Change Insight Analysis Paper Essay Example for Free

Change Insight Analysis Paper Essay Managing change is an ideal process in organizational management and greatly helps in realization of organizational goals and objectives. In business, change insight management is analyzed by different theoretical models that are essential in business process. As a result, this paper analyzes the three basic change models theories. These are discussed as follows: The Kotter’s 8-Step Change Model, The Marvin Weisbord’s Six Model and the Linda Ackerman Anderson’s 9 Phase. The three theoretical models on change management discuss the various strategies of managing and coping with organizational change. In particular, the strengths and weakness of each model are analyzed. Further the application of each theoretical model on change management in an organizational setting is discussed. Kotters 8-Step Change Model See more: analytical writing In business change is the only constant. John Kotter, a change expert and a professor of Harvard business school and a renowned leadership and management guru. In his book, leading change, Kotter discussed the 8-Step Model to change management as follows: The first step is creation of urgency. In order for change to happen, the whole organization must be in dire need of the organizational change. Thus, the leadership and management must develop the need for change among the members of the team. In administering change in an organization, the management is expected to identify the potential threats to develop scenarios that indicate the possible projections on what can happen in future. The other step in management of change involves the formation of a powerful coalition. This is attained by convincing people that change is necessary and important. This must take strong leadership efforts and activities to implement. To achieve this, the leadership and management team must ask for emotional commitment, work with the team building in change coalition as well as evaluating the team for weak areas to enhance a good mix for of different people from different departments. The third step in the Kotter’s Model of change management involves creation of vision for change. At this point, the leadership management must determine the values that are essential for change, create a short summary and have a strategy that is applicable in attainment of the expected changes. Communication for buy in is the next  step in achieving organizational change, others step include and not limited to the following: Empowering action, creation of short term wins, do not let up and make the change stick. The Applicability of the Kotter’s 8-Step Change Model The Kotter’s change model is applied in all top-down change processes. For instance, for the projects that have been identified and decided, at the top level of the organizational management. Indeed, the United States Army used the model to prepare their soldiers at the war. The Strengths of the Kotter’s 8-Step Change Model This theoretical model on change management is characterized by the following strengths: First, it is easy to understand, it can well fit into the culture of classical hierarchies, it is well successful when all the steps are applied and exercised. Further, the model focuses on the employee buy in as it focuses on success. The Weaknesses of the Kotter’s 8-Step Change Model To start with, the model is too linear to an extent of leading to wrong assumptions. Second, it is difficult to change the directions of the model when action has already started. Third, the model can result to frustration among the employees when the initial stages of grief and the needs of individuals are not taken care of. The Marvin Weisbord’s Six-Box Model The six-box model of managing organizational change is a leadership and management framework that was developed by an American business analyst Marvin Weisbord with the main aim of assessing the organizational functioning. Its key generic framework in management of organizational change is intended for use and application in a variety of different organization. The Model has its key basis on the assumptions and techniques of the field organizational change and development. The Six-box Model constitute of the following boxes: Purpose that includes a clear definition of the business that an organizations in, structure that explains on the dimension of dividing work among employees, relationships that encompass the techniques of managing all the possible changes in relationships, rewards that constitutes of the definition on incentives and what needs to be done,  leaderships that involves selection of change managers who will help in keeping the five boxes in balance as well as the he lpful mechanisms that are applicable in coordination of the technologies that are necessary in management and leadership. The Application of Marvin Weisbord’s Six-Box Model This model is applicable in organizations where there is a need to look or consider the organizational structures and designs in a specified way. Indeed, the model is applicable in areas of change management that needs planning, rewards, incentives, and the role of support functions that include international organizations, partnerships and standards of remunerations. In addition, the model is particularly useful at times when consultation have little time that is desirable for diagnosis or when a relatively less complicated organizational map