Organisational Management A Global Scenario

Organizational Management
Organizational Management is fundamental to creating an environment that supports continuous improvement of individuals and their organizations to better provide for the communities they serve. Every organization needs a leader with a clear understanding of the issues facing their organization and is prepared to implement them while maintaining operational functions, developing employee skills, and managing human resources. This topic area includes human resources checklists, sample evaluations, and plans for efficient business operations.
Management in all business and human organization activity is the act of getting people together to accomplish desired goals and objectives. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.
Because organisations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others
Management can also refer to the person or people who perform the act(s) of management
The verb manage comes from the Italian maneggiare (to handle — especially tools), which in turn derives from the Latin manus (hand). The French word mesnagement (later ménagement) influenced the development in meaning of the English word management in the 17th and 18th centuries.[
Some definitions of management are:
• Organisation and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives. Management is often included as a factor of production along with machines, materials, and money. According to the management guru Peter Drucker (1909–2005), the basic task of a management is twofold: marketing and innovation.
• Directors and managers who have the power and responsibility to make decisions to manage an enterprise. As a discipline, management comprises the interlocking functions of formulating corporate policy and organizing, planning, controlling, and directing the firm's resources to achieve the policy's objectives. The size of management can range from one person in a small firm to hundreds or thousands of managers in multinational companies. In large firms the board of directors formulates the policy which is implemented by the chief executive officer.
Theoretical scope
Mary Parker Follett (1868–1933), who wrote on the topic in the early twentieth century, defined management as "the art of getting things done through people". She also described management as philosophy. One can also think of management functionally, as the action of measuring a quantity on a regular basis and of adjusting some initial plan; or as the actions taken to reach one's intended goal. This applies even in situations where planning does not take place. From this perspective, Frenchman Henri Fayol considers management to consist of seven functions:
1. planning
2. organizing
3. leading
4. coordinating
5. controlling
6. staffing
7. motivating
Some people, however, find this definition, while useful, far too narrow. The phrase "management is what managers do" occurs widely, suggesting the difficulty of defining management, the shifting nature of definitions, and the connection of managerial practices with the existence of a managerial cadre or class.
One habit of thought regards management as equivalent to "business administration" and thus excludes management in places outside commerce, as for example in charities and in the public sector. More realistically, however, every organization must manage its work, people, processes, technology, etc. in order to maximize its effectiveness. Nonetheless, many people refer to university departments which teach management as "business schools." Some institutions (such as the Harvard Business School) use that name while others (such as the Yale School of Management) employ the more inclusive term "management."
English speakers may also use the term "management" or "the management" as a collective word describing the managers of an organization, for example of a corporation. Historically this use of the term was often contrasted with the term "Labor" referring to those being managed.
Nature of managerial work
In for-profit work, management has as its primary function the satisfaction of a range of stakeholders. This typically involves making a profit (for the shareholders), creating valued products at a reasonable cost (for customers), and providing rewarding employment opportunities (for employees). In nonprofit management, add the importance of keeping the faith of donors. In most models of management/governance, shareholders vote for the board of directors, and the board then hires senior management. Some organizations have experimented with other methods (such as employee-voting models) of selecting or reviewing managers; but this occurs only very rarely.
In the public sector of countries constituted as representative democracies, voters elect politicians to public office. Such politicians hire many managers and administrators, and in some countries like the United States political appointees lose their jobs on the election of a new president/governor/mayor.
Historical development
Difficulties arise in tracing the history of management. Some see it (by definition) as a late modern (in the sense of late modernity) conceptualization. On those terms it cannot have a pre-modern history, only harbingers (such as stewards). Others, however, detect management-like-thought back to Sumerian traders and to the builders of the pyramids of ancient Egypt. Slave-owners through the centuries faced the problems of exploiting/motivating a dependent but sometimes unenthusiastic or recalcitrant workforce, but many pre-industrial enterprises, given their small scale, did not feel compelled to face the issues of management systematically. However, innovations such as the spread of Arabic numerals (5th to 15th centuries) and the codification of double-entry book-keeping (1494) provided tools for management assessment, planning and control.
Given the scale of most commercial operations and the lack of mechanized record-keeping and recording before the industrial revolution, it made sense for most owners of enterprises in those times to carry out management functions by and for themselves. But with growing size and complexity of organizations, the split between owners (individuals, industrial dynasties or groups of shareholders) and day-to-day managers (independent specialists in planning and control) gradually became more common.
Early writing
While management has been present for millennia, several writers have created a background of works that assisted in modern management theories.
Sun Tzu's The Art of War
Written by Chinese general Sun Tzu in the 6th century BC, The Art of War is a military strategy book that, for managerial purposes, recommends being aware of and acting on strengths and weaknesses of both a manager's organization and a foe's.
Niccolò Machiavelli's The Prince
Believing that people were motivated by self-interest, Niccolò Machiavelli wrote The Prince in 1513 as advice for the leadership of Florence, Italy.[ Machiavelli recommended that leaders use fear—but not hatred—to maintain control.
Adam Smith's The Wealth of Nations
Written in 1776 by Adam Smith, a Scottish moral philosopher, The Wealth of Nations aims for efficient organization of work through Specialization of labor. Smith described how changes in processes could boost productivity in the manufacture of pins. While individuals could produce 200 pins per day, Smith analyzed the steps involved in manufacture and, with 10 specialists, enabled production of 48,000 pins per day.
Basic functions of management
Management operates through various functions, often classified as planning, organizing, leading/directing, and controlling/monitoring.
• Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next 5 years, etc.) and generating plans for action.
• Organizing: (Implementation) making optimum use of the resources required to enable the successful carrying out of plans.
• Staffing: Job Analyzing, recruitment, and hiring individuals for appropriate jobs.
• Leading/directing: Determining what needs to be done in a situation and getting people to do it.
• Controlling/Monitoring, checking progress against plans, which may need modification based on feedback.
Formation of the business policy
• The mission of the business is its most obvious purpose -- which may be, for example, to make soap.
• The vision of the business reflects its aspirations and specifies its intended direction or future destination.
• The objectives of the business refers to the ends or activity at which a certain task is aimed.
• The business's policy is a guide that stipulates rules, regulations and objectives, and may be used in the managers' decision-making. It must be flexible and easily interpreted and understood by all employees.
• The business's strategy refers to the coordinated plan of action that it is going to take, as well as the resources that it will use, to realize its vision and long-term objectives. It is a guideline to managers, stipulating how they ought to allocate and utilize the factors of production to the business's advantage. Initially, it could help the managers decide on what type of business they want to form.
How to implement policies and strategies
• All policies and strategies must be discussed with all managerial personnel and staff.
• Managers must understand where and how they can implement their policies and strategies.
• A plan of action must be devised for each department.
• Policies and strategies must be reviewed regularly.
• Contingency plans must be devised in case the environment changes.
• Assessments of progress ought to be carried out regularly by top-level managers.
• A good environment and team spirit is required within the business.
• The missions, objectives, strengths and weaknesses of each department must be analysed to determine their roles in achieving the business's mission.
• The forecasting method develops a reliable picture of the business's future environment.
• A planning unit must be created to ensure that all plans are consistent and that policies and strategies are aimed at achieving the same mission and objectives.
All policies must be discussed with all managerial personnel and staff that is required in the execution of any departmental policy.
• Organizational change is strategically achieved through the implementation of the eight-step plan of action established by John P. Kotter: Increase urgency, get the vision right, communicate the buy-in, empower action, create short-term wins, don't let up, and make change stick.

