Fixed Asset Controls

Reasons for Fixed Asset Controls

The following are the important reason for establishing and maintain appropriate fixed asset controls


High Cost

Fixed assets are important because a huge fund are spend on acquiring theses assets. The many multinational balance sheet asset side is forming more than ninety percent of the asset.

Operations

The fixed assets are basically is the back bone of the company operations . because there are not only involved in the production process but also play its role in distribution of good and administration.


The following are important control over purchased of fixed asset

1. Commercial reason for purchase
2. Top Management approval for purchase
3. Detailed analyses of requirement and option available in market
4. Purchase order with detail specification 
5. The Fixed Asset Receipt report by the relevant Manager
6. The Fixed asset payment to vendor by crossed Cheques
7. The Fixed asset Coding
8. The entry of Fixed asset in Fixed asset Register
9. Assign the Fixed asset to appropriate person for safety and security

Control 

The fixed asset should be regular checked for his performance and existence . The process is called physical verification. The physical verification is performed on bases of fixed asset register and fixed asset figures appearing in the books of accounts.

The physical verification has basically two objective one is to verify the existence and to identify any theft on timely bases and other reason to dispose of the fixed asset in case of obsolete

Reasons for conflict between departments

Reasons for Conflict

The following are important reason for conflict between department

Different Function

The different department is performing different function and the function have some role in personality development. The different people are trained in a different ways . The accountant department is more compliance oriented where the marketing department is more cooperative oriented. Therefore different personalities is one of the cause of conflict.


Dependence 

Some department depends on other department and if other department poor performance may also effect the performance . This situation may lead a conflict and a blame game may start between the departments.Example of dependence may be when the production process is split in may department and one department can only start work when other department finished it works.


Resources Allocation

Sometime more resource are allocated to some department and other department find themselves deprived from the resource of the organization. for example the marketing department may have customer entertainment budget .

Power Structure

Some department exercise some power on other department . for example the finance department ask the production department to submit the production report etc. The use of power by one department on other department may also create conflict.


Reward Structure

The some department may have good reward as compared to other for example a marketing team may get a bonus for bringing new business to the organization. The other department may feel bad in this situation.

Special Status

Some time some department has some special perks and villages due to nature of work. The famous example is the entertainment budget of marketing department and marketing staff and marketing staff also enjoy the special meals with customer. The other department may take those perks and special powers negatively.

Limited Resources

if there are limited resources within organization . every department would try to get the maximum share irrespective of its role and requirement.The scarcity of resources may create conflict among the department.

Lack of Structure

The lack of structure and system in the organization is also create the conflict among the department .The every department think itself the most crucial for the organization and want to implement the specific agenda.


Conflict of Role

Sometime the poor role definition may also create the conflict among the department.

Advantages of conflict

The following are the important advantages of conflict

1.Different Solution of the Problem

The conflict identify the many possible solution of the problem.

2. Promote Creativity and innovation

The detail discussion and sharing of idea in conflict bring new and innovative solution to the problem.

3. Hostile Feeling are out

The hostile feeling for each other comes out and many things are cleared. This is a new beginning of the relationship.

4. Hidden capacity of individual identified

The conflict also identify the hidden talent of the individual.


Disadvantages of Conflict

The following are important disadvantages of conflict

1. Polarization

The conflict may create polarization in the organization.

2.disintegration of Group

The conflict may result in disintegration of the group

3. Direction is lost

The overall direction is lost

4. Coordination is lost
The coordination among the group is lost.

Characteristics of ideal team

The following are the important characteristic of ideal team

1.Support

Each individual must be supported by his team member.

2.Sharing 

The team must share their knowledge , experience , information with each other

3.Participation

Each individual in the team is encouraged to participate .

4. Trust and Respect

Each individual is respected by other member of team.

Problems in team

1. Difficult Personality

Some team member has difficult personality to deal with.

2. Political Difference

Different team member may have different political affiliation which may cause difference in the team.

