Business Accounting

BUSINESS DIVISION GRADUATE PROGRAM

BUS 523-

ACCOUNTING FOR PLANNING AND CONTROL

By: - Trudi Golphin

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Question 1

Both Peter Senge and W. Edwards Deming have written extensively about management of organizations and proposed innovative ways to improve the way managers run organizations. Their ideas may be particularly relevant to management but how do they relate to accounting?

Required: Evaluate carefully the connections between the ideas of management proposed by both Peter Senge and W. Edwards Deming and the accounting discipline.

Senge’s idea of management considers learning organizations and five very important elements deemed important to the transformation and success of the learning organization. The learning organization is defined where people are the driving force of the organization, striving to do their best, within an environment that provides the opportunities for them to do so. Learning organizations create an environment that facilitates growth and development of the person, encourages teamwork, growth, success and the opportunities and abilities for individuals to learn and grow, thus making valuable contributions to innovation and extraordinary works.

The transformation of organizations into learning organizations is dependent on the thinking and planning of management that will enable the organization to become more competitive in the global environment. Five principles are considered essential for a learning organization to adopt and manifest in order to ensure its success and transformation. One of the principles, systems thinking, is considered as the fifth discipline because it is seen as the glue that binds or connects all the other principles together, and is seen or referred to as the spinal column that provides structure and integrity for the organization. It integrates all the disciplines, fusing them into a coherent body of...