Information Systems (1) Flashcards
Top layer in anthony’s hierarchy?
Strategic. Long-term planning decisions
Middle layer in anthony’s hierarchy?
Tactical. Medium-term planning and management control decisions
Bottom layer in anthony’s hierarchy?
Operational. Short-term decisions, routine processing of transactions
What is strategic planning?
Process of deciding on objectives of organisation changes the resources used to attain these objectives, and policies that govern acquisition, use and disposition of resources
What is tactical control?
Process by which managers assure resources are obtained and used effectively and efficiently in accomplishment of organisation’s objectives
What is operational control?
Process of assuring specific tasks are carried out effectively and efficiently
What are strategic decisions?
Long-term decisions and are characterised by their wide scope, wide impact, relative uncertainty and complexity
What are strategic management accounting?
Emphasis is placed on information about factors which are external to the organisation, as well as non-financial and internally generated info
Difference between strategic management and traditional management?
Strategic has an external and future orientation
What is an external orientation?
Towards customers, competitors, suppliers and other stakeholders
Criticism of traditional management accounts?
Backwards looking
What is meant by future orientation? (decision-making)
Decision-making is a forward- and outwards-looking process concerned with values
What do strategic management accountants use for decision-making?
Relevant costs (e.g. incremental costs and opportunity costs)
How is goal congruence achieved?
When individuals or groups in an organisation take actions which are in their self-interest and also in best interest of organisation as a whole
What does business strategy involve in goal congruence?
Marketing
Production
HR
