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Business unit management grants managers of an organization a possibility to receive the comprehensive information on profitability of each branch and allows to find ways for effective administrative decisions. By introducing the system into the organization, the management will get the following advantages:
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- Costs reduction . The management of organization aspires to lower costs, but divisions are interested in increasing costs as they are not responsible for expenditures and evaluated by gross income indicators. Addressing expenses to their occurrence changes the relation to corporate money - expenses become personal. The whole collective of the organization tries to help to lower costs. So the system of business unit management promotes formation of employees' responsibility and stimulates them to operate in interests of owners.
- Stimulating innovation initiatives. Management stimulates the innovation initiatives in interests of branch and the whole organization. Each employee of the organization knows that if he can save or earn additional money, he can receive a part of this money in the form of a bonus. Such motivation encourages employees to think by interests of the organization and become a certain element of creativity. Sometimes employees notice defects and know how to improve corporative work, but they do not declare it as there is no mechanism of employee's financial encouragement in the organization. The system allows to introduce into the organization a mechanism of collecting suggestions and recommendations for innovation initiatives and improvements.
- Stability. Business unit management allows to raise stability of the organization by making each division independent from each other. It identifies the most and the least effective directions of activity. It allows to stimulate priority activities and to reduce financing of less effective business units.
VIP Task Manager provides solutions for companies to manage company branches by reducing costs, improving real time data exchange and communications between business units. By using VIP Task Manager solution for business unit management , a company gets the benefits as follows: |
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- Accurate planning and budgeting activities
- Increased reliability
- Operating costs reduction
- Reduced cost price
- Minimize communication delays between business units
- Optimal assignment of financial resources
- Optimal allocation of tasks and responsibilities
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VIP Task Manager allows to obtain competitive advantage by means of financial controlling over business units and creating a system of employee motivation to link interests of both employees and owners together.
Read also a new article about process management - project management client-server software for Windows |
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