Get Controls Under Control
Every business needs
some controls and supervision to enhance performance and monitor
effectiveness. But too many controlsfor example, requiring multiple
signatures before any action can be takencan be counterproductive.
Costs go up, performance drops, and employees get the message that
management distrusts them and might ignore or even subvert the rules.
This top-management problem usually comes from controls initiated by middle managers trying to protect themselves against criticism from their bosses.
Only three business areas generally need controls to ensure performance and effectiveness: customer satisfaction, corporate integrity (safeguarding against any outside illegal activity) and internal fraud prevention.
So limit controls to business-critical areas and give employees the responsibility and incentive to succeed.
Its All in the Details
When preparing job
descriptions, its OK to list the specific tasks employees are expected
to perform, but its better to include the outcomes for which they will
be held accountable. In todays business environment, responsibilities
and priorities change quickly. Job descriptions should keep up with
those changes and be clear about whats expected.
Stanley Zarowin
| An Invitation The JofA publishes a monthly collection of business tips and invites readers to contribute their favorites (for attribution, if you like). Send your ideas to contributing editor Stanley Zarowin via e-mail at zarowin@mindspring.com or regular mail at the Journal of Accountancy , Harborside Financial Center, 201 Plaza Three, Jersey City, NJ 07311-3881. |
