History Of Scientific Management And Its Impact On Managerial Accounting Essay

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HISTORY OF SCIENTIFIC MANAGEMENT The primary goal for the managers within an organization should be to best utilize resources contributed by the shareholders of the organization to create and grow profits and revenues. In addition, the primary goal for an employee should be to earn the highest pay possible at his or her job level, while developing skills to maximize his or her efficiency. These two goals, along with other factors, are critical considerations in the long-term success of an organization (Taylor, 1914). Before the rise to scientific management, many managers viewed these two goals as unrelated, while scientific management looked at this same situation under a new light. Under the scientific management approach, the success of an organization is dependent on both competitive wages, as well as maximum productivity. Taylor’s Impact on Managerial Accounting Frederick Wilson Taylor has become known as the father of scientific management, and his work had a significant impact on the progressive period. When first developing the formal definition of managerial accounting, Taylor’s studies were heavily referenced throughout the process. This definition defines managerial accounting as “the process of identification, measurement, accumulation analysis, preparation, interpretation, and communication of financial information used by management to plan, evaluate, and control an organization and to assure appropriate use of and accountability for its resources" (Kulesza,
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