State the issue
Discuss About The Organization In Eliminating Issues And Hence.
The management accounting is one of the most important aspects of the business organizations as it supports the management of the organizations in understanding the managerial issues by providing useful information. In this way, the management accounting support in making effective managerial decisions of the company. The undertaken case is on Leo’s Four-Plex Theatre, where the organization has faced significant management issues that hinder the profitability of the organization. The owner of the organization needs to utilize the management accounting system in order to realize the management issues within the organization that hampers the productivity as well as growth prospects of the organization (Sen, 2008). Moreover, by the appropriately recognitions of the key issues within the organizations the management can adopt some preventive measures that support the organization in minimizing the impact of the issues within the organization. The measures also support the organization in eliminating the issues and hence, the organization can ensure the productivity and increase in profitability that support in improving the sustainability of the organization.
According to the observations carried out, the discrepancies are found to be carried out by the ticket counter which is leading to Leo to face the inappropriate profits. The two vital issues are identified which are the few tickets are depicted to be of the wrong color with wrong dates which are present in the ticket stub box. The second issue is that the significant number of the free passes was found in the stub box which is signed with the Bill Reilly’s signature on it. The doubt is developed regarding the misuse of the passes which is being carried out at the ticket counter (Ananthan, Appannaiah & Reddy, 2010). The customer discrepancies were depicted to be not accounted as it is depicted to be showing the problems present in the selling processes carried out at the ticket counter. As the customers are found to be entering into the screening rooms, the test counts were not appropriately executed for the customers which are found to be impacting the reconcile either with the number of ticket sales as well as the stub counts are depicted to be making the impact on the environment. The park is impacting the processes are depicted to be providing an impact on the customers which is found to be providing an impact on the sales as well as it is leading Leo to face the difficulties. The wrong dates present in the tickets are indicating the appropriate development of the activities which are found to be providing an impact on the business as carried out by Leo. Apart from this, the specific problems are found to be faced which are indicating the inappropriate development of the potentials as found in this study (Avadhani, 2010). The focus on the issues is directly made as these issues are impacting the business processes for Leo Antonelli.
Identification of the alternatives
The alternative issues which are identified in this study are depicted to be provided in the following points which will enable to make the focus on the activities carried out in the business environment.
- The employees present in various sections of the theatre are found to be taking their jobs for granted and also is impacting the business process. This is leading to the failure of the cash which is found to impact the conflicts of the interest of the employees. It is also leading to the identification of the tickets carefully which is not carried out by the employee present at the ticket counter. The consideration of the wrong dates and the colors are found to be impacting the business processes (Ferrell, Hirt & Ferrell, 2013).
- The misuse of the power and the authorities are seen which is being carried out by employees as well as by the nephew Bill Reilly. The employees are found to be providing the free tickets to the customers that are found to be family or the friends of the employee present at the ticket counter. The nephew Bill Reilly was also had signed the free tickets which are becoming advantages for the employees present at the ticket counter. The inappropriate supervision of the activities was carried out by the employees which are creating a barrier to the growth of the profits of the organization.
- The inappropriate segregation of the duties are found to be carried out which is impacting the business processes as well as the inappropriate recording of the sales at the ticket counter and also the refreshment counter is seen (Griffin, Ebert, Starke, Dracopoulos & Lang, 2014). These processes are depicted to be showing the lowering of the sales which is impacting the business processes. Apart from this, the changes in the focus will enable the employees to face the drastic situations as found in this study and also is impacting the processes as carried out in the business environment.
The theatre is lacking in controlling the systems and procedures. The governance structure is inappropriate which consists of the corporate culture, ethics, quality of the people that should be hired and how the organizational processes are to be controlled. In the theatre, the control system is incomplete or weak. It is found that the roles and responsibilities are not appropriately carried out by the employees that lead to failure of the collection of cash from the customers and failure to determine the tickets carefully (Lipczynski, 2008). The failure of the collection of cash leads to the conflict of interest and failure in determining the tickets due to withering wrong colors or dates. The authority and power are being misused. The power was misused which depicts fiving free tickets to the customers which are being done by signing on the tickets. The authorities did not carry out any supervision of the employees which led to misleading of the processes. There was no segregation of the duties which is also considered as the major issue within the organization. The accountant who records the sales of the ticket was also responsible for the collection of cash. All these factors led to arise of problems within the processes of the organization. The internal control process was inappropriate (Peng., 2013). The collection of cash was inappropriate and the tickets sold in wrong colors or dates. The customers are getting free tickets which were being signed by the nephew of the owner. The employees were carrying out their duties inappropriately and the record was not maintained appropriately.
The Organization must set an appropriate code of conducts for the employees of the organization and in this matter, it is important to establish the basic principles for the staffs to realize that what is anticipated as well as in following the rules. The management staffs have to take the responsibilities for setting up the appropriate code of conducts.
Besides this, the employee’s work must be monitored and hence an effective monitoring program should be adopted by the organization (Williams, 2013). Moreover, in this context, the organization has to hire someone in order to supervise the work of the employees of the organization. The external supervisor will be responsible for checking the cash register twice in a day. Moreover, at the refreshments stand in order to avoid the failure of the stand attendance to collect the cash from the customers the monitoring must be employed.
The Duties must be segregated and authority, as well as the responsibility of the employees, must be assigned appropriately.
The overall explanations provided are found to be followed and stressed by Leo Antonelli by which he can easily make growth in the profits in the business, as well as the appropriate improvement in the business operations, can be seen. The focus on making the improvement in the activities will enable the employees has a strict environment, as well as the implementation of the information systems, are recommended for making growth in the business. The case study clearly depicted that there were many problems with the processes and system. The employees were conducted unethical procedure and there was an inappropriate flow of work processes. The most important thing that the management should focus is on the establishment of the code of conduct, monitoring the work of the employees, segregation of the duties and not misusing the power of authority. The managers of the organization should be responsible for carrying out the operation in an appropriate manner as per the needs and objectives.
References
Ananthan, B., Appannaiah, H., & Reddy, P. (2010). Business Management. New Delhi: Himalaya Pub. House.
Avadhani, V. (2010). Global business. Mumbai [India]: Himalaya Pub. House.
Ferrell, O., Hirt, G., & Ferrell, L. (2013). Business. Boston: McGraw-Hill/Irwin.
Griffin, R., Ebert, R., Starke, F., Dracopoulos, G., & Lang, M. (2014). Business. Toronto: Pearson Canada.
Lipczynski, J. (2008). Business. Chicago: Chicago Review Press.
Peng. (2013). Global Business. Cengage Learning.
Sen, M. (2008). Business Management. New Delhi: Global Media Publications.
Williams, C. (2013). Management. Mason, OH: South-Western Cengage Learning.
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