Performance Evaluation and Responsibility Accounting

Abstract

This study aims to disclose the methods that are used to evaluate the performance in the medical care sector in Jordan and the extent of their relation with the responsibility accounting principles. In order to achieve this goal, a questionnaire had been designed to obtain information of the sample which represents the medical institutions in the north of Jordan (NGOs and private sector). The study concluded that the medical institutions in northern Jordan are partially adopting the fundamentals of responsibility accounting system in the evaluation of its performance, but informally. This conclusion is supported by; First, The presence of definite organizational structures, where the centers (cost and profit centers) were divided according to those structures. Second, the absence of systematic preparation for budgets to each responsibility center. Third, the tendency toward decentralization(delegation of authority) in these institutions were weak, where there was significant influence by top management in the process of decision making and performance evaluation in centers and at the entire organization level .