- Motivating managers and other employees toward the organization ‘s goals.
Organizations have goals. However, organization comprise people who have their own. The goals of individuals are diverse, and they do not always match those of the organization. A key purpose of managerial accounting is to motivated managers and other employees to direct their efforts toward achieving the organizations goals. One means of achieving this purpose is throughout budgeting. In establishing a budget for Disney’s Animal Kingdom, top management indicates how resources are to be allocated and what activities are to be emphasized. When actual operations do not conform to the budget, the theme park’s managers will be asked to explain the reasons for the deviation.
One way in which employees can be motivated toward the organization’s goals is through empowerment. Employee empowerment is the concept of encouraging and authorizing workers to take the initiative to improve operations, reduce costs, and improve product quality and customer service. At The Walt Company’s theme parks, for example, employees are routinely asked for suggestions about ways to improve service to the park’s millions of visitors.