The aspect of erasing the salary part improves the wholesome performance of the managers with the development of workplace initiatives, team work, adaptability, compliance to business policies thereby resulting in increase of the production and the service levels of the organization. The incentives are often linked in the right way to the performance measures with appropriate weight-ages to the several benchmarks of performance measurement (Marr and Gray, 2012, p.68). The manager’s ability to meet the benchmark standards determine the rewards and the compensation that are received by them. The higher the achievements of the manager in comparison to the benchmark standards, the higher the rewards the managers should be eligible to receive. The benchmarks are set in the various areas of operation of the organization in order to fulfil its organizational objectives. These areas which include benchmark standards of performance of the employees are aimed at fulfilling the financial goals of the company, the customer service, the standards of the internal processes and the learning goals of the organization (Tonchia and Quagini, 2010, p.78). The financial benchmarks of the manager’s performance indicates the desired output from the managers that would contribute to the attainment of certain production volumes in line with the quality standards to be maintained for the products. Thus the benchmarks help in assessing the extent to which the manager has been able to contribute to the production volumes of the company and at the same time maintained the quality of production (Niven, 2010, p.34). The use of benchmarks in measuring the performance helps to identify the short cut approaches adopted by the employees which is aimed at fulfilling the short term goals but do not fulfil the organizational objectives. The benchmark system helps to understand whether the performance of the managers has been up to the mark in all aspects of the manager’s performance, like in this case both product quantity as well as quality. The benchmarks set in the area of customer service is also important to measure the performance of the managers as this is also an important area considered for the sustainability of the business of the organizations. The various benchmarks in the area of performance measures for customer service includes the turn-around time to the customers, the number of complaints that have been lodged by the customers, the time taken for the resolution of complaints by the manager. These benchmarks help to measure the extent to which the manager has been able to respond to the customer requests which is determined the turnaround time. The compromise of any one of the performance measures may lead to complaints from the customer. The benchmarks determine the rate at which complaints have been filed against the work of the managers and thus indicate the gaps with the benchmark standards of performance. The benchmark system also provides an insight on the effectives of the manager in resolution of customer complaints. The inputs received from the
Management Accounting Techniques and decisions Contents Role of benchmarking in evaluating manager’s performance 3 Budgetary planning and control systems: impacts on business performance 5 References 8 Role of benchmarking in evaluating manager’s performance The statement that manager’s should be rewarded only on the basis of performance and that there should be no salary underlines the fact that the compensation structure of the managers need to be rightly linked to the performance measures designed by the company in order to achieve balanced productivity and a sustainable business which is in line with the policies and the mission statement of the organization…
Today many organisations are going out of business as a result of the mounting cut- throat market competition across the globe. Even though a company has a better range of well recognised product lines and brand names, it cannot confront with modern business situation unless the firm possesses potential management level strategies and decision making capabilities.
Accountability 12 Conclusion 13 Reference 15 Abstract This study represents one of the most important areas of management accounting i.e. desirability and effectiveness of accounting for management control. Accounting is the most effective device used by managers and management for organizational control.
……………………………………………...6 References…………………………………………………………………………………………7 Introduction British Airways plc (BA) is one of the largest airlines worldwide and is considered as the national carrier of the United Kingdom based on its large fleet, international flights and destinations.
Management accounting emphasizes on decision making and forward looking instead of the old or historical data which the basic accounting used to emphasize. There are different methods that have emerged because of management accounting and some of these techniques are; Activity Based Costing (ABC), Grenzplankostenrechnung (GPK), Resource Consumption Accounting (RCA), etc.
This paper contains an introduction to the topic of discussion, literature review, a research methodology that was used to collect data, a section for analyzing the data, and a last section for conclusion. Table of Contents 1 1.0 Introduction 3 2.0 Literature review 4 2.1 Accounting 4 2.2 Management control/ accounting systems 5 2.3 Management accounting and decision-making 6 3.0 Research methodology 7 4.0 Analysis 8 4.1 Supporting arguments for Johnson and Kaplan’s (1987) argument 8 4.1 Arguments against the criticism issued by Johnson and Kaplan 9 5.0 Conclusion 11 References 12 1.0 Introduction The field of management has witnessed numerous transformations that are mainly attributed to
Management accounting is a branch of accounting which mainly deals with various managerial aspects. This is primarily handled by the managers within the organization, and it is an essential component in taking appropriate decisions. The concept of management accounting comes under the Management accountant who is responsible for the preparation of financial statements, and management accounting report for appropriate decision making.
Consumers have discretionary sources of goods and services all the time if sellers’ prices are far above the inference of buyers. On the other hand, market players frequently respond by manipulating their own prices whose trend was set by the other participants, while costs is the ceiling price that drives purchases
"The process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of financial information used by management to plan, evaluate, and control within an organization and to assure appropriate use of and accountability for its resources.
The functions of the management include planning, organising, controlling and monitoring. Management accounting provides the required information to the management to carry out the business operations in an arranged manner. The