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Unit 5 DB Managerial Accounting
Unit 5 DB Managerial Accounting
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Unit 5 DB Managerial Accounting
A balanced scorecard is a tool used in strategic management of an organizations performance. It is a report backed up by methods of design and relevant tools that is used by managing personnel to keep an eye on their staff by monitoring how they execute their respective obligations. A balanced scorecard is able to blend in financial as well as non-financial measures which are then compared to set or rather targeted values in the report. This way the results of its implementation could be observed and analyzed to show its effect on the company.
On the other hand, Economic Value Added strategy measures and estimates the economic profit of an organization. In other words, estimated value added is the value arrived at after subtracting the cost incurred to finance the total capital of the organization from the profit made. Using Economic Value Added methods to measure the performance in an organization requires the staff to work hard in order for the organization to earn enough profit. Such that, on application of Economic Value Added strategy the organization still achieves it’s targeted economic profit.
The ability of a balanced scorecard to recognize and work concurrently with the vision and mission statements of the company makes it the better option to use as a performance measure. This is because it not only focuses on improving the performance of the staff but also uplifts and plays a big role in achievement of the company’s goals. Furthermore, the Economic Value Added method demands for better performance of the staff unlike the balanced scorecard that motivates its staff to work hard towards achievement of the set targets.
References
Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard. Harvard Business Review
Press.
Young, S. D., & O’Byrne, S. F. (2000). Economic Value Added and Value-Based Management.
McGraw-Hill.
Unit 4 Response to Peer Post
Unit 4: Response to Peer Post
Author’s Name
Institutional Affiliation
Unit 4: Response to Peer Post
Chong, I appreciate your work in this discussion prompt as you convey intriguing thoughts about dealing with decision-related conflicts among members of a small group. As part of your recommendations for this small, five-member group, you mention that communication is critical in decision-making. Accordingly, you advocate the deployment of both upward and horizontal communication. I agree with you on the significance of these types of communication in providing the essential information needed in guiding the board’s decisions so that they do not make defective decisions. I would add that upward communication would be necessary for understanding the grievances and complaints that would ensue when staff cuts are made. I also concur with your suggestion of viewing things from each member’s perspective. This is imperative not only in lessening decision barriers arising from members having equal power, but also in ensuring a consensus, harmony, and common ground of bringing their thoughts together amicably. I agree with your last recommendation, where you suggest that this small group should embrace information sharing through strategic brainstorming. I believe that brainstorming ideas and sharing information enriches the decision-making process for this group by enhancing creative reasoning, the constant generation of uninhibited ideas, and productive self-criticisms that produce better decisions. Thank you for your thoughts.
Unit 4 Prompt
Unit 4 Prompt
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Unit 4 Prompt
Prompt 2 – Consider a time that you’ve been part of a small group either in school, at work, or within a friend/family group. Did you notice any elements of “groupthink” in your small group (page 351)? If yes, detail what it felt like, and what if no, write why you think groupthink did not occur in your small group. How did groupthink affect teamwork, group communication, and any other element important in the communication process?
Response
Based on what the class textbook suggests, I conceptualize groupthink as a thought processing phenomenon in the problem-solving process where members of a cohesive group make flawed decisions because of group pressures emanating from the aspiration to conform to that group’s outcomes while maintaining group harmony. Some unique characteristics of this phenomenon are a decline in moral judgment, psychological efficacy deterioration, and reality testing deficiencies, all encouraged by members’ zeal to sustain team accord. The effects of groupthink include dysfunctional or irrational decision-making with defective outcomes.
The occasion where I have been part of a small group and witnessed groupthink elements was at my previous workplace. I worked in a five-member team tasked with providing recommendations for functional and technical components of new equipment that my workplace was to acquire. Here, high cohesiveness among group members was evident, which enhanced strong feelings of commonality, the desire to preserve group harmony, and the passion for maintaining group relationships, culminating in groupthink. Groupthink affected our group communication negatively because we were pressured to conform to views expressed by our group leader and members, even the flawed ones. Groupthink influenced problem-solving negatively by making some of our decisions irrational. Groupthink stifled teamwork amongst us because the conformity bias hindered independent and creative thinking.