管理会计英文课件：ch9 Behavioral and Organizational Issues in Management Accounting and Control Systems

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1、 2012 Pearson Prentice Hall.All rights reserved.Chapter 9 1 2012 Pearson Prentice Hall.All rights reserved.lA major role for MACS is to motivate behavior congruent with the desires of the organizationlTechnical ConsiderationsRelevance of information that is accurate,timely,consistent,and flexibleSco

2、pe must be comprehensive and include all activities across the entire value chain of the organization2 2012 Pearson Prentice Hall.All rights reserved.lEmbedding the organizations ethical code of conduct into MACS designlUsing a mix of short-and long-term qualitative and quantitative performance meas

3、ureslEmpowering employees to be involved in decision making and MACS designlDeveloping an appropriate incentive system to reward performance3 2012 Pearson Prentice Hall.All rights reserved.lMany managers try to implement new systems without considering the behavioral implications and consequences of

4、 a MACSlNegative consequences:Goal congruence may not occurMotivation could be lowEmployees may be encouraged to engage in dysfunctional behavior4 2012 Pearson Prentice Hall.All rights reserved.lContemporary management view of motivationlBased on initiatives to improve the quality of working life an

5、d the strong influence of Japanese management practiceslIntroduces a high level of employee responsibility for and participation in decisions in the work environmentlServes as the basis for the presentation of the four behavioral considerations in MACS design 5 2012 Pearson Prentice Hall.All rights

6、reserved.lOrganizations operate under a system of beliefs about the values,purpose,and direction of their organizationlPeople find work enjoyable and desire to participate in:Developing objectivesMaking decisionsAttaining goals in their work environmentlIndividuals are motivated by both financial an

7、d nonfinancial means of compensation6 2012 Pearson Prentice Hall.All rights reserved.lEmployees have a great deal of knowledge and information about their jobs,the application of which will improve the way they perform tasks and benefit the organization as a wholelIndividuals are highly creative,eth

8、ical,and responsiblelEmployees desire opportunities to effect change in their organizations7 2012 Pearson Prentice Hall.All rights reserved.lA set of ethical principles is at the center of many boundary systemslMACS should incorporate the principles of an organizations code of ethical conductlMACS t

9、hat incorporate ethical principles can provide decision makers with guidance as they face ethical dilemmas8 2012 Pearson Prentice Hall.All rights reserved.lManagers are often subject to intense pressures from their job circumstances and from other influential organizational members to suspend their

10、ethical judgment in certain situationslThese pressures include the following requests:to tailor information to favor particular individuals or groupsto falsify reports or test resultsfor confidential informationto ignore questionable or unethical practices9 2012 Pearson Prentice Hall.All rights rese

11、rved.lTo incorporate ethical principles into the design of a MACS,designers might attempt to ensure the following:That the organization has formulated,implemented,and communicated to all employees a comprehensive code of ethics That all employees understand the organizations code of ethics and the b

12、oundary systems that constrain behaviorThat a system exists to detect and report violations of the organizations code of ethics10 2012 Pearson Prentice Hall.All rights reserved.lMost organizations attempt to address ethical considerations and avoid ethical dilemmas by developing a code of ethicslEth

13、ical considerations listed in descending order of authority:Legal rulesSocietal normsProfessional membershipsOrganizational/group normsPersonal norms11 2012 Pearson Prentice Hall.All rights reserved.lAn action that is prohibited by law should be unacceptable by society,by ones profession,by the orga

14、nization,and then by each individuallAn action that is legally and socially acceptable may be professionally unacceptable and unacceptable to the organization and its employees12 2012 Pearson Prentice Hall.All rights reserved.lOrganizations that formulate and support specific and unambiguous ethical

15、 codes create an environment that reduces ethical conflictslOne step is to maintain a hierarchy of authority13 2012 Pearson Prentice Hall.All rights reserved.lOrganizations that formulate and support specific and unambiguous ethical codes create an environment that reduces ethical conflictslOne step

16、 is to maintain a hierarchy of authority14 2012 Pearson Prentice Hall.All rights reserved.lA critical variable that can reduce ethical conflicts is the way that the chief executive and other senior managers behave and conduct businesslIf these individuals demonstrate exemplary behavior,other organiz