Where policies and strategies fit into the planning process
• They give mid- and lower-level managers a good idea of the future plans for each department in an organization.
• A framework is created whereby plans and decisions are made.
• Mid- and lower-level management may add their own plans to the business's strategic ones.
multi-divisional management hierarchy
The management of a large organization may have three levels:
1. Senior management (or "top management" or "upper management")
2. Middle management
3. Low-level management, such as supervisors or team-leaders
4. Foreman
5. Rank and File
Top-level management
• Require an extensive knowledge of management roles and skills.
• They have to be very aware of external factors such as markets.
• Their decisions are generally of a long-term nature
• Their decisions are made using analytic, directive, conceptual and/or behavioral/participative processes
• They are responsible for strategic decisions.
• They have to chalk out the plan and see that plan may be effective in the future.
• They are executive in nature.
Middle management
• Mid-level managers have a specialized understanding of certain managerial tasks.
• They are responsible for carrying out the decisions made by top-level management.
Lower management
• This level of management ensures that the decisions and plans taken by the other two are carried out.
• Lower-level managers' decisions are generally short-term ones.
Foreman / lead hand
• They are people who have direct supervision over the working force in office factory, sales field or other workgroup or areas of activity.
Rank and File
• The responsibilities of the persons belonging to this group are even more restricted and more specific than those of the foreman.


