Management Credibility and Honesty Essay Example | Topics and Well Written Essays - 2750 words

Management Credibility and Honesty - Essay ExampleA family which ignores management and credibility in its relations with the works capital provide in the long term be characterised by a negative return over the time and ultimately it will have damaged the trust of its shareholders due to its accounting manipulations.There will be a weakened balance sheet through excessive debt and poor working capital management.Based on the above problems this paper reviews through the example of the Enron Saga the enormousness of management credibility and honesty on working capital management for comp any and the effect of bad management credibility and honesty.The significance of management and the bear on with working capitalCooke and Williams (1998) state that without projectning it is difficult to envisage the successful conclusion of any project or the effective comprise of time, money or resources. Planning is essential throughout all stages of the process from inception through to d esign, tendering, construction and committee stages of a project. The reasons for planning are summarised below.To aid contract controlTo establish realistic standardsTo monitor performance in terms of output, time and moneyIt is an essential agency of management to prepare forecasts in order to establish a plan for the future of the business. Without a plan against which to monitor performance, management has no control and no business can be run successfully without keeping close control over the day- to -day finances. Control is achieved by preparing budgets.... roblems this paper reviews through the example of the Enron Saga the importance of management credibility and honesty on working capital management for company and the effect of bad management credibility and honesty.The significance of management and the link with working capitalCooke and Williams (1998) state that without planning it is difficult to envisage the successful conclusion of any project or the effective co ntrol of time, money or resources. Planning is essential throughout all stages of the process from inception through to design, tendering, construction and commissioning stages of a project. The reasons for planning are summarised below.To aid contract controlTo establish realistic standardsTo monitor performance in terms of output, time and moneyTo keep the plan under constant review and take meet when necessary to correct the situationIt is an essential function of management to prepare forecasts in order to establish a plan for the future of the business. Without a plan against which to monitor performance, management has no control and no business can be run successfully without keeping close control over the day- to -day finances. This involves providing the breeding necessary for keeping managers informed so that decisions can be made about how business should react to current circumstances.When managing a project, or number of projects, perfect scheduling is critical to su ccess. Double- booked resources, inaccurate information, mishandling of materials, and more can cause significant delays in the project that result in massive profit loss. It is critical therefore that a form of cash flow monitoring is in place. Financial plans are called budgets, and the process of making, monitoring and adjusting them is called budgetary