Escalante (2004) indicates that control acts in all areas and at all levels of the entity. Virtually all activities are under some form of control or monitoring. The main control areas in the company are: Production areas: If the company is industrial, the production area is the one where the products are manufactured; if the company were a service provider, the production area is the one where the services are provided; The main existing controls in the production area are the following:
Production control: The fundamental objective of this control is to program, coordinate and implement all the measures aimed at achieving optimum performance in the units produced, and to indicate the most suitable way, time and place to achieve production goals, thus complying with all the needs of the sales department.
internal-control-management-optima-institute-sea-peruQuality control: Correct any deviation from the quality standards of products or services, in each section (rejection control, inspections, among others). Cost control: Continuously verify production costs, either raw material or labor. Control of production times: By operator or by machinery; to eliminate waste of time or unnecessary waiting by applying time and motion studies. Inventory control: Of raw materials, parts and tools, products, both sub-assembled and finished, among others. Control of Productive operations: Setting routes, programs and supplies, among others. Waste control: Refers to the setting of its tolerable and desirable minimums. Maintenance and conservation control: times of machines stopped, costs,among others. Commercial area: It is the area of the company that is in charge of selling or marketing the products or services produced. Sales control: It tracks the daily, weekly, monthly and cancels the sales of the company by customer, seller, region, product or service, in order to point out failures or distortions in relation to the forecasts. They can be mentioned as main sales controls: By total volume of the same sales, By types of items sold, By seasonal sales volume, By the price of items sold, By customers, By territories, By sellers, By profits produced, By costs of the various types of sales, Advertising control: To accompany the advertising contracted by the company and verify its sales results. Costs control:To continuously verify the costs of sales, as well as the commissions of the sellers, the costs of advertising, among others. Financial area: It is the area of the company that is in charge of financial resources, such as capital, billing, payments, cash flow, among others. The main controls in the financial area are presented below: Budgetary control: It is the control of the forecasts of financial expenses, by department, to verify any deviations in expenses. Cost control: Global control of the costs incurred by the company, be they production, sales, administrative costs (including administrative expenses; salaries of the administration and management, rental of buildings, among others), financial costs such as interest and amortizations,external loans or financing, among others. Human resources area: It is the area that administers the personnel, the main controls that are applied are the following: Attendance controls and delays: It is the control of the checking clock or the file that verifies the delays of the personnel, the absences justified by medical reasons, and those not justified. Vacation control: It is the control that indicates when an official must enter vacation and for how many days. Control of wages: Verify wages, their readjustments or corrections, collective dismissals, among others.It is the control of the checking clock or of the file that verifies the delays of the personnel, the absences justified by medical reasons, and the not justified ones. Vacation control: It is the control that indicates when an official must enter vacation and for how many days. Control of wages: Verify wages, their readjustments or corrections, collective dismissals, among others.It is the control of the checking clock or of the file that verifies the delays of the personnel, the absences justified by medical reasons, and the not justified ones. Vacation control: It is the control that indicates when an official must enter vacation and for how many days. Control of wages: Verify wages, their readjustments or corrections, collective dismissals, among others.
Hernández (2003) argues that control has been defined under two broad perspectives, a limited perspective and a broad perspective. From a limited perspective, control is conceived as the ex-post verification of the results achieved in monitoring the objectives set and the cost control invested in the process carried out by the management levels where standardization in quantitative terms is a central part of control action. Under the broad perspective, control is conceived as an activity not only at the managerial level, but at all levels and members of the entity, guiding the organization towards the fulfillment of the objectives proposed under qualitative and quantitative measurement mechanisms.This approach emphasizes the social and cultural factors present in the institutional context since it starts from the principle that it is individual behavior itself that ultimately defines the effectiveness of the control methods chosen in management dynamics. All this leads us to believe that control is a mechanism that allows deviations to be corrected through qualitative and quantitative indicators within a broad social context, in order to achieve compliance with the key objectives for organizational success, that is, control is It is understood not as a purely technical monitoring process, but also as an informal process where cultural, organizational, human and group factors are evaluated. Control is an essential stage in administration, because although a company has magnificent plans,With an adequate organizational structure and efficient management, the executive will not be able to verify the real situation of the organization, and there is no mechanism to ensure and report whether the events are in accordance with the objectives. The concept of control is very general and can be used in the organizational context to assess overall performance against a strategic plan. The author presents the concept of control by various authors such as: Henry Farol: Control consists of verifying if everything happens in accordance with the adopted plan, with the instructions issued and with the established principles. Its purpose is to point out weaknesses and errors in order to rectify them and prevent them from occurring again. Robert B. Buchele: The process of measuring current results against plans,diagnosing the reason for the deviations and taking the necessary corrective measures. George R. Terry: The process to determine what is being carried out, assessment and, if necessary, applying corrective measures, so that the execution proceeds according to plan. Buró K. Scanlan: The control aims to make sure that the events go according to the established plans. Robert C. Appleby: The measurement and correction of subordinate accomplishments in order to ensure that both the company's goals and plans to achieve them are met economically and effectively. Robert Eckles, Ronald Carmichael and Bernard Sarchet: It is the regulation of activities, in accordance with a plan created to achieve certain objectives. Harold Koontz and Ciril O´Donell:It involves the measurement of what has been achieved in relation to the standard and the correction of deviations, to ensure that the objectives are achieved in accordance with the plan. Chiavenato: Control is an administrative function: it is the phase of the administrative process that measures and evaluates performance and takes corrective action when needed. In this way, control is essentially a regulatory process. The word control has many connotations and its meaning depends on the function or the area in which it is applied; It can be understood: As the administrative function that is part of the administrative process together with planning, organization and direction, and what precedes it. As the means of regulation used by an individual or company,as certain regulatory tasks that a controller applies in a company to accompany and endorse its performance and guide decisions. There are also cases in which the word control is used to design an automatic system that maintains a constant degree of flow or operation of the total system; This is the case of the control process of oil refineries or of chemical industries with continuous and automatic processing: the control mechanism detects any deviation from normal standards, making possible the proper regulation. As the restrictive function of a system to keep the participants within the desired patterns and avoid any deviation. This is the case of frequency control and personnel file to avoid possible abuse.There is a popular image according to which the word control is associated with a negative aspect, mainly when in organizations and in society it is interpreted in the sense of restriction, coercion, limitation, direction, reinforcement, manipulation and inhibition. The author indicates, there are also other connotations for the word control: Check or verify; Regular; Compare with a pattern; Exercise authority over someone (direct or command); Stop or prevent. Obviously all of these definitions represent incomplete conceptions of control, perhaps defined in a subjective and applicable way; In short, control should be understood as: An administrative function, since it is part of the administration process, which allows verifying, verifying, probing, measuring, if the activity, process, unit,selected element or system is fulfilling and / or achieving or not the expected results.