is required for quick service. The Strengths of the Marvin Weisbord’s Six-Box Model The first strength of the model is attributed to the fact that the model is the most suitable in helping the change leadership development manager to effectively visualize the organization as a whole system without using key and strange change terminologies. The other strength that is associated with the model is in its easy application. Indeed, the model is easily understandable and can be well applied by any change manager who can actively engage in change development. The Weaknesses of the Marvin Weisbord’s Six-Box Model The Marvin Weisbord’s Six-Box model has the following weaknesses. First, the model is only applicable in organizations that are constituted by the six boxes. This mean that organizations that are not characterized by the above discussed components can not effective apply the model in management of change leadership. Moreover, the model is weak because it cannot be conveniently applied to manage organizational change in organizations with complex organizational structures. Linda Ackerman Anderson and Dean Anderson 9 Phase Model on Change Leadership Roadmap Methodology This is a model of managing organizational change that is mainly rooted in the change in leadership road map. The theoretical model is sidelined in the designation  and the implementation of the major organizational transformations. The main question analyzed by the model is on the availability of a roadmap that is needed by an organization in realizing change. The first phase of the model is preparation to lead the change. Here, the organizational leadership selects the leaders that are needed to change the organization in order to attain the organizational success. This is the most important phase because it addresses the key process of the decision making in the efforts of change administration. The main purpose of this phase is to prepare the leaders to lead the change in accomplishment of six main activities. The two basic activities out of the six main activities are outlined as follows: Staffing and starting up the change efforts with the use of change expertise in leadership, determination of the case for change and the exact scope of the change and the expected outcomes. The other phases of this model include creation of commitment, organizational vision and capability, assessment of situation in determination of design requirements, plan and design the implementation of the change activities, implement the required organizational change, celebrate and integrate the new state on change management as well as learning and course correcting the change. The Application of Ackerman Anderson 9 Phase Model This model is applicable in offering the specialized change leadership development as well as transformational leadership in organizations that are consulting on change. Indeed, the founders of the model are the owners of Being First, Inc., a company that has adopted the model to guide and advice Fortune 1000 companies, non-profit organizations, government agencies, and international change consultancies that are in need of assistance in change leadership management and transformational leadership. The Strengths of the Ackerman Anderson 9 Phase Model There are several strengths that are associated with the Ackerman Anderson 9 phase model. First, the model is useful in attaining favorable tangible results that a firm is after in administration of change. This is achieved faster will little or no costs in the business or people. In addition, the model helps in building an organization change skills and capabilities. This greatly helps to consistently realize the maximum benefits realized from a  successful change. Moreover, the model is helpful in transforming the organizational culture and the people in an organization. This is essential in attainment of the desired organizational change. Furthermore, the model is evidenced by its strengths in the development of the mangers and leaders to become competent in transforming the organization to realize the needed organizational change. Most important, the model is applied in the development of internal consultants to become an expert change consultants’. Notably, the Ackerman Anderson 9 phase model of change management in ensuring all the possible change strategy development and process planning. This is because change strategy development and the process of planning are essential for complex change transformation. The Weaknesses of Ackerman Anderson 9 Phase Model Irrespective of the numerous strengths of the model, its key weaknesses cannot be underestimated. These are described as follows: First, skipping a phase in the change leadership roadmap or a key decision leads to numerous impacts that can dismantle all the established changes. Moreover, failure to customize the change process can result to discouragement on the identity of the customers in respect to the best change practices. Conclusion Change insight analysis is essential in managing organizational change. This is because of the available theoretical models that play an essential role in leadership and transformational development. The essential three models include and not limited to the following: Ackerman Anderson 9 phase model, Marvin Weisbord’s Six-Box model and the Kotter’s 8 Step Change model. All the three models are applicable in different ways and each consists of its strengths and weaknesses.

