Discuss about the Relevance of Strategic Management Accounting.
The evaluation directly indicates that there were different teams, which was used in reducing the cost of production, while the incentive setup directly influenced attitude of the employees. This directly resulted in jealousy and unethical practice, which lead to the decline of the current incentive scheme. Furthermore, from the evaluation at crochet be identified that Team Scuba Assembly was not able to provide 100% of its capacity due to the unethical measures used by other team. This directly de-motivated the employees working under the team, which in turn resulted in conflicts between departments. Different problems faced by one team were mainly manufactured by other things, which in turn affected productivity of the organisation. Additionally, the control system directly raised unhealthy competition among employees (Cooper, Ezzamel and Qu 2017).
This case study directly indicated that the overall use of team-based for saving performance measure is not adequate for defining a performance conducted by employees. Moreover, it also indicated that the use of current employee bonus method is forcing rivalry among colleagues, which is affecting productivity of the organisation. Therefore, the use of activity based management would eventually help in defining the relevant activities that is conducted by employees. This measure could also help in providing relevant bonuses to the employees according to their activities. Moreover, this could eventually help improving productivity and profitability of the organisation. The current situation once team has been isolated from other teams, which is decreasing the motivation level among employees and hampering productivity (Lapsley and Rekers 2017).
The use of activity based management system could eventually help in implementing the incentive scheme on the employees. The performance measure incentive scheme is mainly used to reduce the overall cost incurred in production, which couldn't turn improved employee productivity and reduce expenses of the organisation. Activity based management system could allow the organisation to evaluate the performance of employees based on the activities conducted by them. The evaluation could eventually help in detecting ethical activities conducted by teams for completing the task. Furthermore, the use of ABM approach would eventually for the employees to reduced cost and improves the productivity level, where they could adequately acquire incentive (Manyaeva, Piskunov and Fomin 2016).
From the evaluation it could be identified that new strategy needs to be implemented for the 4 types of strategies, such as Enterprise strategy level, Corporate strategy level, Business strategy level, and Functional strategy level. Moreover, for Enterprise strategy level implementation of CSR strategy could be conducted. In addition, for corporate strategy level Value neutral strategy need to be evaluated. Furthermore, for Business strategy level human resource utilisation is adopted and for Functional strategy level operational strategy is adopted to improve operations of the organisation (Morden 2016). The use of strategy would eventually help in reducing costing measures and improving profitability of the organisation. for example implementation of the above mentioned strategy could allow the organisation to focus only on its costing and employees, which might help in improving is productivity, while reducing any kind of extra expenses incurred in operations.
The use of sustainability approach would eventually help in improving financial drivers of the organisation, where benefits could be obtained from the marketing sector. The use of Sustainable approach might increase brand awareness and allow the organisation to attract more customers, which could adequately improve its market share and profitability. This could also help in generating more and more orders, which could allow the organisation to obtain adequate capital. However, certain benefit is also provided from the use of sustainable approach in the production function. The benefits of using sustainable approach are creation of business opportunities, improved marketing, improved branding, increase in cost saving, enhance staff, and adequate learning opportunities (Otley 2016). These measures and benefits are directly provided to the companies that use sustainable approach in their production.
The current reward system at is relatively used by the organisation cannot be implemented in Malaysia, as the country has different societal values as compared to Australia. Certain modifications need to be conducted, where negative impact on productivity could be minimised. Evaluation of appendix a mainly helps in detecting and comparing the societal values between Malaysia and Australia, which is different in nature. Malaysian employees are keener on achievements and bonus, but are reluctant if adequate positions are not provided for their work (Renz 2016). Therefore, relevant promotions could be conducted instead of in sentence for the employees that adequately perform better than rest of the employees. However, monetary incentive could also be used as a secondary method for compensating the employees that does not achieve the criteria for promotions.
From the relevant evaluation of appendix A, adequate societal values of Malaysia and we identified, which is relatively different from Australia and adequate modifications could only help in improving productivity of the company. The graph directly indicates that IDV, UAI, LTO and MAS are relatively lower in Malaysia as compared to Australia. However, the PDI in Malaysia is relatively higher than Australia, which indicates that absolute biasness of power could be conducted by the organisation (Noordin, Zainuddin and Mail 2017). Therefore, adequate changes conducted on the incentive scheme directly allow the organisation to increase productivity, while reducing the overall cost.
Thee implementation of the overall sustainability measures could eventually help Malaysian facility to obtain sustainable culture, which in turn could improve productivity and reduced cost. In both circumstances, the employees and stakeholders will get benefits from the organisation. The implementation of the incentive scheme would force the employees to improve the productivity and attain relevant incentives (Höglund et al. 2016). Moreover, the reduction and cost could also help in improving profitability of the organisation. Implementation of Sustainable measure could also help in improving brand image of the organisation, which could boost the customer base. This might help value chain stakeholders to get benefits from the organisation.
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