A Client is the highest-level element of all organizational units in SAP R/3 system. The client can be an enterprise group with several subsidiaries. An SAP client has its own master data (Data which is used long-term in the R/3 System for several business processes such as customers, materials, and vendors master data). In SAP, a client is represented by a unique 3-digit number.
A Company Code is a unit included in the balance sheet of a legally-independent enterprise. Balance sheets and Profit and Loss statements, required by law, are created at company code level. The Company Code is the smallest organizational unit for which we can have an independent accounting department within external accounting, for example, a company within a corporate group (client). In SAP, a company code is represented by a unique 4-digit alpha-numeric for a specific client. It is the central organizational element of Financial Accounting. At least there is one company code in a client. We can set up several company codes in one client in order to manage various separate legal entities simultaneously, each with their own balanced set of financial books. Besides company code, in FICO module there is also another important organizational unit which is Controlling Area. The Controlling Area is the business unit where Cost Accounting is carried out. Usually there is a 1:1 relationship between the controlling area and the company code. For the purpose of company-wide cost accounting, one controlling area can handle cost accounting for several company codes in one enterprise.
• A plant is the place of production or simply a collection of several locations of material stocks in close physical proximity. A plant is represented by a unique 4-digit alpha-numeric for a specific client. Plant is used in Material Management (MM), Production Planning (PP), and Plant Maintenance (PM) module. A plant is assigned to one company code.
A Storage Location is a storage area comprising warehouses in close proximity. A Storage Location is represented by a unique 4-digit alpha-numeric for a specific plant. Material stocks can be differentiated within one plant according to storage location (inventory management). Storage locations are always created for a plant.

From MM perspective there another important organizational unit: Purchasing Organization.

It’s an organization unit that has responsibility to company’s purchasing requirements. It negotiates purchasing conditions (price, discount, and other things) with vendors. A Purchasing Organization is represented by a client-unique 4-digit alpha-numeric.

A company can have one or more purchasing organizations.

If a company centralizes its purchasing activities, it only needs one purchasing organization. It means that it only has one purchasing condition for a material with a vendor at a certain time.

If a company decentralizes its purchasing activities, it will need more than one purchasing organizations. It means that it can have more than one purchasing conditions for a material with a vendor at a certain time. For example, after negotiating with a vendor, a head quarter purchasing organization buys a material with 100 USD price. That company has a branch at other state/region that is assigned to other purchasing organization. The branch can purchase the same material to the same vendor, for some reasons, with different price e.g. 105 USD.

Facts about Purchasing Organization

A purchasing organization must be assigned to one or more plants.

A purchasing organization can be assigned to one company code.

A purchasing organization can also exist without being assigned to a company code. Since each plant must be assigned to a company code, the company code can be determined via the plant.

One plant can have one or more Purchasing Organizations.

Each purchasing organization has its own info records and conditions for pricing.

Each purchasing organization has its own vendor master data.

Each purchasing organization evaluates its own vendors using MM Vendor Evaluation.

