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Decision For Setting Non Financial Targets Essay

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Introduction
In the rapidly changing business environment, there is enormous pressure to conduct activities in a better, controlled and efficient manner. The accelerating change creates uncertainties and complexities thus creating challenges for management in their strategic plans. Management cannot continue to rely on Management Accounting Control Systems whose primary emphasis is on financial targets since such traditional analytical approaches can fail to adapt to the quick and unexpected economic landscape. This paper provides that managers must not rely on quantitative performance targets hence supports the argument for setting non-financial targets in organizational objectives
Discussion
The measurement of performance is a great challenge in the contemporary business world since the non-financial targets are hard to ascertain. It implies that an organization could end up with inefficient and ineffective MACS that lead to poor utilization of resources and ultimately increase the probability of organizational failure. The increasing strategic uncertainty creates a problem to quantify the non-financial factors that could be incorporated in internal controls (Hirst, 1983). Unavailability of qualitative targets also creates cases of dysfunctional behaviors by subordinates in achieving organizational objectives. For a holistic perspective on performance, control strategies must incorporate non-financial indicators since the gains are more than the associated costs (Otley,

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