Primarily, it should be noted that one of the actual, relevant, helpful, and interesting articles found by the author on the topic “performance measurement in decentralized organizations” is the paper by Alamsa and Rasyid. This work focuses on analyzing the decentralization systems within organizations in terms of productive, effective, and efficient characteristics affecting the quality of management, control of a wide range of factors, and making competent decisions. The study and understanding of these elements provide the right, clear and unmistakable direction for leaders of decentralized institutions on the way to a reliable and objective assessment of the effectiveness of several companies’ indicators.
For example, the article says that the management accounting system (MAS) is one of the most essential and significant tools in measuring the effectiveness of decentralized organizations. Moreover, as a rule, performance measurement may include such a concept as the Locus of Control, which minimizes unforeseen circumstances in creating and implementing specific business strategies (Alamsa & Rasyid, 2019). Together, these aspects consider such traditional moments as the quality of the duties performed by employees, profit and cost centers, potential deviations from the norm, and much more. According to Alamsa and Rasyid (2019), the MAS tool provides a fundamental basis for predicting the consequences of events and actions carried out by companies. It is a vivid example of a strategy that allows one to monitor the effectiveness of organizations in a competitive environment and the quality of operational and other tasks. Thus, managers with such valuable data have the opportunity to implement the best plan to achieve their goals and objectives (Alamsa & Rasyid, 2019). Hence, leaders will see in advance both strengths and weaknesses and “errors” in the work of the organization to eliminate all shortcomings in the future.
In the process of analyzing the found article by Alamsa and Rasyid, as well as re-reading and studying the course materials, the author learned a lot of new, exciting, and essential information. In particular, this data concerns the key characteristics of evaluating the effectiveness and productivity of several indicators of decentralized organizations. Additionally, it is no secret that performance measurements in specific types of institutions imply a wide range of tools, techniques, and strategies. Moreover, each manager may have their own, unique approach to studying the quality of employee performance or, for example, company profitability indicators. Nonetheless, to date, there are several “classical” practical approaches to estimating efficiency.
For instance, decentralized organizations’ managers often evaluate the return on investment, customer satisfaction, the quality of training and growth of employees, as well as the effectiveness of business processes. As a rule, most experienced leaders appeal to Return on Investment (ROI), Delivery Performance Measures, The Balanced Scorecard, or calculating Net book value and Residual Income (Brewer et al., 2021). In contrast, Alamsa and Rasyid offer a completely different approach to evaluating the effectiveness of organizations. Thus, they insist on implementing the management accounting system (MAS), which makes it possible to understand and prevent weaknesses and risks to improve an organization’s critical indicators because a good performance should consider the following aspects. Hence, these elements include the motivation of a head of a department to make decisions that will be beneficial for a company as a whole (the principle of coincidence of goals), taking into account those factors that a leader can control, as well as assessing the long-term and short-term goals of an organization.
References
Alamsa, A., & Rasyid, S. (2019). The effect of decentralization, characteristics of management accounting information on managerial performance with locus of control as the moderating variable. International Journal of Academic Research in Business and Social Sciences, 9(9), 238-251. Web.
Brewer, P., Garrison, R., & Noreen, E. (2021). Introduction to managerial accounting (9th ed.). New York City: McGraw Hill.