ACCA F1 Accountant in Business Key Study Text by Emile Woolf Publishing Limited

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Responsibility for much of the decisionmaking might also be delegated to these individuals, making a wider span of control appropriate. However when employees lack confidence and are uncertain about what they should be doing, close supervision and a narrow span of control is more appropriate. In some organisations, there is a culture in which employees are encouraged to use their initiative and make their own decisions, without having to wait to be told what to do. In these organisations a wider span of control is appropriate, compared to an organisation in which there is a culture of authoritarian management.

Some types of insurance are voluntary, such as insurance of business premises against fire and theft. 7 Finance function The main part of a finance function in a business organisation is the accounts department. The accounting function is described in much more detail in a later chapter. Large companies might also have a treasury department within the finance function. The role of a treasury function is to manage the company’s finances. Activities of the treasury function include: „ making sure that the business has the money it needs to pay employees, lenders and suppliers on time and to finance new investments „ managing the cash of the business: this is often the responsibility of a chief cashier and cashier’s sub-department „ obtaining new funds from the financial markets, including the negotiation of new bank loans „ investing surplus cash „ arranging transactions for the purchase of foreign currency (for example to pay for purchases from other countries) or sale of foreign currency (for example to convert sales income in a foreign currency into domestic currency).

Managers must also have the flexibility to deal with unforeseen circumstances that arise, and adapt plans to meet those circumstances. To organise. Managers build up the structure of a business organisation. They acquire suitable assets and resources for the business, including employees, and decide how these should be used. - They create groups of jobs within departments or work sections. - They appoint individuals to carry out those jobs. com for Q/As, Notes & Study Guides © EWP Chapter 1: The structure of business organisations - They delegate authority within the management structure, and make particular managers responsible for particular tasks.

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