Major Internal Control

Company internal control can refer to administrative and accounting controls. Administrative control includes organizational planning and all methods and procedures that facilitate management planning and control. For example, department budget procedures and performance reports. Accounting involves mainly methods and procedures that include transaction approval, asset protection, and the accuracy of financial records.

Essentially, in an organization aversion management system, ineffective governance is the main part of the internal control mechanism. If there is no crisis, they scarcely respond. Recent GM Board protests (media calls) brought the dismissal of CEO Robert Staples. This is an example of the failure of GM's governance system to succeed. General Motors is one of the world's high cost producers in over-production capacity markets and has avoided major changes in its strategy for more than a decade. The rebellion was too late. After the company reported losses of $ 6.5 billion in 1992 and 1991, the opportunity loss exceeded 1000 with the Board announcing the abolition of the CEO in 1992. Billions of dollars. Research and development and capital investment plans for 11 years from 1980 to 1990 Furthermore, changes so far are still too small to solve company problems.

For people with normative trends, making internal control systems work is a major challenge facing economists and business scholars in the 1990s. The main challenges for those who have chosen to adopt a purely positive approach are how these systems work and how other systems of control, in particular product markets and factor markets, laws, political and regulatory systems , To understand how it interacts with capital. Market) Impact on the company We are interested in developing a positive theory in the world because we can understand how to make things function more efficiently. Without an accurate positive theory about causality, normative propositions and decisions based thereon would be incorrect. Therefore, these two goals are exactly the same.

One of the main concepts in the study of attribution theory is the control point. Is the event interpreted as caused by its own behavior, or is it interpreted as caused by the external environment? For example, people with internal control points such as "internal" think that their ability in a work project depends on their ability or ability to do work. "External" is due to success or failure by judging whether the project is simple or difficult, whether the boss is useful or useless, or for other reasons. Generally, internal control points are related to optimism and physical health. People with internal control points also tend to delay satisfaction better