Question

1. Discuss the value of organizational research to decision making for the accountants in a business. How does research affect management control?

2. In this discussion question, you will describe the importance of non-financial measures for an organization.

How does an organization decide on what and how many non-financial performance measures are relevant to their success? Discuss how non-financial measures compare and contrast to financial statements to assist management and shareholders in decision making.

Following the directions of your facilitator, post your response in the Forum and respond to two of your colleagues.

Answer 1

1. Organisational research helps to update financial planning. Research help to identify the financial needs and current financial position of the organisation. Research gives data to make future planning of business. Organisational research helps to align organisational goals with financial goals. It helps to make informed decisions.

It helps managers to identify, the areas where controls are weak, identify risk factors, assessment of risks and making appropriate controls over each business activity to achieve business goals of organisation effectively.

2. The non financial measures of organisation helps to identify strength and weakness of organisation. It measures the over/under performance of organisational activities. Assessment of non financial measures helps in reducing risk and decision making for Shareholders and managers and provide better feedback of performance. Non financial measures are outlined below.

a. Volume of Consumers and Increase in Consumers per period

b. Employee efficiency and productivity

c. Consumer satisfaction index

d. Delivery on time

e. Completion of schedules within time

f.Machine effeciency

etc.