StudentShare solutions
Triangle menu

MANAGEMENT ACCOUNTING AND FINANCIAL MANAGEMENT - Essay Example

Not dowloaded yet

Extract of sample
MANAGEMENT ACCOUNTING AND FINANCIAL MANAGEMENT

Vodafone Company is a British multinational company that deals with telecommunication services. It holds the second position mobile telecommunication company worldwide. The company owns and operates in more than 30 countries. Evolution of Vodafone brand started in 1982 after the establishment of Racal electronics plc when Jan Stenbeck spearheaded the joint venture between Millicom and Racal Vodafone. This evolved to the modern day Vodafone. Recent research indicated that Vodafone has introduced a tiered employee reward program that offers an incentive to over 79,000 employees worldwide. The Vodafone announced its intentions of creating the ‘Vodafone Heroes’ both internally and globally. This saw the company rewarding some of its stars. The Vodafone Heroes are entitled to quarterly incentives voted upon through the company’s SMS system. The company also recognizes its heroes on an annual basis where the management must select any gift and give to the people who perform exceptionally (Eaton & Duncan 2002, p. 284). While it is a great thing to recognize and reward employees, Vodafone is faced with challenges in establishing the reward and incentive systems for their employees. This paper identifies challenges experienced by Vodafone in its establishment of reward and incentive system and proposes a constructive executive compensation system. Effective incentive system must enhance motivation and employee skills by acknowledging their successes and aggressiveness. Reward and incentive systems depend on employee effort and their progress towards the established goals. This must be, therefore, tailored to the objective of the organization and must enhance increased profitability, reduced employer costs and enhance employee-driven changes within the organization. Effective rewards and incentives acknowledge what the organization aims at rewarding (Bean 2004, p. 11). Nevertheless, despite the great role played by rewards and incentives in the organization performance, the efficiency is faced by a number of challenges. The three main challenges facing effective establishment of rewards and incentives systems include the autonomy, finding the appropriate context and use of sponsored content (Westerman et al. 2008, p. 409). Sponsored content challenges The implementation of strong incentives and reward system triggers employees cross the ethical boundaries. Valuing a reward compels employees choose the easiest and the shortest way of attaining it. Such a tendency to rationalize justifies unethical acts and harmful decisions. In addition, the management must be very cautious since incentives and rewards carry with them some form of payment inequality. This may encourage jealousy, resentment and disappointment upon the people who fail to receive incentives or rewards. Studies indicate that people the judgment made by people regarding payments is never in absolute terms; rather, it compares the pay with that of their peers. Therefore, establishment of rewards and incentives must be carefully considered ensuring that some staffs never feel overlooked. This is because benefits to high performers seems to be outweighed by costs to low performers who feel unfairly treated and may tend to reduce their efforts. Studies indicate that the pay inequality undermines performance and retention of employees. Therefore, the management m ...Show more

Summary

Name: Tutor: Course: Date: University: Management Accounting and Financial Management: Vodafone Company Introduction Reward systems are critical in organizations and their impact to the quality of life of people within the organization. The human resource management is among the most crucial functions in an organization…
Author : audrey88
MANAGEMENT ACCOUNTING AND FINANCIAL MANAGEMENT essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"MANAGEMENT ACCOUNTING AND FINANCIAL MANAGEMENT"
with a personal 20% discount.
Grab the best paper

Related Essays

Understanding Management accounting and Financial Management
The company had the lowest balance in the end of April and highest one in the end of the May. Yet the store management should realize they are not in a position to expand their business as they do have the finance but that is limited in terms of opening up a likewise store in some other city.
4 pages (1000 words) Essay
Financial Management and Accounting
In this paper, I seek to discuss aspects of financial management and accounting in a healthcare organization’s setup – nursing home. Identification of the Type of Organization – Nursing Home A nursing home refers to a set of “facilities with three or more beds that routinely provide nursing care services” (Evashwick, 2005, p.
3 pages (750 words) Essay
Management accounting and financial accounting
The expert accounting conception and scientific accounting dexterity regarding measurement of performance, analysis, auditing and final reporting are as well pertinent to the supervision of healthy and sustainable ecological performance. With the increased international community's recognition of the ecological concerns, so has there been a simultaneously increased demand on accountants to provide comprehensive ecological costs and information on performance.
12 pages (3000 words) Essay
Management accounting - financial reporting
To support such changes, companies have altered their management accounting practices to adapt to the ever changing environment. There is sufficient research done by the authors discussed in this work, to support such a statement.
12 pages (3000 words) Essay
Financial & Management Accounting
This aspect of accounting concerns itself with learning about the effect an organisation has on society and about its relationships with an entire range of stakeholders to whom it is accountable. These would include all those groups who affect and/or are affected by the organisation and its activities.
19 pages (4750 words) Essay
Financial accounting, management
Financial accounting deals with financial information to the people outside the organization, whereas managerial accounting prepares financial accounts for the people inside it (Differences Among Accounting, Finance, and Economics 2006). Finance, on the other hand, is the discipline dealing with the allocation, management and usage of "monetary resources over time" (Finance 2006).
2 pages (500 words) Essay
Management accounting and financial accounting
hat it serves as a powerful tool for decision making of operational, strategic, performance, forecasting, measurement as well as other factors that together represent the composition of a business. The coaxial relationship of the opposite ends of the accounting practice is
11 pages (2750 words) Essay
Understanding Management accounting and Financial Management
an assessment of what may happen in the future and set detailed plans for achieving the targeted results for the functional departments in the organisation. It also takes into consideration the problems that are likely to be encountered. Budgeting communicates ideas and plans
8 pages (2000 words) Essay
Financial and Management Accounting
Accountancy data are prepared for people who are not involved in day to day running of businesses and institutions. It is the summarization of the
6 pages (1500 words) Essay
MANAGEMENT ACCOUNTING AND FINANCIAL MANAGEMENT 'The role of Management Accountants at Tesco Plc'
A varied range of secondary sources were used in this study, which helped identifying the diversified roles and the complexities associated with the
10 pages (2500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation