Anthony\'s Framework for Managerial Activities PDF

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Anthony's Framework for Managerial Activities What is Anthony's framework? -

Anthony’s framework is a tool used to understand how decisions are made in an organization. Management information system of MIS plays a key role in facilitating information to aid decision making. This framework therefore be used to understand the need for MIS and how its actually used in organization.

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Now Robert Anthony fundamentally believes organizations as a hierarchy of decision making levels. He demonstrated decision making in a triangular form often referred to as Athony’s triangle . -------------------------------------------------------------------------------------------------------

What is the triangles structure of information? -

The framework view decision making in such a way that there are many operational decisions at the bottom  level of the triangle … some tactical decision in the middle level … and few but very important strategic  decision at the highest level …

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The higher in the triangle and item is the most scope it covers in the organization and the less precise it becomes on an individual level

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So decisions at the top management level are broad … strategically are critical and are seldom very specific … as items move down … they become more detailed and applied more precisely to people and processes

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So now the management process consist of these distinct level as proposed by Anthony … now the level at the top is the Strategic Planning level … where the level in the middle is the Managerial control level … and the level at the bottom is the Operational control level …

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the Strategic Planning level : it is the level that deals with the goals and the objectives of the organizations … Where its specifically focuses on 1. Changes in organizational objectives 2. The resources required to fulfill the objectives 3. The policies that will aid achievement of the objectives 4. And the use and disposal of resources to attain these objectives

So at that level there is a lot to do with … What the Organization actually want and what are the objectives … why they are actually trading … -

The is the most important role hierarchy in any organization

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The decision taking here will have far reaching impact on the organization

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This is th level which sets the direction in which the organization will head

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This level is usually held by a small number of people at the top of the organization and the challenge they often face is predicting the direction in which the organization

is headed and the external environment did operate in. … so those are the challenges that they at the top face. ---------------------------------------------------------------------------------------------------------------- the Managerial control level So the managerial control is the middle level … -

where this level ensures that the resources required to attain organizational objectives are acquired and used effectively and efficiently This is a level where mid managers operate this is:

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Managers take guidance from the higher level and control the activities in the organization to ultimately achieve the organizational objectives set out at the highest level The impact from this level is sort of medium term

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This level effectively focus on: a. Interpersonal interaction or man management b. Operating with in the thresholds of the policies set at the highest level c. Quality assurance and balancing efficiency and effectiveness

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the Operational control level

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The mandate in this level is to carry out specific tasks with a view to follow the directives set by the higher level … so the directive are set at the middle level ( the managerial control level) and the task are actually performed in the operational control level

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It's also important to take efficiency and effectiveness into account here

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The decision made at this level have very limited scope and very limit impact on the overall organization

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While management control is concerned with people … operational control is actually concerned with the actual task at hand that needs to be completed …

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The nature of task here can be repetitive as there will be specific goals and resources at play here … so specific tasks will be provided and specific outcomes will be expected from people operating at this level

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Where is this framework actually used? -

This framework actually offers a hierarchical view of decision making and information needs

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Then Management information systems therefore can view this to

classify and

categorise the information available and can ensure that the right level of information is available to the specific levels of personal that operate at different levels for optimal decision making and task management

---------------------------------------------------------------------------------------------------------------The accounting profession has attempted to develop a set of standards that are generally accepted and universally practiced … so the accounting profession wants to set rules … and those rules they want them to be generally accepted … and they come up the end product was something called GAAP … so these rules … what do they do?... they serve as a guideline to the accounting practitioners … so when you need to look up for a rule …

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What are the essential characteristics of an accounting?

The essential characteristics of an accounting are: (what is the purpose of an accounting) 1. The identifications, measurement, and communication of financial information about 2. Economic entities to 3. Interested parties. So identifying means basically figuring out which statements, which activities are in those statements … where we need to observe … and then we need to measure … measure means somehow put a dollar amount and record … after that we need to communicate the activity or the information … about the economic entities, about transactions about the company to someone who is interested (interested parties) … so who are these interested parties in the financial statement?

Financial Statement and Reporting ● Economic Entities So the business economic entities is a business … so we need to collect financial information … financial information means its information that involve dollar...