The use of theoretical frameworks for explaining the conditions in the business environment is a common practice especially when complex issues need to be evaluated. On the other hand, in areas where different theoretical approaches have been established the choice of the most appropriate framework can be a challenging task…
Theories on motivation – presentation and analysis
In order to understand the potential use of motivational theories in management accounting it would be necessary to refer to the context of ‘motive’, as the basis for the development of motivation, a process causing the willingness of individuals to be engaged or not in a particular activity or to put all their efforts in the achievement of a specific target. In accordance with Singla motive is ‘the latent power in a person which impels him to do a work’.
Different approaches have been developed in literature regarding the explanation of motivation, as a factor influencing the performance of employees in businesses of different characteristics. In accordance with the reinforcement theory, each human is likely to decide considering the consequences of his behaviour. Knowing the results (outcomes) of his behaviour in advance, an individual can plan his behaviour accordingly so that the negative consequences are avoided and, if possible, the expected benefits are achieved. (Gitman et al. 2008). In the context of business environment, the reinforcement theory could have the following explanation: employees are promised specific rewards if they reach a particular level of performance; from a similar point of view, employees may be given a warning that if they fail to reach a minimum level of performance, they will be punished by a decrease in their payment or the deduction of certain of their common benefits – for instance, the monthly subscription to leisure activities and so on. The punishment when used as a threat for pressuring employees to reach a particular level of performance is a policy based on the reinforcement theory, as explained above. In the study of McKenna (2000) reference is made to the theory of McFarlin and Sweeney (1992) on human motivation; in accordance with the above researchers, within modern businesses the motivation of individuals is depended on the following two factors: the distributive justice and the procedural justice; the former is reflected in the payment of equal salaries of employees reaching the same level of performance within the same organization; the latter means that within each organization the measures taken for the rewarding of employees in all departments are similar (McKenna 2000). The existence of distributive just ...
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(Introduction to Management Accounting Essay Example | Topics and Well Written Essays - 2500 Words)
“Introduction to Management Accounting Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.net/finance-accounting/1427-introduction-to-management-accounting.
Therefore for every company employee performance is utmost important. The level of motivation defines the performance of the employee which can be achieved for fulfilling the targets of the company. Therefore the motivational factors are often kept in mind by the management accountants while preparing the budgets.
Managements’ functions within an organization are planning, controlling, leading, arranging, staffing and decision making. Management accounting practices and records for a company are designed and operated in a way to help managers perform their functions easily.
This occurrence has forced many businesses and organizations to devise different strategies through which they can adapt to the existing business environment, and thus increase both customer and organizational value. This has been achieved through: Enhanced marketing/outreach efforts The business environment is ever changing and very dynamic.
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
Question One: The economies of Europe and that of America experienced a financial crisis because of too much liberalization of their economies. The European Union and the United States government advocated for a free market economy. The definition of a free market economy is rather an ambiguous concept.
The company is targeting to sell its products to lower and middle-income individuals. The monthly sales growth of toothbrush and toothpaste is expected to grow at sales of ?100 and ?300 respectively for the first year. Although the market is characterized by a large number of toothpaste and toothbrush brands, the company expects its low-priced products to attract consumers with an intention of saving income.
The R & D manager has to justify the money spent on research by coming up with new products and processes which would help to reduce costs and increase revenue. If the R & D department is like a bottomless pit only swallowing more and more money but not giving any positive results in return, then the management would have no choice but to close it.
ds of 25 sizeable British firms serve as evidences for the statement that British entrepreneurs used standard costing methods even in pre-industrial period 1760-1850 (Fleischman and Parker, 1991), it is still considered that cost accounting began to attract wide interest of
"Management accounting produces information for managers within an organization. It is the process of identifying, measuring, accumulating, analyzing, preparing, interpreting, and communicating information that helps managers fulfill organization objectives" " (Horngren, Sundem, & Stratton, 2005, p. 5).
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