Accounting Information in Organisational Decision Making: A Stakeholders Perceptions at Glow Petroleum Private Limited, Zimbabwe

Abstract

The main objective of the study was to present an assessment on the use of accounting information in organisational decision making process with particular reference to a case of Glow Petroleum Private Limited. The study was carried out to ascertain and establish the extent to which accounting information contributes to decision-making at Glow Petroleum. The study adopted a descriptive research design which used both primary and secondary data as well as both qualitative and quantitative methods. Primary data was collected using questionnaires and interviews while the secondary data was obtained from newspapers, academic journals and management reports of Glow Petroleum. The study was based on a population of 103 respondents which included board of directors, senior managers and middle managers and employees from the Departments of Accounting and Finance, Marketing, Operations, Auditing and Human Resources. The data was analysed through descriptive statistics, which utilized frequency tables and summary measures, such as the average or mean and standard deviation. A correlation and regression analysis was performed on the study’s variables. The study found out that that financial accounting information, cost accounting information and management accounting information is mainly used for decision making at Glow Petroleum and that the majority of the information is contained in reports such as the statement of comprehensive income (SOCI) and the statement of financial position (SOFP). The study found out that a positive correlation exists between Financial Accounting Information, Cost Accounting Information and Management Accounting Information and decision making at Glow Petroleum (Pvt) Ltd. The study also found out that at Glow Petroleum, accounting information contained in the financial reports is important in production-related decisions, human resources decisions, investment decisions, marketing decisions and in the preparation of business plans, in conducting analysis of business results, in conducting comparative analysis related to competitors, in the reports to the board of directors and in core competencies and competitive advantage decisions. The study also found out that in order to improve accounting information at Glow Petroleum, there is need for management participation in the implementation and use of Accounting Information Systems, development of proper internal controls, use of proper accounting information system technologies reliable for the processing of accounting information, constant and regular up to date review of accounting systems and training and retraining of accounting staff on a regular basis. The study recommended that Glow Petroleum should ensure that it has systems in place that ensure the gathering of reliable accounting information since they rely largely on accounting information for decision making. The study also recommended that Management at Glow Petroleum should commit to the participation and implementation of AIS including devoting resources for the upgrading of latest AIS ERPS and technologies and must ensure that all Finance and Accounting staff are well trained on the provision of Accounting information since it is the largest source of decision making information.