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Accounting Research - Essay Example

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It further aims to elaborate about how this area delivers significant benefits to the managers and the organizations as a whole. Moreover, the paper will also entail…
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Accounting Research
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Download file to see previous pages Considering fairness as an integral part of management accounting, it is basically divided into two forms that include formal and informal fairness. In this regard, formal fairness takes into concern the design of management accounting system. Furthermore, it basically frames an effective structure for the managers who require setting up their predetermined goals along with budgets. It can be affirmed that the notion of formal fairness monitors the performances of the managers and delivers rewards accordingly (Matlala1-82). Conversely, informal fairness mainly entails the process through which the managers apply to execute the management accounting system. Fairness, as a valuable area of management frames various contributing factors that assist in ascertaining effectiveness of diverse organizations. According to various observations, it can be analyzed that fairness is basically taken into concern as the perception related to organizational justice. This particular area of management accounting research i.e. fairness is quite interesting owing to the reason that justice along with fairness depicts proper functioning of organizational activities at large. According to recent observations, fairness is associated with the facet of controllability, which is mainly considered as an objective. It has been viewed that depending on the reports related to distribution of awards and performance, incentives are equally distributed amidst the employees. Furthermore, fairness can also be achieved by considering the equal pay and awards amidst the employees. In this context, a relationship can be formed between fair judgment and equity. By providing fair treatment to the employees, the management ensures optimum concentration of the employees. Furthermore, on receiving equal payment and awards, retention rate of the employees accelerates towards the accomplishment of organizational ...Download file to see next pagesRead More
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