Question

Advanced Managerial Accounting (ACCT452)

a) explain the difference between the content approach and the process approach to the study of strategy and management control ( 5 lines )

b) which approach is more relevant to the study of the ABM at Insteel case? why? ( 5 to 6 lines )

Answer 1

a) Difference between the Content and Process Theory:

Content Approach	Process Approach
1.Content theory or need theory can be identified as the earliest theories related with the concept of motivation. It outlines the reasons for motivating an individual; that means it explains the necessities and requirements that are essential to motivate a person.	1.Process theories outline various behavioral patterns of individuals in fulfilling their needs and requirements.
2.These theories have been developed by various theorists such as Abraham Maslow – Maslow’s Hierarchy of Needs, Federick Herzberg – Two factor theory and David McClelland – Need for achievement, affiliation and power	2.There are four process theories such as Reinforcement, Expectancy, Equity and Goal setting.
3.In Maslow’s hierarchy of needs, there are five levels of needs as physiological needs, safety needs, social needs, esteem needs and self-actualization needs.	3.Reinforcement theory is another approach to motivation that argues that the behaviour that results in rewarding consequences is likely to be repeated, whereas behaviour that results in punishing consequences is less likely to be repeated.
4.Herzberg developed the two factor theory, which indicates that individual’s motivation depends on the two factors; hygiene factors and motivators.	4.Expectancy theory indicates that one’s level of motivation depends on the attractiveness of the rewards sought and the probability of the rewards obtained.
	5.Equity theory expresses that individuals’ perceptions on how they are being treated by the organization comparing to other employees in the similar organizational level.
	6.In goal setting theory, goal difficulty, specificity, acceptance and commitment combine to determine an individual’s goal directed effort.