However, the scope of accounting profession has tremendously changed over the last two decades, and today top managers encourage the accountants to be a management partner instead of a mere technical partner. In addition, the emergence of new business concepts like beyond budgeting has greatly increased the significance of the accounting profession because top executives cannot deal with those newly developed practices without the external support of accountants. This paper will identify the key contributions of the paper written by Anatoli Bourmistrov and Katarina Kaarboe and critically evaluate the role of accountants and accounting practices in managing contemporary organisations. Beyond Budgeting The work titled ‘From comfort to stretch zones: A field study of two multinational companies applying “beyond budgeting” ideas’ was prepared by Anatoli Bourmistrov and Katarina Kaarboe. In this paper, the authors give particular focus to management control systems (MCSs) operating on the basis of beyond budgeting ideas. They explore how changes in the design principles of these systems have affected the transition of decision makers from comfort to stretch zones. The research work also identifies how this transition has influenced the supply of and demand for managerial information. This paper has been prepared in the background of the evidence that there are many organisational problems in connection with using budgets. From this scholarly work, it is identified that elements like discomfort with the establishment and comfort zones maintenance for decision makers through annual budgeting have persuaded organisations to think of new management control systems. The major aim of implementing beyond budgeting was to change the structure of the information supply. This process greatly assists organisations to effectively manage budget information relating to target setting, forecasts, and resource allocation processes. This paper clearly illustrates that new information from an MCS based on new design principles has significantly influenced the behaviour and mindset of decision makers. It is also observed that information use is different under this situation as compared to previous budget-focused practices. This study is greatly helpful for readers to understand that beyond budgeting (BB) practices aid organisations to develop a new type of management control system and information supply with intent to facilitate the transition of decision makers into the stretch zone. Bourmistrov and Kaarboe (2013) state that “BB is thus a search for new and more nuanced ‘comfort’ zones, where decision-makers will be, to an increasing degree, able to positively appreciate the entrepreneurial and challenging nature of managerial work and also be able to use new information for increasing interaction with the internal and external business environment, as well as for negotiations and learning”. This study is helpful to recognise how organisations that see budgeting as a problematic practice make changes to their management control systems and information supply. The paper also addresses the way the individuals in organisations change the practice of using information in connection with the change in BB practices. The authors present the concept of beyond budgeting as a change in mindset in contrast to traditional norms where BB was perceived as a small operational change. They add that the transformation identified seems to be a matter of
The role of accountants and accounting practices in managing contemporary organisations Introduction With the emergence of trade globalisation, business organisations across the globe have undergone a strategic reformation along with the changes in the way a business operates…
Following are some of the theories which contribute to the paper’s objective. Goal setting has been considered as one of the most empirically investigated HRM practices undertaken in organizations. The study of previous literature reveals that goal setting contributes to the process of decision making in organizations.
In accordance with the World Tourism Organization: “at the start of die new millennium, tourism is firmly established as the number one industry in many countries and the fastest-growing economic sector in terms of foreign exchange earnings and job creation" (Parks and Allen, 2009).
The aim of this paper is to develop and present a plausible and effective model that can be used in the organisations by the managers for setting their organisational based on the proposal of Barlas and Yasarcan. They have developed a compressive and dynamic model for the determining organisation goals, decision making, evaluating and for revising processes.
The term ideology has varied meaning depending on its application. According to Heywood (2007), the definition of ideology denotes a tradition of thought usually related to politics, but that does not involve the science and philosophy of politics (5). An analysis of the political ideologies presents knowledge of their effect on social welfare.
The performance of the organisation is directly linked to the performance of employee; those who work for the betterment of organisation. Recruitment and selection of the wrong candidate might lead to underachievement which will eventually lead to the failure of the workplace.
Researches are primarily carried out through methodologies, which mainly consist of the “choices” made regarding “cases to study, methods of data gathering, forms of data analysis” etc “in planning and executing” research studies (Silverman 2010: 15).
2006, p. 4). The concept of Corporate Social Responsibility has assumed much relevance and importance over the years because of an apt realization on the part of the varied stakeholders associated with businesses are they managers, employees, investors or costumers that economic growth is unavoidably linked to the overall social and environmental well being (Anderson Jr.