Organizational Control Systems Research Articles

How clients choose procurement strategies and organizational control systems in the Swedish housing sector

Purpose This paper aims to examine how different contextual contingency factors and organizational goals influence construction clients’ decision-making when procuring contractors in the housing sector. More specifically, it investigates how clients’ choice of procurement strategies and organizational control systems is contingent upon various contextual factors and organizational goals. Design/methodology/approach It is based on an explorative interview study of clients and contractors in the Swedish housing sector underpinned by a review of organizational control literature. Findings The client's knowledge and resources, as well as project complexity and uncertainty, are the most important contextual contingency factors, while property management and sustainable development are the most important organizational goals that housing clients consider when designing procurement strategies. Research limitations/implications The paper contributes to the understanding of how construction clients choose procurement strategies, by providing new insights into effects of the mentioned contextual contingency factors and organizational goals on clients’ choice of control systems through their procurement strategies. Practical implications Property owners who continuously procure housing projects with sustainability requirements and high degrees of complexity and uncertainty should develop knowledge and resources related to their client role, to enable the design and implementation of appropriate procurement strategies. Originality/value Novel aspects of the paper are the demonstration of the value of a holistic approach, considering both contextual contingency factors and organizational goals, when selecting control systems and explicit discussion of how the client's knowledge and resources influence possibilities to implement different control systems.

Formulation & Evaluation of herbal candy for treatment of dengue

Dengue fever is the one of the fleetly expanding mosquito- borne viralcomplaint in the world, with high mortality and morbidity rates especially intropical and tropical regions. The mosquito involved in the transmissionof dengue is Aedes. The rotation of dengue complaint is told bycolorful factors similar as, geomorphology, downfall, temperature and rapid-fireurbanization or globalization. The clinical symptoms range fromunapparent to severe forms and fatal issues. Dengue is a most importantpublic health problem due its quick expansion encyclopedically and its burdens arepresently unfulfilled because of absence of precise treatment, easyindividual system for the early phase of infection and successful and well organized vector control system.

INNOVATIONS IN MODERN EDUCATION, THEIR APPLICATION TRENDS AS ONE OF THE MAIN ISSUES IN PEDAGOGY

The main aim of the article is to research the essence of the concept of "innovation in education", the main approaches to the development of innovation processes in education. Thus, types of innovations in education, stages of their introduction and realization, their influence on teaching and learning methods and thinking styles of teachers and students, their role in improving the quality of education, training of teaching staff with high level, excellent knowledge, advantages of training based on innovative methods over traditional training are revealed. Relevance of the article. Innovations applied in education, their types, methods and methods, solutions to the problems encountered in the fields of application, researching the impact of innovation on the development of the education organization and quality control system are extremely important and seriously needed issues in the current period. To sump up, from this point of view, the article is relevant and actual. Scientific novelty of the article. The article researches the issues rrgarding innovative education and teaching, the types of innovations, the stages of implementation, the successful results achieved in innovative education, ways to improve the quality of teaching, and ways to increase the effectiveness of learning and teaching. Practical importance of the article. The kinds of innovation mentioned in the article, the analysis and research of their application methods can be used in predicting and evaluating the quality of education, and at the same time, they can be a guiding source for the activities of those involved in education policy. Keywords: education, teaching, innovation, innovative education, innovative teaching, innovative methods, information and communication technology tools, student, teacher, learning, teaching.

INNOVATIONS IN MODERN EDUCATION, THEIR APPLICATION TRENDS AS ONE OF THE MAIN ISSUES IN PEDAGOGY

The main aim of the article is to research the essence of the concept of "innovation in education", the main approaches to the development of innovation processes in education. Thus, types of innovations in education, stages of their introduction and realization, their influence on teaching and learning methods and thinking styles of teachers and students, their role in improving the quality of education, training of teaching staff with high level, excellent knowledge, advantages of training based on innovative methods over traditional training are revealed. Relevance of the article. Innovations applied in education, their types, methods and methods, solutions to the problems encountered in the fields of application, researching the impact of innovation on the development of the education organization and quality control system are extremely important and seriously needed issues in the current period. To sump up, from this point of view, the article is relevant and actual. Scientific novelty of the article. The article researches the issues rrgarding innovative education and teaching, the types of innovations, the stages of implementation, the successful results achieved in innovative education, ways to improve the quality of teaching, and ways to increase the effectiveness of learning and teaching. Practical importance of the article. The kinds of innovation mentioned in the article, the analysis and research of their application methods can be used in predicting and evaluating the quality of education, and at the same time, they can be a guiding source for the activities of those involved in education policy. Keywords: education, teaching, innovation, innovative education, innovative teaching, innovative methods, information and communication technology tools, student, teacher, learning, teaching

