Brief Solution for Establishment of Internal Operation Supervision System

 

 

» Applicable Scope

 

The Solution is designed for reference of enterprises to establish and perfect their internal operation supervision systems. It helps the managerial personnel understand the function, basic framework and general contents of the internal operation supervision system. It also analyzes and summarizes the problems frequently happening in the system to provide corresponding measures for risk prevention and solution.

 

Note: Different from operation supervision by relevant software or hardware equipment, the Internal Operation Supervision System in this Solution focuses more on the establishment and perfection of enterprises’ own internal operation supervision system and methods.

 

 

» Frequently Asked Questions

 

"Our enterprise has many sales outlets in big and medium cities throughout China . However, recently we found that some of the salesmen pocketed the payment of goods. What management system could we adopt to control problems of this kind in the future?”

 

"Our enterprise has many subsidiaries scattered in different cities and provinces. To enhance management, our enterprise in this year decided to set up the Supervision Department, assigning one supervisor to each subsidiary. However, we do not know how to carry out this plan, how to make the supervisors report problems in the subsidiaries timely and faithfully, as well as how to avoid problems which may occur in the whole process.”

 

"Our enterprise has specially set up Supervision Department, monitoring the sales subsidiaries. Recently, someone reported that some of the supervisors failed to report to the headquarters faithfully, and some even joined the subsidiaries to fool the headquarters. How to deal with such problems? What measures can be taken to avoid such problems?”

 

 

» Brief Solution (Sample)

 

I. Definition and Function of EIOSS

Today, there are two understandings regarding Enterprise Internal Operation Supervision System:

 

On one hand, EIOSS is to supervise the enterprise’s internal operation by installing and using a series of matched software and hardware facilities. According to the different objects of supervision, various monitoring systems are made into the EIOSS, such as Finance Supervision System for monitoring finance and investment of the enterprise, and Production Line Security Supervision System for monitoring the security of the production line. These systems can be separately used or combined to form an integral enterprise internal operation supervision system.

 

On the other hand, different from the first kind of understanding, EIOSS in this Risk Management Plan emphasizes more on establishing corresponding management systems and adopting effective management approaches and methods to form an integral management system which supervises and controls the enterprise internal operation. According to their characteristics and actual needs, enterprises choose corresponding software and hardware and put them into operation supervision system.

 

Generally speaking, regardless of whatever meanings it has, EIOSS monitosr, standardizes and evaluates the enterprises’ operation and management forms, which assists the enterprise managers in predicting the operation of the enterprises and carrying out corresponding management.

 

II. Basic Framework and Contents of EIOSS

A. Basic Framework

EIOSS consists of Supervision Department, Management System and Information Platform.

 

To ensure the supervision effect, it’s quite necessary for enterprises to establish    special department responsible for the work. As for some small businesses, enterprises can appoint supervisors. No matter whether the special supervision department or individuals is responsible for the work, they must be independent from the enterprises’ operation system to avoid negative effect of administrative or business management on supervision.

 

The Supervision Department’s responsibility, power, working method and coordination with other departments should be defined by form of internal management rules, so as to ensure the authority and independence of the Supervision Department in the enterprises and on the other hand to enable the senior executives to control the supervision effectively.

 

EIOSS must take information platform as a basis to ensure its effective operation, because not only the Supervision Department records operational information on the information platform as an important reference, but the Supervision Department’s own working contents and effect must be recorded and managed through information platform.

 

B. Contents

According to the different objects of supervision, the contents of EIOSS may cover different aspects of enterprise’s internal management: financial management, assets management, production operations, R & D of products, human resources, market development and so on. Enterprises can, according to their own needs and characteristics, selectively design EIOSS.

 

II. Frequently Asked Questions

A. Authority Ambiguity in Supervision Department

Authority ambiguity in the Supervision Department is a common problem to many enterprises when establishing EIOSS. To solve this problem, enterprises must at first clarify the purpose of setting up the Supervision Department, its functions, its power and then work out detailed working system. Secondly, according to the characteristics of the objects of supervision, such as different business descriptions and operating status of different departments or subsidiaries, enterprises should work out the specific job duty and contents for every supervisor.

 

B. Incoordination between EIOSS and the Existing Operation System

Due to its particularity, it’s usually relatively hard for the Supervision Department to handle the relationship with other departments of the enterprises. To carry out the supervision smoothly, senior executives in enterprises need to communicate with principals of other departments or subsidiaries to make them understand the purpose of setting up the Supervision Department, thus employees could offer their cooperation and wouldn’t have conflicting feelings towards the supervision system or Supervision Department.

 

C. Human Resource Risk in Supervision Department

Since the operation and maintenance of EIOSS are fulfilled by the supervisors, the supervisors’ professional quality, working capacity and morality will directly affect the EIOSS. Therefore, how to choose qualified supervisors and how to monitor the supervisors are worth the attention of enterprises. To solve the above two questions, enterprises can refer to Risk Management Plan on Employment in Commercial Corporation and human resource risk management reports in different industries.

 

 

Links

» Risk Management Plan on Employment in Commercial

    Corporation

» Human resource risk management reports in different

    industries