Accounting & society

An essay on management accounting
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The numbers speak for themselves
Change in an organization is inevitable and this may be realized at the right time for efficient organizations and others realize it the falling stage. With the current globalization of the business markets, increase in gross domestic products of various nations and global economy diversity is very important. Various sectors including the manufacturing sector are experiencing massive growth, but increased innovation, creativity and industrial development supports the utilization of the present opportunities. This is the same case with all the other sectors of the economy (Collier 2007, 39).
Bloomington Area Arts Council (BAAC) underwent through uphill leadership task during the year 2009 and this led to the change of board members in the last quarter of the year. The two newly appointed board members were offered executive director and president tasks to help streamline and transform the board which makes strategies for the running of the council. Without a performing and strategic board of directors, the long term sustainability of an organization remains a dream and operations are inefficient (Bloomington 2009, 1).
The running of an organization cannot be instantly streamlined with days of organizational changes. In this case, the board and the executive director had to initially work with the much failed strategies that were previously used by the previous board. These strategies have poor management decisions and intensive focus on the recurrent financial crisis had to be focused. The arts council was not in a position to sustain its organizational goals and missions and this was an uphill task and caused great jeopardy (Smith 2005, 58).
For the long tem sustainability, expansion and increase in profits, changing of structures and processes to conform to the various changes along the organizational boundaries together wit the external environment and stakeholders. Considering that an organization system contains of various sub systems, these will also be in conformity with the changes. In case of nay change in one of the systems, then this will also be experienced in the other side of the system and these dynamics are to be coherent for efficiency (Garrey 2004).
A concise strategic plan was drafted by the new board by September 2009 which aimed at the implementation of the various strategic goals that were set on the fiscal year 2009-2010. Among the major strategies that were to be formulated included the improvement of the sustained financial stability of BAAC, using a strategic financial plan including ways of mobilize for extra funding to help fund the organization operations. Of major importance, the organization and the board had to undergo through an over-whole change with focus to quality minded employees and trustees with optimum governance and operation skills (Bloomington 2009, 1).
The organizational cycle for the current year was observed to allow for the careful examination of the organizational processes and returns. On studying the running of the organization some issues were noticed. For instance, the profit and loss account has been experienced massive drops over years but no action has ever been taken to control. Various development tasks that have been projected were not being formulated and this caused a back log of organizational future plans (Smith 2005, 61).
Above management of finances, human resource management is also very important. The organization had no well structured plan for conducting various crucial activities including; "recruitment of members, fundraising, solicitation of sponsorships during specialized events or a grant plan." A good pricing strategy is also required but no annual pricing structure was in the organization. In addition, the uniformity of various organizational policies and manner of running the organization was haphazard thus inefficiencies (Collier 2007, 42).
To streamline on the income generation base, earnings from rent, maximum us of ...