Maddy is the divisional manager of the internet technologies division of IT World Ltd. The following information

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Maddy is the divisional manager of the internet technologies division of IT World Ltd. The following information is currently available with respect to her role.

• The internet technologies division is classified as a profit centre.

• Maddy reports to the CEO.

• The internet technologies division is responsible for software development, webpage construction, and IT services and consulting.

• Maddy has four unit-level managers within her division, each in charge of functional profit centres.

• IT World Ltd uses a division-focused set of performance measures. Maddy’s primary performance measure relates to the operating profit of the internet technologies division. She is also evaluated on the basis of client satisfaction ratings and employee satisfaction scores.


Required

(a) Comment on the key factors influencing Maddy’s span of attention. Consider the influence of work-unit design, span of control and span of accountability.

(b) Assume that IT World Ltd’s senior management has decided to alter the performance measures to reflect organisational performance only. How might this influence Maddy’s span of attention?

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Management Accounting

ISBN: 9780730369387

4th Edition

Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey

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