The mechanism by which management influences others to work to achieve the organizations goals and objectives, in an effective and efficient manner.
Includes computer systems Verbal feedback and direction Unspoken, unwritten guidance
Lets brainstorm on roles of management in an organization. The culture of an organization is very influenced by the attitudes of senior management. For a venture to be truly effective, it MUST be supported by upper management. (TOP-DOWN.)
Responsibility Centres
Example: the Physical Plant Department (PPD) at UWO is an operating support unit. But the members of PPD assigned to the SSC would represent a responsibility centre since their common goal is the efficient and effective maintenance of the SSC.
A revenue centre is a responsibility centre (group) that is held accountable for the goods/services (revenues) sold by the centre. A cost centre is held responsible for the costs incurred by that group. A profit centre is held responsible for both revenues and costs. Could we turn a cost centre into a profit centre?