This Article is About
accounting department
company money
everyday work
controlling costs
best interest
business management
profits
making decisions
jobs
Control Your Companys
Join 1000's of Authors at StreetArticles Today!

There’s an old saying that says you have to spend money to make money, actually, there’s one additional requirement—you also have to spend it wisely.

Profits are made by creating value. It is people putting materials, equipment or service together to create products that are worth more than they cost to produce. If a consumer finds that their cost is not worth the value they are getting they won’t buy it. It’s a process that requires good value judgments and cost control up and down the line. Anyone who doesn’t do his or her best to contribute doesn’t realize what business management is all about.

Controlling costs requires a team effort. You, the manager have to instill a cost conscious attitude in each of your employees. You have to watch every dime spent, every move made, every item, used all the time. Now this might make your employees that they cannot take risks and of course we want our employees to think for themselves. If you are a cost conscious manager they will know that and when they make a purchasing decision it will be in the company’s best interest. When making decisions on spending think first “do I want it?” or “does the company need it?” When making the decision you have to think that it has to benefit the company you work for and the customer. It cannot benefit one and not the other. This is easy to say and hard to do. When people want to spend money for new equipment or a new program, it’s tempting to easily exaggerate the potential savings just to make the purchase. This is when you have to think “do we want it or do we need it?” It might be a newer piece of equipment but is it really going to save the company money?

Many employees don’t really see how their everyday work affects costs or profits. Their jobs may seem far removed, or they may feel their own effort doesn’t really matter. They may believe that costs are something handled in the accounting department.

The plain truth, of course is that whether a company is a high or low cost producer depends on everybody’s work. It’s a manager's responsibility to inform his people and educate them that big savings come from little savings multiplied over and over. They have to understand that your decision on spending not only considers the benefits but the benefits versus the cost.

People need to be cautioned not to make needless mistakes, waste materials, hoard supplies, or otherwise run up unnecessary expenses. Sometime you have to remind them that money doesn’t grow on trees and the company can’t just print it.

Some employees are careful by nature and others couldn’t care less. When you do job appraisals make sure to include cost savings measures in it.


Street Talk

No comments present
You May Also Like
Large Pharmaceutical Company Is Now Contracting Work At Home Professionals
A large pharmaceutical company has seating available in a Work At Home Webinar starting August 1, 2011 at 9am EDT. This is a customer service combo position offering telephone and email support. The course runs through August 26, 2011 and you must score 90% or better on the final evaluation.…
By: Chris Conway in  Home Based Business   Jul 15, 2011  
0
  Likes: 0

How to Do Well at Work
Many employees want to earn more money. By earning more, they can provide for their family. They can buy what they need. They can buy some of the things that they want. Finally, they can do some of the things that they want to do. There are several ways for…
By: Hollie E. Townsend in  Business  >  Career Advice   Aug 04, 2013  
2
  Likes: 2

Making Green Choices: Saving Green While Saving the Planet
Making a green choice whenever you shop is a lot easier than many people think. Not only are the ecological choices better for the planet, they are better for your family and sometimes for your wallet as well. You do not have to go out of your way to make…
By: Michael Bristol in  Self Improvement   Dec 08, 2010  
0
  Likes: 0

Manageartworks Viewer Capabilities – Part 4
Barcode Verification ManageArtworks recognises the following Barcode types: 1. 1D Barcodes a) Code39 b) EAN8 c) EAN13 d) Code128 e) UPCA f) UPCE g) RSSLimited h) Pharmacode i) MSI 2. 2D Barcodes a) QR b) MicroQR c) Aztec d) DataMatrix e) MaxiCode The system not only recognises the barcode, but…
By: Vilva Natarajan in  Business  >  Management   Jun 04, 2016  
0
  Likes: 0

Manageartworks Viewer Capabilities – Part 3
Checklist The system supports a checklist that can be used across all types of artworks. The checklist is managed and controlled by the admin user. The checklist is configured to include items that each reviewer needs to check and categorized by department, by component type, by category and by market.…
By: Vilva Natarajan in  Business  >  Management   Jun 04, 2016  
0
  Likes: 0

