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By and large accounting is not a tool for control of an organization only. However, it expands its influence to the horizon of the entire race of mankind, where it is used to instill values, contribute to cultural development and promote social mobility in the society through promotion of the society social orders.
Accounting is an important tool in an organization system, where high principles and standards in accounting should be applied to secure the achievement of the mission and goals of the firm. By its nature, an organizations functional outlay consist many accounting system who’s in cohesion with one another leads to the promotion of the achievement of a firms goal. In the broad range of the accounting system therefore, every structure in the organization is cordially in agreement to one another promoting high sense of individuals in the same organization.
One of the determinants of the goals of an organization is the nature of the organization behaviour. By its nature, organizational behaviour is the practical way of a person’s outlook and perception is regard to an organization. Person behavioural aspects can highly be determined by the organizational behaviour structures. Such structures lead to a change in people’s behaviour, thus developing other behavioural characteristics as well as adopting values and ethics in relation to his work environment. Either, an organization can highly contribute to a persons perception towards work in regard to his cultural believes. Such believes dictate somebody to have a particular perception, towards the organization, where theory says that, the whole nation has a perception of inequality in the management of any organization. Such cultural believes therefore, highly contributes toward a person’s imagery in the organization at large (Jackson, 1999).
Individuals in an organization make the broader society, which is ruled by order, ethics, values and beliefs. Therefore the individual behavioural changes by the environment in the organization are passed over and disseminated to the entire society, which comprises of the individuals in these organizations.
It is clear to state that, the launching pad to the organizational behaviour by the individual is the accounting system and principles that are applied in the organization itself. As a rule in the business organizations, accounting system form the cornerstone of pillars, which dictate the performance of the business. With good accounting system, the organization mission and goals are streamlined in the positive way where there is harmony within the organization after achieving its goals. With such harmony, the work environment by the people and their relation to one another is improved. Such improvement in the individual perception about the organization forms the basis of individuals behaviour within which they deliver it back at there homes which is now the society (Lee, 1998).
Therefore, it is an authentic and a legitimate argument by human behavioural activists to state that the society behaviour is directly reflected and guided by the accounting system. This is by the behavioural development concepts that are fostered to the individual in the organization working environment where the management of the organization itself is guided by the accounting systems applied within it.
On the other hand, individual’s behavioural development may be negatively influenced by a poor accounting system within an organization. With such accounting system, the organization management and the general business performance is a detriment to the individual behaviour development. By its nature poor accounting will lead to a poor business environment within the organization. Such an environment is a basis for the individual within it to learn and develop behavioural characteristic in adaptation to the environment within the organization. Hence therefore, the broader society embraces behavioural characteristics that are congruent to that manifested by their people who are workers of poorly administered accounting system. The society values, believes and orders will therefore change to emulate the one perceived by their kinsmen working in different organization (Erich, Davis, 1996).
The people behaviour within an organization forms the legal status upon which social justice, equity and equality in distribution of resources is disseminated. For societal development, social harmony is an indispensable tool that cannot be overlooked. Such development is determined by the richness of culture, values and positive behaviour support in the people within the society. However, the main source of such upright behaviour is the basically rooted back to the organization where the better part of the society sources its behaviour. Relative to this, the behaviour development within an organization is determined by the organization development, where the organization behaviour is then determined by the accounting system in that organization.
An organization management constitutes an important tool. The overall rules of an organization management imply how the individuals develop their behaviour. A firm’s management constitutes a system of accounting inter-linkages between the different organization departments. A system of management constitutes varied accounting system like financial, managerial, costing and strategy, which interpolate with one another to yield the overall business environment (Belkaoui, 1992).
The management scheme uses various accounting authorities in its services delivery to the individuals. Its function includes, planning where it defines its possible goals and establishes definite strategies to achieve them, organizing, where it determines the different tasks that are to be done by different groups and the points/offices where the results of this tasks should be reported; leading, where the management motivates the employees through directing them and choosing different media of communicating so as resolve possible conflict by the employees and controlling, where management ensures the accomplishment of different activities and promoting possible corrections incase of deviance.
Such management functions in an organization form the internal accounting control pedigree, in which systems of accounting are used.
With the management accounting control function in an organization, individual within this organization interact with one another subject to the business environment to yield a behavioural development aspect that defines the individuals behaviour in the society.