3. Reward Structure

The reward structure may create resentment within the team

4. too much discussion

The too much discussion may also create difference of opinion in team

5. Ignore Attitude

if one ideas are not listen in team and ignore attitude adopted from him

6. Dependence on other

The individual performance is effected due to dependence on other individual will also create problem in the team.

Advantages of Training

The following are the important advantages of training

1.Improve Efficiency

The training will improve the efficiency of the employee which will also have a positive impact on the profitability of the company.

2. Accident are reduced

The industry there are many accident and this not only result in loss of employee but also create legal problem for the organization.

3. Supervision is Reduced

with the help of training the supervision requirement is reduce substantially. it is better to train once than to supervise every time. the less supervision will also reduce the subversion cost.

4. More Skill bring flexibility

The more skill development in the employee bring flexibility in the organization. The organization is in position to make short term arrangement if an employee leave.

5. Improve motivation

The training is important motivating factor for the employees .


Advantages to employee

1. Career Development

The training improve the profile of the employee and new opportunity for growth are open for the employee

2. Feel Good

The training of employee give him feel good factor . he consider himself important for the organization and loyalty to the organization increased by training

3. Perform Job well

The employee can perform the job well with the help of training . it improves his confidence on the job .

Characteristic of Good Training Program

1. Training requirement

it is very difficult task to determine the overall training requirement for organization and it become more complex in case of individual that which individual need what training and to what extent.

2. Training is time bound

The training is time bound activity and employee has to learn too much in short time. Therefore this put an intense pressure on employee to learn very fast.

3. Poor design of training program

This is very important that training is properly design keeping in view the individual and organization is going to be train. The one training program for all organization is not a suitable option.

4. Training interactive

The training program  must be interactive to maintain the interest of the participant. otherwise it would be wastage of resources.

5. Appropriate people selection

The appropriate people must be selected for the training who really need training , The training should not be an opportunity for refreshment and leave from the work.

Unfair Dismissal

The following are the important examples of unfair dismissal


Racism

The modern world is based on the principal of equality and no discrimination must be carried out in any circumstances. many countries has made legislation to discourage the discrimination on bases of race , color or other ethnic bases. The Modern world believe in equality of rights and it is extremely unethical to dismiss someone on bases of race or color.

Medical Leave

The medical leave is the right of the employee and this right is universally accepted. The medical problems is a natural phenomena therefore no one should be dismiss over the medical leave ground. The every employee can avail the medical leave as per policy. however this concept must not be confused with medical disability.

Overtime

The overtime must be at the discretion of the employee . The employee may not be compel to do work beyond office hours. This is discretion of employee whether or not to work on overtime bases. Therefore any dismissal on refusal to work beyond office hour shall be treated as un fair dismissal. The overtime is basically a mutual agreement and employee has a right to reject that agreement.

 Holidays

The basic concept of holiday is no work. Therefore no employer should take administrative action against any worker who is not willing to work on holiday . The working hours and holiday are two basic rights of the employee and therefore any dismissal on refusal to work on holiday is not acceptable. The court may also reverse those dismissal order being extremely harsh to the employee.

Trade Union

The trade union are created to preserve the right of employees and the trade union are very much allowed in the modern world and almost every country accept the role of the trade union in the business world . The participation in the trade union activities and accept any active role therein are not a punishable acts. Therefore employer should not terminate employee on these grounds.

Political Affiliation

This is world of democracy and people has right to love or dislike a political party or leader and this concept is internationally promoted . Therefore the employee also being elements of society has the same right and cannot be targeted on bases of political affiliation. The organization however impose some restrictions on political activities within organization.

Health Environment

The demand for good working condition is the basic right and the employer should consider this demand positively. This would be extremely negative on employer behalf to target the employee on the demand of Health working conditions. The employer must proved safe and sound working condition to the employees.

Minimum Wage

The demand of minimum was is a legal right and employer should recognize this right. This is legal binding on the employer to comply with the minimum wage regulation issued by regulator. Any attempt to pressurize the employee below the minimum wage rate is a crime. Therefore employer should not go for any termination for minimum wage demand otherwise it would bring serious legal implication for organization