Romero (2004) accounts for the problems that previous, concurrent and subsequent internal control has; what does not facilitate the process of executing the management of State institutions. Then he indicates that one of the most obvious reasons for the importance of control is because even the best of plans can deviate. The control is used to: Create better quality: Process failures are detected and the process is corrected to eliminate errors. Facing change: This is an inescapable part of the environment of any organization. Markets change, competition around the world offers new products or services that capture the public's attention. Materials and new technologies emerge. Government regulations are approved or amended.The monitoring function serves managers to respond to threats or opportunities from all of this, because it helps them detect changes that are affecting the products and services of their organizations. Producing Faster Cycles: It is one thing to recognize consumer demand for improved design, quality, or lead time, and quite another to accelerate the cycles that involve developing and delivering those new products and services to customers.. Today's customers expect not only speed, but tailor-made products and services. Add Value: Fast cycle times are one way to gain competitive advantage. Another way, applied by the Japanese administration expert Kenichi Ohmae, is to add value.Trying to match all the movements of the competition can be very expensive and counterproductive. Instead, Ohmae cautions that an organization's primary goal should be to "add value" to its product or service, so that customers will buy it, preferring it over the consumer offering. Frequently, this added value takes the form of a quality above the measure achieved by applying control procedures. Facilitate delegation and teamwork: The contemporary trend towards participatory management also increases the need to delegate authority and to encourage employees to work together as a team. This does not lessen the ultimate responsibility of management. On the contrary, the nature of the control process changes. So,the control process allows the manager to control the progress of the employees, without hindering their creativity or participation in the work. On the basis of control, the author indicates, one could begin by defining what a base is. It would be enough to bring to our memory and look at the geometry class when they explained to us that a triangle is made up of two main elements: base and height. At that time it was enough to look at the bottom of the figure and realize that without that base, would the stability of the triangle be possible? It also works with organizational control and its foundations, we could say that control is based on the achievement of the following activities: Plan and organize, Do, Evaluate, Improve. The objectives are the programs that the company wants to achieve,those that will facilitate reaching the goal of this. What makes planning and organization necessary to determine what should be done and how. To do is to put into practice how the achievement of the objectives was planned and organized. From this doing, information is derived that provides details about what is being done, that is, it will clarify what the real facts are. This information must be clear, practical and updated when evaluating. By evaluating that it is nothing more than the interpretation and comparison of the information obtained with the objectives set, decisions can be made about what measures should be taken. The improvement is the implementation of the measures that will solve the deviations that make the system lose balance. Control is a cyclical and repetitive process.It is made up of four elements that follow one another: Establishment of standards: This is the first stage of control, which establishes the standards or criteria for evaluation or comparison. A standard is a norm or criterion that serves as the basis for the evaluation or comparison of something. There are four types of standards; which are presented below: Quantity standards: As production volume, stock quantity, raw material quantity, number of hours, among others. Quality standards: As received raw material control, production quality control, product specifications, among others. Time standards: As standard time to produce a certain product, average time of stock of a certain product, among others. Cost standards: As production costs,administration costs, sales costs, among others. Performance evaluation: It is the second stage of control, which aims to evaluate what is being done. Comparison of performance with the established standard: It is the third stage of the control, which compares the performance with what was established as the standard, to verify if there is deviation or variation, that is, some error or failure in relation to the expected performance. Corrective action: It is the fourth and last stage of control that seeks to correct performance to bring it up to the expected standard. Corrective action is always a measure of correction and adequacy of any deviation or variation in relation to the expected standard.Comparison of performance with the established standard: It is the third stage of the control, which compares the performance with what was established as the standard, to verify if there is deviation or variation, that is, some error or failure in relation to the expected performance. Corrective action: It is the fourth and last stage of control that seeks to correct performance to bring it up to the expected standard. Corrective action is always a measure of correction and adequacy of any deviation or variation in relation to the expected standard.Comparison of performance with the established standard: It is the third stage of the control, which compares the performance with what was established as the standard, to verify if there is deviation or variation, that is, some error or failure in relation to the expected performance. Corrective action: It is the fourth and last stage of control that seeks to correct performance to bring it up to the expected standard. Corrective action is always a measure of correction and adequacy of any deviation or variation in relation to the expected standard.It is the fourth and last stage of control that seeks to correct performance to bring it up to the expected standard. Corrective action is always a measure of correction and adequacy of any deviation or variation in relation to the expected standard.It is the fourth and last stage of control that seeks to correct performance to bring it up to the expected standard. Corrective action is always a measure of correction and adequacy of any deviation or variation in relation to the expected standard.
Campos (2003), points out that control is a systematic effort to establish performance standards with planning objectives, to design feedback systems, to compare actual results with previously established standards, to determine if there are deviations and to measure their importance, as well as to take those measures that are necessary to guarantee that all the company's resources are used in the most effective and efficient way possible to achieve the company's objectives. In it, control is divided into four steps which are: Establish standards and methods to measure performance: It represents an ideal plan, the goals and objectives that have been established in the planning process are defined in clear and measurable terms, which include specific deadlines.This is important for the following reasons: First; Vaguely defined goals, for example, "improve employee skills, these are hollow words, as long as managers don't start specifying what they mean by improving, what they intend to do to achieve those goals, and when. Second; accurately stated goals, such as “improving employee skills by conducting weekly seminars at our facilities during the months of February and March; they can be better measured, in terms of accuracy and utility, than hollow words. And finally; Measurable goals, stated accurately, can be easily communicated and translated into standards and methods that can be used to measure results.This ease of accurately communicating stated goals and objectives is of utmost importance to control, as some people often fill the planning roles, while others are assigned control roles. In service industries, standards and measures could include how long customers have to be in a bank, how long they have to wait before their phone is answered, or how many new customers a customer has attracted. renewed advertising campaign. In an industrial business, standards and measures could include sales and production goals, job attendance goals, produced and recycled waste products, and safety records. Measure results: In many ways this is the easiest step in the monitoring process; difficulties,presumably they have been overcome with the first two steps. Now, it is a matter of comparing the measured results with the previously established goals or criteria. If the results correspond to the standards, managers can assume that everything is under control. Take corrective action: This step is necessary if the results do not meet established levels (standards) and if the analysis indicates that action must be taken. Corrective measures may involve a change in one or more activities of the organization's operations. For example; The franchise owner-manager might see that he needs more employees at the counter to meet the five-minute wait standard for customers set by McDonald's. For their part, controls may reveal inadequate standards. Depending on the circumstances,corrective measures may involve a change to the original standards, rather than a change in activity. If managers do not monitor the control process to completion, they will only be monitoring performance, rather than control. The importance should always lie in finding constructive ways that allow the results to meet the parameters and not just in identifying past failures. Feedback: It is basic in the control process, since through the feedback, the information obtained adjusts to the administrative system over time. It will always be necessary to disclose the measurement results to certain members of the organization to solve the causes of the deviations.Results can be provided both to individuals whose performance is measured, to their bosses, or to other senior managers and staff members. Each decision will have its advantages and disadvantages and will depend on the type of problem you want to face. In any case, the information must be given in the most objective way possible. It loses effectiveness when they include feelings, personal assumptions, criticisms, interpretations, judgments, etc. It seems that when many people are involved in communicating the results, including staff or supervisors, and it is difficult to be neutral, the risk of conflict and defensive attitudes in the employees being monitored increases. The degree to which the system feeds back will depend on the quality of the information.
Liñan (2002) indicates that we must first distinguish the steps or stages of all control:
Establishment of the control means, Data collection operations, Interpretation and evaluation of the results, Use of the same results. The first and the last of these stages are essentially the administrator's own. The second is certainly the technician in control in question. The third is usually from the administrator, with the help of the technician. Among the innumerable variety of possible means of control in each group, we must choose those that can be considered strategic. On the other hand, it indicates that the control systems must reflect, as much as possible, the structure of the organization: The organization is the expression of the plans, and at the same time a means of control. Thus, when control systematically "breaks" the organization's channels, it distorts and disrupts it. For example:reports that workers, among others, are required to submit to accounting or other control department "directly", tend to distort the organization. Furthermore, the same controls lose efficacy. For example: many times the bare data is not useful, because it needs the interpretation or additions that the head of each department must make, who is the one who has the general vision of it. When establishing controls, their nature and that of the controlling function must be taken into account in order to apply the most useful one. To determine the nature of controls, the following classification of control means will serve: Purely personal, example: supervision, review of operations, among others. For what refers to the "nature of the controlling function", locate what refers to "the means of control".Controls must be flexible. When a control is not flexible, a problem that requires exceeding what was calculated in the forecast means that either it cannot function properly or it tends to abandon the control as useless. Many are against the use of controls, precisely because of their inflexibility. This is why using flexible budgets is so useful. Controls must quickly report deviations. Control of the "historical" type looks back. Hence, many times, when reporting a deviation or correction, it is already impossible to perform. Controls, by contrast, should be updated as much as possible. Therefore, the types of control that have a "pre-established" norm, even if it is approximate, should be preferred, for example: budgets, forecasts, estimates,etc. Controls should be clear to everyone who has some way to use them. Hence the need to limit "technicalities". Their exaggerated use is often the natural tendency of "specialists" as a means of "asserting their position." But the true way to achieve it, is obtaining the maximum effect of the control, and this will not occur, if all those who have to use it, do not understand it perfectly. For the same reason, care must be taken to constantly instruct those who are to intervene in its operation about the need for controls and their tactics and terminology. Controls should reach as high a level as possible at the high administrative levels, which must use them. Controls must themselves lead in some way to corrective action.They should not only say "that something is wrong", but "where, why, who is responsible, etc.". When using the data, a system must be followed. Its main steps will be: Analysis of the "facts". Interpretation of the same, Adoption of advisable measures, Their initiation, and close review, Record of the results obtained. It is essential not to confuse "the facts" with their evaluative interpretation. The control can be used for the following: Safety in the action followed (like the director of a ship that, although he does not have to change course, uses instruments to ensure that the course is correct); Correction of defects; Improvement of the obtained; New general planning; Personal motivation.When using the data, a system must be followed. Its main steps will be: Analysis of the "facts". Interpretation of the same, Adoption of advisable measures, Their initiation, and close review, Record of the results obtained. It is essential not to confuse "the facts" with their evaluative interpretation. The control can be used for the following: Safety in the action followed (like the director of a ship that, although he does not have to change course, uses instruments to ensure that the course is correct); Correction of defects; Improvement of the obtained; New general planning; Personal motivation.When using the data, a system must be followed. Its main steps will be: Analysis of the "facts". Interpretation of the same, Adoption of advisable measures, Their initiation, and close review, Record of the results obtained. It is essential not to confuse "the facts" with their evaluative interpretation. The control can be used for the following: Safety in the action followed (like the director of a ship that, although he does not have to change course, uses instruments to ensure that the course is correct); Correction of defects; Improvement of the obtained; New general planning; Personal motivation.It is essential not to confuse "the facts" with their evaluative interpretation. The control can be used for the following: Safety in the action followed (like the director of a ship that, although he does not have to change course, uses instruments to ensure that the course is correct); Correction of defects; Improvement of the obtained; New general planning; Personal motivation.It is essential not to confuse "the facts" with their evaluative interpretation. The control can be used for the following: Safety in the action followed (like the director of a ship that, although he does not have to change course, uses instruments to ensure that the course is correct); Correction of defects; Improvement of the obtained; New general planning; Personal motivation.
