...understanding why things work the way they do, also known as “natural science (Geerts, 2011).” The primary goal of the paper was to introduce the design science research methodology (DSRM) into accounting information systems (AIS) literature by discussing the DSRM, applying the DSRM to different AIS design science papers, and then integrating the DSRM as part of the operational AIS literature (Geerts, 2011). “Currently, integration is increasingly needed in the business environment. This need emerges from the efficiency and synergy requirements necessary in a complex and turbulent environment. In other words, integration is needed to facilitate coordination, which is again related to the building of competitive advantage.” (Granlund & Malmi, 2002, p. 305). Detail Geerts’ introduction gives definitions and history of the concept of DSRM and AIS so that the reader may transition along with the article. There is discussion of each methodology giving the history and the science behind it and then he moves into how the application of DSRM was discussed in the AIS area. According to Geerts the DSRM has three objectives and aims at improving the production, presentation, and evaluation of design science research while being consistent with its original principles and guidelines (Geerts, 2011). Following the discussion of the DSRM model, Geerts applies the DSRM to a generalized framework for accounting systems in a shared data environment taking DSRM activities and integrating...
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...Management Control of Project Portfolio Uncertainty: A Managerial Role Perspective Tuomas Korhonen, Cost Management Center (CMC), Department of Industrial Management, Tampere University of Technology, Tampere, Finland Teemu Laine, Cost Management Center (CMC), Department of Industrial Management, Tampere University of Technology, Tampere, Finland Miia Martinsuo, Department of Industrial Management, Tampere University of Technology, Tampere, Finland PAPERS ABSTRACT ■ This article presents empirical results on different managers’ viewpoints regarding the sources and management of project portfolio uncertainty. As a key result, this study demonstrates the versatility of uncertainties experienced by managers, the limited degree of perceived control over them, the use of an almost complete management control package in managing uncertainties, and the necessity of managers’ cooperation in the skilled use of the management control package when managing uncertainties. In addition, a further research agenda is proposed. KEYWORDS: project portfolio management; uncertainty; managerial roles; management control systems; product development INTRODUCTION ■ n their product development, large companies have adopted project portfolio management (PPM) as a means for prioritizing and selecting product development projects among various options as well as allocating resources with the value maximization, balance, and strategic alignment of the portfolio in mind (Cooper, Edgett, & Kleinschmidt...
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...Managing Human Resources HRD, Performance and Reward Management The current Coles regional store manager is currently underperforming in the role the company has assigned for them. As this position of regional store manager plays a key role in Coles achieving its organisational objectives through inspiring, engaging and leading a team of staff to embrace and demonstrate the above values. (Nanverkis, Baird, Coffey, & Shields, 2014) Suggest that human resources should review an organisations strategic direction before selecting recruits. All positions should be reviewed and aligned with the corporate strategy to ensure corporate goals are achieved. Human resource management is one of the most essential departments of an organisations success. The overall goal of this management team is to make sure that the organisations relations with their employees are satisfied. This includes attracting, developing and maintaining a quality workforce and developing performance objectives (Schermerhorn, et al., 2014). The human resource department is investigating one of the current regional manager’s performances. Reports have indicated that the regional manager is underperforming. Underperforming employee’s need to be addressed and handled by the organisation. Detailing several issues will help realign the employee with the organisations goals. The issues being addressed will actively engage and offer recommendations in assisting the regional store manager to effectively perform...
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...Introduction In 1980s, as everything went global and economic activities became more complicated, past management accounting programmes such as Material requirements planning (MRP) and Manufacturing resource planning (MRP II), being unable to keep pace with times, were no longer to be relevant because they were not quite useful for decision-making and control purposes in such a competitive environment. Without replacing these elements, Enterprise resource planning (ERP) came to represent “a larger scope that reflected the evolution of application integration beyond manufacturing” (Sheilds and Mureell, 2005). According to Anurag (2009), MRP evolved into ERP as managers noticed that ‘routings’ and capacity planning activity had become essential parts of the software architecture. ERP was firstly introduced by Gartner Group Inc in 1990s, generally defined as a process by which a company manages and integrates different parts or areas of its business, for instance, purchasing, inventory, sales, marketing, finance, human resources and so on. In this essay, we will firstly, illustrate the origin and development of ERP and then, investigate how and why it emerged and diffused in 1990s. After that, intended and unintended effects of ERP will be evaluated. Finally, the conclusion will be drawn and recommendation of future research will be given. The main objective of this essay is to learn ERP in all aspects and put efforts to evaluate it. In order to lower total costs in the entire...