Team Building Activities for Small Teams
Just because you have a small team doesn’t mean that team building activities need not be necessary. Because small teams work so closely with each other, it means that they have to work harder to achieve synergy in order to effectively work with one another. We are listing down some…
By: Leatrice Rose in  Business  >  Management   May 30, 2016  
0
  Likes: 0

See Lean Live And Up Close; Lean Japan Factory Tours
Seeing believes and many have journeyed to Japan to see how the Lean Management System works in a real world environment.| Enna has been scheduling tours to Japan to study Lean methods and concepts for years, and some of the largest companies in the world have used their tours to…
By: John Robert1 in  Business  >  Management   May 30, 2016  
0
  Likes: 0

The Top Challenges Entrepreneurs Face And How to Overcome Them
As a group, entrepreneurs face common challenges. Fortunately, they also share personal traits that can help them overcome these challenges with skill and confidence. This is the consensus of Professor Ed Hess, who studied 54 entrepreneurial companies in 23 states across the country to write, Growing an Entrepreneurial Business: Concepts…
By: Jeff Evans1 in  Business  >  Management   May 28, 2016  
0
  Likes: 0

Leadership Qualities: How Consistent is Your Behavior?
A good leader can set the tone for an entire project, or even a whole business. Their behavior sets expectations and standards for the rest of the team. As a leader, maintaining awareness of your behavior and ensuring that it stays consistent helps to stabilize the work and goals of…
By: Jeff Evans1 in  Business  >  Management   May 28, 2016  
0
  Likes: 0

5 Steps To Better Relationships With Your Subordinates
How can you make your business team more productive? Today's employees aren't drones stuck in cubicles like a Dilbert cartoon. Your subordinates live in a social media world and expect personal engagement. Here are 5 ways to better relationships with your subordinates: Know Yourself The first step is to connect…
By: Jeff Evans1 in  Business  >  Management   May 28, 2016  
0
  Likes: 0

Manageartworks Viewer Capabilities – Part 2
Pan, Zoom & Rotate The PDF File can be rotated (clockwise and anti-clockwise, in multiples of 90 degrees). The viewer also has options to Zoom, Fit to Page and to Pan across the artwork. Measure Dimensions Carton and Label dimensions are critical information that needs to be done right before…
By: Vilva Natarajan in  Business  >  Management   May 28, 2016  
0
  Likes: 0

Manageartworks Viewer Capabilities – Part 1
ManageArtworks comes with a powerful HTML5 viewer that is integrated with the Workflow and Asset Library. The purpose of this viewer is to 1. View PDF Files on the browser without depending on Java, ActiveX or Flash components 2. Make online collaboration and reviewing quick and easy for all stakeholders…
By: Vilva Natarajan in  Business  >  Management   May 28, 2016  
0
  Likes: 0

Supreme Material Handling Products
Roto Moulded Products Supreme offers a range of Roto moulded Material Handling products, be it Crates, Pallets, Bins or for Garbage Handling Dust bins. Made in most technologically advanced setup at India’s largest Plastics Processing Unit. Supreme Roto moulded products offer- • Freedom from standard specifications. • Very heavy duty…
By: tirupati in  Business  >  Management   May 24, 2016  
0
  Likes: 0

Learning Management System for Lean & Kaizen - Improving the Effectiveness Of Lean Systems
Hundreds of businesses and organizations each year choose to implement a Lean Management system to help: Improve productivity and efficiency Eliminate waste of time, materials and effort Reduce costs Increase profits The Lean System is a series of methodologies, techniques and procedures that not only time tested by nearly half…
By: John Robert1 in  Business  >  Management   May 09, 2016  
0
  Likes: 0

Kaizen Management Coordination Online Courses Are Available From Uttana
One of the keys to keeping your Lean systems running smoothly is to be continually investing in your workforce by means of: Ongoing training courses: Uttana has a full list of training courses that can supplement and reinforce the training your staff has already had. Introducing new Lean Initiatives:No matter…
By: John Robert1 in  Business  >  Management   May 06, 2016  
0
  Likes: 0

Article Views: 1579    Report this Article