accounting class
Pace
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Michelle Pace posted Feb 22, 2021 10:15 PM
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Responsibility accounting is a system that creates responsibility centers to divide responsibilities to varying areas of management. It then gathers and evaluates costs and revenues from each responsibility center. Executing a responsibility accounting system results in increased top management time, use of expert knowledge, improved customer relations, and improved motivation and retention (Miller-nobles).
A performance evaluation system is a system that provides top management with a framework for maintaining control over the entire organization. Benefits of a performance evaluating system are improved goal congruence and coordination, improved communications of expectations, motivation of segment managers, and improved feedback and benchmarking goals (Miller-nobles).
The balanced scorecard is a strategic planning report that is used throughout business to help evaluate employees and department progress toward company goals and visions. The balanced scorecard views the company from four different perspectives: Financial perspective, customer perspective, internal business perspective, and learning and growth perspective. Traditionally, employees were strictly evaluated on financial measures, such as sales or profit. However, this method of performance evaluation can be short-sighted. For example, if a manager grows profit by buying inexpensive but substandard materials, profit rises in the short term, but the company's reputation may suffer in the long run. The balance scorecard integrates customer service, learning and growth measures with traditional financial metrics to provide a more long-term focus on performance (Miller-nobles).
Resource
Miller-Nobles, Tracie L., et al. Horngren's Financial & Managerial Accounting. Pearson, 2018.
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Timothy Dean posted Feb 22, 2021 11:34 PM
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Being in management my entire life I am very familiar with both writing and delivering performance evaluations to employees that work for me. All year you try to educate, coach, and guide the employees that work for you to do a good job based on the companies standards and metrics. When it’s time to write a performance evaluation as a manager you take all the annual data that that employee contributed to the company and rank them amongst their peers and amongst the company goals. Very little of an employee‘s performance evaluation is subjective. You rank them according to how they did against all the other employees in the company’s metrics and assign them a ranking. Then generally the top 15-20% receive an exceeds expectations rating, the middle 60-70% receive a meets expectations rating, and the lower 15-20% receive a did not meet expectations rating. The conversations you have with your exceeds and meets expectations employees are normally very favorable because they will receive a merit increase in their pay and potentially a bonus. The conversations you have with your employees that fall under the do not exceeds expectations are generally not fun because once you give them the rating you normally tell them that they don’t earn a merit increase for that year. But a good manager would’ve informed them throughout the year of where they were standing and how they were trending so it shouldn’t come as a surprise. However, there have been some employees that I’ve inherited later in the year when they had a manager that didn’t tell them much of anything and so when they got their performance evaluation it came as a shock.
These performance evaluations are generally tied to a company’s performance throughout the year. Generally, there is a benchmark set that the company wants to reach, and they reward the employees that help reach those and also the ones that exceed them. Then the ones that don’t meet them are not rewarded. In order to have a performance evaluation that is considered meeting expectations that normally means that they actually exceed the company goals on an individual basis. The average company is not going to reward an employee who does just enough or basically flat lines along what the company standards are.
A balance scorecard is a scorecard that lines up oh all of the businesses activities that have to do with the company’s strategic objectives. It basically finds a way to translate a company’s strategy into measurable performance objectives. The goal of a balanced scorecard is to help you focus on more than just one area of the business—usually, people are focused on the financials. The traditional balanced scorecard focuses on four areas: Financial, Customer, Process, Organizational Capacity (or learning and growth). (Heathfield, 2019) The traditional performance scorecard generally only measures the businesses revenue and profit it earns by selling or performing services. It doesn’t really link any strategic objectives but just measures how a company does with profitability. Works Cited Heathfield, S. (2019, June 25). How to Develop a Balanced Scorecard as a Performance Management Tool. Retrieved from How to Develop a Balanced Scorecard as a Performance Management Tool: https://www.thebalancecareers.com/balanced-scorecards-as-performance-management-tools-4164627