Resource Management in Projects MBA – Resources include all the necessities that are utilized in the execution of a project. They include from equipment, place, people, and money among other resources. A wide range of resources must be assigned to each project management activity for it to be actualized.
Before assigning resources to any project, it is crucial to ensure that they are available. Resource availability ranges from information associated with which resources are required for during project execution, to when and how they are available.
However, due to various reasons such as occurrence of unplanned risks, resources often fall short, which tends to considerably delay the delivery of the project (Sepasgozar, Razkenari & Barati, 2015). As a result, project managers find themselves under pressure to deliver their project as planned.
Although resources are constrained, one’s ability to control and manage them to successfully address the project’s needs is not; therefore, it is essential to integrate various interventions to address or minimize avoidable causes of resource shortage in project management when planning and scheduling project execution.
Causes of Lack of Adequate Project Resources
One of the main steps that is considered after noticing that the assigned resources are not adequate for project execution is identifying the context. Resources can range from personnel to material and the condition that resulted in the stretch of the resources to a breaking point. Several reasons are behind resource shortages including new technology, unforeseen events, poor planning and emergence of high-priority projects.
Resource Management in Projects and New Technology
In recent times, technology has become a backbone of many sectors and organizational aspects including project management. Due to the ever-changing technological trends, a mismatch in technology that was planned to be used and the technology that is eventually used in project execution can have far-reaching consequences in the execution budget (Sepasgozar, Razkenari & Barati, 2015).
The case is so because the project manager can be working on software programs that are advanced than they can support or there is lack of adequate skills to work on that technology. As a result, it creates a personnel shortage.
For example, big data has been one of the most influential technologies in most industries, with companies taking advantage of the numerous data available to them in various formats to assess and predict the future consumer behaviors and marketing decisions.
However, the integration of big data as a project will require a team that is competent in developing, analyzing and using the architecture and an organization that has integrated the necessary architecture. Therefore, lack of such skills or the necessary infrastructure means that the project will be significantly delayed due to lack of adequate resources.
Unforeseen Events
In project planning, the team prepares a risk assessment and analysis plan that helps in identifying and establishing a mitigation plan for potential uncertainties. However, there are various risks that cannot be planned for such as people getting sick, taking unplanned off, death or even other non-human factors that can suddenly impair the supply of resources (Kerzner, 2019).
These unplanned risks cause resource shortages either directly or indirectly. For instance, a chief project engineer can fall ill in the middle of the project, which makes his services unavailable and the project team may lack his or her expertise to execute the project as planned, thus causing a sudden personnel shortage because hiring another engineer may also be a difficult task due to their numbers in the labor market.
Therefore, such an incident causes a direct impact on the resource supply. In an indirect case, the occurrence of floods in an area where building materials were being sourced can trigger supply shortages because the construction material may be temporarily unavailable until when the floods are over or an alternative source is found. That being the case, it can significantly delay the completion of a project as planned.
Poor Planning and Resource Management in Projects
One of the most essential tools that are utilized in project implementation is the plan. The plan entails all the steps and resources that will be required during the implementation phase. Planning involves estimation of resources and task lists that will be utilized and is often used to calculate cost estimates.
When planning is done poorly, it results in wrong estimations, which further leads to resource constraints. (Kim, Chang & Castro-Lacouture, 2020) For instance, if the plan estimates a budget of about $1 million to implement a certain project like constructing a camp, then the actual budget after sourcing the raw materials is $900,000 then it means that the financial resources were poorly planned for since they will not be enough to complete the project unless it is extended.
Emergence of Higher Priority Projects
Organizations often run multiple projects at a time, with each having its own priority levels. When one projects with a higher priority is launched, more attention and resources are allocated to that particular project to ensure that it is completed within the estimated time frame.
As a result, some of the resources may be pulled from one project to another, thus limiting or the available resources. As a result, resource shortage is triggered, which ends up extending the project implementation time.
Resource Management in Projects MBA
Addressing Resource Shortage in Project Management
Since shortage of resources is bound to occur at any time of project implementation, it is important for project manager to be aware of what steps or processes that he or she should take to enhance resource management in projects.
One of the key steps to take after encountering resource shortage is identifying the situation behind it and its implications on the project (Kerzner, 2019). By doing so it helps the project manager to determine why it occurred and figure out its impact on the overall project implementation.
Without such knowledge, a project manager cannot resolve the resource shortage challenge since they are not in a position to identify the root cause of the problem.
The second step is leveraging the change regulation board. While resource shortage is an issue that is perceived as a problem that a project manager alone can address, it is not. Involving the change regulation board can be helpful as they can help by providing multiple options available to resolve the issue.
Their recommendations can result in optimization adoption of an option that optimizes resource usage. Besides, if the options available cannot address the demand for additional resources, then they can opt to allocate them and allow the project manager to re-baseline his or her project.
Recommendations to Address the Resource Shortage Problem
There are various strategies that one can adopt to address minimize resource problem. Some of them include monitoring the resources and creating a well-analyzed resource plan.
Monitoring Resources Being Used in the Project
One of the most recommendable strategies to managing resources is monitoring them throughout the entire project. With the advanced technology, there are various approaches that can be used to track resources such as the use of tracking software.
These software programs are embedded with several functionalities such as tracking resource availability, managing workload allocation, viewing project schedules, and monitoring resource productivity. That being the case, one can effectively track project resources in real-time, thus pushing everyone working in the as accountable as possible while minimizing wastage.
Creating a Well-Analyzed Resource Plan
Developing a thoroughly analyzed resource plan enables one to capture all the necessary details and resources required in project implementation. To begin with one can, create a thoroughly evaluated list of the resources needed, the quantity of each resource, and scheduling them to meet the desired deadline (Mavi & Standing, 2018).
Adhering to that list is defined as the schedule since one is required to figure out the duration of each resource and it effect on the schedule. There are various strategies in which the resource plan can be optimized to ensure that it does not vary significantly with the actual resources used.
One of the options is seeking for expert judgement, whereby an expert who has previously done similar projects is consulted. Consulting such personnel can help in developing a realistic resource plan since they have an actual experience about the project (Watt, 2014).
Secondly, project managers should conduct an alternative analysis because it ensures that only the optimal option is selected, which will less likely cause resource constraints. The third strategy that can be adopted to enhance the resource plan’s efficiency is by researching on published speculated data. Project managers should research on books, periodicals, journals, and articles about similar projects as it may help in getting crucial data about similar projects.
Conducting a bottom-up estimation can be an effective approach to integrating an effective resource plan. The case is so because it enables complex activities that are difficult to plan for to broken down and simplified into several manageable pieces.
Resources are then assigned on each piece and then combined together to get the entire estimated resource project plan. Lastly, incorporating a reserve analysis can be a beneficial strategy to addressing deadline pressure caused by any factor outlined. The case is so because project managers add an additional time to the planned schedule, which helps them account for any extra risk that may occur along the way.
Conclusion
Although resources are constrained, one’s ability to control and manage them to successfully address the project’s needs is not; therefore, it is essential to integrate various interventions to address or minimize avoidable causes of resource shortage in project management when planning and scheduling project execution.
There are various causes of lack of adequate resource including but not limited to poor planning, new technology, unforeseen events, and emergence of high-priority projects. These factors limit resource availability in various ways discussed therein.
When a resource shortage is identified, there are two steps that the project manager should consider in order to excellently address the issue. One of them is identifying the situations that triggered the shortage and assessing its impact.
Secondly, they should consider involving the control board as they can help with ideas that when deployed can address the issue. Lastly, the recommended solutions to the resource problem include developing an informed resource plan and monitoring those resources as the project is being implemented. With these tips, a project manager can execute his or her project while addressing the resource problem issue, thus driving project success.
