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Management Accounting Systems & Org Essay

Another way in which Fayol influenced managerial accounting systems is in the way he viewed organizational structure. Some of his key structural principles, such as centralization and scalar chain, reinforce the value of management accounting systems. The systems are needed to support the chain of command, and the top manager at the center of the system. The principle of unity of direction probably contributed the most to management accounting systems because it ties objectives together with a single manager. This guided management accounting systems towards meeting specific singular objectives, and framed the chain of tasks around goals.

Behavioral theories also helped to have an influence of the development of management accounting systems. Human relations is a key part of the functioning of almost any organization. As management theory became more sophisticated, it introduced the human element into Taylorism and administrative theory. Those theories were heavily focused on cold, rational concepts and outlooks. The introduction of the concept of human relations added the social workplace as a motivating factor for workers, whereas Taylor for example viewed money as the sole motivating factor. The result was that management accounting systems moved away from the strictly rational concerns they had been based around, and began to incorporate human relations elements as well. Management accounting systems, particular those geared towards productivity issues, began to place value on softer things, an attempted to quantify improvements in morale on productivity.

One of the goals in many management accounting systems is to improve productivity, and in that task it has become increasingly recognized that human resources can make valuable contributions. Human resources goes beyond human relations, and considers the entire package of dealings with the workforce. The sum total...

This is where management accounting and human resources converge. One area where this can be seen most is in revenue generation. Incentives and workplace environment can have a significant impact on sales and revenue generation, bringing the influence of some human resource functions into management accounting equations.
Today's management accounting systems have grown from ad hoc number crunching to complex, multidimensional tools for analysis and decision-making. This occurred because the systems grew along with management theory, from the formalizing influence of scientific management to the structural influence of bureaucracy and administrative theory. The addition of behavioral theories such as human relations and human resources further refined management accounting systems, by finding ways to quantify the impacts of human behavior, motivation and incentive systems and incorporate those into broader strategic objectives.

Works Cited

Hoque, Zahirul. (2006) Methodological Issues in Accounting Research. Spiramus Press, London.

No author. (no date). Session 5: Financial and Managerial Accounting Transportation Operations Management. Retrieved August 16, 2008 at http://cbdd.wsu.edu/kewlcontent/cdoutput/TOM505/page11.htm

No author. (2007). Frederick Taylor and Scientific Management. NetMBA. Retrieved August 16, 2008 at http://www.netmba.com/mgmt/scientific/

No author. (no date). Administrative Theory (Fayol). Babson College. Retrieved August 16, 2008 at http://faculty.babson.edu/krollag/org_site/encyclop/admin_theory.html

Boucher, Jim. (1994). Merging Management Accounting Tools with Human Resource Management. Journal of Bank Cost & Management Accounting. Retrieved August 16, 2008 at http://findarticles.com/p/articles/mi_qa3682/is_199401/ai_n8716049

Sources used in this document:
Works Cited

Hoque, Zahirul. (2006) Methodological Issues in Accounting Research. Spiramus Press, London.

No author. (no date). Session 5: Financial and Managerial Accounting Transportation Operations Management. Retrieved August 16, 2008 at http://cbdd.wsu.edu/kewlcontent/cdoutput/TOM505/page11.htm

No author. (2007). Frederick Taylor and Scientific Management. NetMBA. Retrieved August 16, 2008 at http://www.netmba.com/mgmt/scientific/

No author. (no date). Administrative Theory (Fayol). Babson College. Retrieved August 16, 2008 at http://faculty.babson.edu/krollag/org_site/encyclop/admin_theory.html
Boucher, Jim. (1994). Merging Management Accounting Tools with Human Resource Management. Journal of Bank Cost & Management Accounting. Retrieved August 16, 2008 at http://findarticles.com/p/articles/mi_qa3682/is_199401/ai_n8716049
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