Introduction of the spark plug in the United States has brought a great impact on the automotive manufacturing industry. Many companies have improved their performance, hence reducing the development time. This has led to a high demand in performance criteria for a vehicle launching. With the introduction of spark plug, the rate of production has greatly increased. For example, the latest aftermarket news and analysis articles provide the steps which are about to be taken by some of the plants. One of the factories is the Volkswagen group. The Volkswagen America is aiming to spend US$40 millionto build a warehouse in Roane County. This is the result of the product’s increased demand, due to their durability. Audi, if to consider year 2011 solely, made sales for 19.2%out of 1.3 million cars manufactured. This comprised 37.5 %, equivalent to 330,000 cars, sold in China. There is also an expectation of United States motor sales to increase by 6% to 14%on March 2012. On the side of Ford motor company, in October 2011, it made an income of US $1.91.
Performance measurements help the employer to evaluate the proceedings of the organization. This helps him or her identify productive employees and monitor the irresponsible ones. There are three measurements which can be used to know the standing of an organization. These are - cost variance, schedule variance, and frequency counts. Every work done towards the growth of the enterprise should be accounted for. There is budgeted cost for work schedule, and the actual cost for work performed. Budgeted cost for work schedule is the budgeted amount of cost for work planned to be completed, and the actual cost for work performed is the actual amount used in accomplishing the work. The cost for work schedule and that of work done must be budgeted for properly. Schedule variance is important, as it caters for the cost difference of the work scheduled, and the cost of the work performed. If there is a negative variance, then it implies that the projects behind the schedule. On the other hand, if the variance is positive, then the project is ahead of time schedule, hence the organization performance is high. Frequency count is issued to measure the number of times incidents occur. The three measures are able to evaluate the ongoing of the project, with cost variance and schedule variance being the key ones. The balanced scorecard involves both the financial and non-financial measures in a system, linking performance measurement with the organization’s main objective. Therefore, it is possible to monitor the flow of finances, and avoid possible loses.
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Unethical behavior occurs if the wrong performance measures are employed. Exaggeration of revenue by the accountants can result to distrust in an organization. It is important for accounting professionals to be honest to avoid mistrust in a company. When the trust is lost, it is completely impossible to regain. Corruption practices arise if greedy persons are given an administrative responsibility. Therefore, there is a need to hire adequate people in an organization, in order to accomplish the set goals. This is only possible if the prospect employees are keenly scrutinized before being offered a job.
The Sparkling Company can avoid these problems by taking several steps. The initial step is to have the correct people in the right positions. The right people are always responsible, and take their roles with the seriousness they deserve. It is vital to have responsible managers and supervisors. These must be self motivated and worth emulation by other workers. The supervisors’ and managers’ decisions can pose either a great risk or an opportunity to an organization. In most cases, the top ranked officials lead to the organization’s collapse. Therefore, it is good for the managers, owners, and supervisors to be role models to the employees. It is also wise to retain decent people. Responsible people in their right position will always deliver the best of their capacity, no matter the situation. They never criticize when a problem occurs, but find a way of dealing with it. Dealing with the wrong people is a necessary step towards the growth of any enterprise, as it is irresponsible to hire a person who cannot deliver to the organization.
This is a mistake done by several employers and managers. One may be unable - or even worse - unwilling to follow the company’s standards and procedures. It is advisable to encourage employees to follow set standards and procedures. This includes recognizing employee’s contributions, rewarding ethical behavior, and punishing unethical behavior. The best reward a decorous and responsible owner or a manager can do is to appreciate an employee’s contributions. This gives him or her morale towards service. A reward towards an ethical behavior also plays a good role in encouraging the employees. Keeping discipline among the employees is also vital in an organization. This sets an example and boundaries for the employees.
SAC should measure ones performance to see how well he or she works. This will enhance tying performance measure and compensation. Employees should be made aware of what is expected of them, and work towards that. Several techniques are used to measure ones performance level. Each organization has its own way of appreciating its employee, depending on its procedures. One of the techniques to measure performance is motivation. This method implies that an employer identifies what motivates workers and uses collected data to estimate the performance of the employees in the company. Training also helps in measuring the workers’ performance. This is because it builds a firm relationship between the employer and the employee. It also gives a chance for employees to learn the company’s ethics, objectives, and workers requirements.
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Balanced scorecard is used in making business decisions in several ways. Since it is a framework of several scorecards, it is utilized to clarify a strategy and communicate it. Balanced scorecard provides focus to the organization, by ensuring that the correct tasks are accomplished. It also helps avoid concentration on a minor idea. The balanced scorecard links all levels in an organization. This helps in the alignment of all the processes undertaken. It dictates the important strategy, identifies the level of performance, and also shows the responsibility of each. The balanced scorecard translates strategies into words, which are understood throughout the entire organization. A well balanced scorecard offers a detailed view on the organization’s performance. It does this by framing strategic objectives in balanced sets, which contribute to success achievement. These sets concentrate more on finance, customers, and the growth.
Managerial accountants have a role to monitor and maintain financial goals in an organization. Therefore, they should have profound knowledge on accounting ethics. This includes the ability to maintain a high degree of morality in accounting professional. Confidentiality and competence are the key ethical issues, which need to be observed in the field of accounting. It is also essential to disclose any accounting changes as they have an impact on the financial state.
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