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Management Accounting -- - Essay Example

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Fred Fiedler was the person who first came up with contingency management. In terms of implementing a new management accounting system or technique, contingency management must be taken into account because the business organisation may need to adapt its business operations depending what issues or challenges that come up. A business manager can use contingency management to listen to the respective complaints that employees may have over the implementation of new management accounting systems. Whenever there are new management techniques in place, the majority of employees will have some sort of concern. This is why contingency management is perfect for most business organisations—it allows business leaders to adapt their management accounting systems to fit the behaviour of the majority of the employees. There are trends, or fashions, in management accounting. Over time, the techniques that are used may change depending on the discovery of a new method, or perhaps a new technological advancement.

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Summary

When designing and implementing a new management accounting system or technique, contingency management becomes important because it can assist in reaching the organisation’s goals and objectives. Contingency leadership plays an enormous role in the makeup of a business organisation…
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