Business improvement . It is a business management and administration system whose central objective is to maximize the efficiency and competitiveness of the socialist state company on the basis of granting it the faculties and powers necessary for proper administration, with an advanced conception in business management as well as the policies, principles and procedures that promote the development of initiative, creativity and responsibility of all bosses and workers.
Summary
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- 1 Requirements
- 1 An accounting that reflects the economic facts
- 2 Basic operational concepts
- 3 Preparatory stage
- 1 steps
- 4 Execution stage
- 1 Steps
- 5 See also
- 6 Sources
Requirements
- an accounting that reflects the economic facts;
- existence of a market for its products and services;
- necessary assurance guarantee;
An accounting that reflects the economic facts
In these companies the accounting must offer a faithful image of the patrimony, the financial situation and the results; therefore, the accounting information must meet certain minimum requirements:
- Identifiability: the financial statements must clearly express the company to which they refer, the economic activity to which the company is engaged and the period of time to which they refer.
- Opportunity: Accounting information must be offered to clients in a timely manner, as untimely information becomes useless.
The legal system usually sets deadlines for the submission of periodic financial statements.
- Clarity: the accounting information must be shown in clear and affordable terms, in order to ensure, as far as possible, the adequate use of it by its different recipients, who do not have to be specialists in accounting matters. Accounting standardization substantially favors this requirement by generating uniform statements regarding its structure, technology and preparation criteria.
- Relevance: the accounting information must be adequate and sufficient for it to be useful in achieving the purposes pursued by the different recipients of the same.
- Reasonableness: the accounting information must pursue a reasonable approximation on the economic and financial situation of the company.
- Economicity: accounting information is useful for the decision-making process, but at the same time obtaining it causes costs. The greater the disaggregation of the data, the greater the cost of elaboration. In other words, the cost-benefit criterion must be taken into account.
- Impartiality: the information contained in the financial statements must be neutral and impartial. You should not misrepresent the data in favor of certain recipients or for the benefit of others.
- Objectivity: accounting information must be prepared using a processing mechanism that prevents the introduction of subjective criteria by those responsible for the process as much as possible. We can affirm that the accounting information is objective when several processors of the same accounting events, within the same information system and applying the same rules, can arrive at similar data.
- Verifiability: accounting information must be subject to control and review, both internal and external.
Basic operational concepts
- Efficacy: is to meet goals and objectives. It is an indicator that measures the degree of fulfillment of these goals and objectives, but emphasizes the quantitative aspect, not the qualitative one, it does not take into account quality. Compliance with the technical-economic plan is prioritized in values, not in physical units.
- Efficiency: it is an economic indicator that expresses the relationship between the expenses that are made and the results that are obtained where one works to reduce expenses and costs to increase results but with quality, with excellence. If the same expenses are incurred, it is fought because the results are superior. It means that the company must be profitable, obtain a profit margin but taking into account what is produced? And how is it produced? Here the plan is fulfilled both in physical units and in values. In other words, it is to produce more and better with less expenses, but with less irrational expenses, without wasting resources.
- Effectiveness: is to achieve the maximum result in everything that is done, with the highest excellence and quality possible. It is a socio-economic category that integrates effectiveness and efficiency.
Preparatory stage
Steps
- It begins with the preparation of all the workers, the union, the PCCand the UJC . It is the fundamental step since the preparation that is made depends on the success or failure of the system.
- Initial business diagnosis, which is an x-ray , an analytical examination of the past and current trajectory, of the potential prospects of the company with respect to the fulfillment of its mission, objectives, activities, states of its resources, culture , in all areas of the company covering the 16 subsystems, determining if the problems are internal or external, preparing an action plan with the measures to solve them and those responsible.
- Analysis of the diagnosis that based on the opinion of the Executive Group of the Council of Ministers, where the provincial Government Group authorizes or not the company to continue the process.
- With the authorization, the company carries out the study with the General Bases and the results of the diagnosis in the 16 subsystems with which it designs its organizational structure and its system, which is reflected in a file and proposes the implementation schedule.
- The practice forced to implement this step that is not contained in the General Bases. This is an interview with 30% of the workers of the entity, by a commission of the Central Committee, the Government Group and the CTCwith the aim of knowing the degree of preparation of the workers. Depending on the results, follow or not the process.
- Also on the basis of the opinion, the Executive Group of the Council of Ministers approves the file and authorizes its implementation.
Execution stage
Steps
- Implementation of the system according to the schedule.
- Constant supervision and adjustment. This step is not considered the last but the beginning of the improvement, which from that moment is permanent.