Environment within an organization involve interaction of the people with diverse behavioural aspects. Such difference in abilities dictate people to be challenged or adapted in performing specific duties within an organization. In its accounting system, the management delegates duties to the workers in regard to their different abilities. Such abilities can be either physical or intellectual, where physical implies the person use of his body physique adaptation to perform a task while intellectual abilities signifies, the professionally acquired ability through pursuit of academic intellectualism. Such diversity in management accounting control system draws diversity in the individuals’ outlook where rebirth of behavioural characteristics develops from such role play within the organization. This is through the nation theory, which states that the management administration within an organization is compromised by societal injustice. With this theory, the overall society sees the management administration as juridicated by impartiality where certain individuals are honored to perform more excellent jobs or host descent office bearing priorities. This diversity in cultural understanding forms an important tool in behaviour development, where they stereotype their behaviour to form an adaptation that accommodates this societal belief (Kirkegaad, 1997).
However dissemination of such roles within these organizations involves management accounting regulations where different people are appointed to undertake different jobs depending on their overall abilities. To achieve a harmonious regulation to this problem, the management uses its accounting skills in pursuit of collaboration. Such skills are; the technical, where the management applies specialized expertise, human, where the management uses motivational ability to the workers, to work harmoniously with one another and the conceptual form of skills which involve the use of mental strength to solve difficult situation.
These implications have a diverse impact to the broader society coexistence whose harmony is defined by the individual behavioural aspects in it. With this regard, therefore organizational management accounting system regulates the nature of the behaviour that the people develop as an adaptation to the organizational behaviour.
People develop their behaviour in an organization through learning. Here, learning is a complex statement that denotes the way they adopt behavioral characteristics through emulating and experimenting the environment within the organization. Learning as a method of acquiring behaviour involves people interactive result synopsis with the environment that they are in.
The core implication of accounting is to ensure a good work environment of an organization in its attempt to achieve its goals and mission statement. Good accounting system implies a good working environment where business ethics and regulation are never compromised. The result of good accounting system is therefore a balance of satisfaction between the business owners and the body of workers. With this environment the individual interact with one another in their process of dissemination their duties to lead to a behavioural evolvement that comprises of a rich behaviour culture if the business environment is welcoming or the contrast if the environment is uncouth. Therefore the business organization accountancy system is not solely the important tool to the internal management of the business on its own but it expands it horizons to the broader society whose functional theorem is a variable rooted deeply in the organizations accounting system (Bragg, 2007).
Broadly the society is in harmony when value, orders and believes are highly promoted. Such societal harmony dictates the loss of strength to social conflicts, and other theories of social-structural functionalism that are dependent variable and subsets of the society behaviour system.
Many people form role models to others in regard to the position that one has in the society. People would like to emulate the behaviour characteristics of other in regard to their personalities and social placement in the society. However, a person’s position in an organization also forms basis of their position in the society. Since such personal behaviour is also re-defined by the accounting status and broad management outlay within their working organization, role models only carry forward their behaviour they have got from their organization across to the society. This implies that the behaviour variable within the society is a subset of the accounting system within organization. Therefore environment in an organization leads to varied behavioural support system, which leads to varied behaviour modeling characteristics (Fields, 2002).
Job satisfaction is a pillar of influence in one attitude and values that he may perceive in a certain job. This aspect forms an important tool that determines a person attitude towards such kinds of job. A person will develop a positive out look in his perception to a job, which satisfies him. With such satisfaction therefore he develops a behavioral change that promotes his value, attitudes and ethics. However, a condition of no job satisfaction is an inhibitor to behaviour development where the individual is negatively impacted in the work environment in his organization. The end result of such job satisfaction related behaviour phenomena are the society social stabilities. However, individual job satisfaction is direct factor contributed by the organization accounting system, which gives jobs to different people depending on their abilities.
By its nature job satisfaction is determined by what values and attitudes persons have for their jobs. Values towards jobs can be either; terminal; which illustrate what goals the persons wants to achieve in his entire life or can be instrumental which shows the mode of forms to the guiding factors towards achieving ones terminal values. Both forms an array of importance in the environment forming a person existence. People develop different values towards their work, their relation with other and the existing executive environments. Values developed in regard to job satisfaction are important factors, which contribute to the ethics of the individual within the organization and the external environment (society). The so developed values and attitudes in regard to his job satisfaction are ploughed back to his society of existence, which forms a high contributor to the social stability within the society. (Sundem, Stratton, 2006)
After acquiring his behaviour through learning in the organization, the individual makes such behaviour to be permanent through way reinforcement. Such reinforcement of behaviour within an individual perception forms a basic influence of his permanent behaviour. Such permanent behaviour is therefore subjected to society in which the life of this individual persists. With regard to a collective behaviour image so develop through the perception to his job satisfaction and forms a basis of the society where these individuals intermingle with one another in the social co-existence, continuation and development of the society.
