Proper Data And Information Collection Plays An Important Role In Decision Making Accounting Essay
In the rapid growing world through the use of high technologies, understanding the importance of data has also become an important factor. Having the proper knowledge about data it becomes easy to correlate the strategy, information and performance more efficiently and effectively. Many organizations are using different sources of information for the process of planning, managing performance and trend analysis. But without having accurate information, the analysis of data becomes useless. The proper data and information collection plays an important role in decision making in an organization. In Toyota the member of the organization are highly dependent on the various data and information. The features of data in Toyota include the numbers showing the number of car manufactured, their turnover, and profit or loses made by the organization, balance sheet and income statement which gives them financial soundness of the organization. To run business information is the core part to have in the organization. Toyota need to have an information of stock market, value of shares, dividend yield, their price earnings ratio, their market position and reputation and looking at the macroeconomic part the various factors include the inflation rate, exchange rate and interest rates. The information of the competitors strategies used in the market, the various tools and technologies used by ford, Honda and other automotive competitors. They should also have the information regarding share price of other organization and how they have stabled themselves in the dynamic market.
Decision making is the integral part of any organization. Toyota is being very careful while choosing the data and information for decision making. They used the information like safe driving practices and use of safer technologies. Information regarding the practices of quality improvement procedures, use of event data recorder, which is basically processor for recording of the driver operation and data regarding vehicle condition. They use the right information in order to get the better productivity, responsiveness, quality and proper utilisation of space and equipment. The data record which shows the growth of the organization. The strategies should be changed looking at the position of the organization. There should be an eye on turnover of the company. As data shows the production capacity of the company, Toyota should see if there is over production, they should minimise that to get more efficiency. The management should make decision looking at the production line that how they are performing and how much defective and improper automobile they are producing, so that in response they could pay more attention towards the labour work and their hard work. The decision regarding to the recruitment are also taken very carefully, taking into consideration the performance of the staff, and the work they need to do. Toyota makes decisions slowly but implements them rapidly. The production line is stopped working when the management founds defect in working and then fix the problem and let the production continue. Toyota do lean production, they do less use of material and produce more.
Toyota is using warehouse management system and stocking management system to reduce the overburden and unevenness. It has helped a lot Toyota to manage the material properly within the warehouse which has led the proper utilisation of time as well as non wastage of material. This system has helped in better transportation management, more transparent accountability system and good order management. For WMS Toyota has flexible location system. Warehouse management system uses user-direct parameters for directing various task of warehouse and live documents are used to execute the tasks. This system helps the Toyota in reducing the life-cycle process, reducing labour costs and increases the more storage capacity in warehouse. It controls inventory. Toyota has maintained a very good speed for the delivery of the product. They have never let down their customers in this operation with the use of such operational systems in the organization.
Toyota is using product development system which includes integrating people, process and technology. Toyota believes in reusing the knowledge and designs. Toyota has a very systematic model for its people, process and technology used. They have made their customer allowance to choose the components or parts of their desire. Toyota has maintained a very good relationship with its customers, suppliers and engineers. Toyota is using Toyota production system tool for the business process which includes lean manufacturing. Toyota believes in producing more with less time, labour, money and inventory. They production system is focussing on simplifying procedures, eliminating wastes and increasing speed of production. Basically five areas are driven by lean production; delivery, quality, cost, safety and morale. By doing so they want the reduction of the waste , producing higher quality, making high profit, being more strategically focussed, trying to be more flexible, and decreasing cost production.
