Modelling a management information system for a construction company based on the official account system

Abstract

ABSTRACT Modelling a management information system for a construction company based ön the official accounting system Kırhan Dadaşbilge The idea of this study is using the legal accounting records for management. A model has been developed for the accounting system that enables the performance measurement of all activities in a construction company. The company is broken down into identifiable smaller business units, and the complicated business structure has been regarded as combination of these units. Determination of the financial performance is given the first priority for control and evaluation. The basic financial reports, i.e. balance sheet and income statement, are obtained for each unit. Cost analysis is also made for the end-level units to check and improve the production process. The company assets are shared among the sub-units. Therefore the financial performance of a unit can not be evaluated properly without analysing its balance, sheet. It is anticipated that unit managers communicate each other using financial reports instead of personal letters. Using a common language relieves the artificial stress and establishes a dynamic balance between unit managers. Otherwise, the organisational structure of the company becomes disintegrated. Managers and accountants should cooperate for the design of the accounting chart. Construction companies suit best to the proposed model due to their complex structure. A total of 19 medium and big size companies are studied. Study shows that managers of these companies do not use accounting records for decision making, and they are not familiar with the essentials of accounting. World-wide competing construction companies shall benefit the advantages of the model developed in this study, when their managers begin using financial reports for the evaluation of performance. 3/YV MISiN718.DOC