TQM In An Accounting Environment

TQM In An Accounting Environment - Chapter One Description...

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Chapter One: Description of the problem: All companies need effective employees in order to complete the necessary daily tasks and attain a profit. Many employers do not receive the peak level of performance from their workers due to the fact that the employees do not feel they are having an effect on the quality of service they are offering, or cannot see any tangible outcome from their efforts. This chapter describes several different aspects of the project, including the purpose of this project, the setting of the problem, and the history and background of the problem. The scope of the project is the challenge of measuring performance and total quality within an accounting function. Section 1 - Statement of the Purpose The purpose of this project was to identify and recommend methods to effectively measure performance and total quality within an accounting setting. Total quality principles have effectively been implemented in other areas, however the accounting section has been overlooked. By implementing this type of program, new ideas will be encouraged and enable future changes to be accepted easily. Section 2 - The setting of the problem The accounting office is located in Holland, Ohio. This facility controls all the financial related tasks within the Northwest Ohio district. The department involved are the General Ledger, Accounts Payable, Payroll, Billing, C.O.D., and Information Services. This facility is located approximately three miles away form the main United Parcel Service hub location in Maumee. The accounting function employs approximately 150 to 160 non-union employees and runs continuously, 24 hours a day, six days a week. The accounting department is highly structured and mechanistic. All employees report to a supervisor, who reports to a manager. There are three managers within this office. They consist of a Office Manager, an Accounting Manager, and a Information Services Manager. These three managers in turn report to the Controller, who is only responsible to the District Manager and the regional personnel. There is a high level of standardization in the day to day activities with this group. The jobs that are completed do however, require the employees to be specialized in certain areas. All rules and procedures are formalized, and the power and decision making process is centralized with the management team. The low level members participate very little in the decision making process within this group. Since the Accounting office is located away from the main UPS building, the information network is limited. Most employees within the accounting function are college graduates. The mission of the Accounting function is to quickly and accurately report the state of the business to the management personnel, so that they may follow up with the shareholders to make the necessary business decisions. Section 3 - History of
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TQM In An Accounting Environment - Chapter One Description...

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