Responsible Accounting

Categories: Accounting Communication Organization Psychology

Essay, Pages 3 (609 words)

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1. Determine at least 2 behavioral that could develop

There are 2 potential behavior benefits if manager accepts and participate in the responsibility accounting system and participatory budgeting system. Responsibility accounting is utilized to measure the performance of individuals and department to foster objective congruence whereas, participatory budgeting system is a budgeting process under which those people affected by a budget are actively involved in the spending plan creation procedure. When BSC'S supervisor is most likely to accept the system and be motivated to attain the budget target, they were actively involved in setting the objectives and know what is expected of them.

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It would be encourage them to prepare ahead and promote objective congruence. Besides that, supervisor would be pleased to be responsible only for those products they can manage due to the fact that they have specific objective to be achieved. Additionally, interaction and group cohesiveness would be enhanced because supervisors would feel part of a group due to get involved in both preparation and application system that are to be embraced

2. Identify at least two prospective problems that might develop Responsible Accounting System

In BSC responsible accounting system, the 2 potential issues that may be arise if the supervisor did not accept the modifications in the philosophy.

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First they will be a problem if they might not resent in being determined on a specific basis instead of the new system. They may have accountable for costs over which they have no control on it. So the supervisor must understand the brand-new duties in brand-new culture of management and how they should operates and offers cooperation on it.

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If the manager did decline the changes, they might confront with the high focus on their own departments objective and this will contribute to the absence of communication between departments and to the business efficiency.

Participating Budgeting System

Participating budgeting system encouraged the manager to be more motivated in doing their jobs and take responsibility to achieve the organization goals. This will encourage creativity and also ideas to the organization community to work as a team and giving cooperation to each other. However, overemphasis on department goals can hurt cross departmental employee relation due to the different motivation and also goals.

3. Discuss the likelihood that the system will contribute to the alignment of organizational and personal goals. Responsibility Accounting System.

This system is used to measure the performance of people and departments to foster goal congruence. It means that the employees and organization are achieving and have same goals and objective. Therefore, if the company adopting this system it will help to ensure that the organizational and personal goals are aligned and help to achieve company’s objective. Since Commercial Maintenance, Inc. took the time to fully explain and communicate the system to BSC’s managers, by pointing out the advantages and encouraging their participation, organizational and personal goals will likely become aligned. Hence, it will increase the management performance as well as the company reputations.

Participatory Budgeting System.

Participatory budgeting is a process of democratic and decision making, and a type of participatory democracy, in which managers or employees decide how to allocate the organization budget. Participatory budgeting allows both organization and employees to identify, discuss and gives them the power to make real decisions about how money is spent. If the company implementing this system it will give benefit equally to the organization and employees because the managers and employees will involve in setting up the organization budget. They will know and understand more what the company wants and needs. Therefore, this system also will contribute to the alignment of organizational and personal goals and give lots of benefit to BSC.