Accounting

What is accountability?

Accountability is the extent to which a named individual is held responsible for the success or failure of a policy or a piece of administration. When a company’s management structure is clear, staff will know what authority has been given to them, and by whom. If that authority is exercised poorly, the employee should be held to account for his or her mistakes.

Pros:

  • in order to correct mistakes it is essential to know how they came about – usually a function of people’s decision making or communication failures.

Cons:

  • If a firm operates in an atmosphere of mistrust, accountability can be seen as a threat; managers may fear that overambitious sales targets have been set with a view to proving their incompetence.