Organizational Structure of Harvey Norman
Question:
Identify Any Control Problems In The System And What Sorts Of Fraud Are Possible In This System?
The main purpose of this report is to understand the significance of accounting software in Australian companies. The research is entirely based on accounting software and organizational structure of Harvey Norman Company. The structure adopted by company and problems associated with this structure are also discussed in this report. The sales flowchart and problems in accounting software used by company is also discussed in this report. Further, market size, market leaders, implementation process or challenges associated with different accounting software is also discussed in this report and some recommendations to overcome challenges are also discussed at the end part.
The Australian company selected for defining its present organizational structure is Harvey Norman. This is basically a retail company which deals in bedding, furniture, computers, electrical products and communications. The company was founded in 1982 by Ian Norman and Gerry Harvey. The company has more than 280 retail stores in Australia, Europe, New Zealand and region of South East Asia (Harvey Norman, 2012). The company has more than 19, 000 employees across all its different locations. The organizational structure mainly defines the difference between decentralization and centralization designs of organizations. The structure of one of the significant aspect for the organizations which needs to be designed in such manner to achieve all organizational objectives by compensation, hierarchical authority and job entail aspects.
The matrix, functional, geographical or divisional is different organizational structures which are existed in most of the present organizations. Harvey Norman has adopted functional structure for its organization. The different activities are equally divided among small groups in order to done in efficient manner by various departments under this functional structure (Ashkenas et al, 2015). This structure is more efficient in controlling all the employees to give competitive advantage for the organization. The company is also using several accounting software in order to handle payment options and also efficiently record all the required information for future use. The financial performance of organization can easily be analysed using this software under the functional structure in effective manner.
The effective implementation of organization structure is depends on process, system, size and business operations of the organizations. The functional structure is facing several issues of inefficiency and errors while authorizing responsibility to individual or departments in the organizations. This structure provides benefits of effective division of tasks among the employees according to their skills and capabilities. But when size for organizations is expanded then it becomes very difficult to manage business operations in efficient manner (Wijaya et al, 2015). The problems of effective coordination among different departments are also raised in some circumstances. The performance level of organization is also affected due to complex situations arise because of equal responsibilities, roles or position in managerial staff. The managers in such cases only focus to achieve their personal objectives and that influences production efficiency of entire organization. The adjustment problems are also raised in this structure because of common goals for different functional departments of the organizations.
Problems Associated with the Structural Design of Harvey Norman
The accounting information systems are playing very significant role in present organizations to handle all their accounting and other business operations in efficient manner. The acquisition method generally includes steps like to identify, plan and then implement appropriate information system for the organizations (Dandago and Rufai, 2014). The various methods like ERP, commercial software or custom software are most common to procure information and business applications ineffective manner.
Custom software method generally develops to accomplish particular business objectives and specific accounting system according to business operations of organizations. This software generally depends on amount of business size and processes and according handle entire system (Susanto, 2016). This software is generally expensive and only large or medium sized organizations are capable to acquire this system method.
Commercial software is generally possessive software in nature. This is generally developed for end users for selling purposes only (Henderson et al, 2015). Windows XP or Microsoft is some common commercial software which can also be used by third parties as well for selling purposes. This software has adopted licensed process in order to sell its applications to different end users.
Enterprise resource planning (ERP) software has multiple applications and used by most of Australian companies in their business operations. This software provides efficient modules to organizations in order to manage as well as control the entire system in effective manner (Low et al, 2015). This can easily be implemented on cloud based and at various premises of organizational system to procure information. From the above, it is concluded that ERP can be the efficient system for business organizations as can handle large data which can enhance process of decision making in most significant manner.
The liner system which depicts sales process of different goods or services for the organizations is called as the sales flowchart. This is mainly visual representation of different process during sales prepared with various stages to reach at final stage of sales (Mokhtar et al, 2016). Harvey Norman is basically a retail company and follows appropriate sales flowchart in order to generate maximum revenues. The company mainly adopts value chain system in order to maximise sales and terminates those stages which are creating more trouble for sales process of business operations. The sales flowchart for Harvey Norman consists of various stages ranges from sales order to delivery of services.
(Source: Concept draw, 2017)
Harvey Norman generally adopts easier sales flow process for its products or services according to consumer demand. The process starts from consumer order and ends at delivery stage after receiving payment (Harvey Norman, 2012). The process also considers all concerns of customers in order to maximise their satisfaction level. This is the complex process and requires efficient managerial skills in order to handle different stages in effective manner.
The information system is at its top most position in present business conditions and so requires efficient control processes in order remain competitive for longer time in this marketing condition. The control problem identification is vital for the organizations to achieve all their strategic objectives. The privacy and security is must for controlling personal usage of information systems (Collier, 2015). The problems of maintaining records and their effective communication are also required for efficient control in the system. The problem to secure data in specific system of information for each of transactions is also indentified in this system. But this also provides secure and efficient database in order to maintain and record large information of the consumers.