4.2. PROBLEM STATEMENT
Symptoms:
The following facts or situations have been determined when analyzing the object of the investigation:
- Lack of normative documents such as manual of policies, strategies, processes and operating procedures; and, institutional control. Lack of evaluations of efficiency, economy, effectiveness and transparency of institutional management. Poor operational, administrative, accounting and internal control procedures. Inadequate treatment of purchase and expense, sales and income transactions.
Causes:
The facts or situations produced by the existence of the aforementioned symptoms are the following:
- Disarticulated application of policies, strategies, processes, and procedures that do not facilitate institutional management in a planned and organized manner.. Presentation of financial, economic and patrimonial information incorrectly; leading to effective decision-making. Lack of planning of activities, organization of resources, effective decision-making, poor coordination between resources, activities and dependencies; and, lastly, the lack of internal control that facilitates management and is linked to the institutional objectives pursued.
Forecasts:
The situations that can occur if the aforementioned symptoms continue to occur are the following:
- The entity will not take advantage of the strengths and opportunities that allow it to meet its institutional goals, objectives and mission that are transcendent elements in the framework of optimal management. The problematic situation will not allow the existence of an environment of continuous improvement, innovation and institutional creativity. The entity will not have a favorable reference framework on which to base the decision-making process for institutional competitiveness. The entity will not be able to meet its objectives, such as conducting studies of the Peruvian sea, to determine the variability of the marine environment, the coastal outcrop and its main trends, as well as improving the forecasting and evaluation capacity of the El Niño phenomenon; assess the degree of alteration of physical characteristics,chemical and biological aspects of the coastal marine ecosystem due to industrial or urban pollution, determining the impact on hydrobiological resources and human health; study the pelagic, neritic and oceanic resources, demersal and coastal and marine invertebrates, to define their main biological-fishing and population characteristics, for the purposes of fisheries management; determine the biodiversity in representative areas of the main ecosystems and marine communities; as well as the detection of biological-fishing indicators; conduct research in fishing technology, gear and methods; as well as remote sensing to support the rational use of hydrobiological resources, considering the variability of the marine environment; carry out zonal investigations in the Coastal Laboratories,to improve observation and analysis capacity; as well as, the elaboration of the relational database; carry out research on aquaculture, marine and continental species of commercial interest; complete the expansion plan of the Coastal Laboratories with the construction and equipment of infrastructures; ensure that the IMARPE BICs meet optimal conditions for navigation, safety and fishing equipment, appropriate to our fisheries; disseminate research and participate in national and international forums related to marine science, resource management, quality of the marine environment and fishing technology; Optimize the rational use of human, material, financial and institutional resources, which allow providing the adequate and necessary support for the achievement of scientific objectives and goals.The entity will not be able to effectively fulfill the mission of conducting scientific and technological research, in a timely and quality manner, that contributes to the evaluation of fishery resources and their environment, for their rational management, promoting the conservation of their biodiversity, use sustainable natural resources and coastal zone management. Advise the Ministry of Production for the adoption of regulatory and preservation measures, acting in accordance with sectoral guidelines and existing natural conditions.sustainable use of natural resources and management of coastal areas. Advise the Ministry of Production for the adoption of regulatory and preservation measures, acting in accordance with sectoral guidelines and existing natural conditions.sustainable use of natural resources and management of coastal areas. Advise the Ministry of Production for the adoption of regulatory and preservation measures, acting in accordance with sectoral guidelines and existing natural conditions.
Prognosis control:
The actions by which it is possible to anticipate and control the identified situations are the following:
- It is necessary to have an effective internal control system, as a basis for proper planning, organization, direction, coordination and control of institutional management. It is necessary to evaluate the internal control system before, simultaneously and subsequently, to have information that allows Feedback on various aspects of institutional management It is necessary for those responsible for institutional management to use the information from the control system and make decisions on that basis, to ensure optimization. It is necessary to have tactical and strategic plans; institutional policies, strategies to specify short-term policies, tactics or actions and impact indicators,results and product that can be measured by the control system and provide valid information to achieve the optimization of institutional management.
MAIN PROBLEM:
| STRUCTURING THE MAIN PROBLEM | ||
| X. INDEPENDENT VARIABLE | Y. DEPENDENT VARIABLE | |
| Effective internal control | Optimal management of IMARPE. |
How effective internal control can facilitate the optimal management of the Institute of the Peruvian Sea?
SECONDARY PROBLEMS:
| STRUCTURE OF SECONDARY PROBLEMS | ||
| INDICATORS OF THE INDEPENDENT VARIABLE | INDICATORS OF THE DEPENDENT VARIABLE | |
| X.1. Development of internal control | Y.1. Institutional efficiency | |
| X.2. Internal control instruments | Y.2. Institutional effectiveness |
- How should the internal control process be developed, so that it contributes to institutional efficiency? What instruments of internal control should be applied to facilitate institutional effectiveness?
4.3. THEORETICAL FRAMEWORK
EFFECTIVE INTERNAL CONTROL:
According to the CGR (2007), the so-called "COSO REPORT" on internal control, published in the USA in 1992, emerged as a response to the concerns raised by the diversity of concepts, definitions and existing interpretations regarding the referred subject.. It reflects the results of the task carried out for more than five years by the working group created by the TREADWAY COMMISSION, NATIONAL COMMISSION ON FRAUDULENT FINANCIAL REPORTING in the United States in 1985 under the acronym COSO (COMMITTEE OF SPONSORING ORGANIZATIONS). The group was made up of representatives from the following organizations: American Accounting Association (AAA), American Institute of Certified Public Accountants (AICPA), Financial Executive Institute (FEI), Institute of Internal Auditors (IIA), Institute of Management Accountants (IMA).The report was drafted by Coopers & Lybrand. It was then a matter of materializing a fundamental objective: to define a new conceptual framework for internal control, capable of integrating the various definitions and concepts that had been used on this subject, thus achieving, at the level of public or private organizations, the audit internal or external, or at the academic or legislative levels, there is a common conceptual framework, an integrating vision that meets the general demands of all the sectors involved. Internal Control is a process integrated into the processes, and not a set of mechanisms added to them, carried out by the board of directors, the management and the rest of the staff of an entity,designed with the objective of providing a reasonable guarantee for the achievement of objectives included in the following categories: Efficiency and effectiveness of operations; Reliability of the financial information; Compliance with laws, regulations and policies. Some fundamental concepts complete the definition: Internal control is a process, that is, a means to achieve an end and not an end in itself; It is carried out by people who act at all levels, it is not just about organization manuals and procedures; it can only bring a reasonable degree of safety, not total safety, to driving; It is designed to facilitate the achievement of objectives in one or more of the indicated categories, which, at the same time, usually have points in common. When talking about internal control as a process,Reference is made to a chain of actions extended to all activities, inherent in management and integrated into the other basic processes of the same: planning, execution and supervision. Such actions are incorporated (not added) to the entity's infrastructure, to influence the fulfillment of its objectives and support its quality initiatives.