Australians Against Further Immigration Essay -- essays research paper

Australians Against Further Immigration OUR VIEW Environment Humanitarianism Economics Health Defences Education Culture Australia's immigration policy is disastrous, proceeding as if there is no balance of payment problem, no foreign debt and no geographical or environmental constraints to population growth. Continued immigration will finally and irreversibly alter the natural and urban environment, economic viability and attitudes and culture of our nation. The people have been consulted on, or given their consent to, the interwoven policies of immigration and multiculturalism. It is now time for Australians to demand their democratic rights, reclaim their sovereignty and demand a say in the future of their nation. Australians Against Further Immigration want immigration drastically reduced to zero net. That is, out immigration numbers should merely replace those permanently leaving Australia each year - historically running between 20,000 and 30,000. At this policy of institutionalised, publicly funded multiculturalism should be scrapped. We are a non-racist organisation and attempts to convert the debate to one of race and emotion is a deliberate ploy to silence critics and avoid the real issues. We believe in freedom of speech. The philosopher Spinoza said, â€Å"In a free state every man can think what he wants and say what he thinks†. This should apply here to debates on immigration. We care about Australia and want to pass our heritage to our children and their children. We want to preserve our Australian identity. We stress that migrants already in Australia are welcome, what we are against is further immigration and the effect this in now having on social harmony. Our opposition is the pro-immigration lobby comprised of big business including the media, the ethnic lobby, churches, misguided humanitarians and both sides of politics. It is our own successive governments inflicting these policies on us and they, not the individual migrant, should bear the blame. We are concerned about the effect of immigration and multiculturalism on this country where as the pro-immigration lobby is only concerned for the migrant or their own interests. ENVIRONMENT Australia, the world's oldest and driest continent, with severe soil degradation and climatic uncertainty - a land of, â€Å"droughts and flooding rains†' already faces declining agricultural productiv... ...ars and of course it does not stop there. In a democracy, how dare our government force such changes on the Australian people without their consent, but also against their often polled opinion. IN SUMMARY:- We have a clear choice of accepting increasing immigration with the consequent exploitation of this land and a falling standard of living and quality of life, living in crowded, polluted, high density cities, with over-taxed recreational areas and intercommunal tensions and feeling like strangers in our own country. The economic consequences of an increasing foreign debt, foreign ownership and undesirable, unsustainable economic expansion, will destroy any chance of maintaining the best features of Australian life as we know it. And, as migrant numbers increase, there will be an escalating push for higher migrant intake which eventually will be unstoppable. OR Stoping mass immigration and attempting to live in harmony with our fragile environment, creating an economically and environmental sound, self reliant and self sustaining community, maintaining our quality of life and handing to the next generation a country to be cherished, and free from problems of over population.

Business Dining Etiquette Essay

Notes for PowerPoint slides Slide 3 Employers may want to see you in a more social situation to see how you conduct yourself, particularly if the job for which you are in requires a certain standard of conduct with clients and superiors. You could be critically scrutinized on your table manners and conduct. The meal is a time to visit and interact and this is always more important than the function of eating. Slide 4 Having a working knowledge of dining etiquette turns any employee into a poised marketing representative of the company. Whether you’re going to a business lunch with your peers, recruiters, clients or partners, you need to make sure you behave appropriately. Yet many business folk don’t know proper dining etiquette. I have put this handy guide together with tips gathered from the business etiquette experts all over the world to help make sure that someone doesn’t call you out at your next business meal. Does anyone have a business dining experience that they would like to share? Slide 5 Be on time, no one wants to be kept waiting. If it is an unavoidable delay, try to contact the person. Keep in mind that you never know when you will encounter heavy traffic, wrecks, construction of other delays Slide 6 Shake hands with all present at the table. If necessary, introduce yourself. Concentrate on remembering your host/hostess’ name. Remain standing until host sits. Host has moved his/her napkin. Sit up straight and don’t tip your chair back. Don’t ask the waiter to explain everything on the menu; you will annoy others and appear indecisive. Place your napkin on your lap after everyone is seated and after you. Lets practice this. I want everyone to stand up move away from your