Keywords: Strategic Planning, Risk Management, Stakeholder Collaboration, Scrum and Agile Methodologies, Change Management, Data Analysis, Project Lifecycle, Process Improvement, Workflow Optimization, Training & Mentoring, Strategic Planning, Risk Management, Stakeholder Collaboration
References
Kerzner, H. (2015). Project management 2.0: leveraging tools, distributed collaboration, and metrics for project success. John Wiley & Sons.
Kerzner, H. (2019). Using the project management maturity model: strategic planning for project management. John Wiley & Sons.
Kim, S., Chang, S., & Castro-Lacouture, D. (2020). Dynamic modeling for analyzing impacts of skilled labor shortage on construction project management. Journal of Management in Engineering, 36(1), 04019035.
Mavi, R. K., & Standing, C. (2018). Critical success factors of sustainable project management in construction: A fuzzy DEMATEL-ANP approach. Journal of cleaner production, 194, 751-765.
Sepasgozar, S. M., Razkenari, M. A., & Barati, K. (2015). The importance of new technology for delay mitigation in construction projects. American Journal of Civil Engineering and Architecture, 3(1), 15-20.
Watt, A. (2014, August 14). 11. Resource Planning – Project Management. Pressbooks.
Did you find any useful knowledge relating to resource management in projects in this post? What are the key facts that grabbed your attention? Let us know in the comments. Thank you.
The Impact of COVID-19 on College Students – Understanding the implications of the COVID-19 pandemic in a global society is critical as it founds preparation for potential health crises. The pandemic resulted in a critical death rate internationally, which has had detrimental effects on relatives’ psychological well-being (Coughenour et al., 2020).
Second, with the infection rates requiring expensive treatment facilities and resources, destabilization of the global public health sector was apparent. Furthermore, the pandemic altered nations’ economies by distorting employment, ultimately inducing people to low living standards, resulting in trauma and depression (World Health Organization, 2021). Such impacts are practical and evident in society at large, including college students.
Researchers have documented the social, economic, and psychological implications of COVID-19 in society. According to Chriscaden (2020), the pandemic increased poverty rates, raising the number of undernourished people by 132 million individuals.
Such statistics imply that the population suffering poverty-induced mental instability significantly increased with the pandemic. With over 1.8 million deaths globally by the end of 2020 for only countries that can quantify the cases effectively, the social and psychological impacts of the COVID-19 pandemic are inarguable (World Health Organization, 2021).
Overall, whether social, economic, or mental implications of the pandemic, the apparent harmful implications in the global community, at all ages, races, ethnic groups, and other social classes.
Specifically, college students should understand how the pandemic affected their social, economic, and psychological welfare to relate effectively and understand how their situations matched the practical health crisis implications. Such research offers the fundamental data and information to spur awareness and attention on the need to focus on college students when health crises occur.
According to World Health Organization (2021), the impacts of the pandemic on the global education system have had a deleterious implication on learners. Therefore, as nations focus on restoring the vulnerable population’s well-being, college students should not be excluded.
College students significantly suffered the pinche of the COVID-19 pandemic considering the social, economic, and political elements surrounding the health crisis. When the World Health Organization (WHO) pronounced the pandemic as a global health crisis, national governments had to take stringent measures to curb the infection spread, including barring physical and interactive classes in colleges.
Such a move distorted the higher learning bussing culture and proximity, inducing learners to critical psychological challenges. College students who were on internships lost their livelihoods, predisposing them to hard financial situations.
The death of relatives and friends due to the critical nature of the COVID-19 infections also pushed college students to hard life situations characterized by psychological and mental instability.
Therefore, although society might not focus on the college students significantly, they form a key group of individuals who suffered the pinches of the COVID-19 pandemic.
Literature Review
Researchers have exploratively studied the impacts of the COVID-19 pandemic on college students. With the practical effects of the pandemic on human health, including the substantial death rate, and the stay-at-home order in the United States (US), scholars have concluded significant implications in different research journals. Coughenour et al. (2020) and Lee et al. (2021) are among the key researchers exploring the pandemic’s implications on US college students.
Coughenour et al. (2020) explore the correlation between the stay-at-home order, learners’ involvement in physical activity at home, and psychological welfare. Their findings highlight that the pandemic had substantive negative effects on college students’ physical activities and psychological well-being.
Such inference implies that the indoor stay at home reduced the students’ involvement in physical exercises, which integrated with such other factors as the deaths of relatives and friends to contribute to stress and depression.
Also, the journal article concludes that non-American college students suffered more than American learners during the pandemic. Such inference implies that parents, guardians, the government, and the education fraternity should significantly focus on the students of color when health crises occur.
Impact of COVID-19 and Psychological implications
Lee et al. (2021) explores the social and psychological implications of the pandemic on US college students. The authors conclude that the pandemic significantly distorted the college students’ psychological welfare by minimizing physical interactions.
With the barn of physical classes and the indoor lifestyle, students had unreliable social interactions that augmented stress and depression. Ideally, the pandemic distorted the learners’ social life, inducing them to psychological instability. Also, the journal article highlights no significant social differences in the impacts of the COVID-19 pandemic. Such inferences oppose the common expectation that such groups like the LGBTQ+ and non-white students suffered many more challenges than the American students.
While the two research articles focus on different elements regarding the impacts of the pandemic on US college students, social versus psychological, they both posit critical alteration of mental welfare. For Coughenour et al. (2020), failure to engage substantially in physical activities during the pandemic and other social and economic conditions alter the students’ mental welfare.
The Impact of COVID-19 on College Students
Similarly, Lee et al. (2021) denote that the socioeconomic implications of the pandemic played a critical role in triggering depression and stress among college students. Both articles present practical arguments because inadequate engagement in physical activity, unreliable social interactions, loss of family members, and financial strains, to mention a few factors, would disrupt mental well-being.
Therefore, both articles reinforce damaging factual implications of COVID-pandemic on college students, recommending future comprehensive research to explore the subjects. However, the articles differ in defining the social variation of the pandemic implications on various social groups, including the blacks and the LGBTQ+ community.
Although Coughenour et al. (2020) infer significant differences of implications relating to sexual orientation, Lee et al. (2021) findings indicate no significant differences in any social group. Although the opposing inferences from both research works might be confusing, the differences in focus might have caused the diverse conclusions.
Notably, the often-societal discriminated groups, including the LGBTQ+ community and the blacks, might have perceived the indoor stay as an opportunity to evade stigmatization, hence evading outdoor physical engagements. Contrary, Lee et al. (2021) emphasize that the presence of strong organizations and groups supporting the minority groups provided reliable support during the pandemic, minimizing psychological breakdown among member college students. Therefore, the evident differences between the two articles are due to focus, which is normal in research studies.
Conclusion
In a nutshell, the COVID-19 pandemic is a fundamental health crisis, and its implications affect every member of society, including college students. Coughenour et al. (2020) and Lee et al. (2021) prove that the epidemic had deleterious impacts on college students’ welfare.
With alteration on learners’ social, economic, and psychological welfare, destabilization of individuals’ welfare was apparent. Such a fact requires the education sector and the global public health system to prepare adequately for future health crises and consider college students’ mental well-being as a key aspect. Researchers are also stakeholders as they will help offer objective findings, which are vital in initiating evidence-based strategies.
Further research should encompass the potential sustainable solutions to safeguard college students’ mental well-being during such health crises. Notably, after learning the practical existence of a social problem, the next step must be seeking a solution. The key lesson from the available research is that the community must find effective strategies to respond to future pandemics.
The need for an effectively coordinated integrative global health sector to handle future health crises in groups, including college learners, is inarguable. Therefore, besides the vital implications of the COVID-19 pandemic on students’ psychological and mental welfare, education and community stakeholders can prepare adequately to counter future destabilization.
References
Chriscaden, K. (2020). Impact of COVID-19 on people’s livelihoods, their health, and our food systems.
