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The Role of Management Accounting in Organizational Control Systems: Preliminary Evidence of an Organic Approach

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The Role of Management Accounting in Organizational Control Systems: Preliminary Evidence of an Organic Approach
THE ROLE OF MANAGEMENT ACCOUNTING IN ORGANIZATIONAL CONTROL SYSTEMS: PRELIMINARY EVIDENCE OF AN ORGANIC APPROACH

Associate Professor Chris Durden School of Business James Cook University PO Box 6811 Cairns, Qld 4870 Australia Phone: +7 4042 1015 Fax: +7 4042 1474 chris.durden@jcu.edu.au

Professor Hector Perera Department of Accounting and Finance Division of Economic and Financial Studies Macquarie University, Sydney Australia hperera@efs.mq.edu.au

THE ROLE OF MANAGEMENT ACCOUNTING IN ORGANIZATIONAL CONTROL SYSTEMS: PRELIMINARY EVIDENCE OF AN ORGANIC APPROACH

Abstract There seems to be recognition in the literature that traditional management accounting and control systems (MAC) have limitations. However, there is limited knowledge about the practices organisations with a strategic focus adopt in relation to the development and operation of MAC systems. The purpose of this paper is to report the findings of a study designed to observe and codify MAC practices and their interface with strategy within the natural setting of an organisation. The research is based on a case study of a New Zealand based food manufacturing company. The findings provide evidence of an organic approach in the development and support of a strategic focus to MAC. This suggests an innovative style of performance management in a contemporary organisation.

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THE ROLE OF MANAGEMENT ACCOUNTING IN ORGANIZATIONAL CONTROL SYSTEMS: PRELIMINARY EVIDENCE OF AN ORGANIC APPROACH

Introduction Otley et al, (1995) highlight how the field of management accounting and control (MAC) continues to develop and evolve and that it is important to understand its operation within a modern organisational context. They point out that,

Traditional approaches to management control have been valuable in defining an important topic of study, but they have been predicated on a model of organizational functioning which has become increasingly outdated…

Contemporary organizations display
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