Employee Empowerment: Sharing Financial Information

Among the myriad of new and exciting changes under way in provided that significant and timely information to assist employees in their quality and process improvement activities is an extended role for financial information: quantities of inputs used, time obligatory to complete a task, and superiority of work brilliant. Combine financial data with operating or nonfinancial data using an ERP system, of course, becomes even more imperative to employees as they contribute in quality and process enhancement activities. Employees also benefit from the condition of cost and disbursement in sequence about the resources they are using. For example, they can make a decision whether to bear the cost of replacing the tooling in a machine so that the output has more consistent excellence. As employees adjust and redesign processes, they should be disturbed not only with civilizing cycle times, yields, quality, and productivity, but also with dipping the cost of implementation work. For this purpose, original organizations now share financial information with operator to enable them to:

• Identify the opportunity for significant cost lessening
• Identify opportunity for modernization
• Set priority for perfection projects
• Make trade-offs in the midst of alternative ways to perk up operations
• Evaluate future investments to progress operations
• Assess the penalty of their perfection activities

Thus, another new and significant theme in managerial accounting is the role such data can present to employees for their problem-solving and incessant improvement activities. This move toward stresses the use of financial and nonfinancial information to inform local decision making and de-emphasize the traditional role for price accounting information to control operator performance.