Functioning of the internal control system in construction organizations based on the business processes regulation

Subject. This article deals with the issues of regulation of business processes of the internal control system in the organizations of the construction complex of Russia. Objectives. The article aims to formulate the main methodological approaches to the arrangement of the internal control system based on the regulation of business processes. Methods. For the study, we used statistical, case, computational and constructive research methods, as well as analytical and substantive procedures. Results. The article finds that business processes need regulation, which helps systematize actions that are interrelated, which also helps implement strategic, tactical and operational plans of an economic entity. The article identifies the main reasons that hinder the development of building companies, and presents the regulations of the business process Apartment Sale in the form of a clear sequence of actions, which made it possible to develop a methodology for internal control with the involvement of almost all structural divisions of an economic entity. Conclusions and Relevance. Regulation of business processes is an important tool for improving the effectiveness of the internal control system, it contributes to the establishment of clear procedures and rules, standardization, business transparency and the efficiency of the business entity. The results of the study can be used as methodological recommendations for the creation of an internal control system based on the regulation of business processes.

Bank Supervision and Organizational Capital: The Case of Minority Lending

ABSTRACTWe investigate whether improvements in banks' organizational capital and control systems facilitate increased loan origination to minority borrowers. We focus on bank supervisors' enforcement decisions and orders (EDOs) against banks and hypothesize that EDO‐imposed improvements in loan policies, internal governance, and employee training mitigate deficiencies in credit assessments and lending decisions that previously disadvantaged minority borrowers. We find that mortgage origination to minority borrowers increases following the resolution of EDOs, and more so for banks with stricter supervisors or more severe EDOs. Using a semisupervised machine learning method to analyze the text of EDOs, we find that such increases are higher for EDOs specifying revisions of loan policies, implementation of formal internal governance procedures, or more employee training. Overall, we find that EDO‐driven improvements in organizational capital generate unintended, positive social externalities that enhance access to credit for minority borrowers.

Mediating Role of Collaboration on Transformational Leadership and Performance Contracts in Road Agencies in Kenya.

Purpose: Type of leadership that can be considered effective, in the current set of environments would demand collaboration, listening skills, influence, and flexible adaptation to the existing environment in contrary to command and control systems in organizations. This study investigated the mediating role of collaboration to the relationship between transformational leadership and performance contracting in road agencies in Kenya. Operationalization of variables included transformational leadership as independent variable, performance contracting as the dependent variable and collaboration as the mediating variable. This study was guided by theories of transformational leadership and public value.
 Methodology: The study adopted mixed methods approach where data was collected through questionnaires and structured interviews and target population for the research was all staff members in top management and officers in job group 5 (five) and above for three road agencies in Kenya. The road agencies included Kenya National Highway Authority (KeNHA), Kenya Urban Roads Authority (KURA) and Kenya Rural Roads Authority (KeRRA). The study utilized descriptive and inferential statistics used data analysis where regression was computed to determine correlations between independent, mediating and dependent variables.
 Findings: From the study findings and results, the relationship between transformational leadership and performance contracting in road agencies in Kenya was noted to be partially mediated by collaboration as p value was (p< 0.05). Collaboration was therefore noted as a very important component in an organization as employees are able to achieve their performance targets with ease as different sections and individuals support each in the process of performance contracting in road agencies in Kenya. This study recommends to policy makers in road agencies in Kenya to create a conducive environment of collaboration and teamwork as the same would enhance both individual and collective performance which ultimately influence levels of achievement of set targets in performance contracts in these organization.
 Unique contributor to theory, policy and practice: This study recommends further areas of research in general or overall performance of road agencies in Kenya and teamwork building processes, role of leadership in teamwork and in achieving individual and organizational performance.