Coughenour, C., Gakh, M., Pharr, J. R., Bungum, T., & Jalene, S. (2020). Changes in depression and physical activity among college students on a diverse campus after a COVID-19 stay-at-home order.
Lee, J., Solomon, M., Stead, T., Kwon, B., & Ganti, L. (2021). Impact of COVID-19 on the mental health of US college students. BMC
World Health Organization. (2021). The impact of COVID-19 on global health goals.
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Explain formal and informal performance management evaluation in the workplace
Performance Management – A mentor’s role is to guarantee that informal evaluations are conducted regularly in the course of their work relationship and that their employees’ progress can be tracked in real-time. This form of evaluation can be accomplished through job-related conversations, a casual get-together over coffee, or an on-site inspection of a particular piece of work. Employees can benefit from less formal assessments by gaining as much information as possible without causing delays or mistakes.
This increases their chances of changing their behaviour (Aboalshamat et al., 2020). It is possible to avoid such surprises since informal feeds to employees are noted in the official assessment. Formal assessments should never take the place of informal ones, even if the latter is more convenient.
As part of a worker’s yearly performance assessment, this is commonly used for more official discussions between a manager and an employee. Maintaining a fresh annual evaluation is a priority for me as a line manager. This form of evaluation focuses on the employee’s accomplishments as well as their efforts to correct any flaws they may have.
In performance management, explain the job of the first-line manager
It is the first-line manager’s responsibility to make sure that his team accomplishes its goals. A first-line manager is responsible for providing consistent direction to the members of his staff to ensure that his team performs properly and that its members comprehend both their individual and collective goals, as well as how they contribute to the advancement of the business.
When they see their employees succeed, they may promote their feedback and help guide their development (Phillips et al., 2016). As a new employee, you may support them by saying “up to date” to help them feel more confident in their role, or you can give them input or assign them tasks to help them rise to a specific position. As a manager, I believe that performance is just as important, whether it’s a simple “thank you” or a more formal thank you.
Identifying the fundamental reason for a team member’s noncompliance with requirements is critical. Everyone who is straining to deliver resources and equipment should report to you as their first-line manager.
Identify ways to ensure fair and objective formal assessment
To determine remuneration, incentive, promotion, and transfer choices, an assessment of employee performance is necessary. As a result, it has a profound effect on staff morale and motivation (Yu et al., 2020). But when it comes to making judgments on employee transfers, salary, advancement, and recognition, supervisors must use extreme caution. Employee morale suffers when they see their efforts and contributions go unnoticed. The approaches listed below allow managers to conduct performance reviews that are both fair and objective.
Fair Progress System
It is the primary objective of doing an employee evaluation to enhance the performance of the employee and to provide assistance to them. Identifying and correcting implementation hurdles is a joint responsibility of both management and staff ( Bozer et al., 2021). If employees aren’t included in the decision-making process, it might be unreasonable to expect them to return to high levels of performance.
Fair Performance Review
For the assessors to grasp the aims of performance evaluation, the organisation must train them. They should be aware of how the performance review system operates, be able to provide constructive comments and maintain a focus on capabilities and behaviour as opposed to personalities (Yu et al., 2020). When it comes to evaluating their performance, employees should be given the freedom to do so at will.
Fair Report
Even before conducting interviews, managers may reflect on what they’ve seen of their staff in the real world (Bozer et al., 2021). Because a superficial assessment of an employee’s performance cannot provide sufficient and correct information, the management should spend more time observing and recording data to get a more complete picture.
Fair Assessment
Each employee’s job description and how their performance is being evaluated should be clearly stated in an evaluation assessment. Employees and employers benefit from open communication when this type of information is shared.
Explain how to set SMART objectives for a team member
Goals that are measurable, attainable, relevant, and time-bound are referred to as SMART. An organization’s key success statistics, such as earnings, or the accomplishment of a specific objective are all examples of typical metrics (Jones, 2016).
Good public health practice involves solid objectives to assess improvement in the direction of reaching goals and results. Various programmes and services are supported by awards that involve planning, executing, and achieving goals to guarantee success for future funding. Organizations strive to set meaningful goals that effectively evaluate improvement in the direction of a goal.
The aim must be explicit and not vague or nonspecific, e.g., safety
To determine whether a project is a success, you must first determine whether it can be measured, e.g., patient care
It must be possible to fulfil a goal with the money that is available, e.g., efficiency
The goal or target specified is related to the organization’s objectives and will have an impact on the business, e.g., accuracy
A date is required to compute the mission’s duration, e.g., learning and development
Explain how to set performance standards for a team member
Managers must keep tabs on and establish expectations for their workers’ performance to help them grow professionally. Both managers and team members should be involved in defining and setting performance criteria to guarantee that everyone is on the same page and ready to commit. There is a greater sense of accountability and incentive when employees have a say in determining their performance criteria.
Evaluation
It is of the utmost importance to analyse and revise the job requirements with the workforce and to discuss the kinds of objectives employees should set for themselves. The benchmark must be measurable so that managers can monitor and compare the performance of their employees over time. Comparing performance amongst employees in the same role is made easier when they are measured using metrics.
Past Data
Before setting new performance objectives, it is critical to undertake a thorough analysis of all available historical data on existing goals.
Keeping track of your progress
Make sure everyone knows what they’re expected to accomplish and how they can help the team achieve it. By the end of the month, for example, the salesman must raise sales by 15%.
Frequent Meetings and Open Debate
Regular meetings to discuss and execute new performance requirements should be held on a monthly or every six-week cycle, as appropriate. The end-of-month meeting at Milltech, for example, is used to discuss issues and areas that require development. Regular meetings allow team members to share their thoughts and suggestions for enhancing their work performance.
Performance Management HRM Project
Explain how to measure performance against agreed standards
Continual Examination
Many businesses choose to conduct performance evaluations regularly rather than once every few months or once a year. As a result, regular feedback aids in the early detection of issues and the implementation of corrective measures before they worsen.
Checklist
With the use of a checklist, it is simple to track employee performance and identify those employees who are under-performing and may require more support. In addition, it aids in identifying people who require further education and training to perform at a higher level.
Self-Evaluation
To get the greatest results, you should ask your staff to do a self-assessment. Employees who are held accountable for their work may be more concerned about it than the team’s leaders. With the use of this exam, team leaders may help their employees better understand how well they’re performing.
360 Feedback
Using the system, employees from all departments and levels of the organisation may provide input on their ideas, thoughts, comments, and assessments of their performance. When using 360- degree feedback, you may assess input from a wide range of sources, allowing you to see both good and negative trends as well as areas in need of improvement.
Visual Ratings
When it comes to evaluating employee performance, the typical graphical scale employs the digits 1-10. Decision-making and comprehending certain activities can be placed on a scale of one to ten.
Explain the importance of feedback to improve performance
Achieve the expected results and obtain timely feedback from your team members by clearly defining their roles and responsibilities. You’ll gain more self-confidence and feel better about your work if you conduct daily evaluations. It would be a wonderful learning experience for the team member to take advice on failures and faults so that they may reflect on whatever went down and what they can do to avoid making the same mistake again ( Yu et al., 2020).
You must communicate clearly and succinctly with anyone who isn’t meeting the basic criteria of success to be conscious of the necessity for change, and it’s also an excellent beginning point for an open debate about productivity and what the group member can do to improve performance with the support of the manager.
Describe how to give effective feedback during performance management reviews
As a manager, I prefer to use the CORBS feedback approach when I must give an employee feedback.
Make a concise and unambiguous description of the situation or actions
If you’re referring to someone else, use terms and vocabulary like “I feel,” “I believe,” or “you are” instead of “you.”
