what should Max do? Justify our response

advance into a management position. Your first step into a management posi- tion will be that of a supervisor. Supervisors are first-line managers. Although supervisors primarily concern themselves with operational issues, successful employees and supervisors understand the bigger picture of the company's over all tactics and strategy As displayed in a typical organizational chart, companies are usually arranged by major functions. These major functions are frequently referred to as divisions. Within these divisions are departments. The departments are sub- divisions responsible for carrying out specific tasks of their division. Several major functions (divisions) are necessary in business. These include finance and accounting, human resources, operations, information systems, marketing, and legal counsel The finance and accounting area is responsible for the securing, distri- bution, and growth of the company's financial assets. Any invoices, incoming cash, or checks must be recorded through the accounting department. The accounting department will work with the human resource area on payroll issues regarding your paycheck. Just as you have a personal budget (refer to Chapter 2), companies utilize several types of budgets. A capital budget is used for long-term investments, including land and large pieces of equipment. An operational budget is used for short-term items including payroll and the day to-day costs associated with running a business. Because the primary purpose of every company is to make a profit, you as an employee are accountable for how you utilize the company's financial resources. TOPIC RESPONSE What should Max do? Justify your response. Topic Situation One of Max's coworkers went on vacation. Before leaving the coworker showed Max how to order office supplies online and asked Max to order supplies if needed. Max noticed that the department was running low on a few items and decided to place an order. As Max clicked through the online catalog, he saw a lot of items that would be nice to have around the office, including a hole punch, a label maker, and a portable hard drive, Max also thought it would be nice to have a pair of new scissors and a USB flash drive. As Max was about to place the order, he was shocked to see that the total was over $1,000. Max realized that the coworker never gave Max a budget, but he knew that one existed. 011 As illustrated in Max's example, employees frequently do not think before they spend the company's money. Before you spend the company's money, ask yourself a simple question: "If I owned this company, would I spend my money on this item?" Answering that simple question makes you more accountable for your actions and makes you think like a business owner. You most likely will not spend your money on frivolous, unnecessary items and will pay more attention to not only adhering to a budget, but also identifying ways to save money. The human resource area is responsible for recruiting, hiring, training, evaluating, compensating, promoting, and terminating employees. This area deals with the employee (people) side of business. The first contact you will have with this function will be when you apply and interview for a job. You will also interact with the human resource area concerning any issue relating to company policy, complaints and grievances, and your terms of employment. The human resource function is discussed in greater detail in Chapter 8