17、ational members will have role models to emulatelOrganizations whose leaders evince unethical behavior cannot expect their employees to behave according to high ethical standards15 2012 Pearson Prentice Hall.All rights reserved.lIf the organizations code of ethics is more stringent than an individua

18、ls code,conflicts may ariselIf adherence to the organizations ethical code is required and enforced,the individual is asked and expected to pursue a more stringent code of ethics16 2012 Pearson Prentice Hall.All rights reserved.lIssues may arise when the individuals personal code of ethics prohibits

19、 certain types of behavior that are legal,socially acceptable,professionally acceptable,and acceptable to the organizationlPotential for conflict in such situations is heightened when the action that is unacceptable to the individual is desirable to the organizationlThe organization may require that

20、 the person do things that he or she finds unacceptable17 2012 Pearson Prentice Hall.All rights reserved.lEmployees may observe management,even senior management,engaging in unethical behaviorlThis type of conflict is the most difficult because the organization is misrepresenting its ethical systeml

21、The employee is in a position of drawing attention to the problem by being a whistle-blower18 2012 Pearson Prentice Hall.All rights reserved.lExperts who have studied this problem advise that the individual should determine:That the facts are correct and that a conflict exists between the organizati

22、ons stated ethical policy and the actions of its employees in practiceWhether this conflict is institutional or reflects the decisions and actions of only a small minority of employees lMost experts recommend that the employee work with respected leaders in the organization to change the discrepancy

23、 between practiced and stated ethics19 2012 Pearson Prentice Hall.All rights reserved.lOther potential courses of action include:Point out the discrepancy to a superior and refuse to act unethicallyPoint out the discrepancy to a superior and act unethicallyTake the discrepancy to a mediator in the o

24、rganization,if one existsWork with respected leaders in the organization to change the discrepancy20 2012 Pearson Prentice Hall.All rights reserved.Go outside the organization to publicly resolve the issueGo outside the organization anonymously to resolve the issueResign and go public to resolve the

25、 issueResign and remain silentDo nothing,hoping that the problem vanishes21 2012 Pearson Prentice Hall.All rights reserved.lIf the organization is serious about its stated code of ethics,it should have an effective ethics control system to ensure and provide evidence that the organizations stated an

26、d practiced ethics are the same,including a means for employees to point out inconsistencies and to protect those employees 22 2012 Pearson Prentice Hall.All rights reserved.lTo promote ethical decision making,an ethical control system should include the following:A statement of the organizations va

27、lues and code of ethics written in practical terms,with examples that the employees can relate to their individual jobsA clear statement of the employees ethical responsibilities for every job description and a specific review of the employees ethical performance as part of every performance reviewA

28、dequate training to help employees identify ethical dilemmas in practice and learn how to deal with those they can reasonably expect to face23 2012 Pearson Prentice Hall.All rights reserved.Evidence that senior management expects members to adhere to its code of ethics,meaning that management must:l

29、Provide a statement of the consequences of violating the organizations code of ethicslEstablish a means of dealing with violations of the organizations code of ethics promptly,ruthlessly,and consistently according to the statement of consequenceslProvide visible support of ethical decision making at

30、 every opportunitylProvide a private line of communication(without retribution)from employees directly to the chief executive officer,chief operating officer,head of human resource management,or someone else on the board of directors24 2012 Pearson Prentice Hall.All rights reserved.Evidence that emp

31、loyees can make ethical decisions or report violations of the organizations stated ethics(be the whistle-blower)without fear of reprisals from superiors,subordinates,or peersAn ongoing internal audit of the efficacy of the organizations ethical control systemlFormal training is part of the process o

32、f promoting ethical decision making25 2012 Pearson Prentice Hall.All rights reserved.lIn addition to fostering ethical behavior,a central issue in MACS design is how to motivate appropriate behavior at worklWhen designing jobs and specific tasks,system designers should consider the following three d

33、imensions of motivation:DirectionIntensityPersistence26 2012 Pearson Prentice Hall.All rights reserved.lGoal congruencethe organization and its employees align their respective goalslThe alignment of goals occurs as employees:Perform their jobs well and are helping to achieve organizational objectiv