The default behaviour is to deliver the information to the case in the simplest form imaginable so that it will be remembered
In place of having things go in one direction alone, it is healthy to incorporate both negative and positive feedback
At its most fundamental, the feedback should be concentrated on the enforcement
When confronted with negative feedback in the structured framework, I turn to the BEEF model for support
How a person acts or behaves is known as their comportment
A single illustration of a problem or activity is referred to as an example
The impact is either the impact that something has on someone else or the consequence of something happening
You can have everything you desire in the future, starting right now
Identify potential areas of under-performance in the workplace
Since under-performance may be so costly and detrimental, any organisation should consider addressing the issue. Under-performance can be caused by a variety of factors, including the following:
Lack Of Space For Growth
It’s not uncommon to have employees that don’t care about their performance and are content to show in, do their thing, and go home. Others, on the other hand, are aware of the company’s potential for growth. The lack of room for advancement can have a detrimental influence on an employee’s overall performance. Consequently.
Motivation
There are several common workplace issues, such as employee dissatisfaction, that contribute to under-performance.
Inspiration
It’s impossible to expect good performance from personnel if they aren’t enthused about what they do. Having inspiring executives in the firm, for example, can lead to more motivated employees, which can have a favourable effect on productivity.
A Lack Of Praise And Acknowledgement
When employees feel valued and recognised via the use of incentives, they are more productive. They may, for example, decide to leave and seek employment with another satisfying organisation.
Inadequate Leadership and Effective Performance Management
Disengaged and disorganised managers are less expected to provide a positive work environment, which in turn has a negative influence on team performance and productivity.
Determine the root reasons for performance management shortfalls
An essential part of training is A member of staff who may not be equipped to do their tasks due to a lack of relevant experience or competence. Adding a new task or having a new employee who is unable to learn how to do this work might be to blame.
An example of an impetus is someone on the team who is qualified yet unable to do their duties. Lack of rapport with the supervisor, disinterest in routine tasks, or an unwillingness to complete them is all possible explanations (Bozer et al., 2021). A problem with capacity occurs when a person in our team is doing everything they can and knows to do to finish their task, yet it is still not enough.
This may be the result of problems at work or home, both of which hurt the individual’s performance at work. A systematic problem, such as several teams that don’t operate properly. It’s possible that sharing information or providing services can cause you some headaches.
Describe actions to restore performance management to acceptable levels
To get the results back on track, you need to identify and address the error with your teammate. You should gather evidence to support your claims of under-performance. Recommendation: Copies of previous assessments, ideas, and proposals to enhance performance have also been suggested (Crocker et al., 2016).
A meeting with your team member is necessary once the data has been collected so that you may explain your findings and present the proof you’ve gathered. Try to interact with the member of the team and listen to what they have to say because they are already familiar with the problem and have ideas about how it may be improved. It is possible to work out a plan of action with your supervisor and your team member after this initial discussion (Green et al., 2020).
Retraining on a new task, mentorship and supervision from managers, or a reduction in the workload of team members are all options. Team members who fail to follow and finish this approach, such as through disciplinary measures that might lead to their dismissal, must be fully informed of the consequences.
References
Aboalshamat, K., Al-Zaidi, D., Jawa, D., Al-Harbi, H., Alharbi, R. and Al-Otaibi, S., 2020. The effect of life coaching on psychological distress among dental students: interventional study. BMC psychology, 8(1), pp.1-8.
Arena, D., Perini, S., Taisch, M. and Kiritsis, D., 2018. The Training Data Evaluation Tool: Towards a unified ontology-based solution for industrial training evaluation. Procedia Manufacturing, 23, pp.219-224.
Bozer, G. and Jones, R.J., 2018. Understanding the factors that determine workplace coaching effectiveness: A systematic literature review. European Journal of Work and Organizational Psychology, 27(3), pp.342-361.
Bozer, G. and Jones, R.J., 2021. Introduction to the special issue on advances in the psychology of workplace coaching. Applied Psychology, 70(2), pp.411-419.
Crocker, J., Shields, K.F., Venkataramanan, V., Saywell, D. and Bartram, J., 2016. Building capacity for water, sanitation, and hygiene programming: Training evaluation theory applied to CLTS management training in Kenya. Social Science & Medicine, 166, pp.66-76.
Green, S., Grant, A.M. and Rynsaardt, J., 2020. Evidence‐based life coaching for senior high school students: Building hardiness and hope. Coaching Researched: A Coaching Psychology Reader, pp.257-268.
Jones, R., 2016. The effectiveness of workplace coaching: A meta-analysis of learning and performance management outcomes; scale development; theoretical model of individual differences and longitudinal study (Doctoral dissertation, Aston University).
Jones, R.J., Woods, S.A. and Guillaume, Y.R., 2016. The effectiveness of workplace coaching: A meta‐analysis of learning and performance outcomes from coaching. Journal of Occupational and Organizational Psychology, 89(2), pp.249-277.
Phillips, J.J. and Phillips, P.P., 2016. Handbook of training evaluation and measurement methods. Routledge.
Yu, N., Collins, C.G., Cavanagh, M., White, K. and Fairbrother, G., 2020. Positive coaching with front-line managers: enhancing their effectiveness and understanding why. Coaching Researched: A Coaching Psychology Reader, pp.269-283.
Did you find any useful knowledge relating to performance management in this post? What are the key facts that grabbed your attention? Let us know in the comments. Thank you.
Quality and Quality Management System at Barclays Group
Quality Management System at Barclays Group – The present business climate is characterised by fierce rivalry and constantly shifting client needs. A further factor driving competition is the proliferation of new technology, globalisation, and corporate consolidation (Bouranta et al., 2019). Many banking institutions are suffering economic issues because of the COVID-19 epidemic. Managers must examine their company processes in light of the negative macroeconomic climate to make investment decisions.
This report evaluates Barclays’ quality management procedures and investment decision processes (Kugbonu, 2020). Quality management trends are also examined in this paper, as well as how the QM system might be aligned with these trends. Barclays bank should incorporate these trends into its Quality Management (QM) to achieve a competitive edge in the business.
An Overview of the Situation
This bank has two divisions: Barclays International and Barclays UK. Its service subsidiary, Barclay’s execution services, supports these divisions. Over 83,000 people work for the bank, which has operations in 40 countries and employs approximately 83,500 people in its two primary markets, the United States and the UK (Diekola, 2016).
Personal banking, commercial banking, investment management, corporate banking, and internet banking are just some of Barclays’ many offerings. In addition to individual and small business banking, the bank also provides corporate and investment banking services.
TQM Principles at Barclays and its Significance TQM
Employee Engagement
The HR department’s TQM principles include employee involvement and open communication. Human capital is a key strategy for the bank in achieving its objectives (Salah, 2018). “We want to promote their health and well-being to empower and drive them to offer exceptional services” the business said in a statement.
To boost productivity, the company makes significant investments in the well-being, professional growth, and mental health of its workers. 83 per cent of the bank’s employees say they’re engaged, with 67 per cent of those surveyed responding (Nyamari, 2017).
According to employee surveys, between 74% and 78% of employees report having stress levels they can manage and a work-life balance they feel they have achieved (Parvadavardini et al., 2016). To foster a culture of innovation and creativity amongst its workers, the bank offers a variety of educational opportunities, including classes, workshops, and seminars.
Internal clients are just as crucial as external ones when it comes to a company’s success. Internal customers and external customers can both benefit from service firms’ efforts to improve the quality of the services they provide (Rafailidis et al., 2017). Human resource policies including organisational commitment, employee engagement and training are connected to optimal corporate performance and shareholder profitability. There are ways in which Barclays’ present HR policies can contribute to its long-term competitive advantage.
Communication
An annual poll of employee engagement is conducted by the corporation, allowing for two-way dialogue between top management and the workforce. Employees, consumers, investors, and stakeholders all have input in decision-making and strategy formation (Kugbonu, 2020). To help clients make well-informed financial decisions, the organisation says it is transparent about its financial offerings. The corporation engages stakeholders using surveys, social media, and other broadcast methods.
