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Management accounting and control - Coursework Example
Finance & Accounting
Pages 15 (3765 words)
Date Answer 1 Organizations have in the past measured and managed their performance through internal or process performance approaches which have not been in the position of providing the management information they need to measure and mange the organization effectively and efficiently…
This approach was developed by Kaplan and Norton through the development of a set of measures otherwise called by them as “a balance scorecard.” The approach has the ability of giving the managers of organization a fast and quick view of the organization in terms of measures and management of performance information which includes both process and results measures (Swain, Krumwiede and Eaton 1999). The balanced scorecard is compared to the dials and the indicators in an airplane cockpit due to its ability to give comprehensive information simultaneously about the current and the predicted environment needed by managers for effective and efficient management. Information from this approach is ought to be gathered using the four model approach as follows:- in the customers perspectives, the managers are required to know if they are able to satisfy their customers’ needs hence the need for them to respond to the question as to how the customers see them. Secondly, the model will allow the managers to focus on the critical internal operation which enables the organization satisfy the customer needs, this is known as the internal business perspective. Thirdly, the approach gives the innovation and learning perspective which shows the ability of the organization to innovate, improve and learn. ...
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