РАЗВИТИЕ КРИТЕРИЕВ ОЦЕНКИ ЭФФЕКТИВНОСТИ СИСТЕМ ВНУТРЕННЕГО КОНТРОЛЯ В СОВРЕМЕННЫХ УСЛОВИЯХ

The relevance of the study is due to the need to improve the effectiveness of internal control systems in a rapidly changing external environment and increasing requirements for transparency and reliability of the organization’s activities. The authors of the article emphasize the importance of the problems of determining the criteria for the effectiveness of internal control, which have become the object of research by many domestic and foreign scientists, due to the need to improve this tool for managing economic activity. The article examines the approaches of various authors to the definition of criteria for evaluating the effectiveness of internal control systems. Based on the analysis, interpretations of the content of the most frequently used criteria for evaluating the effectiveness of the internal control system (effectiveness, efficiency, cost-effectiveness, expediency, timeliness) are formulated. The author conducts a study of criteria defined by leading international professional organizations (COSO, the Basel Committee on Banking Supervision, the Institute of Internal Auditors, the Association of Audit and Control of Information Systems). According to the author, the criteria for the effectiveness of the internal control system should not only reflect the current state of the internal control system, but also serve as a basis for its further development and improvement. As a result of the study, a systematization of the criteria for the effectiveness of the internal control system was proposed, which includes five groups involving an assessment of the level of organization of the internal control system; the level of human resources involved in the internal control system; the level of information, technical, technological and financial support for the internal control system; the state of the environment of the internal control system; the level of quality of internal control measures control within the framework of the internal control system. The proposed systematization of the criteria for the effectiveness of the internal control system allows for a deeper understanding of the essence and content of internal control and can become an effective management tool and contribute to the achievement of the tasks set. The systematization proposed by the author of the study can serve as a basis for the development and improvement of internal control systems in organizations. The results of the study can be useful for managers and specialists in the field of risk management, audit and control, as well as for anyone interested in improving the efficiency of organizations.

Impact of leadership style on job satisfaction and organizational citizenship behavior: The mediating role of management control systems

This research examines the impact of democratic leadership (DL) on job satisfaction (JS) and organizational citizenship behavior (OCB) in the Tunisian telecommunication sector. Results revealed that democratic leadership has a positive effect on job satisfaction and organizational citizenship behavior among the relevant employees. Also, democratic leadership positively affects management control systems in the relevant organizations. The proposed mediation of management control systems on the relationships between democratic leadership, job satisfaction, and organizational citizenship behavior also remained significant. The results remained supportive towards validating the role of democratic leadership in ensuring job satisfaction and organizational citizenship behavior through management control systems. Further, study implications and limitations are discussed accordingly.

The effect of management control systems on business performance and innovation organizational as moderating and mediating variable

There were still contradictory results from earlier research on the relationship between organizational innovation, performance, and management control systems (MCS). In order to account for these contradictory results, future studies ought to concentrate on the empirical analysis of Simon's MCS theory. The purpose of the study was to assess the mediation and moderation model in relation to performance, innovation, and MCS. The study intends to broaden the scope by employing a more thorough definition and measurement of research variables. Because the Partial Least Square (PLS) can concurrently assess the existence of a dual dependency relationship of a latent variable, the study used PLS to test the hypothesis. The mediated hypothesis which holds that MCS indirectly affects performance through innovation seems to be supported by these data. All things considered, this study contributes to the understanding of the ambiguous and contradictory conclusions of earlier studies that examined the connection between MCS, innovation, and performance.

The frontstage-backstage of organizational identity and management control system: the tale of British Petroleum’s embarrassment in DWH