Broadly, the final results of the social health and stability of the society is influenced by the accounting system used by the organization which imply how individual perceive about the jobs upon which they will develop values and attitudes based on such satisfaction influence.
Cultural ethics are by themselves influenced by the organization ethics in individuals’ place of work. During the subsequent interaction with one another, different people cultural ethics undergoes changes. Such changes are directly portrayed in the society.
However, the organizations structure itself contributes to the individual cultural ethics perception. Inequalities in management greatly hinder positive cultural support to the individual workers in the organization. Since organization management imply the accounting systems.
With the behaviour development from the organization as a result of accounting system, different implications are drawn to the broader society whose behaviour system is dynamic and dependent of those are working in different organizations.
A good accounting system within system of organizations implies social health and motivation within the society. In this environment people live with one another in peace and harmony with social justices that allow equity and equality in resource allocation. With equitability in resource and wealth distribution therefore, the society prevails in a dynamic co-existence where respect for values, orders and authorities is fostered. Such an implication is highly dependent on the health and uprightness of the accounting system in the organization where the people work and which acts as a great contributor towards behaviour modeling and preservation of societal values and ethics.
Either, people carry forward the behaviour so got from their organization to the society. Such behaviour approach is modeled by the discipline of organizational management system. The authorities of the management system are ruled out by the accounting system in these organizations. With good accounting system, so does positive behaviour develop within the people who carry such behavioural characteristics to their society. With such good behaviour so developed, the society prevails in a social justice. Social justice entails brotherly hood perception of the people in the society. It permits for people to live in order and harmony with respect of each other’s right. Societal rules, orders and regulations are upgraded and followed in suit by the society. This implies therefore the focus to a definite destiny by the society.
With such good behaviour support by the positive accounting system in organization, society political and religious orientations are improved. Since people in the society develop more upright behaviour it is consequential that they foster positive implication in rules of political and societal governance, which requires respect to law order and authorities.
Impacts of accounting information on the organization
As discussed above, accounting information impacts different impacts on three distinct parties, the individual workers, the organization itself and the community at large. These institutions work together to benefit in solidarity the benefits that arises to the accounting information disseminated by the organization accounting system.
To the organization itself accounting system is a dominant factor which has varying consequences to the health of the business. The goals of the organization can only be achieved through a sound accounting system whose aim is to produce a layout of procedures and protocol that should be followed for a health running of the organization. To the organization, accounting information helps to formulate a good working environment where the functional layout of procedures and processes by different parties is clearly defined. With such role-play by individuals within the business organization, this results to integration and less interpersonal conflicts by the parties within the organization. However achievement of the goals of the organization is a factor, which highly depends on organizational behaviour of the workers in the organization. Such behaviour determines whether people have positive or negative perception towards the organization, which consequently dictates how individual sacrifice themselves in service delivery to the organization (Wright, 1947).
Above others, the basic and major goal of the organization is the maximization of its profit through increased business turn over. To achieve its goal the organizations institutions should work harmoniously and dependent of one another. Such a harmonious environment in the organization is fostered by the good accounting information that is provided by the organization.
Accounting system involves varied disciplines which work cordially with one another to produce accounting information that is used as a management instrument in the organization. Such system of accounting includes financial, strategic, managerial and human resource management. In all these cases, information is produced which through a collaboration to each other, the organization implement issues in regard to this information. This information is important in the health performance of the organization.
In all its activities, the organization work towards optimality in the use and allocation of resources. Such optimality can only be allocation of different costing system in which the purchase and the allocation of different costing system and objects within the organization should be highly monitored. To achieve this principle the cost accounting information of a firm should be clearly adopted to ensure optimality and least costing mission statement of the firm.
Perhaps, the profit of the organization is determined by the nature of the costing so adopted. Costing optimality in an organization involves a broad range of activities that are taken to lower the cost expenditure of the organization. With good cost accounting information, the organization regulates its costing to ensure low costing system in the firm’s activities. Optimality in organization cost can be achieved through appropriate sourcing of material inventories, their application and full utilization of the organizations equipment to yield the highest benefit. In all cases, organizations should purchase inventories of high quality and the required quantity. Such materials should be sourced from cheap sellers within the market. Material should be used adequately for there purpose and in the right quantity. Either, optimality in costing should also apply in the use of the firm facilities and structures. As a good cost accounting behaviour, facilitates including the human resources should be adequately and optimally used. Such optimal use can only be achieved through the administration of the accounting information which through the management can learn the cost efficiency system of running the business (Fields, 2002).
