Based in Dubai, the government owned Mohammed Bin Rashid Housing Establishment (MBRHE) is a primary industry player in housing development and general financial services (“Mohammed Bin Rashid Housing Establishment 2012” par. 2).
Despite having been in operation for more than a decade and is very successful in the market, the company has not qualified for ISO Certification due various reasons. Thus, this reflective treatise attempts to explicitly review these reasons and provide alternative solutions that will put the company on a road map towards ISO Certification.
MBRHE is facing serious challenges in balancing transaction documentation and general accounting. This means its auditing department is not at par with the large financial books which should be properly aligned to the capital structure. The reason behind it is probably the lack of evidence-based and properly established transaction plan which determines cost balancing and prioritization of transactions for its services.
There is a lot that needs to be done to improve management and authenticity of the audit department in order to improve on transaction documentation and accountability. Reflectively, the company lost almost 6% of its total revenues on fraud. The challenge at present is being able to develop timely and proper transaction documentation and forensic financial auditing strategy since the quality of financial reporting depends on the availability of better financial monitoring measures (Helfert, 33).
In addition, the stakeholders don’t comprehensively understand the factors affecting their business relationship with the company since the reporting model is weak. In fact, there are several lapses in authenticity of payment process, especially the bureaucracy involved.
In MBRHE, the information flow department has been experiencing serious challenges in disseminating information and controlling the flow of the same. This is a sign of dire weakness in the firm. The human resource management systems in the organization seem to be dangerously out-of-date and reluctant in transforming the communication breakdown into an efficient, reliable, and relevant communication channel.
Opting for a quick fix to this problem would only provide a bandage solution and cover up series inconsistencies that are responsible for massive loss of resources such as time, labour, and technology in information dissemination across the company departments. The employee turnover has grown to extreme levels in the company.
The rates are high that it is almost reaching the double mark as compared to other firms offering the same services. The statistics reveal that as a result, the human resource sector loses a lot of time in managing this data base since the information and communication channels between departments operate below standard level.
In order to reverse the worrying trends indicated above, several recommendations are feasible when integrated at macro and micro levels of management of the firm. To begin with, the transaction reporting and documentation should be improved and the auditing department improved to ensure independence in reporting. Besides, self sufficiency model should be incorporated as a potentially effective strategy for reviewing the implication on policy creation platform in financial accountability.
Also, to streamline information and communication flow, the firm should reduce dependence on in house communication channel and outsource a better system that will ensure that information management and dissemination are balanced across its departments. When properly handled, it will address the issue strategic management by encouraging proactive communication and authenticity of decoding and encoding channels (Tricker, 45).
Conclusively, financial reporting and communication are significant in strategic management. Thus, when properly managed, the company will stand a better chance of receiving an ISO Certification certificate.
Works Cited
Helfert, Erich. Financial analysis, tools and techniques: Assessment of business performance. New York: McGraw-Hill books, 2001. Print.
Mohammed Bin Rashid Housing Establishment 2012. Web.
Tricker, Ray. ISO 9001: 2008 for Small Businesses, Melbourne: Butterworth-Heinemann, 2010. Print.