Regulatory architecture and my company

6:13 PM
Regulatory architecture and my company

staff behavior can have a direct impact on the successful completion of the goals and objectives of the organization. One of the common ways in which the organization can control and influence of this behavior through the regulatory architecture. It defines architecture as the organizational structure and format that works any business. This structure or model consists of three systems. These regulations set the rights of decision-making, performance measurement and reward and punish performance.

These three systems that make up the organizational structure is usually referred to as the "three-legged stool." These "legs" must remain balanced and individually, they have to coordinate with the other two. It should only be making the employee that can be measured and rewarded or punished rights. You must measure the performance of the system is able to measure the region with the employee who has the rights decision. And a system of reward and punishment must be equivalent staff performance measurement.

system that assigns decision rights must be tailored to the organization. Normally it includes a hierarchical structure. This hierarchical structure separately for managers and employees used and also the decision of the management control in the decision of the decision-making process. Include start-up and implementation of the management's decision while the decision to include the control and monitoring of ratifications of this decision.

system, which measures the performance should be measured both objective and subjective. Objective measures and a clear and verifiable, while subjective measures implicit and difficult to measure. Used on a large scale accounting systems by organizations of this system. Along with monitoring the accounting numbers, the system can provide accounting and internal reporting and to provide a form of censorship. All of these can be used as a measure of performance.

system that is being used to reward or performance can be performed by means of cash and non-cash or Punishment. Financial rewards usually come in the form of annual bonus, which is included in a contract employee compensation. In many cases, these bonuses are based on the achievement of the objectives or goals are appointed by the binding. Represent targets based many times has a minimum and can be the upper limit. Tethered less than the minimum requirements that must be met in order to obtain a reward. Then increases the bonus as you get higher above the lower bound. And then capped it in the upper limit.

organizational structure to have a significant impact within my organization. It is split decision rights system into a system of three layers. The highest level of the system are the Chairmen and Vice-President. It oversees the average level which consists of board members and managers. Intermediate level manages and supervises a staff lowest level remaining. Mainly handled our control decision of the highest-level employees. Then the decision management control by mid-level staff.

for most of our employees, based on their performance to meet every three months and annual sales goals. Because of this, the performance tracking and measurement of the accounting program we have known as MAS0. They are used to keep track of all the financial transactions that occur within our organization. Of those transactions, MAS0 and then generates reports that are used by all levels of staff. Staff is selling, is measured performance on subjective measures accurately.

for the end of the system, reward or punish performance, MAS0 and also plays a key role. Most of the presentations are based on the amount of employee sales salesperson is able to generate. And then they are paid sales commissions on a fixed percentage against the total revenues for each project. MAS0 generates each of these reports. Also it is given rewards to the salesperson on the basis of the total amount of annual sales generated. There is a formula or the rate used to determine this amount different bonus for each salesperson. Each one of them has a different account of agreed formula based on contract employees.

These systems are currently working adequately within my organization. The latter was the only change that has been made due to the slowdown in the economy. Our company, like most, I lost a significant amount of business because of this, it has re-negotiated commission rates for all in sales. I think there is always room for improvement in any structure.

I think there are two items should look to improve our organizational structure. The first is by upgrading our accounting system. MAS0 is an older version of the software that they have no significant upgrades available. MAS0 is the latest product Sage accounting system which includes the big features that can take advantage of them. Secondly, I think we should consider implementing more subjective measures to salespeople and more substantive measures for all other employees.

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