Using Kaplans and Nortons Balanced Scorecard, the company’s communication’s organisational impact may be measured (BSD). The BSD aims to improve the quality of life for both employees and the general public via better communication (Al Ghamdi et al., 2016). To create connections and satisfy consumers, Kaplan and Norton’s approach requires management to communicate. To boost performance and customer happiness, the leaders need to convey their priorities effectively.
Management
Nyamari (2017) emphasised the importance of leadership in achieving quality objectives in a business. To keep their teams focused on the pursuit of quality improvement, bank leaders instil a sense of urgency in them. Demonstrate a high level of leadership and management to lead the radical adjustments necessary for continuous improvement, Deming claims.
To increase productivity and revenues, transformational leadership may enhance the quality of the entire process (Diekola, 2016). Leadership at Barclays is responsible for establishing the bank’s long-term strategy and defining its basic principles. To help their employees achieve their goals, they are also directly involved.
Significance of TQM Principles at Barclays
An Ever-Evolving Process
This bank has a section dedicated to service and efficiency enhancement. The lean six sigma paradigm, which states that a corporation may enhance product/service quality by removing wastes along the value chain, is used by the company to accomplish continuous improvement (Bouranta et al., 2019).
Focusing on theory implies that proper precautions are taken to prevent errors and increase operational efficiency. The business says that it recycles risk-weighted assets to improve operational performance and keep costs in check while also maximising the efficient use of available resources.
To reduce inefficiencies caused by inefficient work methods, it has also used new technologies in the invoicing and documentation procedures (Salah, 2018). Banks may enhance their financial and non- financial performances as well as their operations related to supplying chain management by making investments in continuous improvement. The bank’s performance may be improved through operational efficiency and better customer service as a result of the continuous improvement projects.
Customer-Focus
For the bank, customer-focused service is a primary value proposition. Customers’ wants and connections are at the heart of all of the company’s actions and plans. Investment programmes can be adjusted to match the specific demands of each customer (Rafailidis et al., 2017). Access and tracking of investments are available online for clients. As a part of its financial education programme, the bank offers free telephone updates and money-mentoring services.
Barclays Bank also provides new goods and services to enhance the customer experience (Mahanga, 2016). For instance, consumers may save time by serving themselves and gaining access to the majority of the bank’s goods and services through the use of the bank’s mobile applications and online banking platform.
Customers from a variety of backgrounds may simply use the applications because of their basic design. In accounting and banking organisations, customer-centred services improve client happiness, customer loyalty, and customer retention levels (Parvadavardini et al., 2016).
These findings suggest that a company’s ability to retain customers may be improved by tailoring technology to match the demands of clients. In today’s highly competitive market, a company’s ability to retain and gain new customers is vital (Kugbonu, 2020).
According to the bank, a 32 per cent decrease in customer complaints may be attributed to the bank’s efforts to enhance its service delivery method. Customer service is a priority for the organisation, and it has taken the necessary steps to improve it.
The bank’s operations with reduced defect and waste creation can boost productivity and create cheaper expenses. Additionally, the bank may be able to maintain and grow its client base, resulting in greater financial success (Al Ghamdi et al., 2016). TQM’s societal advantages include customer happiness and brand approval in the marketplace.
To complement the bank’s quality plan, these TQM principles need to be adapted. Using the TQM principles, the bank may fulfil its strategic goals of diversification by implementing four proposals (Diekola, 2016).
TQM impacts competitive strategy creation and is a source of sustained competitive advantage, according to research (Nyamari, 2017). A competitive advantage may be gained through the use of the TQM paradigm, according to these studies. Using the 14 TQM principles, a firm may have a competitive edge, better financial performance, and better customer satisfaction.
This is confirmed by the company’s 2020 annual report, which notes that the improvement in customer satisfaction may be ascribed to the company’s quality measures (Mahanga, 2016). Because it concentrated on TQM principles, the bank’s financial results have improved.
The Importance of Total Quality Management Barclay’s Quality Management System (QMS)
Building a Quality Management System begins with understanding the current organisational environment, which includes things like structure and culture as well as a leadership style (Akanmu et al., 2020). Customer satisfaction was a key consideration in the development of Barclays’ quality management system.
EFQM is evident in the bank’s procedures, which have been scrutinized in depth by the bank’s auditors. To achieve excellence, the EFQM relies on five enablers and four outcomes (Carmona et al., 2016). Enablers are concerned with how a company accomplishes its work, whereas outcomes are concerned with the results it achieves. Results are generated through enabling factors, while enablers may be enhanced via the use of feedback from those results (Khan et al., 2017).
This methodology helps the company to examine its real condition according to European quality measures and determine its advantages and disadvantages in accomplishing goals (Harthy et al., 2020). Within the annual report, Barclays says it gathers and assess information on the 9 EFQM model criteria and employs the applicable improvement plan to boost each criterion’s performance. The bank’s planned quality management system (QMS) looks like this.
Quality Management System Dissertation
The EFQM model establishes the framework for QMS quality measurements to be focused on, as seen in the image above. It collects information on EFQM enablers, including employees, leadership, strategy, and products/services (Elrayeh, 2016). Customer satisfaction feedback is utilised as a quality indicator for the people criteria, whereas financial development data is employed as a metre for products and services (Waduu et al., 2019).
These quality criteria are a reflection of the leadership’s commitment to employee development, involvement, and the organization’s overall mission. Continuous improvement is possible because of this system’s design (Mahmood, 2020). The subsequent phase is to formulate quality policies, define roles and duties within the QMS, make a strategy for the management of risks and opportunities, and, as the last step, devise strategies for the regulation of change.
Elements of TQM
There are several fundamental QM components and building blocks, including ethics, integrity, trust, education, collaboration, leadership, and recognition. An employee’s code of ethics is a set of rules that he or she is expected to follow at all times while at work (Harthy et al., 2020) Customers both internal and external expect the bank to uphold a high standard of integrity.
Ethics and integrity lead to trust, which in turn determines the level of ownership and dedication to an organisation. Ethics and integrity are demonstrated through the bank’s CSR, which can be found in its society criteria in the EFQM (Odeny, 2016).
With so much face-to-face contact between customers and staff, the foundation of every successful business is solid training, collaboration, and strong leadership. TQM training helps employees acquire the skills and information they need to properly execute the concepts (Khan et al., 2017). For the bank to meet its quality goals, staff must work together as a team. Investments in quality assurance are a sign of the company’s dedication to quality management.
Quality Assessment Standards
An ISO 9001 certification indicates that the bank meets the quality standard. International quality assurance standard ISO 9001 offers precise QMS standards for the company’s leadership, planning, operating, assessment and improvement activities (Odeny, 2016). Such measurements are used by organisations to demonstrate their capacity to fulfil all applicable consumer and regulatory criteria for their products and services.
The TQM system helps banks achieve their strategic goals by satisfying the needs of their customers (Ishibashi et al., 2021). The QMS can assist the bank in achieving its strategic objectives by meeting the demands of all stakeholders. The QMS is linked to banks’ strategic goals by aligning it with stakeholder needs.
Quality Metrics for Stakeholders
The bank provides quality for all stakeholders by regularly reviewing ways to enhance metrics to satisfy their demands (Carmona et al., 2016). Various types of stakeholders’ data are gathered, including the following:
Customers
Rates of digital involvement with clients
Complaint scores are a measure of consumer satisfaction
The number of bank workers who advocate working there
Customers who would suggest the bank’s products and services to their friends and family members
Monitoring the degree to which workers are aligned with the intended company culture is the goal of this indicator
Society
The yearly carbon dioxide emissions
Number of participants in the institution’s Life Skills programme; the bank hopes to increase financial capability and employability in the community
Investors
The bank examines financial results such as revenues, market shares, operating expenses, and equity to determine how to provide attractive returns for investors (El Manzani et al., 2019). Measuring the operational costs aims to tighten budgets and increase productivity for the business.