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...January 2005 Re-examining the cause-and-effect principle of the Balanced Scorecard* Per Nikolaj Bukh, pnb@pnbukh.com, Aarhus School of Business Teemu Malmi, teemu.malmi@uts.edu.au, University of Technology, Sydney & Helsinki School of Economics Abstract There seems to be a wide variety of methods in how organizations apply the Balanced Scorecard (BSC) concept in practice and how it is interpreted in the literature. Consequently, it is not quite clear what the core features of BSC, or its variants, are and if all its variants are equally effective in producing expected outcomes. Moreover, the usefulness of BSC as a practical theory has been questioned by referring to some of its assumptions, especially the cause-and-effect relationship (Norreklit, 2000, 2003). In this paper we re-examine the cause-and-effect principle, which can be seen as one of the corner-stones of the BSC. Further, we outline alternative ways to apply cause-and-effect in practice, both analytically and organizationally. To facilitate research on BSC, we discuss some of the contingencies that may limit or support the usefulness of the causeand-effect concept. These include strategy, organization, environment and communication related issues. Key Words: Balanced scorecard, cause-and-effect, non-financial measurement, performance management, strategy, strategy map. * We wish to thank the editors, Sten Jönsson and Jan Mouritsen, for their guidance in the process of writing the paper. Further, we thank...
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...References Argyris, C. and Kaplan, R. (1994). Implementing new knowledge: the case of activity-based costing. Accounting horizons, 8, pp.83--83. Baird, K., Harrison, G. and Reeve, R. (2007). Success of activity management practices: the influence of organizational and cultural factors. Accounting & Finance, [online] 47(1), pp.47--67. Available at: http://search.ebscohost.com.ezproxy.mdx.ac.uk/login.aspx?direct=true&db=bth&AN=24165021&site=ehost-live [Accessed 4 May. 2014]. Charaf, K. and Bescos, P. (2013). THE ROLE OF ORGANIZATIONAL AND CULTURAL FACTORS IN THE ADOPTION OF ACTIVITY-BASED COSTING: THE CASE OF MOROCCAN FIRMS. Accounting & Management Information Systems/Contabilitate si Informatica de Gestiune, [online] 12(1), pp.4-21. Available at: http://search.ebscohost.com.ezproxy.mdx.ac.uk/login.aspx?direct=true&db=bth&AN=88432600&site=ehost-live [Accessed 6 May. 2014]. Ittner, C., Lanen, W. and Larcker, D. (2002). The Association Between Activity-based Costing and Manufacturing Performance. Journal of Accounting Research, [online] 40(3), pp.714-726. Available at: http://search.ebscohost.com.ezproxy.mdx.ac.uk/login.aspx?direct=true&db=bth&AN=6682590&site=ehost-live [Accessed 6 May. 2014]. Kennedy, T. and Affleck-Graves, J. (2001). The impact of activity-based costing techniques on firm performance. Journal of management accounting research, [online] 13(1), pp.19--45. Available at: http://search.ebscohost.com.ezproxy.mdx.ac.uk/login.aspx?direct=true&db=bth&AN=6133916&site=ehost-live...
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...KTH Homework assignment ME2028 Behavioral Management Control Andreas Torbiörnsson 09 How could each of the control problems at Leo´s Four-Plex Theater be solved with the use of Cultural control? Cultural control is a type of control that encourages mutual monitoring1 and it builds a lot upon group pressure. The main idea of cultural control is to get the employees to watch over each other and to create a culture that has certain things that you specifically do or don’t do. It aims to set up shared beliefs and norms in that company, rules of behaving that everyone abides by. The case of Leo’s Four-Plex Theater has a number of control problems that I can identify. They are as follows: Discrepancies in the cash counts of the ticket booths. Most likely caused by a lack of motivation that leads to employee theft and neglecting of duties. The employees working in the refreshment stand sometimes do not collect cash from customers or doesn’t register the sale on the cash register. This is also most likely caused by a lack of motivation, it can’t be lack of direction since they know what they should do and neither could it be a personal limitation since they know how to operate the machine and how to collect payment. The problem seems to be that they don’t know why they should collect the cash. Test counts reveal that the number of tickets sold or put into the stub box isn’t equal to the amount of customers entering and leaving the theater. This seemed to be caused by three...