tables each person find a partner and practice meet and greeting each other at the table, remember to greet shake hands and introduce yourself. Wait until the host has seated then you may sit down. Each one of you does this and once you both have practiced you may all be seated. Slide 7- No notes Slide 8 A decade ago young executives were expected to bring table manners to the job with them. In today’s world of busy families, table manners are no longer practiced on a daily basis, making it necessary to teach the acceptable dining etiquette before sending them out to represent the company at a customer lunch of business dinner. There are definite rules of dining etiquette and having a working knowledge of them turns any executive or employee into a gracious host or guest and a poised marketing representative of the company. Slide 9 Order only from the lunch menu, and then, not the most expensive item! The expectations are the employer will pay for the meal; however you may offer. Do not order alcohol and do not order foods that are messy to eat or require you to hold the food with your hands. Order foods that are easy such as chicken, fish or salads. Avoid sloppy hard to eat foods like spaghetti or ribs. Now that you have watched the video are there some pretty obvious things that you seen that were inappropriate? Lets watch the second video on what should be expected during a lunch meeting. Do you all feel that you could be in a lunch meeting situation and act appropriately? Slide 10 With a pre-set mean the host/hostess has already made the selections and the individuals are served. If allergic, religious or vegetarian issues arise, quietly deal with these as the server is at your side. For vegetarian ask if you may have a vegetable plate; with allergies or religion, provide the server with options. Always eat a little of all items served to you that have been brought to you specific from the server in which you have asked for. You will follow the same rules as a pre-set meal the only difference is that you will have more options and you will be able to choose the food based on your preference usually there are a couple of options to choose from within a buffet Slide 11 Most receptions or social hours are for the purpose of mingling and making contacts whether for job leads, as part of an interview or an employee entertaining clients. When you enter the reception observe the layout of the room. Seeing the room layout gives you a clue on how to proceed at the reception. If no tables are available, you should only have a drink or your food in your hand- never both. You should be prepared to greet and shake hands with individuals. If having a drink hold it in your left hand to keep your right hand dry and ready to shake hands. If eating hold your plate on the right hand and eat with the left hand. When someone approaches, you are able to switch the plate to your left hand and your right hand is clean and ready to shake. If tables are available you may have your drink and food together. However, always be ready to stand and greet people. Networking and or mingling are an important aspect of a business function, even if the event is described as a social gathering. Be sure to greet or introduce yourself to the host. Hostess. Spend a few minutes conversing with them on topics that relate to the event or to their business. To move on you can politely say, â€Å" I know you need to talk with other guest. † connect with as many attendees as possible. So not interrupt people; wait until they include you, or there is a break in the conversation and you can introduce yourself. Start conversations by asking someone about themselves. Do not look around the room for your next contact as you converse with someone. Focus eye contact on that individual and after a time, politely excuse yourself to move on to someone else. Slide 12 Office parties are good opportunities to improve morale and build good will. Keep in mind these are people who see you every day and they will remember a lapse in behavior. Be aware of your alcoholic consumption and do not embarrass yourself. Do not discuss business- this is a social occasion and an opportunity to learn more about your co-workers. Now that you have learned about all the scenarios I have some handouts as guidance for you to reference just in case you forget anything that we have discussed. ( Handout 1 and Handout 2) Slide 13 Now that you are aware of the different types of business scenarios you can actually move forward to the part we actually and sitting down and eating. It can be very confusing to be presented with a variety of eating utensils. Remember to start at the outside and work your way in. if you have been given two forks, which are the same size, begin with the fork on the outside. Many restaurants use the same size of fork for both the salad and main course. Be careful how you hold your utensils. Many people tend to make a fist around the handle of the utensil, this is the way a young child would grasp a utensil not an adult. There are two acceptable ways to use the knife and fork; continental fashion and American standard. Continental fashion; the diner cuts the food usually one bite at a time and uses the fork in the left hand, tines pointing down, to spear the food and bring it to the mouth. American standard; a few bites are cut, the knife is laid across the top on the plate, sharp