Chapter 9: Behavioral and Organizational Issues in Management Accounting and Control Systems

16553 Words Oct 25th, 2012 67 Pages
Chapter 9

|Behavioral and Organizational Issues in Management Accounting and |[pic] |
|Control Systems | |


9-1 In the context of a management accounting and control system, control refers to the set of procedures, tools, performance measures, systems and incentives that organizations use to guide and motivate all employees to achieve organizational objectives.

9-2 The four stages that are needed to keep the organization in control are:

1. Plan: develop an organization’s objectives, choose activities to
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9-11 The three key dimensions of motivation are: direction, the tasks on which an employee focuses attention at work; intensity, the level of effort expended by the employee; and persistence, the amount of time an employee will stay with a task.

9-12 Goal congruence occurs when individuals are able to align their goals at work with those of the organization.

9-13 Managers use diagnostic control systems to monitor organizational outcomes and correct deviations from predetermined performance standards. A diagnostic control system tends to run in a routine way, without regular monitoring by a manager. Interactive control systems, in contrast, rely heavily on dialogue among managers and subordinates about data generated by the system and steps to take based on the data. In interactive control systems, managers must spend more time monitoring the decisions and actions of their subordinates.

9-14 Task control is the process of finding ways to control human behavior so a job is completed in a prespecified manner. Results control focuses on measuring and comparing employee performance against stated objectives. Task control is most appropriate when there are legal or safety requirements, when employees handle liquid or precious assets, or when the organization can control the environment sufficiently to eliminate the need for judgment. Results control is most effective when organization members understand the organization’s objectives, and have the knowledge and

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