Introduction to Management Accounting Essay Example | Topics and Well Written Essays - 2000 words

Introduction to Management Accounting - Essay Example In this project the various motivational theories have been discussed. The impact of motivation on budgets has also been discussed with the help of empirical evidences. The concept of been budgeting and beyond budgeting has also been discussed in the light of motivation and its implication on the budgeting. Theories of motivation The term motivation was derived from the word mover which is a Latin word and means to move. Motivation can also be referred to the word motive which can be described as an objective which makes a person move on a particular direction. Motivation can be defined as a process by which a person directs all his efforts persistently to attain his goal. As per Robbins motivation includes three things they are intensity, persistence and direction. Intensity signifies the level of effort given, direction channelizes that effort into organizational benefit and persistence signifies the time period through which one gives the effort continuously (Robbins, Judge and Sa nghi, 2010, p.71). There are various theories of motivation among them the most important ones are mentioned below:- Maslow’s need hierarchy motivational theory: The Maslow’s hierarchy of needs motivational theory is the oldest motivational theory. ... The physiological needs and safety needs are considered as lower order needs and the need for self esteem, social and self actualization are known as higher order needs. The physiological needs include the basic needs which are required for survival like need for food, water, shelter etc. The safety need signifies the need for being protected from any type of physical or mental harm. Once these two needs are satisfied then the individual tries to satisfy the social needs. This type of need signifies the need of friendship, belongingness or being accepted by the society. This is the third need of the hierarchy. Once the social needs are satisfied the individuals strive for esteem needs which signifies the need to be respected, having recognition in the society, status etc. The last need of the hierarchy is the need for self actualization. The managers have to identify the level of need which the individual is having and then motivate the person to fulfil that need or the need beyond t hat level (Brooks, 2007, p.55). McGregor theory of X and Y: McGregor gave the motivational theory as the theory of X and Y. As per theory X the individual are classified as being lazy and unwilling to work on their own. These individuals are driven by the lower order need that is the needs of existence and the security needs. To make this type of individuals persons work coercion should be practiced. The theory X considers the negative trait of the individuals. On the other hand theory Y considers the positive traits of the individuals. As per theory Y individual are active and enjoys their work in the organization as any other work like their hobbies. These persons are driven