According to the Internal Control Standards Commission of the International Organization of Supreme Audit Institutions (INTOSAI), internal control can be defined as the organization plan, and the set of plans, methods, procedures and other measures of an institution, aimed at offer a reasonable guarantee that the following main objectives are met: i) Promote methodical, economic, efficient and effective operations, as well as products and services of the expected quality; ii) Preserve the assets from losses due to waste, abuse, mismanagement, errors, fraud or irregularities; iii) Respect the laws and regulations, as well as the directives and at the same time stimulate the adherence of the members of the organization to its policies and objectives;iv) Obtain complete and reliable financial and management data presented through timely reports. For senior management it is essential to achieve the best results with economy of effort and resources, that is, at the lowest possible cost. For this, it must be controlled that its decisions are adequately fulfilled, in the sense that the actions carried out correspond to those, within a basic scheme that allows the initiative and contemplates the current circumstances at all times. Therefore, following the INTOSAI guidelines, the higher authority bears the responsibility for establishing a suitable and efficient internal control structure, as well as its periodic review and updating.For senior management it is essential to achieve the best results with economy of effort and resources, that is, at the lowest possible cost. For this, it must be controlled that its decisions are adequately fulfilled, in the sense that the actions carried out correspond to those, within a basic scheme that allows the initiative and contemplates the current circumstances at all times. Therefore, following the INTOSAI guidelines, the higher authority bears the responsibility for establishing a suitable and efficient internal control structure, as well as its periodic review and updating.For senior management it is essential to achieve the best results with economy of effort and resources, that is, at the lowest possible cost. For this, it must be controlled that its decisions are adequately fulfilled, in the sense that the actions carried out correspond to those, within a basic scheme that allows the initiative and contemplates the current circumstances at all times. Therefore, following the INTOSAI guidelines, the higher authority bears the responsibility for establishing a suitable and efficient internal control structure, as well as its periodic review and updating.in the sense that the actions executed correspond to those, within a basic scheme that allows the initiative and contemplates the current circumstances at all times. Therefore, following the INTOSAI guidelines, the higher authority bears the responsibility for establishing a suitable and efficient internal control structure, as well as its periodic review and updating.in the sense that the actions executed correspond to those, within a basic scheme that allows the initiative and contemplates the current circumstances at all times. Therefore, following the INTOSAI guidelines, the higher authority bears the responsibility for establishing a suitable and efficient internal control structure, as well as its periodic review and updating.
Both definitions (COSO and INTOSAI) complement each other and make up a broad version of internal control: the first emphasizing its nature as a process consisting of a chain of actions integrated into management, and the second fundamentally addressing its objectives.
Interpreting the Instituto Auditores Internos de España- Coopers & Lybrand, SA. (1997), the integrated control framework proposed by the COSO report consists of five interrelated components, derived from the management style, and integrated into the management process: Control environment; Risks evaluation; Control activities; Information and communication; Supervision. The control environment reflects the ethical spirit in force in an entity regarding the behavior of agents, the responsibility with which they face their activities, and the importance they assign to internal control. It serves as the basis for the other components, since it is within the prevailing environment that risks are evaluated and control activities aimed at neutralizing them are defined.Simultaneously, the relevant information is captured and the pertinent communications are made, within a supervised and corrected process according to the circumstances. The model reflects the dynamism of internal control systems. Thus, risk assessment not only influences control activities, but can also highlight the desirability of reconsidering the management of information and communication. It is not a serial process, in which one component affects exclusively the next, but is multi-directional interactive in that any component can influence, and in fact does, any other. There is also a direct relationship between the objectives (Efficiency of operations,reliability of the information and compliance with laws and regulations) and the five referenced components, which is permanently manifested in the field of management: the operating units and each agent of the organization sequentially form a scheme oriented to the results sought, and the matrix constituted by this scheme is in turn crossed by the components.
Analyzing the Institute of Internal Auditors of Peru. (2001), throughout our lives we are involved in a series of organizations, whether formal or informal, whose purpose is to achieve a common goal, through various established plans and through the resources that we possess. It is at this moment that the sense of administration is born, that is, that process carried out by the members of an organization to achieve its objectives. Administration in a formal sense is one that is carried out in a company. It has four specific functions that are: planning, organization, direction and control;These in groups are known as the administrative process and can be defined as the various functions that must be performed in order to achieve the objectives with the optimal use of resources. This process is carried out as follows: As you can see, these four functions are not independent of each other, but interact together to achieve that the organizations achieve their goals. Control is the administrative function by which performance is evaluated.
For Terry (1995), control can be defined as "the process of regulating activities that ensure that they are being carried out as planned and correcting any significant deviation". "Administrative control is the process that ensures that actual activities are in line with projected activities." While for Fayol, control «consists of verifying if everything is done according to the adopted program, the orders given and the administrative principles. Its purpose is to point out the faults and errors so that they can be repaired and their repetition avoided ». Analyzing all the aforementioned definitions, we note that control has certain elements that are basic or essential: First, a process of supervision of the activities carried out must be carried out; Secondly,There must be established standards or patterns to determine possible deviations from the results; in a third place, the control allows the correction of errors, of possible deviations in the results or in the activities carried out; And lastly, through the control process, the activities and objectives to be carried out must be planned, after having made the necessary corrections. In conclusion, we can define control as the function that allows the supervision and comparison of the results obtained against the originally expected results, also ensuring that the directed action is being carried out in accordance with the organization's plans and within the limits of the organizational structure.in a third place, the control allows the correction of errors, of possible deviations in the results or in the activities carried out; And lastly, through the control process, the activities and objectives to be carried out must be planned, after having made the necessary corrections. In conclusion, we can define control as the function that allows the supervision and comparison of the results obtained against the originally expected results, also ensuring that the directed action is being carried out in accordance with the organization's plans and within the limits of the organizational structure.in a third place, the control allows the correction of errors, of possible deviations in the results or in the activities carried out; And lastly, through the control process, the activities and objectives to be carried out must be planned, after having made the necessary corrections. In conclusion, we can define control as the function that allows the supervision and comparison of the results obtained against the originally expected results, also ensuring that the directed action is being carried out in accordance with the organization's plans and within the limits of the organizational structure.Through the control process, the activities and objectives to be carried out must be planned, after having made the necessary corrections. In conclusion, we can define control as the function that allows the supervision and comparison of the results obtained against the originally expected results, also ensuring that the directed action is being carried out in accordance with the organization's plans and within the limits of the organizational structure.Through the control process, the activities and objectives to be carried out must be planned, after having made the necessary corrections. In conclusion, we can define control as the function that allows the supervision and comparison of the results obtained against the originally expected results, also ensuring that the directed action is being carried out in accordance with the organization's plans and within the limits of the organizational structure.also ensuring that the directed action is being carried out in accordance with the organization's plans and within the limits of the organizational structure.also ensuring that the directed action is being carried out in accordance with the organization's plans and within the limits of the organizational structure.
Koontz / O'Donnell (1990), control focuses on evaluating and correcting the performance of subordinate activities to ensure that the organization's objectives and plans are being carried out. From this it can be deduced the great importance that control has, since it is only through this function that we will be able to determine if what has been done is in accordance with what was planned and if there are deviations, identify those responsible and correct these errors. However, it should be remembered that there should not only be ex-post control, but that, like the approach, it must be, at least in part, a forecasting task. In this case, the past can be studied to determine what has happened and why the standards have not been reached;In this way the necessary measures can be adopted so that in the future the mistakes of the past are not made. Furthermore, with control being the last of the administrative process functions, it closes the system cycle by providing feedback regarding significant deviations from planned performance. Feedback of relevant information from the control function can affect the planning process.
Terry (1995), exposes that there are three types of control that are: preliminary control, concurrent control and feedback control. Preliminary control, this type of control takes place before operations begin and includes the creation of policies, procedures, and rules designed to ensure that planned activities will be properly executed. Instead of waiting for the results and comparing them with the objectives, it is possible to exert a controlling influence by limiting the activities in advance. They are desirable because they allow management to avoid problems rather than having to correct them later, but unfortunately this type of control requires time and accurate and timely information that is often difficult to develop. For example,A sales manager of a certain store may have the policy that any change in the price, with respect to the published prices, must be authorized in writing by the manager, that is, no field salesperson is allowed to alter any price. With this it can be seen that the sales manager keeps a control in his department through the existing policies, whose employees must comply for its greater operation. Concurrent control, this type of control takes place during the action phase of executing plans and includes directing, monitoring and synchronizing activities as they occur, in other words, they can help ensure that the plan will be carried out in the specific time and under the required conditions.The best known form of concurrent control is direct supervision. When an administrator directly monitors an employee's actions, the administrator can concurrently verify the employee's activities and correct any problems that may arise. For example, most computers are programmed to provide operators with immediate responses if errors occur. If you enter a wrong command, the program's controls reject the command and can still tell you why it is the error. Feedback control, this type of control focuses on the use of information from previous results to correct possible future deviations from the acceptable standard. Feedback control implies that some data has been collected,The results have been analyzed and returned to someone or something in the process being controlled so that corrections can be made. The main drawback of this type of control is that by the time the administrator has the information, the damage has already been done, that is, it is carried out after the action. For example, you have a company that has 3 branches distributed throughout the country: Branch A, Branch B and Branch C. The general manager has detected that branch A has serious financial problems, while its other two branches are operating correctly. It is here when the manager must decide if this information is sufficient cause to close said branch or should change the strategies they have been implementing.
