Question 1: Social, political and cultural implications of management accounting
Universities are complex organisations with many different agendas and management issues. In this scenario, you are invited to consider the implications of the use of different management accounting tools and techniques in relation to the management of universities.
Australia�s University of Accounting [AUA] operates in the competitive higher education market of Australia. AUA operates four main degrees: a Bachelor in Accounting, a Masters in Accounting, a Masters of Professional Accounting and a PhD. Currently, the AUA employs 50 academics.
The management structure of AUA is as follows: there is a Vice Chancellor, four Deputy Vice Chancellors, a Head of Accounting and a head of each of the degrees. Note also, that there are five full professors, five associate professors and thirty lecturers. The AUA has a range of support staff, including clerical office workers, admissions officers, communication and recruitment.
The organisation is arranged in two ways. First, staff are aligned with a degree (thus, a lecturer who supervises a PhD student, teaches on the Masters and Bachelor would be responsible to a range of separate managers including the Head of the degree, the Head of School, and the senior AUA management). Equally, support staff are similarly aligned. Secondly, academic staff are separated into research specialisms, and each group has a respective leader as well.
The Vice Chancellor of AUA approaches you for advice. The Vice Chancellor would like you to identify areas of concern within the organisation, what might be the root or cause of that concern and what options there are for improving the organisation�s management approach.
They provide you with the following information.
AUA has had a significant drop in student enrolment. First, it had significant problems recruiting Masters and PhD students from overseas, which was partly due to the high Australian dollar, which leads to tuition fees being comparatively expensive for international students. The AUA is hopeful the government will allow uncapped fees for universities, as it considers itself a premium degree provider, and thus, wants to charge A$30,000 per year for its 2-year Masters and A$20,000 per year for the 3-year PhD programme.
AUA had a difficult couple of years with recruitment. In 2011-2012, the university recruited 350 undergraduate students. In 2012-2013, the university recruited 247 undergraduate students (fortunately, it managed to recruit extra Masters and PhD students). In 2013-2014, the university initially recruited only 212 undergraduate students, and had a really low international student Masters recruitment. Consequently, to compensate AUA recruited an extra 200 students (however, this was at a significantly lower entry level than normally required). Note that the Masters classes have only 40 students combined.
The Academic staff are unhappy. They complain of many mixed signals from management.
a) Some academic staff are unhappy with first year undergraduate classes of 400 students, while other colleagues teach a class of 40 Masters students or less, claiming that this is inequitable.
b) Some academic staff are unhappy with the educational quality of classes of 400 students.
c) Some academic staff are unhappy with the extra time demands at the undergraduate level stating that this means they are unable to complete their other academic requirements, such as research.
d) Some academic staff are unhappy as all managers at the university have significant teaching reductions or teach no classes.
Senior management introduce a new workload policy, stating that a class is now defined as a group of 50 students, as opposed to 30 students. This allows all students to be taught in the existing hours available to academic staff, without any increase in teaching hours (one issue that this is caused, is that there are a lack of rooms capable of fitting 50 students, so staff are now teaching from 8 am until 9 pm at night so that all classes can fit into the larger rooms).
Staff are really unhappy with this and there is talk of a strike. Students are also complaining about the long hours at university, as well as the reduced educational experience. AUA provides you the following information:
a) Academic staff are expected to produce two research outputs per year. A failure to do so leads to an increased teaching load the following year.
b) Due to budgetary constraints, AUA management cut international recruitment funding by 50 per cent.
c) There is a problem with coordination and communication between the different degrees, research groups and senior university management.
d) The senior management operate a central budget system, funding central systems first, and then the degrees second.
Prepare a report to the management of AUA. In your report, you should discuss many issues (control, planning and decision making). However, you must incorporate current management accounting research from class in your answer. Please note that you should address the cause, effect and potential solutions to each issue that you identify. You may draw on any material discussed in class in developing your answer.
this report must focus on those four themes, and immaterial labor is more important. this report need not any references.
a.) The Challenge of Strategy
b) Management Accounting and Developing Economies
c) The Challenge of Immaterial Labour
d) The Impact of the History of Accounting and the focus on Measurement.
the report need to focus on the above of case study .
thank you very much.^^