ferguson son manufacturing company s budgetary control system 494576

Ferguson & Son Manufacturing Budget Analysis Ferguson & Son Manufacturing Company budgetary control system does a series of evaluations throughout each department on a monthly basis as opposed to in the past the main focus was about craftsmanship and the quality of work being done. The evaluations are done on a monthly basis for comparisons to be made between all the departments’ actual and budgeted costs. Some of the company’s problems are all of the setup and machine adjustment time, the interruptions during the larger projects to work on a smaller rushed orders as well as not having functioning equipment to produce efficiently. While another issue that the company has is that the employees at times feel that they are being rushed to do quality work and stay with in the company’s estimated budget as well to be within the time frame that is required. With the employees feeling like they have no options like in some of the other departments that are allowed to delegate what projects to do and what to report as an expense. With what the company is expecting from the employees, they might feel as if they are being set up for failure because the manager often stresses the importance of continued progress to attain the budget he also lets it be known that he keeps files of all the performance reports that are done. Goal alignment allows a quicker execution of the company’s strategy to prevent the employees from feeling like they are being set up for failure, with this method it allows everyone to work together towards the same objectives, the company can execute its strategy faster, with more flexibility, efficiency and adaptability. Essentially the goal alignment strengthens the leadership within the company and creates organizational agility. Clearly communicating the organizations goals will ensure that valuable time is not wasted on a nonrelated task. Some improvements that could benefit the company are to communicate all expectations,…