Strategic development is a key aspect of investigation while undertaking business procedures. To achieve this aspect, the management should never overlook the accounting information that is produced during the accounting system. Due to the high competition in the business environment, the organization ought to form strategies of competition in the market environment of its product. Such strategies can only be achieved through the advice of the accounting information that it acquires from its accounting systems. In regard to this accounting information the organization can thus develop different methodologies as strategies to achieve its development and expansion programmes. This is strategic accounting information which helps organization to develop different strategies that it can use to achieve its expansion mission.
To the organization, financial system is a very important issue and forms the benchmark in every business aspect. Financial system of the organization should be highly monitored if the health of the organization is to be administered. Accounting information is the key aspect that governs the financial accounting system of the organization. All financial business undertakings should be appropriately entered into the books of accounts which can finally be used to formulate authorities and regulation in the organization. For the organization, accounting information is an important tool which guides the organization in achieving its financial decision. Using such information, the organization can adequately plan for its financial budgets to clearly state expenditure requirement and income of the organization. In all its aspects, the organization should try to adequately monitor its financial system so as to achieve its mission and goals. Poor interpretation of financial accounting information can lead to big losses and business drawbacks. Hence therefore management should adequately comply with the information given in the accounting information system of the organization.
Broadly, there is the need for an active linkage between the organizations management and it workers collaboration and cooperation between the management and the workers should highly be monitored. The success of this relation can only be got from the accounting information which dictates on the variable of administration the management should use in its business. Good management is a vital role in a business undertaking. However, the methodologies to use in undertaking this administration are only pronounced in the accounting information. Such information will state the organizational administration structure, the duties, roles and rights of different parties to the administration of the organization. If an organization lacks a good system of accounting information so will its administration and management system be subject to a weakness. In such organization, conflicts of role-play will exist within the organization. These conflicts hamper the acquisition of the goals of the organization.
In all cases, the health of the organization is determined by the nature of its work force. This work force consists of the human resources capital. For high business turnover business duties and obligation should be allocated to different people. Such people should be appointed/ employed in regard to the business requirement and structure of the organization. Different organization calls for difference in their human capital requirement depending on the business needs of the organization. Thus appointment is done in regard to the accounting information which states the human capital requirement of the organization. Depending on the information, different work force is given different roles in regard to the ability and the needs of the business.
Implications of accounting between the individual organization and the community
Accounting information plays an important role in the interaction system between the individual, the organization and the community at large. To each, the benefits of accounting are clearly manifested. However, the three parties ought to harmoniously interact with one another to yield a cohesive environment whose subject is based on the accounting information. Each of the three parties has a varied contribution towards the coexistence of the society and this is impacted differently by accounting. However, for all accounting is an important tool which manifests benefits differently to either of them despite the different benefit that are in the social harmony with the society.
By hierarchy, the individual is the basic unit of the community. Different individuals interact with one another is an organization as they deliver there services in exchange for rewards inform of payment. Broad ranges of these individuals come together and live cohesively under the guidance of the societal norms, value and believe. During such interaction between the groups, accounting acts as a pivot element where it disseminates strength to ensure a collaboration and active role to each of these parties. Since the coexistence of the each involves a harmonious interaction, then accounting becomes an important tool to ensure the achievement of this (Bragg, 2007).
Firstly, accounting implies the overall order rule of administration to the organization. Through accounting information, organizations are monitored about their administration protocols. In these organizations are individuals who through there role play takes with them rewards inform of wages, salaries and other payments. With the health aspect, the organization can achieve their goals and missions effectively. With good accounting system, so can the individuals embrace the same by acquiring good remuneration and other rewards. Such good forms the bedrock of a good livelihood from their family members.
Remuneration is not the important benefit that an individual gets from an organization due to a good accounting system. Perhaps organizational behaviour is the most important implication that a person can get from an organization. The drive to the goals of the organization is done through accounting. Then, within the organization is the organization behaviour theorem where the individual are subject to behaviour development which models their behaviour. In the social interaction with other people and the work environment the individual is subjected to different work ethics that highly lead to a development in his behaviour. Person behaviour is very important to himself, the organization and the community where good behaviour leads to social cohesion and integration within the community. However, at the organization where administration and management is solely dependent to the nature of the accounting system and implications, comes the issue of human behavioural development. Human beings are made to deliver their behaviour in regard to the environment they are ascribed in at their organization.
