Showing papers on "Overhead (business) published in 1973"

Effects of Personnel Turnover, Employee Qualifications, and Professional Staff Ratios on Administrative Intensity and Overhead

Abstract: This study reports the results of a quantitative analysis of the influence of organizational characteristics on the proportion of administrative personnel (administration intensity) and the relative costs of administrative functions (administrative overhead). A number of propositions linking organization size, resources, personnel turnover, employee qualifications and professional staff ratios to administrative intensity and overhead are put forth. One hundred and thirty school systems serve as the units of analysis. Results show that high personnel turnover raises both administrative intensity and overhead; that large professional staff ratios expand administrative intensity, and that high employee qualifications depress the relative costs of administration.

The Accountant—Overhead Burden or Service?

Abstract: Both engineers and accountants working in industry are experts in measurement. The engineer expresses his quantitative data in physical units; the accountant evaluates quantitative measurements into financial terms. Planning the future and controlling the present are two principal functions of management. Accounting provides the common language of communication between the different levels of management planning and controlling all activities of the business.Cash flow, accounting for inflation, investment timing are important areas for the exercise of accountants' specialized training and outlook.The lecturer then outlines an actual comprehensive accounting information system operating in a large and successful engineering company. This illustrates his conclusion that while the engineer is the customer of the accountant providing information, they are partners in optimizing its use in running a business.

Building a Base for Competency in Manufacturing

Abstract: One of the most often overlooked opportunities for improving the profitability of a manufacturing business is the development of the professional (exempt) personnel assigned to the manufacturing function. Decisions made in manufacturing, many at relatively low levels in the organizational hierarchy, will often appear to be routine but in reality have substantial impact on the present and future status of the business. It is not uncommon for the manufacturing function to account for two-thirds of the employment of a company, and to spend in labor, material, and overhead an amount equal to 60-70% of the net sales billed. The implications with respect to having highly competent manpower in place are obvious- and enormous. It is the performance of professional work force interfacing with engineering design on the one hand and shop labor on the other which determines how effectively this money is spent in achieving the goals of the business. At higher levels in the manufacturing function, there are a variety of education opportunities-short courses, seminars, graduate courses, workshops-to serve the continuing needs. The assumption is that the base building stages of individual competency have been completed and very specific needs can be identified and accommodated. Such is not the case at the middle and lower regions of the population.