the financial statement. Through financial statements a company can decide whether it have to increase its sales or
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The operating section of income statement helps the company in determining the sales and profit related to the product. While non-operating section helps in determining revenues and expenses related to a real state or investment securities sold by the company. Income statement is also crucial for Service Company as it also helps them in determining their net profit. On the basis of income statement, a Service company can make better decisions as it will help them determine if they are operating efficiently.
4. Statement of Cash Flow: Is a mandatory part of company’s financial report. It shows changes in the balance sheet accounts, and income affects cash and cash equivalents. It breaks the analysis down to operating, financing, and investing activities. It doesn’t include future incoming and outgoing amount that has been recorded on credit. In it cash is not same as net income which in income statement and balance sheet includes cash sales and sales made on
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Organizational Culture: It constitutes the norms and values of the organization. It affect the way employees work, affect their performance, and hiring process.
It is very important for both manufacturing and Service Company to know the culture of the organization. If a company doesn’t know the culture of its organization, then it can’t tell its employees and the investors about their culture. As a result, the employees would work haphazardly as they won’t know what are the standard and the values of the company. Moreover, while giving interviews interviewee often ask about the culture of the organization, but if a company doesn’t know about it, then it can’t hire good employees. Investors wouldn’t like to invest money in a company who doesn’t know about its culture.
12. Organizational Knowledge: is a knowledge worker. It is a capability member of organization develops to draw distinctions in the process of carrying out work.
Organizational knowledge is very important for both manufacturing as well as Service Company. Having a knowledge worker increase the efficiency of the operations of the company, hence it increases the profit of the company. Moreover, knowledge workers saves a lot of time of the company by having the knowledge about the work they
Knowledge work according to Raman, (1999), contains activities, which are "information-based, knowledge intensive and knowledge generating" (p. 2). The paper's theme is, "organizations staying ahead of the competition have come to realize knowledge and knowledge workers are their key to success in today's environment where knowledge and information have become commodities" (Raman, 1999, p. 1). This paper's theme traces the historical development of knowledge management and knowledge workers; differentiates between knowledge workers and non-knowledge workers, and illustrate the knowledge workers experience in the author's organization. Knowledge systems contain the potential to increase business value (Bang, Cleemann, & Bramming, 2010).
Aspects of the perceived culture in an o organization, such as, level of communication among members, the level of support in regard for new innovations and technology, as well as the amount of support by upper level management all have a positive influence on the manner employees behave and interact with each other as well as how they treat consumers and suppliers. If employees emulate a manager that does not share the same values and beliefs of others within the organization, or that does not share a good work ethic, employees will not complete tasks and fail to be productive. It works as well in the opposite manner; when employees see a manager who supports a company’s mission, its goals, and business strategy, the organizational culture of the company will aide in providing a clear direction for employees to follow and strive towards. Ultimately, the culture supports desire business strategies and the overall mission of an organization, and the capacity of the culture is dependent on just how intensely employees share the values and basic assumption of the
The purpose of an income statement is to report the revenue generated and the expenses incurred by a corporation for the past year. (Melicher, 2014) The gross revenue is the first item on the financial statement followed by several expenses and then the net revenue. One of the expenses a corporation incurs is the cost of goods sold, which is the amount of money it costs a corporation to produce or manufacture the items sold to generate a profit. The second expense on a financial statement is the cost of record keeping, preparing financial statements, advertising, and salaries grouped under the heading “Selling, general, marketing expenses”. The other expenses on an income statement are depreciation, interest expense, and the unavoidable income tax. (Melicher, 2014) Once all of these expenses haven been deducted from the gross revenue a company has an accurate depiction of their net
Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behavior of its members, while organizational structure is an expression of social and economic principles of hierarchy and specialization (Kinicki, 2015). Both the culture and the structure of an organization are important things for management to understand in order to successfully set and achieve an organization’s goals. Companies who excel in highly competitive fields can attribute their successful economic performance to a cohesive corporate culture that increases competitiveness and profitability. This culture is best utilized in an organization that has the necessary structure to allow its employees to coordinate their actions to achieve its goals.
