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Goal Definition and Communication - Behavioural Aspects of Standards
The desired goals should be clearly defined to individuals, departments and the organization like a whole. It clears confusion and sets a direction for the entire organization. Cleary defined goals, agreed upon via and accepted via the individuals concerned, will encourage goal congruence and raise motivation.
The process of communication, across and among the layers in the organization, is a serious element of all control systems. Standard costing, like a performance control systems, is not an exception. Frequent, up to date and exact feedback of information to employees and managers regarding their performance has a motivating effect. It specifies areas whether improvement is needed as like to achieve the desired objectives. Communication makes employees feel like their also contribution in the organization is significant.
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