Hevia (2008), government control consists of the supervision, surveillance and verification of the acts and results of public management, in attention to the degree of efficiency, effectiveness, transparency and economy in the use and destination of State resources and assets, as well as compliance with legal regulations and policy guidelines and action plans, evaluating the administration, management and control systems, with the aim of improving them through the adoption of pertinent preventive and corrective actions. Government control is internal and external and its development constitutes a comprehensive and permanent process. Internal control includes simultaneous prior precautionary actions and subsequent verification carried out by the entity subject to control, in order to manage its resources,goods and operations are carried out correctly and efficiently. Its exercise is prior, simultaneous and subsequent. The prior and simultaneous internal control is the exclusive responsibility of the authorities, officials and public servants of the entities as their own responsibility for the functions that are inherent to it, based on the rules that govern the activities of the organization and the procedures established in their plans., regulations, manuals and institutional provisions, which contain the policies and methods of authorization, registration, verification, evaluation, security and protection. Subsequent internal control is exercised by the senior managers of the server or executing official, depending on compliance with the established provisions,as well as by the institutional control body according to its annual plans and programs, evaluating and verifying the administrative aspects of the use of State resources and assets, as well as the management and execution carried out, in relation to the goals set and the results obtained.. It is the responsibility of the Head of the entity to promote and supervise the operation and reliability of internal control for the evaluation of management and the effective exercise of accountability, aiming for it to contribute to the achievement of the entity's mission and objectives. office. The Head of the entity is obliged to define the institutional policies in the annual plans and / or programs that are formulated, which will be subject to the verifications referred to in this Law. External control is understood as the set of policies,norms, methods and technical procedures, which are applicable to the Office of the Comptroller General or another organ of the System by request or designation of this, in order to supervise, monitor and verify the management, acquisition and use of State resources and assets. It is fundamentally carried out by means of selective and subsequent control actions. In accordance with its supervisory and surveillance roles, external control may be preventive or simultaneous, when it is determined exhaustively by this Law or by express regulations, without in any case entailing interference in the management and direction processes in charge of the administration of the entity, or interference in the corresponding subsequent control. For its exercise, systems of control of legality, management, financial, results will be applied,internal control evaluation or others that are useful depending on the characteristics of the entity and the matter of control, and can be carried out individually or in combination. Likewise, inspections and verifications may be carried out, as well as the procedures, studies and investigations necessary for control purposes.
OPTIMAL MANAGEMENT OF THE INSTITUTE OF THE SEA OF PERU:
Analyzing Johnson & Scholes (1999), the supporters of the school of the administrative process consider optimal management as an activity composed of certain sub-activities that constitute the single administrative process. This administrative process formed by 4 fundamental functions, planning, organization, execution and control. A summary expression of these fundamental functions of institutional management: Planning to determine the objectives in the courses of action to be followed. The organization to distribute the work among the members of the group and to establish and recognize the necessary relationships. Execution by group members to carry out prescribed tasks with will and enthusiasm. The control of the activities so that they conform to the plans. In actual practice,the 4 fundamental functions of administration are interwoven and interrelated, the performance of one function does not completely cease (end) before the next one begins. And usually it doesn't run in a particular sequence, but as the situation seems to require. When establishing a new company, the order of functions will perhaps be as indicated in the process, but in a going concern, the manager may take over the control at any given time and then execute and then plan. The sequence must be appropriate to the specific objective. Typically the manager has been involved in many goals and will be at different stages in each. For the non-manager this may give the impression of deficiency or lack of order.While in reality the manager may be acting with all purpose and strength. Eventually more emphasis is generally placed on certain functions more than others, depending on the individual situation. Just as some functions need support and run before others can be put into action. Effective execution requires that people have been assigned activities or have carried out their own in accordance with the general plans and objectives, just as control cannot be exercised in a vacuum; there must be something to control. In reality, planning is involved in the work of organizing, executing, and controlling. Similarly, the elements of organizing are used in planning, executing and controlling effectively.Each fundamental management function affects the others and all are related to form the institutional management process.
Analyzing Koontz / O'Donnell (1990), optimal management is the process of planning, organizing, directing and controlling the activities of the members of the organization and the use of all other organizational resources, in order to achieve the goals. established for the organization. A process is a systematic way of doing things. Institutional management is spoken of as a process to underline the fact that all managers, whatever their personal aptitudes or abilities, perform certain interrelated activities in order to achieve the goals they desire.
PLANNING: Analyzing Koontz / O'Donnell (1990), planning implies that managers think ahead about their goals and actions, and that they base their actions on some method, plan or logic, and not on hunches. Planning requires defining the objectives or goals of the organization, establishing a general strategy to achieve those goals and developing a complete hierarchy of Plans to coordinate activities. It is concerned with both ends (what should be done?) And means (how should it be done?). Planning defines a direction, the impact of change is reduced, waste is minimized, and the criteria used to control are established. It gives direction to the managers and to the whole organization. When employees know where the organization is going and what they must contribute to achieve that goal,They can coordinate their activities, cooperate with each other and work in teams. Without planning, departments could be working toward mixed purposes and prevent the organization from moving toward its goals efficiently. The plans present the objectives of the organization and establish the suitable procedures to achieve them. They are also a guide for the organization to obtain and dedicate the resources required to achieve its objectives; for the members to carry out the activities according to the chosen objectives and procedures; for progress in achieving the objectives be monitored and measured, to impose corrective measures if unsatisfactory. The first step in planning is to select the goals of the organization.Goals are then set for each of the organization's subunits. Once these are defined, programs are established to achieve the goals in a systematic way. Relationships and time are central to planning activities. Planning produces an image of desirable future circumstances, given currently available resources, past experiences, etc. Plans prepared by top management, which bear the responsibility of the entire organization, can span terms of between five and ten years.given the currently available resources, past experiences, etc. Plans prepared by top management, which bear the responsibility of the entire organization, can span terms of between five and ten years.given the currently available resources, past experiences, etc. Plans prepared by top management, which bear the responsibility of the entire organization, can span terms of between five and ten years.
ORGANIZATION. Analyzing Koontz / O'Donnell (1990), the meaning of this concept comes from the use that is given in our language to the word «organism». This necessarily implies: a) Parts and diverse functions: no organism has identical parts, nor of the same functioning; b) Functional unit: those diverse, yet have a common or identical purpose; c) Coordination: precisely to achieve this end, each one sets a different action, but complementary to the others: they work in view of the common end and help the others to build and order themselves according to a specific theology. In good account Organization is the technical structuring of the relationships that must exist between the functions, levels and activities of the material and human elements of a social organism,in order to achieve maximum efficiency within the stated plans and objectives. Organizing is the process of ordering and distributing work, authority, and resources among the members of an organization, so that they can achieve the goals of the organization. Different goals require different structures to achieve them. Managers must adapt the organization's structure to their goals and resources, a process known as organizational design. The organization produces the structure of an organization's relationships, and these structured relationships will serve to carry out future plans. The organization refers to structuring perhaps the most typical part of the elements that correspond to administrative mechanics. For the same reason, it refers to “what the functions, hierarchies and activities should be like.For the same reason, it always refers to functions, levels or activities that "are about to be structured", more or less remotely: go to the future, immediate or remote. The organization tells us specifically how and who is going to do each thing, in the sense of what position and not which person. The organization, being a final element of the theoretical aspect, completely gathers and reaches down to its last details everything that the planning has indicated regarding how a company should be. The importance of the organization is so great that on some occasions they have made many authors lose sight of the fact that it is but a part of the administration, leading to its being contrasted with the latter, as if the former represented the theoretical and scientific, and the second is practical and empirical. This is inadequate, for all that we have seen before.it always refers to functions, levels or activities that "are about to be structured", more or less remotely: go to the future, immediate or remote. The organization tells us specifically how and who is going to do each thing, in the sense of what position and not which person. The organization, being a final element of the theoretical aspect, completely gathers and reaches down to its last details everything that the planning has indicated regarding how a company should be. The importance of the organization is so great that on some occasions they have made many authors lose sight of the fact that it is but a part of the administration, leading to its being contrasted with the latter, as if the former represented the theoretical and scientific, and the second is practical and empirical. This is inadequate, for all that we have seen before.it always refers to functions, levels or activities that "are about to be structured", more or less remotely: go to the future, immediate or remote. The organization tells us specifically how and who is going to do each thing, in the sense of what position and not which person. The organization, being a final element of the theoretical aspect, completely gathers and reaches down to its last details everything that the planning has indicated regarding how a company should be. The importance of the organization is so great that on some occasions they have made many authors lose sight of the fact that it is but a part of the administration, leading to its being contrasted with the latter, as if the former represented the theoretical and scientific, and the second is practical and empirical. This is inadequate, for all that we have seen before.levels or activities that "are about to be