Key Trends in Quality Management
Competition and increasing consumer expectations are the primary motivators of quality management. Stakeholder opinions of a company’s brand and overall quality/services are referred to as perceived quality (Bagur-Femenías et al., 2016). Intelligent quality management uses modern technology and smart systems to improve corporate operations, processes, and product quality (Kumar et al., 2018). The human-focus strategy leverages people to satisfy the company’s service offerings and stakeholder satisfaction.
These tendencies are important to consider since the example firm operates in a sectorof the economy that is highly competitive and marked by consistent market shifts (Barclay et al., 2017). A good example of a cloud-based technology user is the banking industry. Barclays has also adopted cloud technology to customise its clients’ digital experience to current technological advancements.
Companies that go out in front of the game or catch up quickly are more likely to have a leg up on the competition (Demir et al., 2021). That’s why it’s so important for a firm to be up to date on the latest trends to remain relevant in the marketplace.
Cloud computing, in keeping with current market demands, shows the company’s capacity to implement intelligent quality control systems (Hicks et al., 2019). Barclays also places a high value on its social duties, including reducing its impact on the environment and combating climate change. Perceived quality is directly linked to a brand’s image, regardless of its corporate social responsibility (Leung et al., 2021).
Many studies have shown that a company’s CSR policies have an impact on customer happiness and loyalty as well as its financial performance. Customers’ impressions of a company are shaped by their impressions of its perceived quality, which in turn shapes their loyalty to the brand.
Human-centeredness is seen in the bank’s culture of soliciting input from its stakeholders to enhance its business practices. Human-centred strategies lead to higher levels of employee loyalty and productivity (Nyanaro et al., 2018). There is a correlation between a company’s ability to compete in the long term and its ability to develop and retain its human resources.
Intelligent quality management systems, which monitor and forecast problems with minimum human interaction and allow real-time communication with stakeholders, can also help the bank achieve its quality targets at a cheap cost (Tahri, 2018). Barrington can use evidence-based methods to improve and make decisions.
Quality Management System Alignment Expectations with the Trends
These new trends will be easier to implement if the organisation has the right resources and competencies in place. For a smooth transfer, you need financial resources, skills, and a well-trained team behind you (Demir et al., 2021). In addition, the business may assist such adoptions by reconfiguring its approach well with current developments in Quality Management. Incorporating QM trends into new strategic goals allows it to realign its overall strategy.
Having a strategy aligned with current trends will ensure that resources are allocated accordingly (Maina, 2017). These new trends may be adopted by empowering and encouraging individuals to accept the organisational transformation. Employees can be retrained or reskilled to help them adapt to the new environment.
New quality initiatives may face difficulties in gaining stakeholder buy-in. QM often fails because of CEO disinterest. Even if intermediate management is successful, success is unlikely without upper management’s commitment (Hicks et al., 2019). Risk aversion and a lack of understanding of the relevance of Quality Management have contributed to the lack of CEO support for a created project.
Investment may be discouraged by the high cost of implementing and maintaining QM trends, particularly intelligent quality management systems (Desjardins, 2020). The administration may be reluctant to continue funding the project if it does not show a favourable return on investment.
Conclusion
The quality management procedure at Barclays has been modified to incorporate the concepts of customer orientation, leadership, continuous improvement, communication, and staff involvement (Tahri, 2018). Customers’ loyalty and retention are enhanced by the bank’s TQM, which adds favourably to its financial performance and productivity.
Investors should seriously examine TQM as an alternative source of competitive advantage in light of the competing demands in the business sector (Hudnurkar et al., 2019). For the firm to reach its greatest potential, it needs its entire support. They should help the organisation financially and with leadership skills to drive and sustain positive transformation.
References
Akanmu, M.D., Hassan, M.G. and Bahaudin, A.Y.B., 2020. A preliminary analysis modeling of the relationship between quality management practices and sustainable performance. Quality Management Journal, 27(1), pp.37-61.
Al Ghamdi, A.A., Aziz, F.S.B.A., Yusoff, R.Z. and bin Mustafa, M., 2016. The Moderating Role of knowledge management on the relationship between employees’ commitment and total quality management: A Study on the public healthcare sector in Saudi Arabia. International Review of Management and Marketing, 6(4), pp.790-797.
Bagur-Femenías, L., Perramon, J. and Barquero, J.D., 2016. Does intensive social network management lead to positive effects in quality practices?. Total Quality Management & Business Excellence, 27(11-12), pp.1246-1260.
Barclay, L.J., Bashshur, M.R. and Fortin, M., 2017. Motivated cognition and fairness: Insights, integration, and creating a path forward. Journal of Applied Psychology, 102(6), p.867.
Bouranta, N., Psomas, E., Suárez-Barraza, M.F. and Jaca, C., 2019. The key factors of total quality management in the service sector: a cross-cultural study. Benchmarking: An International Journal.
Carmona-Márquez, F.J., Leal-Millán, A.G., Vázquez-Sánchez, A.E., Leal-Rodríguez, A.L. and Eldridge, S., 2016. TQM and business success: Do all the TQM drivers have the same relevance? An empirical study in Spanish firms. International Journal of Quality & Reliability Management.
Demir, A., Budur, T., Omer, H.M. and Heshmati, A., 2021. Links between knowledge management and organisational sustainability: does the ISO 9001 certification have an effect?. Knowledge Management Research & Practice, pp.1-14.
Desjardins, C. and Fortin, M., 2020. From split seconds to lifetimes: the temporal fabric of fairness dynamics. In Handbook on the Temporal Dynamics of Organizational Behavior. Edward Elgar Publishing.
Diekola, A.M., 2016. The moderating effect of environmental regulation and policy on the relationship between total quality management (TQM) and organizational performance in the Malaysian food and beverage companies (Doctoral dissertation, Universiti Utara Malaysia).
El Manzani, Y., Sidmou, M.L. and Cegarra, J.J., 2019. Does IS0 9001 quality management system support product innovation? An analysis from the sociotechnical systems theory. International Journal of Quality & Reliability Management.
Elrayeh, G.A.E., 2016. Causes of non-Implementation of ISO 9001: 2008 Quality Management System in Sudanese banks (Doctoral dissertation, Sudan University of Science and Technology).
Harthy, A.M., Aslam, N., Al Saqri, S.M., Arni, S., Nair, S. and Karim, A.M., 2020. The Use of Structural Equation Model (SEM) to Evaluate the Effectiveness of ISO 9001 Quality Management System (QMS) on the Performance of Oil and Gas Drilling Companies. International Journal of Business and Management, 15(1).
Hicks, A., Barclay, J., Chilvers, J., Armijos, M.T., Oven, K., Simmons, P. and Haklay, M., 2019. Global mapping of citizen science projects for disaster risk reduction. Frontiers in Earth Science, p.226.
Hudnurkar, M., Ambekar, S. and Bhattacharya, S., 2019. Empirical analysis of Six Sigma project capability deficiency and its impact on project success. The TQM Journal.
Ishibashi, F., Kobayashi, K., Kawakami, T., Tanaka, R., Sugihara, K. and Baba, S., 2021. Quality management system for screening esophagogastroduodenoscopy improves detection of Helicobacter pylori-negative interval gastric cancer. Endoscopy International Open, 9(12), pp.E1900-E1908.
Khan, M.I., Khan, K.I., Sheeraz, M. and Mahmood, S., 2017. Impact of quality management practices on the performance of manufacturing sectors. Abasyn Journal of Social Science, pp.1-17.
Kugbonu, J.M., 2020. Total quality management practices and customer retention at Unity Rural Bank, Ghana (Doctoral dissertation, University of Cape Coast).
Kumar, V. and Sharma, R.R.K., 2018. Leadership styles and their relationship with TQM focus for Indian firms: An empirical investigation. International Journal of Productivity and Performance Management.
