How does establishment of responsibility work?
Establishment of responsibility is a concept used in accounting and finance to ensure that individuals within an organization are held accountable for certain activities and tasks. It involves a set of steps and procedures to properly allocate responsibilities and to ensure the individual entrusted with those responsibilities can be held accountable.
To establish responsibility effectively, the following steps can be followed:
1. Identify the task or activity: Begin by identifying the specific task or activity that needs to be performed within the organization. This could be anything from financial transactions to decision-making processes.
2. Assign responsibility: Once the task or activity is identified, assign the responsibility to a specific individual or department. The person or department should have the necessary skills and qualifications to handle the task effectively.
3. Establish authority: Along with responsibility, it is important to establish the necessary authority for the individual or department to carry out the assigned task. This typically involves granting the required access, resources, and decision-making power.
4. Provide resources: Ensure that the responsible party has access to the necessary resources to complete the task. This could include financial resources, technological tools, information databases, and any other relevant resources.
5. Define expectations and objectives: Clearly define the expectations and objectives of the task or activity. This includes setting measurable goals, timelines, and desired outcomes. It helps in establishing clear benchmarks to measure the performance and accountability.
6. Set monitoring mechanisms: Implement monitoring mechanisms to track the progress and performance of the responsible party. This can be done through regular check-ins, reports, audits, or any other suitable method. It helps to ensure that the responsible party is meeting their obligations and provides an opportunity for necessary feedback or adjustments.
7. Enforce accountability: With the monitoring mechanisms in place, hold the responsible party accountable for their actions and outcomes. This may involve performance evaluations, rewards or consequences, as per the agreed-upon expectations.
By following these steps, an organization can establish responsibility effectively, ensuring that tasks and activities are assigned and carried out in a responsible manner with clear accountability measures in place.