34、es,andAre attaining their individual goals at the same time 27 2012 Pearson Prentice Hall.All rights reserved.lEven if goals are aligned,different types of tasks require different levels of skill,precision,responsibility,initiative,and uncertaintylIn most situations,managers try to establish systems

35、 that they do not have to personally monitor on a regular basislThese are called diagnostic control systems28 2012 Pearson Prentice Hall.All rights reserved.lIf there is a large degree of strategic uncertainty,managers spend much more time monitoring the decisions and actions of their subordinateslT

36、hese are called interactive control systemslAt the core of both systems are two common methods of control:task control and results control29 2012 Pearson Prentice Hall.All rights reserved.lTask control is the process of finding ways to control behavior so that a job is completed in a pre-specified m

37、annerlTask control can be broken down into two categories:Preventive controlMonitoring30 2012 Pearson Prentice Hall.All rights reserved.lTask control is most appropriate when:There are legal requirements to follow specific rules or procedures to protect public safetyEmployees handle liquid or other

38、precious assetsThe organization can control its environment and eliminate uncertainty and the need for judgment31 2012 Pearson Prentice Hall.All rights reserved.lResults control methods focus on measuring employee performance against stated objectiveslThe organization must have clearly defined objec

39、tives,communicated them to appropriate organization members,and designed performance measures consistent with the objectives32 2012 Pearson Prentice Hall.All rights reserved.lResults control is most effective when:Organization members understand the organizations objectives and their contribution to

40、 those objectivesOrganization members have the knowledge and skill to respond to changing situations by taking corrective actions and making sound decisionsThe performance measurement system is designed to assess individual contributions so that an individual can be motivated to take action and make

41、 decisions that reflect their own and the organizations best interests33 2012 Pearson Prentice Hall.All rights reserved.lThe ways in which organizations measure performance send signals to all employees and stakeholders about what the organization considers as its prioritieslUsing multiple measures

42、of performance helps employees focus on several dimensions of their jobs rather than just keying in on one dimension34 2012 Pearson Prentice Hall.All rights reserved.lOccasionally employees are so motivated to achieve a single goal that they engage in dysfunctional behavior:Gaming the performance in

43、dicatorData falsificationSmoothing(a form of earnings management)35 2012 Pearson Prentice Hall.All rights reserved.lMACS designers need to expand their views of the kinds of performance measures to uselNeed for measures of quality,speed to market,cycle time,flexibility,complexity,innovation,and prod

44、uctivitylNew realitiesthe movement from“tall”organizations to“flat”organizations36lResearch has shown that the single most important factor in making major changes to an organization is having management supportlEmployees often resist change because they feel threatened by:Potential loss of jobsBein

45、g reassigned to a new jobIncreases in amount of work or responsibilityChanges in workplace environmentChanges in compensation 2012 Pearson Prentice Hall.All rights reserved.37 2012 Pearson Prentice Hall.All rights reserved.lEmpowering employees in MACS design requires two essential elements:Allowing

46、 employees to participate in decision makingEnsuring that employees understand the information they are using and generating38 2012 Pearson Prentice Hall.All rights reserved.lResearch has suggested that employees who participate in decision making feel greater morale and job satisfactionlIn most ind

47、ustries,people still perform the majority of work and have superior information and understandinglMACS designers should enlist the participation of employees39 2012 Pearson Prentice Hall.All rights reserved.lEmpowering employees requires ensuring that they understand the information they use and on

48、which they are evaluatedlEmployees at all levels must understand the organizations performance measures and the way they are computed in order to be able to take actions that lead to superior performancelEmployees have to be constantly re-educated as the system and its performance measures change40

49、2012 Pearson Prentice Hall.All rights reserved.lTypes of reward systems to motivate employees:Intrinsic rewardsExtrinsic rewardsOrganizations use many systems of financial rewardslTheories of motivation:Expectancy theoryAgency theoryGoal setting theory41 2012 Pearson Prentice Hall.All rights reserve

50、d.lCome from within an individual and reflect:Satisfaction from doing the job Growth opportunities the job providesThe nature of the organization and type of work performedlThe challenge is to design jobs and develop a culture that lead employees to derive intrinsic rewards just by workinglNot affec