edge toward you and the fork is switched to the right hand, if right-handed, tines up to bring the food to the mouth. Do not cut more than two or three bites at a time. Slide 14 This would be a typical dining table setting. Each and every one of you will walk away today knowing exactly how these should be set up. Slide 15 Continental or European style is when cutting the food with the right hand and using the left hand to hold the food while cutting and when eating. The American style is cutting the food with the right hand and holding the food with the left, then switching hands to eat with the right hand. Slide 16 Do not take a lot of time to order. Others are waiting. Order simply, do not customize your order excessively as this can attract unnecessary and negative attention. Follow your host’s lead. Avoid foods that are difficult to eat and or messy. If you are your host’s guest, select an item that is in the mid-price range, easy to eat and one you will enjoy. Consider asking your host/hostess for a recommendation before making your decision. If you are the host, it is courteous to take the lead in ordering appetizers and wine, if these are to be served. Slide 17 Do introduce yourself to each new person at the table and greet those you have already met before everyone is seated. Remember to use a firm handshake! Don’t talk with food in your mouth. Do sit up straight and keep your arms and elbows off the table. Don’t blow on food that is hot. Do carry food to your mouth with an inward, not an outward, curve of the fork or spoon. Don’t gesture with silverware in your hand. Do look into, not over, your cup or glass when drinking. Don’t overload your plate. Do try a little of everything served to you unless you are allergic. Don’t saw back and forth with your knife; stroke the knife toward you instead. Don’t let your silverware touch the table after you have picked it up. If you are not finished eating, place the fork and knife on your plate in an upside down V. Don’t push your plate away from you when you are finished; instead place your fork and knife side by side on your plate at an angle Slide 18. All of these will be very useful when you have your first business dinner. Or maybe this is a refresher for those who have encountered a business dining situation before. While eating wait for everyone to get their meal before starting yours, take small bites, try to pace yourself to finish as the same times as everyone else. If you leave the table, excuse yourself and place your napkin on your seat. When you are finished eating, place your napkin neatly to the left of your plate, but do not push your place setting away from you. Slide 19- No Notes Slide 20. You should prearrange how the bill is being paid. Always make sure the bill is accurate. Last thing to remember when paying the is to tip appropriately 15% for moderate service and 20% for excellent service. Now that you have finished thank your guest for joining you and shake their hand again. Slide 21 Now that you have sat through all of this training I am sure you all have worked up a appetite. How about we demonstrate what we have learned here today? We will be dining at the Radisson Hotel for a business dinner with everyone who has attended today. You all will be monitored so lets show the company you can do this! After dinner we will meet back here to finalize this workshop. At this time any questions that have not been answered during the presentation feel free to ask them now. Slide 22 A good point to remember in business etiquette is everyone should be treated with equal courtesy and respect. Business etiquette should be a give and take, to help each other when help is needed and have consideration for others. Good manners and business etiquette have always been based on common sense and thoughtfulness.

The Effects of Aristotelian Teleological Thought on...

The Effects of Aristotelian Teleological Thought on Darwins Mechanistic Views of Evolution nbsp;nbsp;nbsp;nbsp;nbsp;The need to understand organisms has been a much sought goal of science since its birth as biology. History shows Aristotle and Charles Darwin as two of the most powerful biologists of all time. Aristotles teleological method was supported widely for over 2,000 years. One scientist remarks that the Aristotelian teleology quot;has been the ghost, the unexplained mystery which has haunted biology through its whole historyquot; (Ayala, 10). If Aristotles approach has frightened biology, then Darwin, who actually nicknamed himself the quot;Devils Chaplain,quot; and his idea of natural selection has†¦show more content†¦Aristotle thought it was both ridiculous and impossible that chance, which is not linked with order, could be used to explain occurrences in biology. In one of his writings, he criticized Empedocles for the use of chance to describe biology. Aristotle believed that Empedocles, then, was in error when he said that many of the characters pre sented by animals were only the results of incidental occurrences during their evolutionary growth. nbsp;nbsp;nbsp;nbsp;nbsp;As a vitalist, Aristotles philosophy also had a powerful influence on what he wrote. His beliefs are described in On the Soul and On the Generation of Animals. These thoughts can be epitomized into four main areas of Aristotles vitalistic belief: 1. He connects the life of an organism with its psyche. 2. He finds purposefulness and organic unity as the most significant sections of vitalism. 3. He debates that the entire body, rather than the parts, should be taken into account. 4. He emphasizes the soul as the final goal. Looking at these four traditions, it is not shocking that Aristotle thought that single limbs, such as an arm, was a good description of