The social responsibility of the Toyota includes their responsibility towards the stakeholders, employees, customers and their suppliers / distributers. Toyota is always being very flexible to their employees and stakeholders. They have always ensured that the important and necessary information is being revealed to their employees and stakeholders. Like the issues related to the mission, vision, goals and various strategies played in the organization to get the more market position and share. Toyota gets good benefit of sharing fiscal information with its employees. They are always being very friendly to their employees. Toyota is very successful in the market due to their more flexibility in sharing the strategy and compensation philosophy of the organization, explaining the external or internal threats to the company, the strength of the organization, Toyota weakness and measures to improve that. The stakeholders of Toyota are very well aware of the market position of the Toyota; the profit company is gaining and the share value of Toyota in the market. The stakeholders are also being told about the benefits, compensations or the dividends they are being provided by the company. With the continuous involvement of the stakeholders and their employees Toyota has not only increase the satisfaction level of their workers but also the increases the motivation of employees to keep on working in the organization. It’s seen that due to the transparent organization their always a good relation of the company with their employees which gives very good result to the organization because at the first hand people are the important asset of any organization.
For the information access there always should be a time limit and boundation. Toyota has a very good access management. They have a very well control over decision for the access of the view of internal news, confidential data and new developments to the employees in the organization. The company should made access to the important information like mission, vision, goal and objective of the company while hiring the employee so that he better understand his work in the organization. On the same hand the employee should also be made ensure about the norms and values of the organization so he works under these rules and conditions. When the project is started there should be open communication in between the management and the worker about the aim to achieve that project and time limits. During the course of the project the company should always reveal time to time update of the project so that the employees get to know about the progress of the project. The employees should be told about the consequence of the tasks to be given to them. They should tell about the various compensations, benefits and bonuses to be given after the full establishment of the project so that they would be more motivated to do the task. So necessary access of the information to the employees just not only help the employees to do the work more better but also helps the organization to maintain good relationship with their employees and stakeholders.
Toyota shares the important information to its employees, stakeholders, general public and suppliers through many ways. They make use of media, video sharing websites, internet, telecommunication, formal meetings and keeping good relationships with suppliers. Toyota has made many videos which they have showed in their website showing the information about the progress of the company. They have put their goal, vision, mission in the website. The various social, ethical issues of the company. The production system information, the technologies used in the organization. The company website provides the balance sheet and income statement of Toyota for all the general public view and stakeholders. All the investors see the progress of the company and are able to invest in the organization. Toyota also calls up media to tell about their progress, increase in share value of them. The company held’s up annual meeting in which the company’s investors, stakeholders are told about the company sales, turnover and the dividends to be paid to the investors. The suppliers are being called in the company to tell about the company commitment to the customers about the fast delivery of the products. With the use of these entire formats Toyota has made them transparent to all the members of the organization which has led them to a great successfulness in future. Toyota is becoming more achievable day by day due to their great involvement with the employees, stakeholders and suppliers. Toyota also uses newspaper publication as a channel to share the information of the company to the general public and investors.
The information can be analysed through management information system. It helps the general workers and executives to perform the task related to the information processing. These are highly taken within the companies for collection of data and reports production to which is used as a tool for decision –making. Management information system is used to convert useful record into the information for being used in making certain decisions. So it’s seen as this also helps in keeping the performance report and financial statement which are used in the strategic planning, implementation and its monitoring. Their function is to make the unmanageable volume of data into coherent reports which are more bitterly used in decision making and by looking these reports the trends and patterns can be identified. This system also gives the prediction about the future planning. It has given a great effort towards the saving of time of the organization in the management of raw business data, as these are more easily hand able and quicker. So it act as core competency for the organization to have more better understanding of the economy in the market and enhancing supply chain management which results in streamlines production process, with better information of the processes used in production and overall improving the management of the organization. Due to this management information system the organization react more quickly to the environmental changes and led the company gain the more market share by establishing the good production image in front of customers, faster delivery and services.
There are various tools and techniques for supporting strategic decision making. Charts and diagrams are one tool which is used to evaluate the performance of the company. The company has stock charts, charts for the progress of the company, different project charts which are used by the management of the company to have the information in different fields. Projection, modelling are some other ways for supporting of the strategic decision making.
