In 500 words reply to this question Managerial Audits often

In 500 words reply to this question, Managerial Audits often result in a unpleasant examination of organizational polices, procedures, and expenditures. Discuss the reasons why Managerial Audits are conducted and the positive and negative impacts Managerial Audits can have on an organization.

Solution

Management audit is a systematic evaluation of the functioning performance and effectiveness of management of an organization. It a thorough-going, critical and constructive review of the quality of management. It is generally conducted at the instance of the management.

Managerial audits are conducted to ensure that all the departments ,team and employees are adhering to the policies of the organization. Managerial audits are to identify the loop holes in the system

Advantages:

>> Management audit helps in taking critical decisions like mergers, acquisitions, sell of a division , shut down an unit,etc

>> Audit helps to understand the inefficiencies in the system and they can be corrected

>> It suggests on how to utilise the resources effectively and in the most efficient manner

>> When there are units which are not performing well , management audits can be helpful. Through a rigorous managerial audit, root causes can be find out. After the cause is known, measures can be taken accordingly.

>> Through management audits feedback , opinions, ideas , suggestion of staff and experts can be known. All these can be used for better performance of the organization.

>> Management audit provides information on strengths and weaknesses. When we are aware of our strengths we can use them to our advantage against competition. Weaknesses need to be corrected and their elimination helps the company improve its position in the market.

>> Whenever there are changes in the external environment, managerial audits help in identifying ways and policies to adapt to these changes.

Disadvantages:

>> The scope of management audit is limited. There are not well defined techniques for a management audit

>> Conflicts might arise during managerial audits.

>>Management Audit may create complexity in authority-responsibility relationships.