Hi GUYS, JUST WANTED 2 KNOW, HOW DOES PLANNING AND MONITORING HELP AN ORGANISATION REACH ITS AIMS N OBJECTIVES

Question

or what is the purpose of planning and monitoring? cheers

Answer 1

Planning would simply create an opportunity to understand the goals of a company, their costs, their ups and downs i.e. efficiencies--extra capacity availability, inefficiencies such as idle time - labour and machine, this process is technically called as "Feedforward" in management accounting. This will help the employees of the company to understand their job in a very well precise manner and help the company attain and sustain it. But it is also equally important to create a better incentive or remuneration system (payback system) in order to expect the fullest support of the staff.

Such planning measures are for example, functional budgeting, i.e. assessing the costs and gains in a divisional method such as sales, manufacturing, marketing.

Monitoring the conducts of the planning is also equally important as the tedious task of planning. Implementing the strategies in a company would be one big Herculean task! Therefore, watching them work would be a great thing to do! This step would create a learning curve effect that would help the company’s management accountant/s to understand the discrepancies in his’s/her’s/their’s planning. Thus when something is really going wrong a contingency plan should be adopted. This contingency plan is only imposable if the monitoring mission is conducted, and understood the requirement for one such mighty soul saver! Therefore, it could be a "Feedback" system as I could state. You learn through your errors!!!

Planning and Monitoring is a Cycle process. This cycle has to continue in order to survive in the world of business, and this is why a firm needs a management accountant.

Now to make a long story short, planning would help a company to set its goals, and monitoring would help save the firm if it has to go wrong! But its always not so bad!!!

Answer 2

It helps an organisation due to the fact that by monitoring what they are doing they can see if there are any problems that are going to cause them to not achieve their objectives and aims. It then gives the organisation a chance to change their methods so that they can get back on track. With planning it allows them to see all opportunities that are available to them and what each option would result in so that the best decision is made.

Answer 3

It doesn't unless the employees agree that the aims and objectives are achievable.