Possible organizational forms of Purchasing Organization in a SAP client:

• Corporate-group-wide purchasing
A purchasing organization is responsible for the purchasing activities of different company codes.
In this case, we do not assign a company code to the purchasing organization. We assign plants from different company codes to the purchasing organization.
• Company-specific purchasing:
A purchasing organization is responsible for the purchasing activities of just one company code.
In this case, we assign a company code to the purchasing organization. The purchasing organization may procure only for this company code. we assign only plants of the company code concerned to the purchasing organization.
• Plant-specific purchasing:
A purchasing organization is responsible for the purchasing activities of one plant.
In this case, we assign the plant and the company code of the plant to the purchasing organization. The purc hasing organization may procure for this plant only.

…

Enterprise Structure

The Enterprise Structure in R/3 refers to the organizational structure of the Institution. The organizational elements in this structure allow encapsulation of configuration settings and data in each module. For example, the company code organizational element encapsulates the financial accounting settings and data in the financial accounting module for an enterprise.

Each element in the R/3 enterprise structure is defined below. The R/3 module in which each organizational element appears is given in parentheses next to its name. The proposed University of Tennessee organizational elements are given under each organizational element.

Client (Cross Application)
A client in R/3 is a technical entity containing configuration, master data and transactions for an organization. For example the organization may designate Client 100 in the production system PRD as the client in which data may be entered. Other clients may be used for development, testing and training.

Proposal: The University will have only one production client in the productive system – Client 100.

Company Code (Financial Accounting - FI)
The Company Code is the smallest organizational unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.

Proposal: The University will use only one Company Code - UT.

Business Area (Financial Accounting - FI)
Business areas are units, within an institution, for which a balance sheet and income statement can be produced. In higher education, business areas are typically used to represent fund groups such as Current Unrestricted, Current Restricted, etc. for which balance sheets and income statements are required.

In addition to balance sheets by fund groups, the University of Tennessee requires a separate internal balance sheet and income statement for each budget entity such as Knoxville, Martin, Chattanooga, etc.

Proposal: The University will have business areas which represent a unique combination of Fund Group and Budget Entity. All existing fund groups and budget entities will be set up as business areas. For asset and liability entries, these business areas will be entered by users. For revenue and expenditure entries, these business areas will be automatically defaulted from cost centers and WBS Elements. The following is a sample partial list of business areas identified:


Fund Group Budget Entity Business Area
11 – Current Unrestricted Educational and General Funds 01 – Knoxville 1101
13 – Current Unrestricted Auxiliary Funds 01 – Knoxville 1301
21 – Current Restricted Educational and General Funds 01 – Knoxville 2101
23 – Current Restricted Auxiliary Funds 01 – Knoxville 2301
30 – Endowment Funds 01 – Knoxville 3001
40 – Life Income Funds 01 – Knoxville 4001
45 – Annuity Funds 01 – Knoxville 4501
51 – Unexpended Plant Fund 01 – Knoxville 5101
52 – Plant Funds for Retirement of Indebtedness 01 – Knoxville 5201
53 – Plant Funds for Renewal and Replacement 01 – Knoxville 5301
54 – Invested in Plant Funds 01 – Knoxville 5401
60 – Loan Funds 01 – Knoxville 6001
90 – Agency Funds 01 – Knoxville 9001
11 – Current Unrestricted Educational and General Funds 02 – Space Institute 1102
16 – Current Unrestricted Hospital Funds 04 - Chattanooga 1604
26 – Current Restricted Hospital Funds 04 – Chattanooga 2604


Functional Area (Financial Accounting - FI)
The Functional Area is an organizational unit in Accounting that classifies the expenditures of an organization by function.

Proposal: The University will use functional areas to enable reporting by function. These functional areas will be defaulted from cost centers and WBS Elements. The following is a sample list of functional areas:

Function Code Functional Area
01 – Instruction 1010
02 – Research 1020
03 – Public Service 1030
04 – Academic Support 1040
05 – Student Services 1050
06 – Institutional Support 1060
07 – Operation and Maintenance of Physical Plant 1070
08 – Scholarships and Fellowships 1080
09 – Auxiliary Enterprises 1090
10 – Hospitals 1100
11 – Staff Benefits 1110
12 – Other Expenditures 1120
13 – Service Centers 1130


Figure 1 shows the financial accounting structures.


