This article throws light upon the two main tools of financial control. The tools are: 1. Financial Audit 2. Financial Ratio. Tool # 1. Financial Audit: Another effective control technique is the use of audits, which seek to examine activities or records to verify their accuracy or effectiveness. Financial information is only as good as data and interpretation on which [...]
This article throws light upon the four most commonly calculated ratios. The ratios are: 1. Liquidity Ratios 2. Asset-Management Ratios 3. Debt Ratios 4. Profitability Ratios. Type # 1. Liquidity Ratios: Several liquidity ratios are used to learn how liquid (easily converted into cash) an organisation's assets are. These ratios measure the ability of the organisation to raise enough cash [...]
This article throws light upon the four main approaches to the study of organizational effectiveness. The approaches are: 1. Systems Resources Approach 2. Goal Approach 3. Internal Functioning Approach 4. Strategic Constituencies Approach. Approach # 1. Systems Resources Approach: This approach to organisational effectiveness focus on inputs — that is, on the extent to which the organisation can acquire the [...]