Accounting Software Used by Harvey Norman
Further, innovations and development in ERP systems have also increased possibilities of frauds in business operations. The cloud technology used in this system has also enhanced it access from any part of the world (Roth, 2017). The mail frauds, data theft, asset misappropriation or frauds in financial statements are also possible in this system. Further, frauds of money laundering or taxation are also observed within the organizations in this system.
The various accounting software has enhanced the financial aspects of the organizations in significantly by recording and maintaining large data in efficient manner. The most of Australian companies are using accounting software in order to gain competitive advantage with efficient analysis of market conditions with these software packages. The adoption of cloud technology has also been enhanced by 87% among the present organizations (Galliers and Leidner, 2014). The 9PAC was the first software and IBM was the company which had implemented it firstly to access and store numerous data that has enhanced decision making aspect of the company. The business transactions also become easier by implementing this software in organizations. There are various accounting software developed in recent times like Zoho, Myob, sag group, quick books online and Xero which has enhanced business operations of organizations very effectively.
This software packages are used by every sized organizations that is large, small or medium which has enhanced effectiveness for entire organisational structure. This software requires continuous updates and maintenance in order to access quick and efficient results. Harvey Norman is using various accounting software which has enhanced speed, accuracy, effectiveness of its business operations.
The accounting software industry of Australia is one of the fastest and leading industries all across the world. There are so many companies which are dealing in accounting software and have developed more advanced or innovative software which has really makes business transactions more efficient and accurate. Quick book, Myob, Intuit and Xero are some accounting software which currently possessed 90% market share in Australia.
Among all these, Xero has more benefits and is efficient software package. Xero has been mainly developed for medium and small sized companies in order to record or maintain large information. It has been analysed that Xero has acquired 15% market share in Australia and capable enough to provide quality services to its users (Rubino and Vitolla, 2014). Around 250, 000 customers are suing this software in present conditions. The profits of this software have been immensely increased in previous financial year by 71% which is better than other accounting software available in international market.
The competition in accounting software has immensely increased in recent times due to new innovations and advanced technologies. Myob, quick books, intuit or Xero are some best accounting software which most of Australian companies are using in present times (Armitage et al, 2016). The accounting software has feature of cash flows and invoicing which has enhanced their demand in the market place. Xero and Myob are major competitors in accounting software at Australian market conditions. Myob is one of the leading accounting software among Australians and have around 116, 000 users.
Market Size, Market Leaders, and Implementation Process or Challenges Associated with Accounting Software
Similarly, Xero is using cloud technology in its accounting software and has more than 320, 000 users across New Zealand and Australia. This technology has enhanced real time processing for accounting software which has given competitive advantage to Xero as compared to rival accounting software (Lodhia and Jacobs, 2013). Quick book or Intuit is other competitor accounting software which is emerged recently in Australian market. The cost effectiveness of this software also gives them competive advantage as it is efficient to update and record data. Outsourcing as well as off-shoring is other features which make this software more competitive in market place.
The accounting software has advanced technical features which make them more innovative but at the same time, it has also raised many risks or concerns among users. These concerns may also be related to business transactions or maintenance of data. The concerns related to privacy or security is also affecting usage of this software. This software is generally not very friendly to users and also their customization is not possible according to needs of users (Tucker and Schaltegger, 2016). This software not cost efficient and also requires huge investment to be effective implemented in the organizations. The invoice process for this software also takes more time as compared to manual processing. The problems of skills to effectively implement such software in the organizations are also observed in recent times. The inventory management of companies becomes difficult when expansion of companies takes place.
From above, it is recommended that use of cloud technology in accounting software needs to be enhanced in order to minimize challenges associated with real time processing. The transaction of cash flows needs to be managed effectively in order to enhance business operations (Geibler et al, 2014). The users need to focus on such accounting software which can be compatible with programs that are used by them. The cloud technology based software needs to be enhanced for usage as is scalable and affordable and at the same time, also allows remote access from other locations which allows working with more flexibility.
Conclusion:
From the above, it is concluded that functional structure adopted by Harvey Norman provides many business benefits to the organization to achieve its organizational objectives. The work division related issues is generally affecting functional structure. ERP is most suitable system software due to its multi-characteristic which makes this more compatible software in present times. The sales flowchart adopted by company is also easier and involves simple stages which make business transactions more effective. The privacy or security is most common concerns among these accounting software packages. Xero and Myob are most used accounting software in Australia. The cost effectiveness and cloud technology used in this software makes this software more compatible than other accounting software.
References:
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Concept Draw (2017) Sales flowchart for Harvey Norman. [Online]. Available at: https://www.conceptdraw.com/examples/flow-chart-for-trading (Accessed: 28 April, 2017).
Dandago, K. and Rufai, A. (2014) Information technology and accounting information system in the nigerian banking industry. Asian Economic and Financial Review, 4(5), pp.655-670.
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