structured", more or less remotely: go to the future, immediate or remote. The organization tells us specifically how and who is going to do each thing, in the sense of what position and not which person. The organization, being a final element of the theoretical aspect, completely gathers and reaches down to its last details everything that the planning has indicated regarding how a company should be. The importance of the organization is so great that on some occasions they have made many authors lose sight of the fact that it is but a part of the administration, leading to its being contrasted with the latter, as if the former represented the theoretical and scientific, and the second is practical and empirical. This is inadequate, for all that we have seen before.levels or activities that "are about to be structured", more or less remotely: go to the future, immediate or remote. The organization tells us specifically how and who is going to do each thing, in the sense of what position and not which person. The organization, being a final element of the theoretical aspect, completely gathers and reaches down to its last details everything that the planning has indicated regarding how a company should be. The importance of the organization is so great that on some occasions they have made many authors lose sight of the fact that it is but a part of the administration, leading to its being contrasted with the latter, as if the former represented the theoretical and scientific, and the second is practical and empirical. This is inadequate, for all that we have seen before.immediate or remote. The organization tells us specifically how and who is going to do each thing, in the sense of what position and not which person. The organization, being a final element of the theoretical aspect, completely gathers and reaches down to its last details everything that the planning has indicated regarding how a company should be. The importance of the organization is so great that on some occasions they have made many authors lose sight of the fact that it is but a part of the administration, leading to its being contrasted with the latter, as if the former represented the theoretical and scientific, and the second is practical and empirical. This is inadequate, for all that we have seen before.immediate or remote. The organization tells us specifically how and who is going to do each thing, in the sense of what position and not which person. The organization, being a final element of the theoretical aspect, completely gathers and reaches down to its last details everything that the planning has indicated regarding how a company should be. The importance of the organization is so great that on some occasions they have made many authors lose sight of the fact that it is but a part of the administration, leading to its being contrasted with the latter, as if the former represented the theoretical and scientific, and the second is practical and empirical. This is inadequate, for all that we have seen before.As it is a final element of the theoretical aspect, it completely gathers and goes down to its last details everything that planning has indicated regarding how a company should be. The importance of the organization is so great that on some occasions they have made many authors lose sight of the fact that it is but a part of the administration, leading to its being contrasted with the latter, as if the former represented the theoretical and scientific, and the second is practical and empirical. This is inadequate, for all that we have seen before.As it is a final element of the theoretical aspect, it completely gathers and goes down to its last details everything that planning has indicated regarding how a company should be. The importance of the organization is so great that on some occasions they have made many authors lose sight of the fact that it is but a part of the administration, leading to its being contrasted with the latter, as if the former represented the theoretical and scientific, and the second is practical and empirical. This is inadequate, for all that we have seen before.that on some occasions they have made many authors lose sight of the fact that it is but a part of the administration, leading to their being contrasted with the latter, as if the former represented the theoretical and scientific, and the latter the practical and empirical. This is inadequate, for all that we have seen before.that on some occasions they have made many authors lose sight of the fact that it is but a part of the administration, leading to their being contrasted with the latter, as if the former represented the theoretical and scientific, and the latter the practical and empirical. This is inadequate, for all that we have seen before.
DIRECTION. According to Terry, GR (1995), it is the element of management in which the effective accomplishment of the planned is achieved, through the authority of the administrator, exercised on the basis of decisions. This is to obtain the results that have been foreseen and planned. There are two strata to obtain these results: a) At the level of execution (workers, employees, and even technicians), it is a matter of "executing", "carrying out", those activities that must be productive; b) At the administrative level, that is, at the level of everyone who is the boss, and precisely as he is, it is about "directing" not "executing". The boss as such does not execute but makes others execute. However, they have their "own doing". This consists precisely of directing. Leading implies commanding,influence and motivate employees to perform essential tasks. Management gets to the bottom of managers' relationships with each of the people who work with them. Managers lead by trying to convince others to join them in achieving the future that emerges from the steps of planning and organizing. Managers by setting the right environment, help their employees do their best.
CONTROL. Analyzing Santillana (2007), it can be defined as the process of monitoring activities that ensure that they are being carried out as planned and correcting any significant deviation. All managers must participate in the control function, even when their units are performing as planned. Managers cannot really know whether their units are operating properly until they have evaluated what activities have been performed and compared actual performance with the desired standard. An effective control system ensures that activities are completed in a way that leads to the achievement of the organization's goals. The criterion that determines the effectiveness of a control system is how well it facilitates the achievement of goals. The more you help managers achieve their organization's goals,the better the control system. The manager must be sure that the actions of the members of the organization lead her towards the established goals. This is the control function and consists of three essential elements: 1. Establish performance standards; 2. Measure present performance results and compare them to performance standards; 3. Take corrective action when standards are not met. Control is important, because it is the final link in the functional chain of administration activities. It is the only way managers know whether or not organizational goals are being met and why or why not. This process allows the organization to go on the right track without allowing it to deviate from its goals. Standards and guidelines are used as a means of controlling employee actions,But setting standards is also an inherent part of the process. And the corrective measures suppose an adjustment in the plans. In practice, the administrative process does not include the aforementioned isolated elements, but a group of interrelated functions.
INSTITUTIONAL EFFICIENCY: According to Argandoña (2008), efficiency is the positive result after adequate rationalization of resources, in accordance with the purpose sought by those responsible for management.
According to the MAGU, efficiency refers to the relationship between the goods or services produced or delivered and the resources used for that purpose (productivity), compared to an established performance standard. Entities can guarantee their permanence in the market if they strive to carry out efficient business management, customer-oriented and with a sustained level of quality in the products and / or services it provides. Efficiency can be measured in terms of results divided by total costs and it is possible to say that efficiency has grown a certain percentage (%) per year. This measure of cost efficiency can also be inverted (total cost relative to the number of products) to obtain the unit cost of production.This ratio shows the production cost of each product. In the same way, the time (calculated, for example, in terms of man hours) that it takes to produce a product (the inverse of work efficiency) is a common measure of efficiency. Efficiency is the relationship between results in terms of goods, services and other results and the resources used to produce them. Empirically, there are two important measures: i) Cost efficiency, where results are related to costs, and, ii) work efficiency, where achievements refer to a key production factor: the number of workers. If an auditor intends to measure efficiency, he should begin the audit by analyzing the entity's main types of results / outputs.The auditor could also analyze the results by finding out if the combination of results achieved is reasonable or by verifying the quality of the results. When we use an efficiency approach for this purpose, the auditor should assess, when analyzing how the program has been executed, how well the company has handled the situation. This means studying the audited company to check how the work has been organized. Efficiency refers to the relationship between the services provided or delivered by the entities and the resources used for that purpose (productivity), compared to an established performance standard. Efficiency is the relationship between costs and benefits focused on finding the best way to do or execute tasks (methods), so that resources (people, vehicles,miscellaneous supplies and others) are used in the most rational way possible. Rationality implies adapting the means used to the ends and objectives that are to be achieved, this means efficiency, which leads to the conclusion that companies will be rational if the most efficient means are chosen to achieve the desired objectives, taking into account that the objectives considered are organizational and not individual. Rationality is achieved through rules and regulations that govern the behavior of the components in search of efficiency. Efficiency seeks to use the most adequate and properly planned and organized means, methods and procedures to ensure optimal use of available resources. Efficiency is not concerned with ends, as efficiency is, if not with means. Efficiency,it can be measured by the amount of resources used in the provision of services. Efficiency increases as costs and resources used decrease. It is related to the use of resources to obtain a good or objective.
INSTITUTIONAL ECONOMY:According to the Comptroller General of the Republic. (1998), the economy in the use of resources, is related to the terms and conditions under which the entity acquires resources, be they financial, human, physical or technological (computerized), obtaining the required amount, at the reasonable level of quality, at the appropriate time and place and at the lowest possible cost. If the auditor focuses on economics, it will be important to define expenses correctly. This is often a problem. Sometimes it would be possible to introduce approximations of the actual costs, for example defining the costs in terms of number of employees, quantity of inputs used, maintenance costs, etc. On the other hand, within the framework of the economy, the following elements must be analyzed: cost, profit and volume of operations.These elements represent instruments in the planning, management and control of operations to achieve the integral development of the institution and decision-making regarding the product, prices, determination of benefits, distribution, alternatives to manufacture or acquire inputs, production methods., capital investments, etc. It is the basis for establishing the company's variable budget. The economic treatment of operations provide useful guidance for profit planning, cost control, and administrative decision-making should not be considered as a precision instrument since the data is based on certain assumed conditions that limit the results. The economics of operations is developed under the assumption that the concept of cost variability (fixed and variable),it is valid and these components can be identified, including the semi-variable costs; The latter through technical procedures that require a special analysis of historical income and cost data for various successive periods, in order to determine fixed and variable costs.