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...Management control systems rk assignment ME2028 Behavioral Management Control Andreas Torbiörnsson 09 How could each of the control problems at Leo´s Four-Plex Theater be solved with the use of Cultural control? Cultural control is a type of control that encourages mutual monitoring1 and it builds a lot upon group pressure. The main idea of cultural control is to get the employees to watch over each other and to create a culture that has certain things that you specifically do or don’t do. It aims to set up shared beliefs and norms in that company, rules of behaving that everyone abides by. The case of Leo’s Four-Plex Theater has a number of control problems that I can identify. They are as follows: Discrepancies in the cash counts of the ticket booths. Most likely caused by a lack of motivation that leads to employee theft and neglecting of duties. The employees working in the refreshment stand sometimes do not collect cash from customers or doesn’t register the sale on the cash register. This is also most likely caused by a lack of motivation, it can’t be lack of direction since they know what they should do and neither could it be a personal limitation since they know how to operate the machine and how to collect payment. The problem seems to be that they don’t know why they should collect the cash. Test counts reveal that the number of tickets sold or put into the stub box isn’t equal to the amount of customers entering and leaving the theater. This seemed...
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...Smith Brothers Security Blinds Illustrative Case Fictional case for Seminar 2 in-class exercises (Introduction to performance measurement) Case objective: To give students the opportunity to (i) differentiate between performance dimensions and performance measures, (ii) to devise performance measures, and (iii) to evaluate performance measures using a comprehensive framework. Case: Smith Brothers Security Blinds is a sales and manufacturing organisation, with locally made security blinds as the flagship product. The organisation has two main divisions: sales and manufacturing. Tom Jones, the financial controller at Smith Brothers Security Blinds, has just completed the half yearly reports. Sales for the current period are 30% less than last year and the profit outlook for the year is a ROI of 8%; significantly below the ROI target set by the CEO of 15%. Tom recently implemented a Performance Measurement System in the Manufacturing division, and on all indicators the division is operating as per predefined targets. The lower than expected performance seems to be emanating from the sales division. The sales division has two main departments: Lead generation and the Sales team. They also invest in adverting and other marketing activities. Lead generation: A team of 10 employees (lead generators) and 1 supervisor work out of a call centre, where they phone householders and try to book face to face appointments for the sales team. The phone numbers are purchased from a third...
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...their designers, the uses to which they have been put and the levels of success and importance that participants attribute to them. For the non-users, the reasons for their lack of commitment to ABC are explored. c 2000 Academic Press Key words: activity-based costing; perceptions of success; survey. 1. Introduction Activity-based cost/management (ABC)1 has now maintained a high profile status as an important management accounting innovation for well over a decade (Bjornenak and Mitchell, 1999). However, despite a strong and durable advocacy (Cooper, 1988; Cooper and Kaplan, 1991, 1992, 1998; Kaplan, 1992), several reservations have been expressed concerning (a) the substance of its practical attraction (Bjornenak, 1997; Gosselin, 1997; Malmi, 1999), i.e. that it may be a fad or fashion, engendering a bandwagon effect rather than a genuine and useful technical enhancement, (b) its decision-making relevance (Noreen, 1991; Bromwich and Hong, 1999), i.e. that several restrictive (and practically unlikely) conditions must apply before the ABC information can legitimately be used to generate relevant costs for decisions, and (c) the problematic and costly design, implementation and operation of the systems required for ABC *Department...
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...Smith Brothers Security Blinds Illustrative Case Fictional case for Seminar 3in-class exercises (Introduction to performance measurement) Case objective: To give students the opportunity to (i) differentiate between performance dimensions and performance measures, (ii) to devise performance measures, and (iii) to evaluate performance measures using a comprehensive framework. Case: Smith Brothers Security Blinds is a sales and manufacturing organisation, with locally made security blinds as the flagship product. The organisation has two main divisions: sales and manufacturing. Tom Jones, the financial controller at Smith Brothers Security Blinds, has just completed the half yearly reports. Sales for the current period are 30% less than last year and the profit outlook for the year is a ROI of 8%; significantly below the ROI target set by the CEO of 15%. Tom recently implemented a Performance Measurement System in the Manufacturing division, and on all indicators the division is operating as per predefined targets. The lower than expected performance seems to be emanating from the sales division. The sales division has two main departments: Lead generation and the Sales team. They also invest in adverting and other marketing activities. Lead generation: A team of 10 employees (lead generators) and 1 supervisor work out of a call centre, where they phone householders and try to book face to face appointments for the sales team. The phone numbers are purchased from a third...