Figure 1

Controlling Area (Controlling - CO)
A Controlling Area in R/3 is the organizational unit within an institution, used to represent a closed system for cost accounting purposes. A controlling area may include one or more company codes which must use the same operative chart of accounts as the controlling area.

Proposal: The University of Tennessee will use only one Controlling Area – UT. Company Code UT will be assigned to Controlling Area UT.


Funds Management Area (Funds Management - FM)
A Funds Management Area in R/3 is the organizational unit within an institution, used to represent a closed system for funds management and budgeting. A Funds Management Area may include one or more company codes and one or more controlling areas.

Proposal: The University of Tennessee will use only one Funds Management Area – UT. Company Code UT and Controlling Area UT will be assigned to Funds Management Area UT.

Figure 2 shows the relationship between the Company Code, the Controlling Area and the Funds Management Area.


Figure 2


Master Data

Master data structures in R/3 represent data relating to individual objects, which remain unchanged over an extended period of time. This allows such data to be created once and used many times. Master data is also used to validate and classify transaction data for reporting.

Financial Accounting Master Data (FI)


Chart of Accounts
The Chart of Accounts is a collection of general ledger accounts. Each company code is assigned to a chart of accounts, and the controlling area is assigned to the same chart of accounts.

Proposal: Only one Chart of Accounts - UT will be used for the University of Tennessee. Company Code UT and Controlling Area UT will be assigned to Chart of Accounts UT.


General Ledger Accounts
The General Ledger Accounts (GL Accounts) are the structures that classify debit and credit values for accounting transactions in the FI module and form the basis for creating the balance sheets and income statements.

There are five types of General Ledger Accounts in R/3 - assets, liabilities, fund balances, revenues and expenditures. Asset, Liability and Fund Balance GL Accounts can be used, in combination with business areas to create internal balance sheets by business area.

Revenue and Expenditure GL Accounts represent the highest level at which revenues or expenditures are recorded by the Institution. They can be used in combination with business areas and functional areas to create income statements by function and business area. Revenue and expenditure can also be further broken down in the Controlling module.

Figure 3 shows the relationship between the chart of accounts and the company code:


Figure 3

Proposal: At the University of Tennessee several different existing codes will be mapped to R/3 General Ledger Accounts.

Existing Code Type of R/3 Account Proposed Number Range
1. Assets
AXXXXXXXX
(e.g. A17010001 Cash on Hand Treasurer)
Asset Account 100000 through 199999
(e.g. 101001 Cash on Hand + Business Area 1117)
2. Liabilities
AXXXXXXXX
(e.g. A01560005 A/P Knoxville)
Liability Account 200000 through 299999
(e.g. 256005 Accounts Payable + Business Area 1101)
3. Type of Fund Balance or Reserve
(e.g. 99 Balance or 84 Reserve for Encumbrances)
Fund Balance Account 300000 through 399999
(e.g. 399000 Unreserved Fund Balance or 384000 Fund Balance Reserved for Encumbrances)
4. Expenditure Object Codes
(e.g. 391 Operating Supplies)

5. Ledger Activity Codes for Expenditures and Transfers Out (e.g. 050 Charges for Routine Expense)
Expenditure Account 400000 through 499999
(e.g. 439100 Operating Supplies)
6. Major and Minor Sources of Funds
(e.g. 0101 Tuition and Fees Resident Enrollment)

7. Ledger activity codes for Income and Transfers In
(e.g. 001 Endowment Income – UT Endowments)

8. Income activity codes XX
(e.g. 01 Rent) Revenue Accounts 700000 through 799999
(e.g. 701010 Tuition and Fees Resident Enrollment)


Controlling and Project System Master Data (CO, PS and PCA)

Revenue Elements
Revenue elements are used to classify revenues in Controlling. They are linked to revenue GL accounts on a one-for-one basis and have the same number and description. E.g. Revenue Element 701010 Tuition and Fees Resident represents GL Account 701010 Tuition and Fees Resident in CO.

