Week 7 - ACCY 111 RJD Lecture 1

How would you define management what is management

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How would you define ‘management’ ?
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What is ‘management’? Management may be defined as the process by which a co-operative group directs actions towards common goals. The functions that are usually associated with management are organising, staffing, planning, controlling and directing. In carrying out these functions the manager must make decisions and communicate with others, for the essence of management is getting things done through other people. (Haynes & Massie, 1969)
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What is ‘management’? Management is the art of bringing ends and means together – the art of purposeful action. Essentially it is a process that usually contains three elements: i. the selection of a goal, ii. the initiation of planned actions to reach it, and iii. continuous review of the effectiveness of the actions and the value of the goal.
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What is ‘management’? Management does not deal with human and material resources alone, it also deals with problems of morals, ethics and ideals – because ends are determined by values (that is preferences) and because means must be morally acceptable. (American Institute of Management, 1959)
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Financial vs. Management Accounting Financial Accounting – focuses on reporting to external parties such as investors, government agencies, banks and suppliers. It measures and records enterprise transactions and provides financial statements that are based on generally accepted accounting principles (GAAP).
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Financial vs. Management Accounting Management Accounting – measures, analyses and reports financial and non-financial information that helps managers make decisions to fulfil the goals of the organisation. Managers use management accounting information to: - choose, implement and evaluate strategy; - to allocate resources; - to coordinate product design, production and marketing decisions; and - to evaluate performance.
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Financial vs. Management Accounting Management Accounting – places an emphasis on the future. Summaries of past costs and other information have a limited use – i.e. managers can not assume what has happened in the past will happen in the future. Financial Accounting - focuses on recording the financial history of the organisation. Although it may also provide forecast (prospective) financial information for potential providers of funding.
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Financial vs. Management Accounting Management accounting information and reports do not have to follow set principles or rules. The key questions are always: - how will this information help managers do their jobs better; and - do the benefits of producing this information exceed the costs?
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