BU247 Chapter Notes - Chapter 11: Independent Business, Customer Satisfaction, Pdca
Document Summary
Financial control involves the use of measures based on financial information to assess organization and management performance. In for-profit organizations, financial control looks at the drivers of profit such as the organization"s ability to use its assets effectively and control costs for a given level of sales. In not-for-profit organizations, financial control looks at the organization"s ability to use its resources in the most effective way to accomplish its service objectives. Plays an important role in the pdca cycle. Internal financial control supports decentralizing of decision-making information in large organizations. Decentralization is the process of delegating decision-making authority to frontline decision makers, evolved for two reasons. As organizations become larger, it became increasingly difficult for a central decision maker to make all organizational decisions. As organizations became larger and more geographically dispersed, it became increasingly difficult to gather and transmit information about the organization"s environment for evaluation and processing at the organization"s centre.