Leung, C.Y., Barclay, J.E., Botz, C.T., Hanf, N.K., Jasperson, J.C., Kirby, K.N., Mull, C.J., Shinde, A.S. and Vogl, M.M., 2021. Change management: A framework for measuring and implementing organisational change. Management in Healthcare, 5(4), pp.299-316.
Mahanga, M.Y., 2016. The impact of customer care on customer attraction and retantion in Tanzania: a case study of Barclays bank Dar es salaam (Doctoral dissertation, The University of Dodoma).
Mahmood, W., 2020. The influence of total quality management, school climate and job satisfaction on school performance in government schools in Pakistan (Doctoral dissertation, Universiti Utara Malaysia).
Maina, J., 2017. Effects of Environmental Factors on Performance: A Case of Barclays Bank (Doctoral dissertation, United States International University-Africa).
Nyamari, P.M., 2017. Effect of total quality management practices on operational performance of commercial banks in Mombasa County, Kenya (Doctoral dissertation, University of Nairobi).
Nyanaro, N.N. and Bett, S., 2018. Influence of strategic planning on performance of commercial banks in Kenya: Case of Barclays Bank of Kenya. International Academic Journal of Human Resource and Business Administration, 3(2), pp.235-255.
Odeny, B.A., 2016. The Influence of service quality on performance of Barclays Bank of Kenya Limited (Doctoral dissertation, University of Nairobi).
Parvadavardini, S., Vivek, N. and Devadasan, S.R., 2016. Impact of quality management practices on quality performance and financial performance: evidence from Indian manufacturing companies. Total Quality Management & Business Excellence, 27(5-6), pp.507-530.
Rafailidis, A., Trivellas, P. and Polychroniou, P., 2017. The mediating role of quality on the relationship between cultural ambidexterity and innovation performance. Total Quality Management & Business Excellence, 28(9-10), pp.1134-1148.
Salah, S.A., 2018. Total quality management practices and performance of commercial banks in Garissa County, Kenya. International Academic Journal of Human Resource and Business Administration, 3(1), pp.52-67.
Tahri, A., 2018. Consumer based brand equity in retail banking industry: a cross analysis of a domestic and global bank operating in the UK (HSBC vs Barclays) (Doctoral dissertation, Anglia Ruskin University).
Waduu, D.W. and Rugami, M., 2019. Total Quality Management Practices and Performance of Commercial Banks in Kilifi Town, Kenya. International Journal of Current Aspects, 3(VI), pp.1-15.
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This report pertains to the selection of an Accounting Information System for an organization having 50 employees and annual revenues of $10 million. A number of accounting information systems has been discussed in the report, but most of them are suitable for a large sized organization with high geographical expansion and huge number of employees. It is evaluated whether a business is small or large, but it always requires the implementation of an appropriate accounting information system to enhance its productivity and reduce its operating expenses.
As the company is operating in an apparel industry, therefore, the PolyPM ERP software has been recommended for the better operations of the company because it contains a number of industry specific characteristics. This will help the company in effectively designing its strategies and products, which will increase its revenues in the long run.
Introduction
The paper provides an in-depth understanding of the potential challenges that ABC manufacturing will face due to its high dependence upon manual accounting and other management practices. It is important to notice that even in such a technologically advanced era, where almost all the manual and analogue tasks have been transformed to a digital one, ABC manufacturing is still operating manual systems for managing their accounts and other operational management tasks.
The paper is aimed to provide an appropriate suggestion for the selection of a suitable accounting information system that would not only help them in managing their accounts and financial transactions, but will also assist the management in effectively managing other operations of the business.
Company Overview
ABC manufacturing is a small sized family-owned business having its operations in the Melbourne city. The business has 50 employees working at different tasks and locations in the city. It has been established about 20 years ago as a small sized business and their main product line was winter clothes and the main target customers were a number of cloth shops in the city.
It has reported revenue of $10 million during the last year, which is a handsome profit for this size of business. The company has recently expanded its business and launched some new product lines, but due to ineffective cost management of the company, it was unable to offer these products to the customers at competitive prices and faced a downturn in the market in terms of revenues and market share.
One of the major reasons behind its high operating cost is the company’s manual operational and managerial practices because it has to hire a number of personnel for managing different tasks of the company, which can be otherwise cost effectively and efficiently performed by establishing an automatic or computer-based infrastructure for the management of all the major tasks of the company. With the help of such systems, the company would become capable of performing and monitoring multiple tasks simultaneously even in remote areas of the country.
Business Requirements
The current concern of ABC manufacturing is related to the uncontrollable operating cost of the company, which is causing huge losses to the company’s reputation and earnings as well. The major reason behind such a high operating cost is its manual business practices because manual operations don’t only require higher number of employees, but also requires a large office area and other related expenses to accommodate these high numbers of employees.
Therefore, the company needs to employ such an expert information system that will not only address the accounting related requirements of the company, but will also help the management of the company in reducing their operational expenses to increase its efficiency and performance. It will also help the company in transforming its manual sales management and revenues recognition methodologies to a digital one, which will enhance the accuracy and efficiency of the sales function of the organization and increase the overall productivity of the organization (Dickhaut & Lere, 1983).
For the success of a business, it is necessary to have such a competent team of the management, which can make timely and accurate future forecasts regarding the company’s future performance and earnings, such forecasts are usually based upon the company’s past performance and the adjustment of its operations towards the changes of the internal and external economic factors.
It is reported that the company has been planning to expand its business to other markets of the city and even outside the city, therefore, it is necessary for the management to make a competitive feasibility report regarding the company’s expansion of its operations. The feasibility report should be based upon certain realistic estimates and calculations because the company has to take their decision on the basis of that report.
Communication plays a vital role in the development and success of any sort of business because it keeps the employees updated about different departments and functions of the organization. Therefore, it is necessary to integrate an effective communication system into the current organization structure, which will help the company in effectively executing certain activities like job rotation and job enlargement. Inventory management is one of the important processes of an organization that can have a great influence over the future performance of a company.
In order to meet the increasing market demand and retain its customers in the long run, the company has to maintain an effective inventory management system. Which will not only help it in maintaining an effective purchasing function, but also help it in reducing the cost by employing a just in time inventory system. Although, the company has a limited number of employees, but in relation to its size that the management of these employees also becomes a very tough task, therefore, the company needs to have a competent payroll system.
So that it can become capable of keeping the payroll record and disbursement of salaries to the individual bank accounts of all the employees on certain fixed time, i.e., on the 1st day of a starting month or on the last day of an ending month. For a customer centric organization, it is very necessary to meet the changing trends and demands of the market because it would not be capable to stay in competition without addressing the needs and demands of the customers.
Therefore, the management of the company should be capable of evaluating the changing trends of the market and it should be able to timely respond to these changes. This will help the company in capturing the potential customers on a timely basis and give a competitive edge to the rest of the industry.
System Requirements
AIS should be designed in such a manner that it can cover all the business functions of ABC manufacturing, i.e., from managing the accounting transaction system for supporting the top executives of the company in financial planning and decision-making processes. The system should connect all the three major operational departments of the company, i.e., sales, purchasing and production, so that the transactions can be summarized for the internal decision making of the middle line managers.
The AIS should also be equipped with a sophisticated cost accounting system, which will help the management in tracking the total cost associated with the production of a product. This will help the company in proper allocation of its resources and also help it in exploring different opportunities to lower down the production cost. It should also have certain qualities of an expert management system, which means that the system should be capable of organizing data in a logical manner and then forming decision on the basis of this information (Dickhaut & Lere, 1983).
