Management Accounting: Employee Motivation Analysis at Sanitarium

This report examines employee motivation at Sanitarium Health and Wellbeing using management accounting principles. It includes a PESTLE analysis to evaluate the external business environment, considering political, economic, social, technological, legal, and environmental factors influencing t...Read More

Running head: MANAGEMENT ACCOUNTING
Management Accounting
University Name
Student Name
Authors’ Note

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Solution to Task 1:
As part of the selection process, the business concern under consideration “Sanitarium-
Health and well being” calls for implementation of proper management ideas for examination
and analysis of particular aspects of the corporation. In this regard, the first section of the
study at hand presents the list of segments or sub segments of important concepts, ideas and
theories for the selected topic of “Employee Motivation in Corporation” that is planned to be
used.
Table of Contents
Analysis of External environment of the firm “Sanitarium- Health and well being”................2
PESTLE Analysis.......................................................................................................................3
Analytical evaluation of real life dimension “Employee Motivation” on general environment3
Solution to Task 2
Analysis of External environment of the firm “Sanitarium- Health and well being”
Analysis of the operations of the firm can help in evaluating business environment of the
firm. Evaluation of the external business environment using PESTLE helps in presenting a
strategic report regarding the environment in which the firm Sanitarium operates. In essence,
the PESTLE analysis represents political, economic, social, technological, legal as well as
environmental factors that can influence business operations of the firm (Cascio 2018)

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PESTLE Analysis
Analysis of political environment shows political stability and support provided by the
government. Economic factors that affect the business functionalities include government
expenditures (Chenhall and Moers 2015). Increase in government expenditures in this
business can lead to increase in aggregate demand. Thus, this can accelerate the rate of
growth of the firm. Again, analysis of social factors replicates stable social framework,
escalating demand in the market, novel acquirements and level of income at a steady
increase. Furthermore, analysis of technological factors replicates that the firm Sanitarium
gets affected by the enhanced technological potential, higher risks of development, and
problems of technology, technological as well as industry concentration and escalating
automation. Moreover, the legal factors that affect the business environment include
sustainability, regulations and green products as well as services.
Analytical evaluation of real life dimension “Employee Motivation” on general
environment
The current section intends to unravel the facets that exert impact on motivation and
identified motivational facets on performance of the workers as well as overall productivity
of the firm Sanitarium- Health and Well being.
Themes of Maslow’s hierarchy of need, Alderfer’s ERG theory and Herzberg’s Two Factor
Theory among many others are said to be important elements of Employee Motivation.
Maslow’s hierarchy of need is essentially a motivational theme in psychology consisting of
five tier/stage model of particularly human needs (Hopper and Bui 2016). This is generally
depicted as hierarchical levels within a specific pyramid. As per the theory, individuals are
motivated to attain specific needs and certain need necessarily takes primacy over many
others.

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ERG theory can be considered to be a theory in psychology put forward by Clayton Alderfer.
In essence, Alderfer further extended the theme of Maslow’s hierarchy needs by classifying
the hierarchy into the ERG theory. Essentially, the existence group is mainly concerned about
delivering fundamental material existence necessities of humans.
As rightly put forward by Otley (2016), the two factor theory also referred to as Herzberg
Theory mentions that there are specific facets in the place of work that cause satisfaction of
job, whilst a separate set of facet generate dissatisfaction.
Based on the themes of motivation, it can be hereby said that majority of the employees have
the need for motivation to feel good regarding their jobs and perform optimally. There are
certain employees who are mainly money motivated whilst there are others who find
recognition and rewards individually motivating. In essence, the levels of motivation within
the place of work have a direct influence on productivity of employees (Brewster et al. 2016).
Workers who are necessarily motivated and excited about their jobs undertake their
accountabilities to the best of the capability and number of production enhance as a
consequence. In particular, incentives can be considered to be a motivating influence that is
formulated to drive employee behaviour and inspire employees to manufacture quality of
work. Also, there are many employees that have the need for recognition from their
employees to manufacture higher quality of work (Snell et al. 2015)
Solution to Task 3
References
Brewster, C., Houldsworth, E., Sparrow, P. and Vernon, G., 2016. International human
resource management. Kogan Page Publishers.
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.

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Chenhall, R.H. and Moers, F., 2015. The role of innovation in the evolution of management
accounting and its integration into management control. Accounting, Organizations and
Society, 47, pp.1-13.
Hopper, T. and Bui, B., 2016. Has management accounting research been
critical?. Management Accounting Research, 31, pp.10-30.
Otley, D., 2016. The contingency theory of management accounting and control: 1980–
2014. Management accounting research, 31, pp.45-62.
Snell, S.A., Morris, S. and Bohlander, G.W., 2015. Managing human resources. Nelson
Education.