January Exam Flashcards
what is the definition of ma?
the identification, presentation and use of information relevant to:
-planning
-decision making
-corperate governance
what is control
the process of ensuring that firms activities conform to its plan and that objectives are achieved
how had the role of management accountants changed
from dull scorekeepers to proactive consultants
what is coporate governance
set of mechanisms that help ensure that companies are managed to create value for the owners
what is the difference between traditional control and modern control
traditional:
hierarchy
chain of command
divisional
what are simon’s 4 levers of control
belief - core values
interactive - information
boundary - do’s and dont’s
diagnostic - feedback
what do ahrens and chapman argue and talk about?
ma has a role to play in controlling behaviour
using ma to achieve efficiency
using enabling controls to give employees a degree of freedom and trusting their decision making
what is coercive control
controls used telling employees exactly what to do (top-down control)
what is enabling control
allows autonomy for employees in activities and decision making
why do companies feel the need to start implementing mcs
size (larger companies)
age
external: legitimisation
internal: reaction to chaos, new understanding
what are potential causes of a negative mcs
lack of direction and vision
lack of motivation in employees
how could businesses avoid mcs problems
activity elimination
automation
partial centralisation
risk sharing
what is the public sector
government owned businesses and networks
what is the private sector?
privately owned businesses, with shareholder that we assume focus profit
why are mcs hard to apply to the public sector
less objectives and harder to define
contradictory objectives
outcomes are difficult to measure
political influence