The AIS should be updated according to the applicable financial reporting framework of the entity and should also comply with all the legal requirements of the country where the entity is having operations. It should be capable of exercising strong internal controls over different functions of the organization and connect different departments of the organization with each other through a cloud computing mechanism. It should contain tools like customer relationship management, supply chain management and capable of using advanced accounting techniques, i.e., activity-based costing (ABC system). This will help the company in performing improved managerial reporting by employing a number of analytical techniques.
Software Selection
There are a number of companies that are offering different software packages to the business community. Some of them sell the software as an end product to the buyer, while the other enter into a service agreement with the companies and offer them different packages, while retaining the ultimate control and ownership of the software with themselves (Fulmer & Gerard, 2015). Intacct is one of the most efficient and productive software that can be employed in a small or midsized business. It is a SaaS (Software-as-a-service) product, which means that it can be accessed at any time by visiting the website of the company through a browser.
It offers a number of products according to the requirement of the entity and support applications for the management of core accounting, project accounting, revenue management, purchasing, order and billing, multi-currency management, financial reporting and also help in the decision-making process (Wu & Cao, 2009). Another software known as Sage ERP is a collection of different products that are designed to meet the requirements of a highly diverse industry, i.e., Sage ERP Accpac, MAS and X3. These products cover a wide range of services and provide a competitive environment for a manufacturing concern. Sage ERP offers functionality for inventory control, supply chain management, manufacturing and distribution, material resource planning and human resource management.
PolyPM provides a complete ERP and PLM solution for small and mid-sized manufacturing and distribution concerns. The software is specifically developed for a company operating in the apparel manufacturing industry. It offers a wide range of industry specific services and possess certain unique characteristic like it can be customized according to the requirements and size of the business. The developer of this software is easily accessible and ready to help the users at any time on their doorsteps. It can be implemented in an organization having annual revenues not exceeding $300 million.
The company is currently operating in a single city with 50 employees and $10 million annual revenues; therefore, a medium sized ERP software is suitable for the company, which would only be able to manage the key operational and management functions of the company. Implementing a medium ERP solution will require lower capital investment as compared to implementing a high-end solution.
It is evaluated that the company is currently operating manual systems and it would require a significant number of resources to train the employees of the company to run a totally computerized system. Therefore, initially the implementation of a medium level ERP will help the company in arranging a suitable training environment for its employees, where they can learn how to carry out computerized based operations. This will reduce the expenses of the company by eliminating the cost required for the training of the employees (Mojzis & Coufal, 1970)
Another reason behind the implementation of a medium level ERP is its user-friendly interface, which will reduce the risk of error and execute different functions of the organization effectively even during the trial period. Unlike the high-end complicated ERP solutions, the medium level ERP system will not require the company to transfer all of its departments to the computerized system simultaneously rather it will provide an opportunity to initially implement the ERP over some of its departments and if the response is favorable, then the company should extend this system over the rest of the organization as well. This will help the company in evaluating the performance of the proposed ERP system and also help it in fixing the weaknesses of the proposed system (Kamiński, 2010).
Accounting Information System Vendor Selection
The Sage ERP and PolyPM ERP solutions are the most suitable options for the company and the company has to make a choice out of these two solutions because the ERP solution offered by the Intacct is not suitable for a business like that of ABC manufacturing. Sage ERP solution is developed by the Sage Company, which is a $2.24 billion business and headquarter of the company is located in England. The company is also operating in other regions of the world under the same brand name (Jutras, 2003). It offers a number of ERP solutions and users have to make their choices according to the specific requirements of their business.
The company also develops software on the demands of the customers and sells it to the buyer as an end product. The Sage ERP X3 is the most suitable product for ABC manufacturing because it is a very cost effective and easy to use product. Users can integrate this software into different processes of their business through a single common system that can be accessed through a single user interface. The software will help the management in timely decision making by dealing different issues of the customers and business in real time scenarios.
It is also capable of addressing the changing business environment and demands of the customers due to the growth of the company enabling the users to improve the productivity of their operations. This software can translate multiple languages for the users and can be used at different locations simultaneously. However, the implementation of this software would require the company to invest heavily at the start, but it will benefit the company in the long run.
PolyPm software is an ERP solution developed by the Polygon Software Company, which has a long history of developing industry specific software for the apparel industry. The company had developed its first software about 30 years ago, known as the PloyNest. However, with the development of technology, most of the businesses have started to transform their operations on the ERP solutions and therefore, the company had also developed a unique ERP solution that is also having the PLM/PDM in addition to the ERP, which are integrated into a single application. The software allows its users to integrate all the functions of the organization from product development to distribution processes.
It helps the management in building an understanding about the specific market requirements and changing trends of the market, so that they can adjust their products accordingly (Chen et al., 2011). Unlike the Sage ERP X3, it can be customized according to the specific requirements of a user’s business and can be installed directly into the client server and run over the SQL database of the Microsoft. This option will reduce the cost of implementation of new ERP software. By incorporating all the steps involved in product development, companies can get a better understanding of the overall lifecycle of a product, from the development of an appropriate and attractive design to the execution of production and distribution activities.
Some of the functions that are incorporated into the software and related to the specific requirements of the apparel business include fabric inspection, size ranges, Cut planning and CMT production. The software also contains some standard production functions to enhance the quality of the products like PSV, order tracking and BOM. It also connects different departments of the company with one another so that they can effectively communicate and share their individual experiences (Bell et al., 2010).
Accounting Information System Recommendation and Conclusion
I would recommend the PolyPM software to the ABC manufacturing company because the company is operating in the apparel industry and this software has been developed according to the specific requirements of the apparel industry. The software contains all the functions and specifications that can easily meet the requirements of ABC manufacturing. It will help the management of the company in managing their operations and product development activities and just like other management expert system, it will also provide suggestions to the management regarding incorporating different sort of changes in its products.
Due to its simple to use interface and low system requirements, it will not require the company to invest heavily in its installation or implementation in the organization (Fulmer & Gerard, 2015). The proposed ERP system will also help the company in managing its inventory, because inventory management is the most important function of an organization and a slight miss management of this function can cause huge losses to the organization, i.e., goodwill, customers and corporate reputation.
The proposed ERP solution will also make a real time connection between different departments of the company and especially between the production, inventory and sales department, this will help them in effectively communicating with each other, which will not only enhance the quality of the product but will also reduce the material wastage (Daneva, 2004).
Accounting Information System ERP
A strong communication between different departments of the company will allow its management to implement a just in time inventory management system, which will further reduce its operating cost and the company will become capable of offering its products at competitive prices, based on the successful deployment of an accounting information system ERP.
On the basis of the discussion made in this paper, it has been concluded that Accounting Information System can enhance the productivity and performance of an organization and open a number of new opportunities in terms of new business ventures and growth strategies. The selection of an appropriate Accounting Information System should always be based upon a critical evaluation of the organization’s needs and operations (Hamilton, 2003).
Although, the implementation of such software requires a high initial investment, but in front of the long-term benefits associated with the establishment of such software, these elements are negligible. However, it is observed that a competent software is the one that can incorporate all the legal, ethical and accounting standards and implement them in the operations of the organization.
References
Bell, R., Dentale, S., Buchner, A. & Mayr, S., 2010. ERP correlates of the irrelevant sound effect. Psychophysiology.
Chen, K., Razi, M. & Rienzo, T., 2011. Intrinsic Factors for Continued ERP Learning: A Precursor to Interdisciplinary ERP Curriculum Design. Decision Sciences Journal of Innovative Education, 9(2), pp.149-46.
Dickhaut, J.W. & Lere, J.C., 1983. Comparison of Accounting Systems and Heuristics in Selecting Economic Optima. Journal of Accounting Research, 21(2), p.495.
Fulmer, B.P. & Gerard, G.J., 2015. Selecting an Enterprise Resource Planning System: An Active Learning Simulation. Journal of Emerging Technologies in Accounting, 4(12), pp.150-76.
Hamilton, S., 2003. Maximizing your ERP system. 1st ed. New York: McGraw-Hill.
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