Financial

Financial statement Is a collection of financial transaction, arranged and grouped, used to assess the health level of the company from finacial perspective. In the financial statement, detail line item may differ from company to company but the items are similiar enough to allow comparisons which over time will show the evolution of company's financial health over time. Comparisons between similiar companies and industrial benchmark may indicates company's competitivenes.
Income statement give indication of financial result of the company for a given period typically in one year period
Revenue - expenses = Net profit (loss)
Income statement is more meaningful if set for contrasted between period, industry player or set benchmark.`

Financial position at specific date, monthly, quarterly and annually which indicates primarily the total assets of the company and means of financing of the assest in form of owner's equity and borrowinngs.
Assest = equity + liability
Total assest always equal to equity and liability and any changes at any one of the category, a balancing entry is required to achieve the balancing equation.
Other important concepts are the working capital, anf financial leverage, which is the former is liquid capital required to enable or facilitate operation including inventory cash and financial levelerage is the used of borrowed source of fund to finance the company.

Lastly the paper tells about the cash flow, which is a means to track the amount of cash (or equivalent) over time including the sources and application of cash.

Application of financial statement
The application for financial statement in my workplace is the understanding of the basic can help us in the alignment of the corporate financial agenda and we can also starts doing self assessment on the performance of the department ot division and even the section against other division, department or section or even benchmark ourself against our competitors and also within the industry.

Further application of the these concepts is that the use of financial ratio for performance ration which naturalize the size differential in performance comparisons and inclusion of more dimensioan to performance evaluation for example the balance score card.

To avoid shortfalls, company should create a closed-loop management systems. The loop comprises five stages beginning with strategy development, which involves applying tools, processes, and concept such as mission, mission and value statem ent; swot analysis; shareholder values management; competitive positioning; and core competencies to formulate a strategy statement.

The statement translated into specific objectives and initiatives, using other tools and processes, including startegy maps and balanced scorecards. Strategy implementation links strategy to operations with a third set of tools and processes management, reengineering, process dashboard, rolling forecast, activity based costing, resource capacity planning and dynamic budgeting. As implemenatation progresses, managers periodically assess the strategy, updating it which starts another loop around the systems.

The Five Stage in A Management Tool Kits
Develop the Strategy
Translate the Strategy
Plan Operation
Monitor and Learn
Test and Adapt the Strategy


But a manager can have the best strategy in the world, but it will get nowhere if manager cannot translate that strategy into operational plans and execute the plans and achieve the performance targets. Th, and is closed loped management systems enables executives to manage both strategy and operations, and to balance the tensions between them.

SMany executives believe that ustainability is going to be the burden on bottom lines. Where actually becoming becoming environment friendly can lower your cost and increase revenues. That is why sustainability should be a touchstone for all innovation.

Companies that make sustanaibility a goal will acieve competitive in the future. That means rethinking business models as well as products technologies, and processes.

Becoming sustanaible is a five stage process. The processes are:


Stage 1: Viewing compliance as opportunity
Stage 2: Making Value Chains Sustainable
Stage 3: Designing Sustainable Products and Services
Stage 4: Developing new Models
Stage 5: Creating Next - Practice Platforms

Implication for practice

Summary of Time and Motion Regained

Taylorist which is the extension of Mac Gregor 'theory X' time and motion discipline and formal bureaucratic structures are essential for efficiency and quality in routine operations, but need not lead to lead to rigidity and alienation. It asserts that quality productivity, and learning depend on management's ability to free workers from the coercive constraint of bueracracy. It insist that detailed standards, implemented with great discipline in hierachical organization, will inevitably aliennate employees, poison labor relations, stifle initiative and innovation, and hobble an oragnization's capability to change and learn.

In Fremont, California, A GM-Toyota joint venture called United Motor Manufacturing Inc. NUMMI for short, has succeeded in employing an innovative form of Taylor's Time-and-moption regimentation on the factory floor not only to create world class productivity and quality but also to increase workers motivation and satisfaction.
NUMMI intensely Taylorist procedures appear to encourage rather than discourage organizational learning therefore continous improvements.

• Improvements on safety Standards


• Rise of quality standard


• Easier Inventory control


• Efficient Job rotation


• Improves flexibility


• Empowerment of work force

NUMMI points the way beyond Taylor-as-villian to the design of a truly learning oriented bureaucracy. With workers defining their own job standards, quality and productivity at the Fremont Plant went from worst to best.

Application fpr practices
The psychology of work which should be applied at the work place is that participative nature of the whole work system will ensure greater cooperation among all and this will drive the desire to excel and create maturity and sense of realism to all staff for example, if the company is get more profit, so will I. By bringing the culture into the company, also raised up the respect and trust, horizzontally and vertically.

In terms of empowerment, we scan still have hierarchical power within the working system of the company but function is more to support raather than command. and eliminate vertical power within workers and union through participate approach and emphasis more on teamworks. By practising it, workers will be involved and more improvements in terms of safety, quality morale and the biggest benefit will be continous impprovements of the work place.