51、ted by management accounting information42 2012 Pearson Prentice Hall.All rights reserved.lAny reward that one person provides another to recognize a job well doneBased on assessed performanceReinforce the notion that employees have distinguished themselves within the organizationlExtrinsic rewards

52、may reinforce the perception that wages compensate the employee for a minimally acceptable effort and that the organization must use additional rewards to motivate the employee to provide additional effort43 2012 Pearson Prentice Hall.All rights reserved.lMany compensation experts believe that organ

53、izations have not made enough use of intrinsic rewardslSome argue that people who expect to receive a reward for completing a task successfully do not perform as well as those who expect no reward44 2012 Pearson Prentice Hall.All rights reserved.lMost organizations ignore the role of intrinsic rewar

54、ds in motivation and blindly accept the view that only financial extrinsic rewards motivate employeesMany people believe that financial extrinsic rewards are both necessary and sufficient to motivate superior performancelBoth systematic and anecdotal evidence suggest:Financial extrinsic rewards are

55、not necessary to create effective organizations Performance rewards do not necessarily create them45 2012 Pearson Prentice Hall.All rights reserved.lSome argue that any incentive compensation program is unacceptableThey suggest that organizations must strive to be excellent to survive in a competiti

56、ve worldSuperior and committed performance is necessary for all employees and is part of the contract of employment and does not merit additional paylMany organizations rely on extrinsic monetary rewards to motivate performance46 2012 Pearson Prentice Hall.All rights reserved.lIncentive compensation

57、 reward systems provide monetary(extrinsic)rewards based on measured resultsPay-for-performance systemsBase rewards on achieving or exceeding some measured performancelRequire performance measurement systems that gather relevant and reliable performance informationlBased on absolute performance,perf

58、ormance relative to some plan,or performance relative to that of some comparable group47 2012 Pearson Prentice Hall.All rights reserved.lMeasures of absolute performance include:The number of acceptable quality units producedThe organizations resultsThe organizations share price performance 48 2012

59、Pearson Prentice Hall.All rights reserved.lRewards based on relative performance are those tied to the following:The ability to exceed a performance target level The amount of a bonus poolThe degree to which performance exceeds the average performance level of a comparable group49 2012 Pearson Prent

60、ice Hall.All rights reserved.lSix attributes must be in place for a measurement system to motivate desired performanceEmployees must understand their jobs and the reward system and believe that it measures what they control and contribute to the organizationDesigners of the performance measurement s

61、ystem must make a careful choice about whether it measures employees inputs or outputs50 2012 Pearson Prentice Hall.All rights reserved.The elements of performance that the performance measurement system monitors and rewards should reflect the organizations critical success factorsThe reward system

62、must set clear standards for performance that employees acceptThe measurement system must be calibrated so that it can accurately assess performanceWhen it is critical that employees coordinate decision making and other activities with other employees,the reward system should reward group rather tha

63、n individual performance51 2012 Pearson Prentice Hall.All rights reserved.lIncentive compensation systems work best in organizations in which employees have the skill and authority to react to conditions and make decisionslWhen the organization has empowered its employees to make decisions,it can us

64、e incentive compensation systems to motivate appropriate decision-making behavior52 2012 Pearson Prentice Hall.All rights reserved.lThe incentive compensation system must focus primarily on outcomes that the employee controls or influenceslEmployees incentive compensation should reflect the nature o

65、f their responsibilities in the organizationlA mix of rewarding both short-and long-term outcomes is consistent with the goals of the Balanced Scorecard approach53 2012 Pearson Prentice Hall.All rights reserved.lIncentive compensation schemes tie rewards to the outputs of employee performance rather

66、 than to inputs such as their level of effortlIncentive compensation based on outcomes requires that organization members understand and contribute to the organizations objectives54 2012 Pearson Prentice Hall.All rights reserved.lRewards may be based on inputs when:It is impossible to measure outcomes consistentlyOutcomes are affected by factors beyond the employees controlOutcomes are expensive to measurelInput-based compensation measures the employees time,knowledge,and skill levellMany organi