They develop values and morals relating to the work environment they are faced with. With such an aspect their behaviours undergo a series of evolvement so as to adopt well in their work environment. Such behavioural development is an important tool in the overall society. Either, individual develop other attitude that out weigh the culturally rooted and built attitude that only drive the society to a drawback in its development. Hence therefore in the interaction of individuals, the organization, the community and organizational accounting system is important in imparting a positive behavior development to an individual.
From the noble approach accounting is perhaps a subject matter aimed at helping the organization achieve its goals. However to achieve these goals it employs the individual to deliver work for at different depths in service to the organization by the individuals, it indirectly embrace the benefits of the general community in which these individual forms it (Lee,1998).
With accounting information the organization forms varied management decision focused on it goals. It then formulates different business strategies that help it to endure in an environment with high competition and other business inconsistencies. Accounting can be said to be contributory element in a firm towards achieving its goals. Using the varied accounting systems, it organizes its structures to capture an adaptative image in the business environment. To achieve this, the organization cannot overlook the interest and roles played by the individual workers in its administration. However, it should comprehend to formulate other moderations that capture the possible ways of improving the organization work force structure. It should formulate scheme to improving its workforce relation and attitudes. This is in the view that the organization can only achieve its mission and goals through a positive support it acquires from its workers who have a positive attitude towards their work. To achieve this therefore it should revise on its rewarding system to capture close incentives to them.
Accounting as a business management tool is highly important in the organization achievement of its goals. Through use of accounting, the firm can be able to allocate its resources adequately and optimally to achieve a success in the costing system. Optimality in itself involves the human resource attribute which should be adequately used for highest firm’s rate of production. However, the functional rate and capacity of the workforce depends on the attitude and values that the work force has towards the organizations.
By accounting system, the firm can regulate its functional system to adopt more efficiency methods and strategies that help production system geared towards production of goods which are to be consumed by the community. Therefore, with the good accounting system the organization can thus achieve their required goods and services in their right qualities and quantities and at the best time possible.
Therefore, through a good accounting system and its effect to the organization, the community and individuals are equally provided with their needs. These interlinkages lead to an end result of harmony between the organization itself and the individual workers together with the larger community. Accounting system therefore helps the organization to make foundations upon which to regulate its business in relation to the requirements of its worker and the broad society.
Accounting benefits highly accrue to the community. The individuals who serve the community are members of the community.
To the community, justice, equity, equality and political harmony arises from the results of the accounting information from the organization. This is because the workers of the organization are members of the society whom with them are positive behavioural aspects that have grown from that basic interaction with the environment of the organization work place.
With them therefore, they carry with them varied positive behaviour aspects that result to positive influence in the social integration and development in the society. (Jackson, 1999)
With the positive behaviour so gained, social justice in the society is empowered where the community members live in peace and harmony and the influence of behaviour that they have got from their organization. Such social justice leads to the functional integration of humanity in the society hence promoting the general well being of the people in the community.
With the behaviour so acquired in the community through the organization accounting administered, the same is carried forward to the community where equity and equality issue are fostered. With the rule of “equality means equity” there is a resource in the community sharing and distribution of scarce resources in the community. Such aspect thus implies equitability in community resource which promotes peace and tranquility. (Erich, Davis, 1996)
Either the organization produces goods and services to be consumed by the society. The organization can only know what goods in what quality and quantity it should produce to sustain the requirements of the society. The problem to this can be through an adherence to the regulatory rules so produced by the accounting system of the organization. Hence therefore an importance should be attached to a cordial relation between individual’s organization and the community which can only be fostered by administration to the accounting information produced by organization management.
Bibliography
Belkaoi, A. (1992). Morality in Accounting. Westport, CT. Quorum Books Publishers
Bragg, S. (2007) Management Accounting Best Practices: A Guide for Professional Accountant. London, Mosby.
Erich, H. & Davis, J. (1996) UNDERSTANDING GROUP BEHAVIOUR: small Group Processes and Interpersonal Relations, Mahwah, NJ, Lawrence. Erlbaum Associates.
Fields, E. (2002). The Essential of Finance and Accounting for Non financial Manager. New York, Amcom Division Publishers
Jackson, P, (1999) Virtual Working; Social and Organizational Dynamics. London: Routledge.
Kirkegaad, H. (1997). Improving Accounting Reliability: Solvency, Insolvency and Future Cash Flows. Westport, CT, Quorum Books Publishers.
Lee, C. (1998) Alternatives to Cognition; A new look at Explaining Human Social Behavior. Mahwah Lawrence Erlbaum Associates.
Sunden J & Stratton (2006) Introduction to management Accounting, London, Prentice Hall.
Wright, W. (1947) Forecasting for profit: A Technique for Business management. New York John Wiley & Sons.
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