The field of management accounting is often described as the field of undergoing changes. ( Goretzki Strauss Weber 2013)In today’s world, business environment requires the stakeholders to make decisions as fast as possible. They have to follow changes not only in internal company situation but also changes in technology, science and business world. Management accounting studies proved that having the right managerial tools in place not only helps improving financial results but is also crucial for improvement in on-going performance, control process and communication. Nowadays the traditional management accounting is required to be replaced by new techniques which would enable to add more value to control and decision making in management accounting field.( Goretzki Strauss Weber 2013). As the result the number of new management accounting techniques have been developed.( Garg Ghosh Hudick Nowacki 2003) .
The rapid changes in management accounting were seen at the beginning of 20th century. There were needed as there were several issues associated with traditional accounting. There was a need for new techniques which would meet the needs of new business environment. (Pierce and O’Dea 1998). By 1980s management started identifying the costs and using budgets as a tool to recognize returns on different levels of investment. There was a number of new cost management techniques introduced in this period, precise methods to measure costs and managerial performance. Management accounting tools were also found to enable data interpretation and by this process, advise management. (Waldron). The most important and widely used techniques introduced in this period are activity-based cost management, the Balanced Scorecard, benchmarking, life cycle costing, target costing, economic value added measures and strategic cost management. Other managerial tools such as Kaizen, Total Quality Management, Business Process Reengineering and Six Sigma were developed later on in this period and are the most innovative tools for management in management accounting field. (mankies)
Nowadays ABC and non-financial performance measurements can be found in all textbook about management accounting. Companies find a lot of benefits when using ABC method, and in general this method is considered a crucial tool to manage the costs apportion for many companies. (monkeys) Balanced Scorecards techniques have proved to increase profitability. Economic value added and other advanced management accounting practice techniques used to measure managerial performance, report positive results. New techniques as Kaizen, Total Quality Management, Business Process Reengineering and Six Sigma has been found extremely helpful in order to price the product and improve the overall production process management in the fast changing environment and markets of grooving competitions ( mankies).
However if we analyze the application of this method in practice, results are disappointing. Szendi and Elmore (1993) research shows that most of the companies would use the new management accounting practice as an additional tool to traditional accounting. However insufficient use of new methods would still indicate that management accounting never progressed from traditional ways. Moreover companies would prefer to use the traditional methods as a simple accounting structure would also enable them to generate required information by making different uses of gathered
data. (Szendi and Elmore 1993 ) Mersereau (2007) study shows that only 20 percent of companies use ABC method in practice. Numbers of firms which have applied EVA do not use it much in practice either. Most of users of balance score cards also failed to apply non- financial performance to their strategy. Therefore we should try to answer the question why, despite widely beneficial innovations in management accounting in the 1980s/90s, companies would still use traditional management...
Changemanagement is an approach to transitioning individuals, teams, and organizations to a desired future state. In this assignment I will be covering Rollin and Christine Glaser’s (1992) five elements to improve team effectiveness, IT management competencies, reasons for mergers and acquisitions in reference to South African businesses and roles leaders should play during the change process.
In the aim to provide one with a better understanding of and insight of changemanagement.
Rollin and Christine Glaser (1992) the five elements that contribute to the level of a team’s effectiveness over time.
• Team mission, planning and goal setting;
• Team roles;
• Team operating processes;
• Team interpersonal relationships; and
• Inter team relations.
Team mission planning and goal setting
The most effective teams have a strong sense of their purpose, organize their work around that purpose, and plan and set goals in line with that purpose. Teams and individuals within teams must have a clear understanding of their objectives. Clarity of objectives together with a common understanding and agreement of these objectives are fundamental. Locke and Latham have identified that the very act of goal setting was a prime motivator for a team; the more your team sets clear goals the more likely it is to succeed....
..."1-3" \h \z \u 1 Be able to understand the forces for change in an organisation PAGEREF _Toc397341613 \h 3CHANGE MANAGEMENT PAGEREF _Toc397341614 \h 3Task 1 PAGEREF _Toc397341615 \h 41.1 Determine the organisation’s position in the sector and market within which it operates PAGEREF _Toc397341616 \h 41.2 Identify an opportunity for change, in support of the organisation’s objectives PAGEREF _Toc397341617 \h 41.3 Discuss a model or method to identify a change process and the communication of that change process PAGEREF _Toc397341618 \h 5Task 2 PAGEREF _Toc397341619 \h 72. be able to understand the impact of the change process PAGEREF _Toc397341620 \h 72.1. Evaluate the impact of the change process on individuals in the organisation PAGEREF _Toc397341621 \h 7Impact of change on individual PAGEREF _Toc397341622 \h 72.2 Assess the impact of the change on organisational stakeholders PAGEREF _Toc397341623 \h 7Assess Impact of change on stakeholder PAGEREF _Toc397341624 \h 72.3 Analyse the impact of the change on achievement of organisational objectives. PAGEREF _Toc397341625 \h 8Change Impact Organizations objective PAGEREF _Toc397341626 \h 8Task3 3.1 Describe how to secure support for the change process from senior management. PAGEREF _Toc397341627 \h 93.2 Demonstrate how individuals in the...
...ChangeManagement and Innovation Management
Vienna, October 2012
Inspiring Partnerships – Sustainable Success
Starting Question 1:
"What do you understand by managing a company or an
If successful managers were asked:
What exactly do you mean when you speak of
managing your area of responsibility?
Do you know where the levers of control lie in
your area of responsibility?
Where do you start, and how do you proceed?
And most importantly: Does your method produce
the intended result…?
...How would top managers reply?
Fachhochschule des bfi Wien | Cerny, Plischke
October 2012 | Page 3
Starting Question 2:
"Do you know your actual field of activity—the area for which
you are responsible as manager?"
