Final answer:
The managerial accounting framework designed to encourage managers to align their decisions with company and personal goals is known as responsibility accounting. It emphasizes clear communication and alignment with managerial responsibilities for effective implementation.
Step-by-step explanation:
When managerial accountants design an evaluation system that is based on criteria for which a manager is responsible, and it is structured to encourage managers to make decisions that will meet the goals of the company as well as their own personal job goals, the framework used is known as responsibility accounting. This concept aligns individual objectives with broader organizational goals, ensuring managers have the incentive to act in the best interest of the company while pursuing their personal achievements. The design of an effective evaluation system must be simple, clearly communicated, and aligned with the responsibilities and goals placed upon managers. Making the evaluation process clear ensures that managers understand the importance and the reasons for the evaluation system, which contributes to its effectiveness and practical application.
In addition to responsibility accounting, other performance appraisal systems like the 360-degree feedback appraisal provide a comprehensive review by incorporating feedback from not just supervisors, but peers and subordinates as well. This method provides multi-rater feedback that is useful for personal development and organizational growth. Furthermore, understanding an organization's culture is crucial for designing an effective performance appraisal system that is utilized properly and matches the culture of the organization.