The Effectiveness of Various Organizational Functions that Involve the Term Paper

The Effectiveness of Various Organizational Functions that Involve the Controller - Term Paper Example Effective organizational functions make the building blocks of an efficient organization. Different organizations develop different approaches for organizational functioning in order to protect the interests of various stakeholders while leaving managers enough freedom to take managerial decisions and actions. The effectiveness of organizational functions depends on decision-making and on the execution of decisions. The controller or senior financial officer of the organization plays major roles in planning and managing different organizational functions. Their capabilities and efficiency are often reflected in organizational efficiency. Organizational functions that are based on the principle of profitability for all of the organization's stakeholders assure the most effective behavior of enterprises. With the evolution of modern organizational management practices, the owners and different stakeholders of the organization hire professional managers to manage organizational functions. This helps in the development and optimal exploits of organizational functions. This professional controller or senior financial officers strive for most efficient coordination between various organizational functions. Planning and budgeting are essential components of an effective and efficient organizational function, though run incongruence of the planning process, should not interfere with the planning process in the same way planning process should also take care of budgeting and should not pursue unrealistic visions without any consideration of economic feasibility. It has been pointed out by various studies on the relationship between strategic planning and budgeting that a better strategic planning results in reduced budgeting constraints and more efficient organization and in turn reduced budgeting constrain and efficient organization results in better strategic planning.