Fachhochschule des bfi Wien | Cerny, Plischke
October 2012 | Page 4
The fine art of management—the C(S)N* model
Switching continually between Focus 1 and Focus 2
The consciously “observing manager” (Focus 1)
uses a helicopter perspective of the company or
organizational unit (Focus 1) to gain fresh insights
involving new interrelationships.
The »manager of action« (Focus 2) asks:
How can I use the knowledge gained from Focus 1 to
manage more effectively?
How can I implement promising measures for better
management of my area of responsibility, as a whole...
...oriented or non-profit company. In today’s rapid changes, every organization must continuously ensure its sustainability in global market. Companies must able to compete nationally and internationally in order to sustain in the market. (1)
(MAGDY G. ABDEL 2011) More of recent research mentions that the term of strategic management accounting was first coined by Simmonds (1981). Who defined it as the provision and analysis of information about a business and its competitors for use in developing and monitoring the business strategy? However, in the contemporary business environment, organizations are experiencing greater challenges, increased competition and rapid diffusion of knowledge. (2)
Traditionally management accounting has been characterised as providing information to aid managers internally in a firm and as such the focus of the management accounting systems has also tended to be internally orientated. During the 1980s and 1990s a growing number of academics (Johnson and Kaplan, 1987; Bromwich and Bhimani, 1989, 1996) began to recognise that management accounting was not adapting to changes in the modern business environment and as such was not fulfilling its function to aid managers. In a bid to improve the quality of management accounting information for managers it was necessary to focus more widely on the external environment of the firm and thus the concept of...
Management of change
Date of submission
Dislike to change- addressing this reason for resistance to change the management need to communicate the change to the workforce early in advance. The management should explain the change in details to the workers that will be affected (Cameron, 2012). Communicating change in advance will help those prepare both physically and mentally for the change and hence they will be calmer.
Discomfort with uncertainty- to address this reason for resistance to change the management should help their employees to come into terms or embrace uncertainty. The management will achieve this through organizing seminars to educate its workforce the need to embrace uncertainty (Gerth, 2013). The management can also deal with this reason to resistance to change by informing the employees in advance what will come with the change. By so doing the workers will be ready and comfortable to face the uncertainty that comes with change.
Perceived negative effects on interests- to reduce resistance to change due to this reason, the management should inform the workforce the individual, departmental and the organizational benefits that the change will...
...The definition of team from is a group of people with different skills and different tasks, who work together on a common project, service or goal that requires completing a task, job or project. A team is a group of people working together towards a common goal. Team members operate with a high degree of interdependence, share authority and responsibility for self-management. For example, a football player totally depends on each other to reach their goal which is to win and be the overall champion. If one the player does not have the same skills and goal, the team will not be able to win the game. The players also share the same workload and are able to play according to the rules set in the game.
Secondly, they are also responsible for their self well being, meaning, they need to able to keep fit, healthy and in high spirit to win the game. So if one of the football players are injured or not well, it will affect the number of resources available in order to play the game. With this, the players have to be physically and mentally fit to strictly focus on the winning the game. The spirit of winning among the players need to be motivated and inspired at all times.
Thirdly, they are accountable for the collective performance and work toward a common goal and shared rewards. For example, every players in the football team are responsible and dependant towards one another, planning effective strategies in order to win the game and be the champion among...
...enjoyed by the public, especially users of railway services. KAI won the State Owned Enterprise Award in 2012.
In 2012, PT KAI achieved Rp 6.97 quintillion on total revenue, increased by 14.3% compared to 2011. In 2013, PT KAI has increased their fleet including 359 unit locomotives, 2400 railway wagons. Besides, PT KAI improves the reservation system and purchasing process of train tickets, builds parking areas in its stations, launched woman-only wagon. In Jabodetabek loop line, PT KAI closed down economic class to enhance convenience.
II. EXTERNAL - INTERNAL CONDITIONS AND COMPETITOR REVIEW
CHANGE (2010 to 2013)
As a state owned company, PT KAI is the only company running mass transportation in train sector and ruled under government’s regulation.
There is no specific change of the government’s policy that affects PT KAI
The GDP growth from USD 539.352 billion to 878.043 billions
The growing trend of the GDP increases the purchasing power of Indonesian people, this may lead to potential risk of the utilization of private vehicles
The increasing mobility in Java Island especially Jakarta - Bogor - Depok - Tanggerang - Bekasi due to centralized development of workplaces
Increasing demand of mass transportation
The seasonal trend of Ramadan festive and holidays
The seasonal events will provide revenues for PT KAI
Poor consciousness of passenger to...
...Fast Track Couriers
• Goal A: Implement PDA/GPS
• Goal B: Implement automatic lift gate
• Automatic Lift Gate
To gain trust and
The Importance of Trust
• Trust is essential to an effective team, because
it provides a sense of safety. When your team
members feel safe with each other, they feel
comfortable to open up. Take appropriate
risks, and expose vulnerabilities.
• Without trust there’s less innovation,
collaboration, creative thinking, and
productivity, and people spend their time
protecting themselves and their interests.
This is time that should
be spent helping the
group attain its goals.
Strategies for Building Trust
1. Establish and maintain integrity
It is the foundation of trust in any
organisation. Integrity must begin at the top and
then move down. This means, among other
things, keeping promises and always telling the
truth, no matter how difficult it might be. If its
people have integrity, an organisation can be
Strategies for Building Trust
2. Communicate Openly
Open communication is essential for building
trust. You need to get everyone on your team
talking to one another in an honest, meaningful
way, and you can use several strategies to
Strategies for Building Trust
3. Consider all employees as equal partners
Trust is established when even the newest
rookies, a part-timer, or the lowest paid...