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Organizational Analysis - Essay Example

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Managing various organizational operations for an efficient organization is complex set of process in today's dynamic economic environment. This paper analyzes the effectiveness of various organizational functions that involve the controller or senior financial officer of the organization and discusses various operational issues faced by organizations…
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Organizational Analysis Essay
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"Organizational Analysis"

Download file to see previous pages Effective organizational functions make the building blocks of an efficient organization. Different organizations develop different approaches for organizational functioning in order to protect the interests of various stakeholders, while leaving managers enough freedom to take managerial decisions and actions.
The effectiveness of organizational functions depends on decision-making and on the execution of decisions. Controller or senior financial officer of the organization plays major roles in planning and managing different organizational functions. Their capabilities and efficiency is often reflected in the organizational efficiency.
Organizational functions that are based on the principle of profitability for all of organization's stakeholders assure the most effective behavior of enterprises. With the evolution of modern organizational management practices, the owners and different stakeholders of the organization hire professional managers to manage organizational functions. This helps in development and optimal exploits of organizational functions. These professional controller or senior financial officers strive for most efficient coordination between various organizational functions.
Planning and budgeting are essential components of any effective and efficient organizational function. ...
, though run in congruence of planning process, should not interfere with planning process in the same way planning process should also take care of budgeting and should not pursue unrealistic visions without any consideration of economic feasibility. It has been pointed out by various studies on relationship between strategic planning and budgeting that a better strategic planning results in reduced budgeting constrains and more efficient organization and in turn a reduced budgeting constrain and efficient organization results in better strategic planning.
The budgeting process should always involve organization's strategic and operational plans. Budgeting in organizations should match the organization's vision and goals. It should facilitate the planning process to enhance operational efficiency of organization. At the same time planning process involves the consideration of budgeting. Planning process should not conflict with budgeting; however, it should follow the budgetary constraints. A right kind of balance is always required between these processes for efficient and smooth running of business.
Strategic planners assert that strategic planning is essential for financial health of any organization (Steiner, 1979; Thompson & Strickland, 1987). Strategic planning to set and achieve targets for an organization require cost or budget. Budget requirements generally increase as the planning process move up on organizational ladder. An optimal organizational planning within budgeting constraints is required from controller or senior financial officers. Owners and various stake holders judge the efficiency of these professionals on the ground of better planning and budgeting ratios.
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