PurposeThis study aims to investigate the dynamic interplay between the management control system (MCS) and organizational identity (OI) in the Deepwater Horizon incident involving British Petroleum (BP). It examines how the MCS manages challenges, particularly those addressing the embarrassment stemming from identity disparities between external portrayal (frontstage) and internal operations (backstage), with a focus on the often-underestimated influence of the media.Design/methodology/approachThis study builds upon the frameworks developed by Ravasi and Schultz (2006) and Malmi and Brown (2008) to construct a theoretical framework that profoundly investigates the relationship between MCS and OI. The framework developed guided the research design and incorporated a qualitative approach complemented by an illustrative case study. The research data was rigorously gathered from diverse sources, including official BP documents and influential media outlets, with a particular focus on well-established American and British newspapers.FindingsBP’s MCS plays a dual role: it exposes discrepancies in safety, leadership and values, causing embarrassment and identity damage, yet catalyses a sense-making process leading to organizational transformation and shifts in the OI. This transformation influences sense-giving and prompts changes in MCS. The study reveals an intricate interplay in identity management between frontstage audiences (e.g. influential media) and backstage actors (e.g. BP’s senior management). It highlights interdependencies both within and between MCS and OI, emphasizing their roles in interacting within identity management. The longitudinal recovery is intricately tied to mutual political interests between BP and the USA, which are significantly facilitated by the media’s role.Research limitations/implicationsThis study acknowledges limitations that point future research opportunities. Interviews could provide a more dynamic understanding of MCS changes and organizational transformations. Investigating the role of leadership, particularly the new chief executive office, and the influence of political versus organizational factors in shaping identity claims is essential. Additionally, the effectiveness and historical context of interdependencies should be quantitatively assessed. Theoretical limitations in the OI and MCS frameworks suggest the need for context-specific categorisations. This research serves as a foundation for further exploration of the intricate dynamics between MCS, OI and organizational responses to crises.Practical implicationsThis study offers valuable insights with practical implications for organizations facing identity challenges in the wake of significant incidents. Organizations can better navigate crises by recognizing the multifaceted role of MCS in identity damage and restoration. It underscores the importance of addressing both frontstage and backstage aspects of OI while managing identity discrepancies, thereby enhancing transparency and credibility. Additionally, understanding the intricate interdependencies within OI and MCS can guide organizations in implementing more effective identity restoration strategies. Furthermore, the study highlights the significance of media influence and the need to engage with it strategically during crisis management.Social implicationsThis study’s findings have significant social implications for organizations and the broader public. By recognizing the multifaceted role of MCS in shaping identity, organizations can enhance transparency and credibility, rebuilding trust with the public. Additionally, the study highlights the critical role of media in influencing perceptions and decision-making during crises, emphasizing the importance of responsible and ethical reporting. Understanding the intricate interplay between MCS and OI can inform better crisis management strategies and improve how organizations respond to and recover from incidents, ultimately benefiting society by promoting more accountable and responsible corporate behaviour.Originality/valueThis study’s distinctness lies in its innovative exploration of MCS, which transcends traditional methodologies that focus narrowly on front or backstage aspects of OI and often adhere to predetermined MCS practices. It underscores the importance of concurrently addressing both the front- and backstage audiences in managing the embarrassment caused by identity discrepancies and restoration. The research uncovers multifaceted interdependencies within MCS and OI, and these extend beyond simplistic relationships and emphasize the complex nature of identity restoration management.

FORENSIC ACCOUNTING IN INDIAN PERSPECTIVE

The purpose of this article is to throw some light on the frauds in terms of account happens in India. From the available literature, the effective forensic accounting techniques are to be focused. There are two ways to implement the techniques which includes, first, introduce the forensic accounting methods in business and second, merge the traditional organizational control system with modern system of detecting forensic fraud with the help of forensic accountant. The conclusion of this article is detecting frauds and the causes behind not get detected on early stage. How to spot frauds by using different techniques and how to mitigate the fraud in India by using the techniques to spot the fraud timely.By focusing on the roots and avoiding the situation causing accounting frauds by implementing the forensic accounting. The novelty of this study is forensic accounting from view point of India. KEY WORDS: Forensic Accounting, Financial Scams, Fraud, Investigative Functions, Forensic Audit

Determinants of sickness absence in police: Case study of Abu Dhabi police department, UAE

Sickness absence among employees is reported to reduce organization profits and performance and thus threaten the organization's existence in the market. The monitoring and reporting of data on sickness absence is considered a crucial element of reactive health and safety control systems in organizations. It is one of the major indicators of organizational continuous commitment to improving the quality of working conditions. However, sickness absence in Police in the United Arab Emirates (UAE) is less investigated. The Occupational Health and Safety Survey developed for this study was distributed to 1317 employees of the Capital Police Directorate of Abu Dhabi Police. The survey was answered by 760 employees (58 %). While 230 (17 %) refused to participate, 259 (20 %) did not return the surveys, and 68 (5 %) were not surveyed as they were on authorized long-term leave for various reasons (and did not receive the survey). This study analyzes if the psychosocial work factors, physical work exposure factors, and employee's perception of the health and safety management system predict sickness absence in the Abu Dhabi Police after taking into account the other covariates. This study found no association between job control and the risk of sickness absence, in contrast to findings from other studies. There was also no association between psychological job demand and the perception of health and safety management with the risk of sickness absence in this study. Officers who fit the ‘job strain’ category did not have a significant increase in the risk of sickness absence in this study. However, high levels of combined physical exposures reported a significant relation with sickness absence. In conclusion, this, being one of the first studies in the region, provides insights on work factors and perception of HSE on sickness absence and provides recommendations within the context of the region for future studies and address sickness absence among police in the UAE.