The Subjective Nature Of Love - 999 Words

If beauty is subjective, then anything that I believe is beautiful is indeed beautiful. This implies that there is no standard definition of the word â€Å"beauty.† Its definition is tied to my attitude. Using the subjective nature of love leads us to a judgment of taste, which has no logic. The subjective nature of love depends on one’s taste and feeling about beauty. For instance, our judgment about a rose flower or early morning sunshine could be different because of the subjective definition of beauty. It is also important to note that beauty would not make sense without subjective meaning. The mention of beauty depends on perceivers. People like what they see as in the case a beautiful woman. We often regard other people’s taste because they see what we also see. Although we may differ in political, moral, and ethical issues, what people perceive as beautiful has a profound response. 2.Classical theorists hold that beauty could be achieved by producing different objective proportions. This classical view of beauty is based on internal process. For instance, a women’s body has different proportion that joins to create beauty. Proportions imply the suitable display of the details of beauty. The display must be physical to be desirable. The different details of beauty come together in a harmonized sense. It also implies a graceful semblance, which is a suitable display of the details of beauty. 3.Plato’s concept of beauty expresses beauty as a perfect unity in the realShow MoreRelatedEssay about Categorical Imperative1517 Words   |  7 Pagesthe subjective principle and rule of people. People’s actions rely on these principles. In addition, the maxim usually refers to individual behaviors criterion for rational beings. 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A House Divided - 768 Words

â€Å"House Divided† Essay Discuss the relevance today of Abraham Lincoln’s statement, â€Å"A house divided against itself cannot stand.† Abraham Lincoln’s statement in his 1858 speech that â€Å"A house divided against itself cannot stand,† is an extremely true statement that is as relevant today as it was when he originally stated it in 1858. Lincoln made this statement when he was accepting his nomination by the Republican Party to become the United States senator for the state of Illinois. Lincoln was attempting to distinguish himself from his opponent for the seat in the Senate, Stephen Douglas, who was a major supporter of the doctrine of popular sovereignty. Lincoln disagreed with Douglas because he believed that the United States could not†¦show more content†¦When two business partners are in disagreement about their business policies, the business will fail with no proper guidance. Two friends with seriously incompatible qualities or moral codes will not be able to maintain their friendship. Nothing can survive without unity, which is why slavery was unable to prevail. One specific example of the validity of Lincoln’s statement is the Civil Rights movement of the mid twentieth century. The Civil Rights movement was an extension of the slavery issue of a century earlier. Black people were still not being treated as equal to whites in the southern part of the country. Because there was much division on the issue, there was political controversy during that time. However, just as with slavery, blacks eventually received equal rights and treatment. Another example of Lincoln’s statement being applicable many years after it was said is communism in Russia. Communism and socialism in Russia eventually failed because it always had a clear winner and loser. One party was greatly benefitted, while the other party was severely disadvantaged. Because the country was so divided on the issue, communism collapsed in the Soviet Union in 1991. Perhaps the greatest and most relevant example of the validity of Lincoln’s statement is the current economic depression occurring in the United States. In the United States, the difference betweenShow MoreRelatedA House Divided : Injustice Essay1912 Words   |  8 PagesA House Divided: Injustice in the Family A central tenet of conventional liberal theory that has drawn the ire of many feminists is the public/private distinction, which is the idea that a political conception of justice ought not regulate the way people act outside of political life, such as within their families. Between the publications of A Theory of Justice and Justice as Fairness, John Rawls’ position on the public/private distinction evolved considerably. Two of the works that he cites inRead MoreA Breakdown of Lincolns House Divided Speech3223 Words   |  13 Pagesceased, but has constantly augmented. 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Purchasing to Cash Disbursements-Free-Samples-Myassignmenthelp.com