TRANSPARENCY:According to the Comptroller General of the Republic. (1998), transparency means the duty of the authorities to carry out their actions publicly, as a mechanism for controlling power and democratic legitimacy of public institutions. Transparency means letting light easily pass, in government terms, transparency is a quality that allows the adequate and sufficient flow of information and could be considered an antidote to curb corruption, to counteract any type of suspicion or suspicion of a certain dependency. or public body. Transparency is an environment of trust, security and openness between the government and society, in such a way that responsibilities, procedures and rules are established,they perform and report clearly and are open to public participation and scrutiny. Transparency is also a sensitive, responsible and participatory citizenry that, in the knowledge of its rights and obligations, collaborates in promoting integrity and fighting corruption.
INSTITUTIONAL EFFECTIVENESS: According to the Editorial Oceano (2005), the efficacy or effectiveness refers to the degree to which the entity achieves its objectives and goals or other benefits that it intended to achieve, provided for in legislation or set by the Board of Directors. If an auditor focuses on effectiveness, he or she should begin by identifying the goals of the entity's programs and by operationalizing the goals to measure effectiveness.
OPTIMAL MANAGEMENT. Koontz / O'Donnell (1990), optimal management is related to the fulfillment of the actions, policies, goals, objectives, mission and vision of the company; as established by modern business management. Optimal management is the process undertaken by one or more people to coordinate the work activities of other people in order to achieve high-quality results that one person could not achieve on their own. Competitiveness comes into play in this framework, which is defined as the extent to which a company, under free market conditions, is capable of producing goods and services that pass the market test, while maintaining or expanding real income from your employees and partners. Quality is also conceived in this framework,which is the totality of the features and characteristics of a product or service that refer to its ability to satisfy expressed or implicit needs. Optimal management is the set of actions that allow you to obtain the maximum performance from the activities carried out by the entity. Optimal management, which means that the members of an entity work together with greater productivity, that they enjoy their work, that they develop their skills and abilities and that they are good representatives of the company, presents a great challenge for its managers.is to make the members of an entity work together with greater productivity, to enjoy their work, to develop their skills and abilities and to be good representatives of the company, it presents a great challenge for its managers.is to make the members of an entity work together with greater productivity, to enjoy their work, to develop their skills and abilities and to be good representatives of the company, it presents a great challenge for its managers.When a management reaches the standard below, it can be considered optimal.Management can be considered optimal if: i) The entity's operational objectives are being achieved; ii) They have adequate information to the point of achieving the entity's operational objectives; iii) If the administrative, financial, economic, labor, patrimonial and other information of the entity is reliably prepared; and, iv) If the applicable laws and regulations are complied with. While institutional management is a process, its optimization is a state or condition of the process at a given moment, the same that when exceeding the established standards it facilitates achieving optimization. The determination of whether a management is optimal or not and its influence on the institution, constitutes a subjective stance that results from the analysis of whether the five components of Internal Control are present and operating effectively:control environment, risk assessment, control activities, information and communication and supervision. The effective operation of management and control provides a reasonable degree of assurance that one or more of the stated goal categories will be met. When those responsible for management are concerned with doing things correctly, they are going for efficiency (adequate use of available resources) and when they use instruments to evaluate the achievement of results, to verify things well done, they are what really they had to be carried out, so it is directed towards effectiveness (achievement of the objectives through the available resources) and when it seeks the best costs and greatest benefits, it is within the framework of the economy. Efficiency, effectiveness and economy do not always go hand in hand,since an entity can be efficient in its operations, but not effective, or vice versa; It can be inefficient in its operations and yet be effective, although it would be much more advantageous if efficiency were accompanied by efficiency to optimize management.
4.4. JUSTIFICATION AND IMPORTANCE OF WORK
METHODOLOGICAL JUSTIFICATION:
In this work, firstly, the problem consisting in the lack of optimal management at IMARPE has been identified; On this problem, possible solutions have been formulated through hypotheses; then the purposes that the work pursues through the objectives have been established. All these elements have been formed based on the variables and indicators of the research. All of the above is based on a research methodology that identifies the type, level and corresponding design; and, the population and sample to apply; as well as the techniques and instruments to collect, analyze and interpret the information.
THEORETICAL JUSTIFICATION:
In this work, we bet on achieving the optimal management of IMARPE with the support of institutional internal control. Said control consists of the supervision, surveillance and verification of the acts and results of institutional management, in accordance with the degree of efficiency, effectiveness, transparency and economy in the use and destination of the entity's resources and assets, as well as compliance of legal norms and policy guidelines and action plans, evaluating the administration, management and control systems, with the aim of improving them through the adoption of pertinent preventive and corrective actions.
Internal control is the process of determining what is being carried out, in order to establish the necessary corrective measures and thus avoid deviations in the execution of the plans. Since control implies the existence of goals and plans, no administrator can control without them. He cannot measure whether his subordinates are operating in the desired way unless he has a plan, be it short, medium or long term. Generally, the clearer, more complete, and coordinated the plans and the longer the period they comprise, the more complete the control can be. An administrator can review past plans to see where and how they went wrong, to find out what happened and why, and to take the necessary steps to prevent errors from happening again. However,the best control prevents deviations from happening, ahead of them.
Control is of vital importance since: It establishes measures to correct activities, so that plans are successfully achieved; It applies to everything: to things, to people, and to acts; Quickly determine and analyze the causes that can cause deviations, so that they do not recur in the future; It locates the readers responsible for the administration, from the moment corrective measures are established; Provides information about the status of plan execution, serving as the foundation for restarting the planning process; Reduce costs and save time by avoiding errors. Its application has a direct impact on the rationalization of administration and, consequently, on the optimal management of the entity.
PRACTICAL JUSTIFICATION:
The work will present the process, procedures, techniques and practices of internal control to verify the management of IMARPE; all of which will allow it to be put into practice in said entity by order of its authorities, considering that this instrument ensures the systematic verification of activities in relation to objectives and goals (effectiveness), correct use of resources (efficiency and economy); information and communication of results (transparency); delivery of recommendations and follow-up thereof which facilitates optimal institutional management.
IMPORTANCE
This work will allow the entity to:
- Have an adequately planned, organized, directed, coordinated and controlled management process that allows the fulfillment of institutional goals, objectives and mission; that is to say, that the management becomes deficient and ineffective in optimal. It will allow to count on an effective internal control, that is to say, linked with the objectives and institutional mission; and not disarticulated and separated from the management process It will allow the entity to specify its policies, strategies, tactics, goals, objectives, permanent and temporary actions and achieve the indicators of impact, result and product of great use for optimal institutional management. Preliminary, simultaneous and subsequent evaluations of the resources and activities for optimal management of the institution will facilitate tactical and strategic planning,structural and functional organization, tactical and strategic direction for effective decision-making, teamwork creating the necessary synergies and closing the circuit with effective control and very useful for management. It will allow feedback on institutional management through reports Internal control will allow to translate the knowledge received in the Master's studies and the skills obtained in the professional field in the solution of institutional problems.It will allow feedback on institutional management through internal control reports. It will enable the knowledge received in Master's studies and the skills obtained in the professional field to be solved in the solution of institutional problems.It will allow feedback on institutional management through internal control reports. It will enable the knowledge received in Master's studies and the skills obtained in the professional field to be solved in the solution of institutional problems.
OBJECTIVES
OVERALL OBJECTIVE:
| STRUCTURING OF THE GENERAL OBJECTIVE: | ||
| X. INDEPENDENT VARIABLE | Y. DEPENDENT VARIABLE | |
| Effective internal control | Optimal management of IMARPE |
Determine the effective internal control framework to facilitate the achievement of institutional goals, objectives and mission; as a way to achieve the optimal management of the Instituto del Mar del Perú.
SPECIFIC OBJECTIVES:
| STRUCTURE OF THE SPECIFIC OBJECTIVES: | ||
| INDICATORS OF THE INDEPENDENT VARIABLE | INDICATORS OF THE DEPENDENT VARIABLE | |
| X.1. Internal control process | Y.1. Institutional efficiency | |
| X.2. Internal control instruments | Y.2. Institutional effectiveness |
- Establishing the internal control process may facilitate institutional efficiency. Determine the internal control instruments that will facilitate institutional effectiveness.