Supervising Self-Efficacy During the Home Office Using Management Control Systems

Due to the unprecedented circumstances of the last two and a half years, the organizations are facing unprecedented challenges. After the official recommendations for work from home and the re-entry of employees to the office environment – many other questions arise. First, are the employees satisfied that they are back in the office? Is working from home possible? What are the results of the employees’ monitored working time from home? These and many other issues are a major focus of employers in the field of consulting services. The current article aims to explore the concept of self-efficacy and its follow-up based on management control systems. This study is theoretical. Methods of induction and deduction, including analysis and synthesis, are at the article’s core. The results show that well-established management control systems in organizations with consulting services can use the home office as a motivational tool.

Formation of a situational internal control system in agribusiness organizations using artificial intelligence

The formation of a situational internal control system at agricultural enterprises is an important tool for improving the efficiency and sustainability of business in conditions of uncertainty and risk. An important quality of the situational internal control system is the timely analysis and adaptability of such a system to external changes. For the effective operation of the situational internal control system, it is necessary to have qualified personnel and use modern information technologies, including artificial intelligence. In this paper, a model of the situational internal control system was developed using automated systems and systems based on artificial intelligence, and a table with indicators for evaluating the implementation of such a control system was developed. The results of the study can be used in the practical work of agricultural enterprises to improve the effectiveness of risk management and ensure business sustainability.

Revising a performance measurement and control system of an organization

Purpose This paper aims to explore the changes that an organizational performance and control system should perform to adapt to the current dynamic environment. Design/methodology/approach This paper first presents the features of a typical organizational control system. It identifies current technological developments that affect the control process and evaluates the changes that should be introduced in order for the organization to function effectively. Findings Although the components of organizational performance and control systems remain the same, most of them have changed their features, such as strategy should be visited more frequently, processes are digitized and therefore customers are more involved in the process, and actual performance can and should be monitored automatically. Originality/value This paper presents a comprehensive model of a control system that can be implemented by every organization, as well as points out control features that should be continuously reviewed and updated.

Автоматизация стенда системы контроля уровня и температуры резервуарного парка

The aim of the work is to automate the stand that simulates the technological equipment of oil tank farms, including the hydraulic part and automation tools for controlling and monitoring, using the necessary hardware and software, to study the operation of protection and blocking algorithms, alarms and automatic control in accordance with industry regulations and requirements for microprocessor equipment control systems at hazardous production facilities. The objective is to create a modern level and temperature control system. The research uses the method of system analysis, the theory of automatic control, structural solutions of human-machine systems designed to automate production and intelligent support of control processes and the necessary data processing in organizational, technological and distributed control systems. As a result of the study a block diagram of the stand is developed based on the well-known three-level model of a typical automated process control system for monitoring the level and temperature of the tank farm. The novelty of the work lies in building a model of an automated control system for a tank farm with a distributed structure to study its operation. The findings of the research state that the proposed automated control system of the level and temperature monitoring system stand is a model of a real tank farm and implements all the basic functions associated with automating technological and control operations, which allows studying its work in the laboratory. It fully fits into the terms of designing modern automated process control systems, which makes it a good subject for studying as part of advanced training courses for students of educational institutions in the direction of “Automated control systems for oil pipeline transport”.

Organizational life cycles and management control systems design

This paper explores the literature relating Organizational Life Cycle theory with Management Control Systems design. During the birth stage, much emphasis is put on cultural controls. In the growth stage, cultural controls remain important, but the degree of formalization increases with cybernetic controls and administrative controls. During the maturity stage, the most bureaucratic phase is reached with many planning and administrative controls. The revival stage shows a renewed focus on cultural controls and a reduction of administrative controls. Not many findings are available that discuss the decline stage. It is argued that each stage represents important challenges for the CFO.