Cost Elements
Cost elements are used to classify costs in CO according to object of expenditure.

Primary Cost Elements represent expenditure GL Accounts in CO. They are linked to Expenditure GL accounts on a one-for-one basis and have the same number and description. E.g. Cost Element 439100 Operating Supplies represents GL Account 439100 Operating Supplies in CO.

Proposal: Primary cost elements will be set up for all expenditure GL Accounts.

Secondary cost elements are used for internal allocations within a controlling area such as overhead. These cost elements are not directly linked to an Expenditure GL account.

Proposal: Ledger Activity Codes for 010 Facilities and Admin Costs and similar internally allocation costs will be mapped to secondary cost elements. Secondary cost elements will be set up in the range 500000 to 599999. E.g. 501000 - Facilities and Admin Costs.


Cost Center and Cost Center Hierarchy
A Cost Center is a unit within a controlling area that represents a revenue and cost collector for permanent activities. A cost center can be linked to a company code, a business area, a functional area, a fund, a fund center and a profit center allowing all these codes to be automatically defaulted when a user enters a cost center in a document. Costs and revenues posted to a cost center can thus be automatically posted to the company code, business area, fund, fund center and profit center linked to the cost center.

A standard hierarchy of cost centers is required for the controlling area and is used by drill-down reports. In addition Cost Centers may optionally belong to additional alternative hierarchies that can also be used by drill-down reports.

Proposal: The University will use Cost Centers to represent its current unrestricted income and expenditure accounts (I and E accounts) in R/3. All E accounts with seven-digit numbers will be represented by cost centers with the same seven-digit number. All I and E accounts with nine-digit numbers will be represented by cost centers with ten-digit numbers. The ten-digit number will be created by adding a zero in the eighth position in the ten-digit number. E.g. Account E01102401 will be represented by cost center E011024001.

The standard cost center hierarchy will be used to represent the organizational groupings to show Fund Group >Budget Entity >Function > College or Division > Department> Cost Center (7 digit) > Cost Center (10 digit). An alternative hierarchy will be created to represent the State Appropriation hierarchy.

Figure 4 shows the relationship between a cost center and other master data and organizational elements.


Figure 4

Work Breakdown Structure Element (WBS Element) and WBS Element Group
A WBS element is an element in a project work breakdown structure (WBS) and is used as a revenue and cost collector for activities with discrete start and end dates. At least one WBS element must exist in a project. A WBS element can be linked to a company code, a business area, a functional area (through substitution), a fund, a fund center and a profit center allowing all these codes to be defaulted when a user enters a WBS Element in a document. Costs and revenues posted to a WBS Element can be automatically posted to the company code, business area, fund, fund center and profit center linked to the WBS Element. Additionally, collected costs may be billed or automatically transferred to cost centers or GL Accounts periodically.

There is no standard hierarchy required for WBS elements. WBS Elements can be grouped together into WBS Element Groups for reporting.

Proposal: The University will use WBS Elements to collect revenues and costs associated with cost-reimbursable grants, and all other funds other than current unrestricted funds. Thus WBS elements will be used to collect revenues and costs for current restricted funds, endowment, annuity and life income funds, plant funds, loan funds and agency funds. For example a balance account for restricted funds (B Account) with a nine-digit number, will be represented by a WBS Element with a nine-digit number. The nine-digit number will be created by replacing the fourth and fifth digit with two zeros. E.g. Account B01991024 will be represented by WBS Element B01001024. An expenditure account for restricted funds (R Account) with a nine-digit number will be represented by a WBS Element with a ten-digit number. The ten-digit number will be created by adding a zero in the eighth position. E.g. Account R01102410 will become WBS Element R011024010. Related B and R accounts as in the above case will appear in the same project structure.