Question: Discuss about the Expenditure Cycle Purchasing to Cash Disbursements. Answer: Introduction Expenditure Cycle may be defined as repetitive process of business activities such as purchase and payment of goods and services. In the expenditure cycle the information that there is a need for purchase of raw materials flows from various departments such as inventory control or purchase departments and after the receipt of the material the information flows back to those sources. Similarly the expenses incurred shall flow from general ledger and reporting function for updating the same in management reports. Minimization of the expenditure of acquiring and maintaining the goods and services is its primary objective. Expenditure Cycle Information System For designing the accounting information system both suppliers revenue and buyers expenditure linkages are significant. Conversely it can be said that when company redesign its revenue cycle, the customer has opportunity to redesign its expenditure cycle. The process most organizations use in which a system first creates a purchase order then the same is being approved and then the inventory master file searches the appropriate supplier and then purchase order is being send to supplier via EDI , the department which is receiving the order has access to open the purchase order and verify the same. Threats Controls 1. Inaccurate or invalid master file. Employing Data integrity controls. Restrict access to master file. Proper Segregation of duties. 2. Unlawful disclosure of sensitive information Controls established to limit the view of sensitive information. Limiting employees capabilities to specific information. Encryption of sensitive information. 3. Obliteration of master file. Implementing disaster recovery procedures. 4. Poor performance. Making managerial reports time to time. To overcome this threat an ERP system should be established. It consists of cases in which one is production, second is testing and development and third is backup. Its reporting capabilities will update when threat from poor performance accrues. Ordering material, supplies and services It is the major activity which involves identifying the what, when and how much to purchaser from a supplier. This approach is known as Economic Order Quantity (EOQ) in which an optimum order size is calculated so as to minimize the ordering carrying and stock out costs. Where, Ordering costs -costs associated with processing of purchase transactions. Carrying Costs costs for holding inventory. Stock out costs It occurs due to shortages in inventory. EOQ answers the question of how much to order and when to order is decided by Reorder Point. This point will be decided on the level of safety stock to meet unexpected demands and delivery time at which the stock is available. Since the EOQ method is not significantly saving costs and earning is negligible the companies have shifted to Material Requirements Planning (MRP) and Just in time System (JIT). MRP refers to accuracy in forecasting the needs of inventory so that inventory costs are reduced whereas JIT refers to minimizing the purchase and production of goods rather than forecasting the same. Threats Controls 1. Inaccurate Inventory records Adopt Perpetual Inventory Method. Use of information technology. Bar coding techniques to be used. Use of RFID tags. Periodic Inventory counts should be done. 2. Purchasing unnecessary items. Supervisors should be employed for actual demand. Choosing suppliers Once the purchase has been identified, the suppliers are being selected where the following factors such as price, quality of material and deliveries are to be taken care of. For authenticating the supplier purchase order is created which is an electronic document in which the supplier formally accepts buy and sell of products at predetermined prices. Threats Controls 1. Inflation in prices. Price of regular items should be stored in Data file and reviewed accordingly. Designing Budgets. 2. Low cost items may lead to inferior quality. Experienced suppliers with competitive pricing. Receiving Responsibility of receiving department is to accept deliveries from suppliers. It reports to warehousing manager who is responsible for storage of goods. The receiving report document is prepared which contains each every details of purchase. Threats Controls 1. Deliveries of unordered goods. Accept deliveries only of items which are written in purchase order. 2. Counting Errors. Use Bar code RFID techniques. ERP system. 3. Inventory Theft. No physical access to inventory. Strict Documentation. 4. Verification of services received Audit. Budgetary Controls. Approving supplier invoices The accounts department approves payment to the suppliers. A voucher package is considered which consists of an invoice and its supporting documents. There are 2 ways for processing supplier invoices: Voucher System - An additional voucher is created called as disbursement voucher. Non Voucher system In this system as soon as the payment is done the account is marked as paid and package is removed. Threats Controls 1. Mistakes in invoices. Verification ERS. Restriction imposed Proper documentation. 2. Accounts payable wrongly credited. Verification. Data entry controls. Reconciliation. Cash Disbursements The cashier is responsible for making payment to the suppliers. Segregation of duties is done. Threats Controls 1. Unable to take advantages of early payment. Invoices made timely. Cash flow budgets are prepared. 2. Payment made for undelivered items. Verification of documents by both departments. Prepare budgets.