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Unformatted text preview: 1 ACCT2522 Performance Evaluation and Control Week 11 Nicole Ang Quad 3097 [email protected] Announcements 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 LS Chapter 13 (pp.664-672) Additional PDF on Blackboard – Hilton, Maher and Selto (2006, pp.835-855) Learning objectives 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 Part II: The design of incentive schemes – To appreciate the choices and principles involved Outline – Performance evaluation and control 1. Role of accounting information in organisational control 2. Motivation 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 2 Control system design A system of organisational control is intended to provide motivation for organisational members to take actions and make decisions consistent with the organisation’s objectives. Accounting systems The accounting information system is an integral part of the organisation’s control system Provides decision facilitating information – Provides decision-facilitating information – Provides decision-influencing information for control purposes Management Accounting Control The roles of management accounting: – Planning E.g., activity based budgeting – Control and motivation E.g., variance analysis; cost of quality report 2. Motivation An individual’s intensity, direction and persistance of effort toward attaining goals (LS 2009) Motivation energises & guides behaviour toward a particular outcome particular outcome Why do some people work harder than others, or perform better than others on a task, independent of their ability and knowledge? Motivation Intrinsic – Outcome or rewards generated internally Extrinsic – Granted externally by the organisation Factors affecting motivation Individual characteristics – Interest, attitudes & needs that people bring to the work place Job-related characteristics...
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- Spring '11
- expectancy theory, Performance Evaluation And Control