SWOT and PEST analysis are the other tools which are used for the analysis of the company performance and supporting decision making. This SWOT analysis gives the brief detail about the problem which can occur in the company and the ways for the solution for that. With the help of this tool the manager do the strategic decision for the welfare of the company. Using SWOT it is easy to check for the internal and external environmental analysis of the company. It warns the organization towards the various threats causing harm to the organization. It also tells the various opportunities company can stand towards against the competitor in the existing market. As this tool also gives the idea about the strength of the company it makes the company understand the strongest point it has got.
Another important tool used for company analysis is the porters five forces model. It also gives an brief idea about the power of buyer, power of supplier, threat of substitutes, competitive rivalry and barrier to entry. Using this analysis the company could better understand its position in the economy and its competitor’s strategies.
The tool used for supporting strategic decision I would used would be contained in some steps. These steps would involve creating positive environment which involve a number of step like making goal and objectives, having the right stakeholders and creating such environment in which there is transparency, the employees should given full right to express their views and involves themselves in the discussion. Then comes generating ideas by considering different perspectives like 4p’s and organising these ideas. After all these perspectives risks should be found in making strategic decisions and their implications. These risks can be found by the PORTERS FIVE FORCES analysis which tells the organization about its various threats and risks involved by the competitors. After the decision is taken there should be proper analysis of that decision and should be communicated to the employees in the company. So I have used the combination of tools for making strategies and decision making process.
The company should also focus on PEST analysis which gives a brief detail of all the political, economic. Social and technological factor affecting the firm. So according to me by the combination of all these factors a company can better understand its position in the market and can change itself according to the situation or make relevant decision for the improvement.
The sources used for the analysis of data and information involve the websites, their process, journals, references, surveys and external links. There are both external and internal resources used. The external sources include the customers, suppliers and intermediaries, all the competitors’ strategies. This information system is very useful in making decisions. This information helps in finding daily sales and forecasting of sales. The internal sources include the sales figures, inventory management, product and marketing costs. The internet is being a very powerful source for any organization. Web pages show the required information the general public and investors. There are journals published by the management gurus who also act as major source for the gathering of information and data for working in such dynamic economy and being successful.
Toyota management information could be evaluated with the help of their progress report. It’s seen that their management information system has led a great a change in the organization. It could be analysed as they are now making more products efficiently and quickly and their sales are growing high day by day. The employees are being interviewed and the result is that they are more satisfied with the company they are working. The survey said that Toyota is now being globally accepted due to their perfect strategic decisions made by the analysis of their company. they check their performance rate with the competitors progress rate and see whether they are using the better technology then their competitors or not.
Monitoring and controlling activities for many organization is same as identifying the goals and objectives. Using monitoring and controlling one could easily see the direction of the project he is doing in the company.
This plays important role in the implementation process. By continuous monitoring it makes they allow to know the successfulness or incompletion of the project. This also helps the timely checking of the progress of the project on going. It also let them controlling the over costing, minimizing the wastes.
The purpose of the monitoring and controlling of the project is to measuring the projects progress, and see if the project progress deviates from the actual path, certain measures to be adopted. This monitoring and controlling comes under the project management. It is the project managers who looks after the project and see control process is executed properly. It is the effective monitoring and controlling which lead to success of the project. The monitoring process includes updates on various information like completion of the tasks on given time, if there is any expected delay due to some reason, to look after the hidden activities which can’t be seen while doing the major part and issues related to the project. Control can be done by effective communication. It is the task of the project manager to provide proper knowledge and advice about the task assigned to them. While doing a project a manager should make sure that there is a good change control procedure to prevent many changes in the project plan. For this there should be a proper identification of all the requested changes, and then there should be a proper investigation assessing the impact of the change to organization. There should be determination of the cost of the change and these cost can be funded and lastly to see the impact of not doing the change.
The information could be captured using the many technologies. The information could be captured by e-documents. But the best way of capturing the information is to motivate the employees so that they could involve themselves in the discussions and present their views about the different topics. Or in an organization groups could be made just to capture the relevant information required for the company use. The company should maintain good relationship with the people to gain some sort of knowledge which could be helpful in some way.
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