Culture in the workplace can be the driving force for a business and can make or break a company when it comes down to it. Culture can be the reason one company does better than another or even survives for that matter. It is also important to understand the culture of a business to be able to thrive in the workplace environment. Think about what type of values, attitude, beliefs, and expectations you want to live by before you get a job somewhere at a business (“It’s All About Culture”2017). Is this the atmosphere you want to practically spend much of your life in? When we think about culture we think about different places of the world. Organizational culture is
The concept of organizational cultures was first raised in 1970s, and soon became a fashionable topic. Organizational culture is the shared beliefs, values and behaviours of the group. Theorists of organizations believe that organizational culture represents the pattern of behaviours, values, and beliefs of an organization. Hence, studies around organizational culture have been seen as great helpful and essential for understanding organizations and their behaviours. Additionally, organizational culture has been considered to be an important determinant of organizational success. Therefore, leaders and managers pay more than more attentions on this topic, focusing on constructing and managing organizational cultures.
An entrepreneur’s dream of starting a business is all about getting an idea to the marketplace with great expectations of striking it rich. Little thought ever goes into the steps and methods on how to get there. It takes a lot of effort and forethought setting up strategic plans in areas of cost effectiveness, best in quality, and on time delivery. All three areas require careful financial planning and reporting. This paper discusses the basics in understanding the basics of four different types of financial statements paint a picture of a business’s cash flow. The latter part of the paper will summarize the importance of a company’s financial statement regarding its success in critical decisions to improve its market share in the global market.
Organizational culture can be defined as a system of shared beliefs and values that develops within an organization and guides the behavior of its members. It includes routine behaviors, norms, dominant values, and a feeling or climate conveyed. The purpose and function of this culture is to help foster internal integration, bring staff members from all levels of the organization much closer together, and enhance their performance.
These above ingredients of culture are gained from birth which means anyone is much influenced by their family, religion, school, and workplace and from friends. Culture mainly stands for supporting role for almost overall success of organization not only that but also it reflects in the outcomes of an organization such as, quality and productivity, obligation and performance. Organizational culture has always been a question for everyone on how the culture and power are associated to an organization.
Organizational culture can be defined as the glue that holds an organization together through a sharing of patterns of meaning. The culture focuses on the values, beliefs, and expectations that members come to share (Siehl& Martin, 1984). Organizational culture helps to contribute towards achieving the organizational goals, decision making processes, job satisfaction, employee motivation etc. It helps in uniting the employees of an organization.
The Purpose of Financial Statements The financial statements of a business are used to provide information about the status of the business, set performance targets and impose restrictions on the managers of the firm as well as provide an easier method for financial planning. The financial statements consist of the Profit and Loss Account, Balance Sheet and the Cash Flow Statement. There are four areas of information, which we can collect from a company's financial statements. They are: Ÿ Profitability - This information comes from the Profit and Loss account. Were we can compare this year's profit with the previous years.
"The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions."[Financial statements should be understandable, relevant, reliable and comparable. Reported assets, liabilities and equity are directly related to an organization's financial position. Reported income and expenses are directly related to an organization's financial performance.
Organizational culture is imperative to the success of the organization. The strength and core values of the organization is supported by the organizational culture. This allows for organization to operate in a specific manner that is specific to that organization and can pave the path for success. Company founders are passionate about their vision and mission and they elude that passion into their employees. When that passion and mission is successfully implied to the employees the company strives in it 's path to success.
Income statement-: Income statement is the financial statement that measures a company 's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities.
As a company matures, its cultural values are refined and strengthened. The early values of a company’s culture exert influence over its future values. An organisation tries to preserve itself from external shocks. Organizational culture determines what types of people are hired by an organization and what types of people are left out. Moreover, once new employees are hired, the company assimilates new employees and teaches them the way things are done in the