HYPOTHESIS
GENERAL HYPOTHESIS:
| STRUCTURING OF THE GENERAL HYPOTHESIS: | ||
| X. INDEPENDENT VARIABLE | Y. DEPENDENT VARIABLE | |
| Effective internal control | Optimal management of IMARPE |
If effective internal control is aimed at facilitating the achievement of institutional goals, objectives and mission; then, it is possible to achieve the optimal management of the Peruvian Sea Institute.
SECONDARY HYPOTHESES:
| STRUCTURING OF SECONDARY HYPOTHESES: | ||
| INDICATORS OF THE INDEPENDENT VARIABLE | INDICATORS OF THE DEPENDENT VARIABLE | |
| X.1. Internal control process | Y.1. Institutional efficiency | |
| X.2. Internal control instruments | Y.2. Institutional effectiveness |
- If the internal control process is developed through prior, simultaneous and subsequent verification precautionary actions; Then, you can facilitate institutional efficiency. If the control instruments, expressed in procedures, techniques and practices, are applied in a technical and timely manner; Then, they can facilitate institutional effectiveness.
VARIABLES AND INDICATORS OF THE INVESTIGATION:
INDEPENDENT VARIABLE
EFFECTIVE INTERNAL CONTROL
INDICATORS:
X.1. Development of internal control
X.2. Internal control instruments
DEPENDENT VARIABLE
OPTIMAL MANAGEMENT OF IMARPE.
INDICATORS:
Y.1. Institutional efficiency
Y.2. Institutional effectiveness
VII. METHODOLOGY
7.1. KIND OF INVESTIGATION
This research work will be of the applied type, since all aspects are theorized, although its scope will be practical to the extent that IMARPE takes them into account as an instrument to facilitate optimal management.
7.2. INVESTIGATION LEVEL
The research to be carried out will be at the descriptive-explanatory level, since it will describe effective internal control and explain how it becomes the instrument to achieve optimal management of IMARPE.
7.3. INVESTIGATION METHODS
The following methods will be used in this investigation:
- Descriptive.- Because the effective internal control that would be applied to achieve the optimal management of IMARPE will be described.
- Inductive - To infer information from the sample in the research population.
7.4. DESIGN OF THE INVESTIGATION
Design is the plan or strategy that will be developed to obtain the information required in the investigation. The design to be applied will be Non-Experimental, Transectional or transversal, Descriptive, Correlational-causal. Non-experimental design is defined as research that will be carried out without deliberately manipulating variables. In this design, phenomena are observed as they occur in their natural context, and then analyzed. The cross-sectional or cross-sectional research design to be applied consists of data collection. Its purpose is to describe the variables and analyze their incidence and interrelation at a given moment. The descriptive transactional design that will be applied in the work, aims to investigate the incidence and the values in which the research variables are manifested.The correlative-causal Transectional research design that will be applied will serve to relate between two or more categories, concepts or variables at a given moment. It will also be about descriptions, but not about categories, concepts, objects or individual variables, but about their relationships, whether they are purely correlational or causal relationships. Through this type of design the research elements are associated.Through this type of design the research elements are associated.Through this type of design the research elements are associated.
In this work, the design will facilitate the following:
Legend:
OG = General objective
OE = Specific objectives
CP = Partial conclusions
CF = Final conclusion
HG = General hypothesis
This table summarizes the research design. It indicates that the General Objective is formed from the specific objectives, with which it is contrasted. In turn, the specific objectives constitute the basis for formulating the partial conclusions of the research work. Then the Partial Conclusions are properly correlated to formulate the Final Conclusion of the Investigation, the same that must be consistent with the General Hypothesis, which will constitute the answer to the problem posed in the investigation work.
7.5. POPULATION OF THE INVESTIGATION
The research population is made up of the authorities, officials and workers of IMARPE.
7.6. INVESTIGATION SAMPLE
Formula to determine the sample size:
To define the sample size, the probabilistic method has been used and the generally accepted formula has been applied for populations smaller than 100,000.
Where:
| n | It is the size of the sample to be taken into account for the field work. It is the variable that you want to determine. |
|
P and q |
They represent the probability of the population to be included or not in the sample. According to the doctrine, when this probability is not known from statistical studies, it is assumed that p and q have a value of 0.5 each. |
|
Z |
Represents the standard deviation units that in the normal curve define an error probability = 0.05, which is equivalent to a 95% confidence interval in the sample estimate, therefore the Z value = 1.96 |
| N | The total population. This case 620 people. |
| EE | Represents the standard error of the estimate, according to the doctrine, it must be 0.09 or less. In this case 0.09 has been taken |
Substituting:
n = (0.5 x 0.5 x (1.96) 2 x 620) / (((0.09) 2 x 619) + (0.5 x 0.5 x (1.96) 2))
n = 100
7.7. DATA COLLECTION TECHNIQUES
The techniques that will be used in the investigation will be the following:
- Surveys.- It will be applied in order to obtain information on the aspects related to the investigation. Documentary analysis. - It will be used to analyze the norms, bibliographic information and other aspects related to the investigation.
7.8. DATA COLLECTION INSTRUMENTS.
The instruments to be used in the research are related to the aforementioned techniques, as follows:
| TECHNIQUE | INSTRUMENT |
| POLL | QUESTIONNAIRE |
| DOCUMENTARY ANALYSIS | DOCUMENTARY ANALYSIS GUIDE |
7.9. ANALYSIS TECHNIQUES
The following techniques will be applied:
- Documentary analysis Inquiry Data reconciliation Tabulation of tables with quantities and percentages Understanding graphs
7.10. DATA PROCESSING TECHNIQUES
The following data processing techniques will be applied:
- Sorting and classification Manual registration Computerized process with Excel Computerized process with SPSS
VIII. SCHEDULE
IX. BUDGET
BIBLIOGRAPHY
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__________
Escalante Cano, Roberto (2004) Control of business areas to optimize administration. Thesis presented to choose the Master's Degree in Finance and Accounting at the San Martín de Porres University.
Hernández Celis Domingo (2003) Effective control of the management of a cooperative company of multiple services. Thesis prepared to choose the Master Degree in Accounting and Financial Auditing
Romero García, Adrián (2004) Internal control deficiencies in the institutional management process. Thesis presented to choose the Master's Degree in Administration at the Federico Villarreal National University.
Campos Guevara Cesar Enrique (2003) The internal control processes in the effectiveness of a company. Thesis To opt for the Master's Degree in Accounting with mention in: Superior Audit
Liñan Salinas, Elcida Herlinda (2002) Control actions for the development of a comprehensive audit of a Public University. Thesis presented to choose the master's degree in accounting and financial auditing at the Federico Villarreal National University.
General Comptroller of the Republic (2007). Control of Public Entities Law. Lime. Editora Peru.
Entity to which the General Comptroller of the Republic of our country is subordinate.
Instituto Auditores Internos de España- Coopers & Lybrand, SA. (1997). The new concepts of internal control- COSO Report- Madrid. Ediciones Díaz de Santos SA.
Institute of Internal Auditors of Peru. (2001). The new framework for the professional practice of internal audit and code of ethics. Lime. Edition by The Institute of Internal Auditors.
Terry, GR (1995) Principles of Management. Mexico: Compañía Editorial Continental SA.
Koontz / O'Donnell (1990) Modern Administration Course- An analysis of systems and contingencies of administrative functions. Mexico. Lithographic Ingramex SA
Terry, GR (1995) Principles of Management. Mexico: Compañía Editorial Continental SA.
Hevia Vásquez, Eduardo (2008) Fundamentals of Internal Audit. Madrid.
Johnson Gerry & Scholes, Kevan. (1999) Strategic Management. Madrid: Prentice May International Ltd.
Koontz / O'Donnell (1990) Modern Administration Course- An analysis of systems and contingencies of administrative functions. Mexico. Lithographic Ingramex SA
Ibid.
Ibid.
Terry, GR (1995) Principles of Management. Mexico: Compañía Editorial Continental SA.
Santillana Gonzales, Juan Ramón (2007) Comprehensive Internal Audit. Buenos Aires. Megabyte publisher
Argandoña Dueñas, Marco Antonio (2008) New approach to Financial, Budgetary and Government Management auditing. Lime. Marketing Consultores SA Volume I and II.
Government Audit Manual. Published by the Comptroller General of the Republic.
General Comptroller of the Republic. (1998) Government Audit Manual. Lima: Editora Perú.
General Comptroller of the Republic. (1998) Government Auditing Standards. Lima: Editora Perú.
Editorial Oceano (2005) Encyclopedia of the Audit. Madrid. Editorial Ocean.
Koontz / O'Donnell (1990) Modern Administration Course- An analysis of systems and contingencies of administrative functions. Mexico. Lithographic Ingramex SA
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