Figure 5 shows the relationships between a WBS Element and other master data and organizational elements.

Profit Center and Profit Center Hierarchy
A Profit Center is an organizational unit in R/3, within which costs and revenue can be analyzed. Costs and revenues posted to cost centers and WBS Elements can be automatically posted to profit centers.

A standard profit center hierarchy is required and is used by drill-down reports, and multiple alternative profit center hierarchies can be created to be used by drill-down reports.

Proposal: The University will use Profit Centers to represent its reporting organization units in R/3 so that reports can be created across cost centers and WBS element by organizational unit. The profit center number will be based on the department number. For example, department 011002401 will be mapped to profit center L011002401.

The standard profit center hierarchy will be used to represent the reporting organizational groupings to show Budget Entity >College or Division > Department.

Funds Management Master Data

Commitment Item and Commitment Item Hierarchy
Commitment items represent budget and fund accounting classifications of GL Accounts and cost elements in the Funds Management Module. They are thus used to reflect the type of revenues and expenditures being budgeted and also to detail balances for each fund in FM.

Proposal: The University will create Commitment items for each Budget Object Code (two digit). For example budget object code 11 – Admin and Professional Salaries will be mapped to commitment item 11 - Admin and Professional Salaries. In addition, all fund balance GL accounts will be mapped to FM on a one-for-one basis and assets and liabilities GL accounts will be mapped to Commitment Items on a many-to-one basis.

Figure 6 shows the relationship between GL accounts, cost elements and commitment items:


Fund
A fund represents the lowest level of funding requiring a budget. The fund master includes an application of fund and one or more sources of funds. Budget rules can be specified separately for each fund.

Proposal: The University will use Funds for storing the budgets and actuals for all its accounts. Only one application of fund will be created for the Current Unrestricted fund group but individual Sources of funds will be created to represent each account. The current unrestricted sources of funds will have the same numbers as the cost centers representing such accounts (seven-digit or ten-digit number). For all other fund groups an application of fund and a source of funds will be created for each account. These sources and applications of funds will have the same number as the WBS Element representing such accounts (ten-digit number). Attributes such as the Vice-Chancellor and Dean/Department codes will be entered into user defined fields on the fund master.


Funds Center and Funds Center Hierarchy

A fund center is the organizational unit responsible for preparing and monitoring the budget for one or more funds. Fund centers are organized into a hierarchy along which the budget flows. Since the budget flows along the fund center hierarchy, no alternative hierarchies are allowed.

Proposal: The University will create fund centers based on the reporting organization hierarchy of Budget Entity> College or Division> Department. The fund center number will be based on the department number. For example, department 011002401 will be mapped to fund center U011002401.


Name: Title: Signature: Date:
¬¬¬________________¬¬¬¬ _______________ _______________
________________ _______________ _______________
________________ _______________ _______________


References
1. Oxford English Dictionary
2. Vocational Business: Training, Developing and Motivating People by Richard Barrett - Business & Economics - 2003. - Page 51.
3. Administration industrielle et générale - prévoyance organisation - commandment, coordination – contrôle, Paris : Dunod, 1966
4. Gomez-Mejia, Luis R.; David B. Balkin and Robert L. Cardy (2008). Management: People, Performance, Change, 3rd edition. New York, New York USA: McGraw-Hill. pp. 19. ISBN 978-0-07-302743-2.
5. Gomez-Mejia, Luis R.; David B. Balkin and Robert L. Cardy (2008). Management: People, Performance, Change, 3rd edition. New York, New York USA: McGraw-Hill. pp. 20. ISBN 978-0-07-302743-2.
6. Craig, S. (2009, January 29). Merrill Bonus Case Widens as Deal Struggles. Wall Street Journal.
7. Kotter, John P. & Dan S. Cohen. (2002). The Heart of Change. Boston: Harvard Business School Publishing.
8. http://managementhelp.org/org_thry/org_defn.htm

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Texte: syed sajid
Tag der Veröffentlichung: 19.03.2010

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