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...Smith Brothers Security Blinds Illustrative Case Fictional case for Seminar 2 in-class exercises (Introduction to performance measurement) Case objective: To give students the opportunity to (i) differentiate between performance dimensions and performance measures, (ii) to devise performance measures, and (iii) to evaluate performance measures using a comprehensive framework. Case: Smith Brothers Security Blinds is a sales and manufacturing organisation, with locally made security blinds as the flagship product. The organisation has two main divisions: sales and manufacturing. Tom Jones, the financial controller at Smith Brothers Security Blinds, has just completed the half yearly reports. Sales for the current period are 30% less than last year and the profit outlook for the year is a ROI of 8%; significantly below the ROI target set by the CEO of 15%. Tom recently implemented a Performance Measurement System in the Manufacturing division, and on all indicators the division is operating as per predefined targets. The lower than expected performance seems to be emanating from the sales division. The sales division has two main departments: Lead generation and the Sales team. They also invest in adverting and other marketing activities. Lead generation: A team of 10 employees (lead generators) and 1 supervisor work out of a call centre, where they phone householders and try to book face to face appointments for the sales team. The phone numbers are purchased from a third...
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...Activity Based Costing: Success is in the Eye of the Beholder By Kim Soin First draft: Please do not quote without the authors’ permission. All comments and suggestions are welcome Correspondence to: Dr Kim Soin The Management Centre Kings College, University of London, Franklin- Wilkins Building 150 Stamford Street, London SE1 8WA Direct Phone Line and Fax: 0207 848 4093 E-mail: kim.soin@kcl.ac.uk 1 Activity Based Costing: Success is in the Eye of the Beholder Abstract The literature on Activity Based Costing (ABC) tends to define the ‘success’ of an ABC system in relation to the decision-making and strategy formulating opportunities it provides based on the ‘logic’ or technical attributes of ABC (Shields, 1995; Malmi, 1997). This paper argues that there is a logic of ABC and tries to identify and illustrate how people relate to, misunderstand and still ‘appropriate’ this logic and start “talking accounting”. This paper shows that the ABC system implemented in this organisation did indeed provide information for decision-making and did to some extent support the logic of ABC. The paper also shows how this knowledge was emergent, the logic was articulated, but not fully understood and it was only when the system was implemented that many attributes of the system were recognised and, in some cases misunderstood. The paper argues that the ‘success’ of this particular ABC system was dependent on the organisational context, and the changing context as well as the logic. This...
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...The current issue and full text archive of this journal is available at www.emeraldinsight.com/1176-6093.htm Research in management accounting innovations An overview of its recent development Nur Haiza Muhammad Zawawi Department of Accounting and Finance, University of Malaysia Terengganu, Kuala Terengganu, Malaysia and School of Accounting, La Trobe University, Melbourne, Australia, and Management accounting innovations 505 Zahirul Hoque School of Accounting, La Trobe University, Melbourne, Australia Abstract Purpose – The purpose of paper is to present a review of the literature on management accounting innovations (MAIs). Specifically, it explores recent developments in research on MAIs and offers suggestions for future research. The review differs from existing reviews by its specific focus on MAIs and the recent time period covered. In this paper, MAIs refer to the adoption of “newer” or modern forms of management accounting systems such as activity-based costing (ABC), activity-based management, time-driven ABC, target costing, and balanced scorecards. Design/methodology/approach – The paper presents a review of findings from journal articles published in 22 notable accounting journals. Findings – The review finds that research on MAIs has intensified during the period 2000-2008, with the main focus on exploring the extent to which a host of organizational and environmental factors influence the implementation and use of MAIs in organizations. In addition, research...
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...Int. Journal of Economics and Management 3(2): 297 – 316 (2009) ISSN 1823 - 836X Linking CRM Strategy, Customer Performance Measures and Performance in the Hotel Industry NOR AZIAH ABU KASIMa* AND BADRIYAH MINAIb b Graduate School of Management, Universiti Putra Malaysia Faculty of Economics and management, Universiti Putra Malaysia a Customer relationship management (CRM) has been increasingly adopted because of its benefits of greater customer satisfaction and loyalty, which in turn, leads to enhanced financial and competitive performance. This paper reports on a study that examines the relationship between CRM strategy and performance and determines whether the use of customer performance measures plays a mediating role in the relationship between CRM strategy and performance. This study contributes to the limited literature on CRM strategy since little is known about the use of CRM strategy and customer performance measures and their relation with performance in the hotel industry in Malaysia. Data were collected through a questionnaire survey of hotels in Malaysia. Hierarchical regression analyses on a sample of 95 hotels revealed that only the information technology dimension of CRM strategy has a significant and positive effect on performance. In addition, the hypothesis concerning the role of customer performance measures as a mediator was supported. Keywords: Customer relationship management strategy, customer performance measures, hotels, performance,...
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