TAILIEUCHUNG - Management Accounting for Decision Makers 6th edition_6

Tham khảo tài liệu 'management accounting for decision makers 6th edition_6', kinh doanh - tiếp thị, quản trị kinh doanh phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 242 CHAPTER 7 ACCOUNTING FOR CONTROL are complex and can vary according to the particular situation. For example it has been found that the impact of different management styles on such factors as job-related stress and the manipulation of budget figures seems to vary. The impact is likely to depend on such factors as the level of independence enjoyed by the subordinates and the level of uncertainty associated with the tasks to be undertaken. It seems that where there is a high level of interdependence between business divisions subordinate managers are more likely to feel that they have less control over their performance because the performance of staff in other divisions could be an important influence on the final outcome. In such a situation rigid application of the budget could be viewed as being unfair and may lead to undesirable behaviour. However where managers have a high degree of independence the application of budgets as a measure of performance is likely to be more acceptable. In this case the managers are likely to feel that the final outcome is much less dependent on the performance of others. Later studies have also shown that where a subordinate is undertaking a task that has a high degree of uncertainty concerning the outcome for example developing a new product budget targets are unlikely to be an adequate measure of performance. In such a situation other factors and measures should be taken into account in order to derive a more complete assessment of performance. However where a task has a low degree of uncertainty concerning the outcome for example producing a standard product using standard equipment and an experienced workforce budget measures may be regarded as more reliable indicators of performance. Thus it appears that a budget-constrained style is more likely to work where subordinates enjoy a fair amount of independence and where the tasks set have a low level of uncertainty concerning their outcomes. Failing to meet the budget The .

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