As in the previous article we have been able to understand that in order to succeed in the business, it is very important that a student must be well versed with accountants in Business. So, all the scary problems would not be able to scare you if you take help of understanding being imparted to you by the Accountants in Business.
Now lets again start understanding that what has been illustrated in the further Chapters and how that can help in our success of the business. ACCA’s are the ones who will become the Managers of the Various Multi-National Companies so from the budding stage they must get well versed with the concepts of business.
Previously we covered chapter 1 and chapter 2. Now we will start from chapter -3. In case if you have missed the previous article, then check AB Accountant in Business – Part 2
This chapter introduces the students with the Organisational Culture that a business face. The importance of values and beliefs has been stated. As in Business, human interaction is very important so we need to understand that their values and belief plays a significant role in the Organisation. So, the Organisation Culture is dependent on 3 factors:
- A set of norms of behavior that suggests what is right and what is wrong.
- Symbolic Action, it suggests the symbols which depict the mutual respect in staff. Example: Cake cutting on the birthday of the staff.
- Shared Values and Beliefs, it depicts the underlying values of the people working for the Organisation.
It has been further illustrated with the help of 3 philosophical authors:
Schein: Schein beautifully explained the concept of culture in which he stated that first leaders of the Organisation are the makers of the Culture. And if the successors of the Organisation want to lead then they need to understand the culture of the Organisation.
Handy: Whereas Handy divided this concept into 4 Cultural Types i.e.
- Power Culture
- Role Culture
- Task Culture
- Person Culture
Hofstede: Further, Hofstede divided the culture into 4 Cultural Dimensions i.e
- Individualism vs. Collectivism
- Uncertainty Avoidance Index
- Power Distance Index
- Masculinity vs. Femininity
Then later Hofstede 2 dimensions
- Long term Orientation vs. Short term Orientation
- Indulgence vs. Restraint
In the end of this chapter we should be able to understand that Culture of the Organisation plays a great role in success or failure of the Organisation.
Chapter 4 further introduces the students with the Information Technology. In this growing fast world, every organisation has become dependent over Information Technology. The level of dependency may vary. So, it is very important that students are well versed with the Information Technology.
In this chapter the students are informed about the different types of system. Majorly this Chapter introduces students with 5 system i.e.
- Executive Information System: This is the system which provides the information to the top most level of the Organisation. This further elaborates that the information that should be supplied to the Executive level must be more from the external sources and less from the internal sources. As Executives are short of time so information supplied to them must be summarized and when required they may extract the complete details
- Transaction Processing System: This is the system in which all the transactions are recorded. The information is processed only from the Internal Sources. This information is processed by the workers deployed by the Lower level of Management.
- Management Information System: This is the system which takes the input from the Transaction Processing System and a bit form external Sources and produces meaningful results. For example, Monthly Sales Report, Quarterly Purchases Report etc.
- Decision Support System: In DSS, they help in solving the unstructured or semi structured problems with the help of Knowledgeable human intervention. For example, Capital Budgeting problems.
- Expert System: Expert System holds specialist knowledge from the various Experts. So, it helps the Non-Experts to process the information from the Experts point of view and thereby producing the better decisions and recommendations.
In the end of this Chapter it is expected from the student that they must have been able to differentiate the different types of the system and the level of management involved into the processing of the Information.
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