Hello!
Thanks for sharing.
Certainly hidden costs exist in every organization and it is a great management challenge!
In my opinion, all employees should be trained to identify and assist in the elimination of such costs and the best way to do so is to use the information generated by accounting, concomitant with the principles that guide good management: planning, organization, Direction and control.
Regards!
Dear Omar:
Thank you very much for your opinion although the hidden costs according to Savall and Zardet, 2006 come from malfunctions by which the company generates regulations. The costs of malfunctions, defined as the difference between the desired operation and the actual operation, are not identified in the company's information systems (budget, general and analytical accounting, driving board) (Savall and Zardet, 2006).
Regards!
Ana María
In identifying hidden costs associated the organization of work, What element that must be taken into account?
Hidden costs can be identified through reviewing the relevant business / organizational processes to identify & quantify any inefficiency, malfunction, wastage, malpractice, risk exposure etc. in $ value. Once all the hidden costs have been identified, quantified & prioritized, corrective actions need to be taken the soonest possible to take out / minimize these hidden costs. If the business / organization of work is new, then best practices / processes should be implemented i.e. doing the right things rather than doing the things right.
Dear Han Ping:
Very good reflection, thank you very much for this interesting contributions, Regards
One good aspects you may consider is Activity based costing(ABC) and literature sources. Also you could use Lean Management ideas if wastage reduction is important priority. Other relevant publications cited well are given
http://amr.aom.org/content/25/1/244.short
Article Uncovering the Hidden Costs of Offshoring: The Interplay of ...
Very timely your recommendation, thank you very much
regards
Hi Ana Maria,
If I understand and interprete your question correctly than you are looking for factors that influence the cost of compliance (behavior). Kenneth Merchant (1998) identifies some factors i.e. elements of variabels (if you like) that constitutes the direct and indirect control system costs. Indirect control system costs are hidden and can be categorized along the nature of the costs. Examples are operational delays due to segregation of duty controls, negative attitudes due to action controls, negative attitudes due to result controls, gamesmanship and datamanipuliation et cetera. These type of costs are hard to control.
Kind regards
Rob
I believe you are interested in organization of work, What element that must be taken into account? In the course of determining how to make an organization efficient and lean, we did perform a number of checks, including what elements that must be taken into accounts. To that regard, the following papers may be found useful for your study. Take a look....
Article On mapping tasks during product development
Article Model for optimizing performance based on reliability, life-...
Thank you very much for the paper. Right now I am working on an article on the hidden costs that are generated when there are problems of work organization associated with the man.
Best Regards
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