ACCTING 1002 Lecture Notes - Lecture 10: Balanced Scorecard, Performance Management, Net Profit
25 Jan 2023
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Topic 9: performance management system balanced scorecard. A decentralised organisation is one in which decisions making authority is spread throughout the organisation, as opposed to being confined to senior managers. When only top-level management can make decisions the organisation is referred to as centralised. Decentralised organisation- an organisation in which decision-making authority is spread throughout the organisation. The challenge for companies is to find tools that allow the evaluation of managers at all levels in the organisation. One way to do this and react more quickly to changing market conditions is through a decentralised structure. In a decentralized environment managers throughout the organisation can make operational decisions relating to their specific areas of responsibility. Segments can be breaches, divisions, departments, or individual products. Responsibility accounting- an accounting system that assigns responsibility to a manager for those areas that are under the control of that manager. The key to effective decision making in a decentralised organisation is responsibility accounting.
