PERFORMANCE MANAGEMENT IN FINANCIAL ACCOUNTING

Performance Management in Accounting

Performance Management in Accounting

Introduction

Management Accounting is an integrated part of human resources. It is a system designed to enable employees to perform their work in the form of high quality and efficient, to improve their skills and abilities, and work in direct support of strategic objectives of the company. The process that begins with performance planning and progress, runs through the evaluation of employee performance and development (Marzano, 1993, 34).

Management Accounting is best described as a series of steps or activities that take place in different parts of the cycle of Management Accounting (usually defined as the interval of each year during which the employee goals are fixed and the employee is evaluated and given feedback.)Steps to manage accounting processes include (a) performance planning, (b) observation and monitoring, evaluation (c) and evaluation, (d) feedback and communication, (e) reward and recognition, and (f) individual development.

Importantly, the order of the steps mentioned above does not imply a purely sequential process. In fact, one of the main features of management accounting is that it is once a year, ordered process. Instead, administrators can be simultaneously in several steps with different people. For example, instead of waiting until after an assessment is made before making any comments, the defenders of the managers of Management Accounting advocate providing periodic and ongoing information throughout the process to manage and improve performance (Marzano, 1993, 34).

Accounting is a systematic process of measuring and reporting the available data to users of various financial information relevant to decision making that deals with the economic activity of an organisation. Accounting has had a significant impact on the economic development of societies and organisations it along modern history, as investors, creditors, regulators and other stakeholders have attempted to measure the performance of commercial firms.

Performance measurement is the selection and use of quantitative measures of skills, processes and outcomes to develop information on aspects of activities, including their effect on the public. Performance estimation is a simple concept, no easy definition. Essentially, performance measurement analyzes the success of the working group, programme or organisation's efforts by comparing data on what actually happened as planned or expected.

Performance measurement can be defined as the selection and use of quantitative measures of the skills, procedures and results to develop information on various aspects of activities, including their effect on the individual performance of the employees. The yielding estimate can be taken as normal data collection and reporting to the path of work, more results.

A gradual improvement in group, organisation or presentation will not happen unless there is some way to make introductory remarks. Score is the results of work have communicated to workers, assembly work or business. For the employee at a time, presentation design evaluates the relationship between their conduct and goals of the organisation. (Marzano, 1993, 07).

The rational objective approach is the more traditional model of evaluating charities. Has its roots in the mechanistic view of the organisation and focuses on the extent to which organisations achieve ...