For the purpose of this assignment, I got a chance to interact with the Chief Financial Officer of Quality Companies. For the purpose of confidentiality, his name is replaced with Mr. A. The company operates in the financial services. As suggested by the mission of the company the company strives to be the leader so that It could be able to provide solutions to the transportation industry. It also works on it employee side by empowering its employees and business partners so that they could patronize the company in achieving its mission. Thus, by doing this the company aims to ensure that the success is continued and the high levels of excellence are achieved.
The manager completed his Master’s degree in 2004 from Tulane University. After that, he started his career in a private local company but unfortunately, the owners of the company had to sell it to a firm in New York. That caused him to switch his job. He joined Quality Companies in 2010 as a payroll specialist and five years later he became a CFO. His job description allowed him to interact all the departments and divisions in the company, however, he was mainly and directly responsible for the Cash Budgets.
A corporate culture of a company is the set of shared beliefs, values, attitudes and behavior patterns possessed by the members of an organization. Research studies such as (Guiso et, al. 2015) suggest that the culture of an organization represents that how the members of an organization communicate without saying anything. It is an unspoken code of communication. This notion of culture has also been ratified by Guiso et al (2015).
Moreover, the culture of the “Quality Companies” revolves around its values known as a partnership, innovation, and ambition. The ideology behind these values of the company lies in the way in which the companies define them. Firstly, the company perceives partnership as having a place where the employees shall work together and shall develop efficient and effective solutions for the customers. Secondly, by the value of innovation, the company recognizes the opportunities to promote the initiatives related to forward thinking within the industry. Finally, the value of ambition means that the company aims to empower its employees and partners so that they collectively can achieve the next level of success.
Further, the average employee of the company includes about 400 employees. The company has grown from one salesman model to this level throughout the country. While answering the question that being in responsible for the budget of the organization, how the manager decides which sort of budget is most effective for the company? The answer revealed that the quarterly budget was most suitable for the company. The manager was of the view that when you are dealing with such a commodity whose price contains a high rate of volatility and the price can change within few months then it is not suitable for the company to calculate annual budgets. Further, in a reply to a question that what are the considerations for planning a budget? the manager replied that the most important budget is of sales budget as all the other budgets derive from it. The sales budget is hugely affected by the situation in the economy and the situation in the stock market, commodity prices etc. Thus while planning this budget is mainly focused and the information regarding the expected sales is collected from all the departments. Also, the number of projected sales is dependent upon the size of the department. Other important areas for budget planning include accuracy, flexibility, and accountability. The manager emphasized these factors which in his opinion were most important for him.
Guiso, Luigi, Paola Sapienza, and Luigi Zingales. “The value of corporate culture.” Journal of Financial Economics 117.1 (2015): 60-76.