Essay: Accounting in News
Essay: Accounting in News
This essay talks about accounting in news. In this article the author is comparing the owner-managed businesses and the professionally managed business. There is a common and very famous quote in business that business is all about making money but research shows that there is something more important than just making money and that is motivated employee. It a surprise to know that the professionally owned-business are focusing more on maximizing profit rather that paying attention to the human capital. (New York Times 2009)
In this regard the agency theory has been discussed .Mainly the agency theory has the motive of resolving the conflict between the ownership and the management, and aligning interests of the two groups. And rightly so it is very important that the whole team should work like a team not like a group of individuals. The main difference between team and group is that the team has a common integrated shared goal rather than a team who has some personal agendas lining up as goals. The same concept is defined here that if there would be a difference in objective of the management and the owner the organization would end up in making no profit.
Another very important point that the author has raised is that money is not the only motivational factor, besides that there comes a point when money is no more a motivation, this happens specially with the professionals when the only thing that motivates them is challenging job or any other job that would give them a sense of pride and increase their self actualization.
The author has made certain hypothetical assumptions regarding the entry and exit behavior and the pricing mechanism .Then the non monetary objectives are addressed means that how much effect money has on the retention or detention of an employee. Here also the professionally managed firms are more likely to go for the economically stable markets.
The author cite evidence that those organization that pay attention to non monetary benefits, like employee satisfaction, performance review, recognition for a job well done, then probability of exit is very less.
The goal making process is another very key element which should be considered with heart as goal setting sets up the roadmap for the organization. It’s very important that everyone should be on the same wave length when it comes to goal setting so that all of them should be thinking accordingly.
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