Recent Empirical Evidence – Analyst Reports

Recent Empirical Evidence – Analyst Report on
Sprinkle, G.B. (2003) Perspectives on experimental research in managerial accounting / Accounting, Organizations and Society. No 28. Pp. 287-318.

What is more, aforementioned trial research is rather educational regarding the extent to which managerial accounting information and practices both elicit desired actions from human resources and improve judgment and decision performance. His research consistently documents that there are a number of individual, assignment, and environmental factors that interact with managerial accounting practices in determining their reimbursement for motivational and decision-making purposes.
However, the author has left a number of unreciprocated questions in managerial accounting, providing significant opportunities for future research. In particular, there are a number of unanswered issues concerning the most efficient and proficient manner in which to motivate, evaluate, and reward both individuals and workgroups. Additionally, the avenues for future research relate to under-standing how socially mediated rewards and ethical concerns combine with formal managerial accounting procedures to resolve control problems within an organization. It is also vital to examine whether and how recent trends and innovations in performance measurement really influence the manner in which performance is evaluated and assessed.
Personally, I have found out two piece of useful information in the analysed research. Firstly, to motivate employees to manage costs, firms might bond compensation to performance by providing financial incentives that support managers to attain an actual cost that is less than a budgeted or standard cost; firms might use cost allocations to stimulate mutual monitoring, cooperation, or the efficient use of a resource. They are considered as a new ways of problem-solving and employee’s motivation. Secondly, hidden action was viewed as extremely interesting. Thus, examining moral hazard issues reports that individual, task, and environmental variables frequently interact with performance evaluation and compensation schemes in deter-mining effort and performance levels. They concern ever-lasting question of whether to punish and\or reward an employee, which can be extremely fruitful in the modern scientific discourse of the given problem.
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