Accountability logics in disability service NPOs – Incorporating the role of service user advocacy in accountability and management control systems

PurposeThe aim of this paper is to contribute to a greater understanding of non-profit organization (NPO) management control systems (MCS) and accountability in organizations providing support service for capacity constrained service users. Specifically, the paper examines the role of MCS and accountability in supporting mission realization in NPOs providing services to people with intellectual disabilities and reflects on this in the context of the COVID-19 pandemic.Design/methodology/approachThe research comprised a case study of four NPOs providing services to people with intellectual disabilities in Ireland conducted prior to the global COVID-19 pandemic. The study probed management's perceptions of stakeholders and examined the manner in which the design and use of MCS and accountability processes supported mission realization.FindingsService users were regarded as the least powerful stakeholder and consequently the least attended to in terms of MCS and accountability processes. The absence of relational and dialogical accountability with service users is not only central to maintaining this power asymmetry but also poses a threat to mission realization. These deficits can be addressed through the integration and monitoring of internal advocacy activities into MCS and accountability processes, which, on reflection, may also mitigate some of the negative consequences for service users of isolation from external support networks in times of crisis.Research limitations/implicationsThis research has opened up an area for enquiry – internal advocacy – heretofore not addressed in the management accounting literature, opening up a novel vein for future research. Such research could further examine the role of internal advocacy, drawing from and adding to the research in other support service domains. A number of objectives and questions might be considered: (1) probing the level of management recognition of the role of direct engagement in advocacy activities in supporting service user agency; (2) identifying with service users and management the nature and attributes of effective advocacy activities and practices; (3) questioning how such advocacy activities and practices might be reflected in MCS; (4) identifying what service user stakeholders regard as effective accountability to them in relation to their needs and objectives; and (5) assessing the impact on service user experience and on NPO mission realization of internal advocacy activities and the monitoring and review thereof through MCS. These suggestions for future research draw attention to aspects of support service delivery that have the potential to be profoundly influential on service outcomes.Practical implicationsA performance management model reflecting the identified need to incorporate internal advocacy mechanisms into organizational management control systems is proposed in an effort to increase accountability of NPOs to their core mission stakeholder – service users. This model may be of value to NPO management as they move from a medical-model of care to a rights-based model for service delivery in care settings.Social implicationsThe paper reflects the importance of listening to the voice of vulnerable service users in NPO care settings and proposes a mechanism for embedding internal advocacy in formal management control systems and accountability processes.Originality/valueIn proposing an “agency” supportive relational and dialogical accountability logic for such organizations, underpinned by “internal advocacy”, this research provides theoretical and practical insights for accountability processes and the design of MCS. The findings contribute empirically, not just to the NPO management and MCS literature but also to understanding the relational interaction of service users with service organizations, and what this means in supporting service user objectives and realization of organizational mission.

Audit in terms of Independence, Organizational Characteristics and Internal Relationships

The internal audit function's efficiency is greatly influenced by relationships, organisational characteristics, and internal audit independence. Independence is the capacity of the internal audit function to operate impartially and unbiasedly. By ensuring that the internal audit function has a clear reporting line to the board of directors or audit committee, as well as the resources and independence necessary to carry out its responsibilities, this is achieved. To evaluate the organization's risk management, control, and governance methods fairly, internal audit must be impartial. Organizational aspects include the internal audit function's structure, reporting lines, and resources. These characteristics are essential to guaranteeing the internal audit function can carry out its responsibilities and provide a fair assessment of the organization's risk management, control, and governance systems. The organisational characteristics should support and be consistent with the main objectives and strategy of the company. Internal relationships are interactions and connections between the internal audit function and other organisational entities. The internal audit function's capacity to carry out its responsibilities effectively and provide an unbiased assessment of the company's risk management, control, and governance systems depends on these relationships. These partnerships' essential components include coordination, collaboration, compliance, and efficient communication. To make sure that the organization's overall goals are realised, the internal audit function should closely collaborate with other organisational departments like finance, operations, and risk management. In order for the internal audit function to be able to give an objective and useful review of the organization's risk management, control, and governance procedures, it is crucial that internal audit independence, organisational characteristics, and internal relationships all be present. They all play a vital part in ensuring that the internal audit function can recognise risks, take steps to reduce them, and reassure the management and other stakeholders of the company.