2011 Performance evaluation week 11 student

2011 Performance evaluation week 11 student - ACCT2522...

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ACCT2522 Performance Evaluation and Control Nicole Ang Quad 3097 acct2522@unsw.edu.au Announcements z Please note: no model answers are being provided for the lecture examples that follow – it is up to you to think about the theories and decide how to apply them Readings z Required reading (PDF on Blackboard) Hilton, Maher and Selto (2006, pp.835-855) z Including appendix! z Additional reading Mowen et al Chapter 13 (pp.521-2) Learning objectives z Part I: Motivation theories and the role of MAS Understand why motivation is a concern for management accountants Be familiar with popular motivation theories and their implications for the design of MAS Understand the difference between intrinsic and extrinsic motivation z Part II: The design of incentive schemes To appreciate the choices and principles involved Outline – Performance evaluation and control z 1. Role of accounting information in organisational control z 2. Motivation z 3. Incentive system design 1. Role of accounting information in organisational control Create and sustain value Organisational performance efficient and effective use of organisational resources Individual performance f(ability, uncertainty, effort , resources…) . Motivation to exert effort Control system design
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Control system design z A system of organisational control is intended to provide motivation for organisational members to take actions & make decisions consistent with the organisation’s objectives. Accounting systems z The accounting information system is an integral part of the organisation’s control system Provides decision-facilitating information Provides decision-influencing information for control purposes Management Accounting Control z The roles of management accounting: Planning z E.g., activity based budgeting Control and motivation z E.g., variance analysis; cost of quality report 2. Motivation z An individual’s intensity, direction and persistance of effort toward attaining goals (Langfield-Smith et al 2009) z Motivation energises & guides behaviour toward obtaining a particular outcome z Why do some people work harder, or perform better than Motivation z Intrinsic Outcome or rewards generated internally z Extrinsic Granted externally by the organisation Factors affecting motivation z Individual characteristics Interest, attitudes & needs that people bring to the work place z Job-related characteristics z autonomy, variety, difficulty z Work situation characteristics Immediate work environment z policies, culture
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Theories of Motivation z There are many theories on motivation; we focus on 3: Goal Setting Theory Expectancy Theory Agency Theory z Refer to PDF on Blackboard (Hilton et. al. appendix) Goal Setting Theory (GST) z Goals improve performance via effort Direct attention Stimulate effort Increase persistence Goal
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2011 Performance evaluation week 11 student - ACCT2522...

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