4.4.1 The map isn't the territory

The expression ‘the map isn't the territory’ draws attention to the difference between complex reality and simplified models of it. Normally, the territory is relatively stable and different maps are produced for different purposes; the territory shapes the maps, not vice versa. However, when the ‘territory’ comprises people who know that they – or their work activities – are being mapped, we find ourselves in a reflexive loop: the people can see how they and their work are
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4.3.1 Mapping what we know

Knowledge maps are often one of the first knowledge management representations to emerge, in an effort to add value over the simple corporate intranet search which returns lists of ‘hits’ that are undifferentiated beyond a ranking in terms of keyword matches. Knowledge maps, like other forms of cartography, should communicate a ‘big picture’ by overlaying meaningful structure on to raw resources.


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4.2.1 Mapping who knows what continued

Box 4.2 Knowledge sharing at Hewlett-Packard

One knowledge management initiative involves HP educators. Bruce Karney is a member of the infrastructure team for the Corporate Education organisation, part of HP's Personnel function. Karney estimates that there are more than 2,000 educators or trainers
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4.1.1 Mapping who knows what

One of the most widespread ways to represent what you know is to represent who knows what. This avoids the complications of codifying or storing the knowledge in great detail – you simply map the relevant people to a high-level taxonomy, leaving them to give contextualised answers when asked. Initiatives to provide corporate ‘yellow pages’ which map an organisation by what people know rather than by where they work, or alphabetically, have been reported to be extremely popular and succe
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3.6.1 When we just want to forget (‘we're only human’)

Group memory systems might be counterproductive if they damage morale or prevent a team from moving on after a failure. Studies of software teams show that many commercial projects are cancelled before completion. This generates an intense pressure to work as hard as possible (so that maintaining group memory falls by the wayside) and, understandably, in many cultures if a project is regarded as a failure everyone wants to forget it as quickly as possible rather than analyse it for lessons le
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3.4.1 Integrating memory systems into the flow of work

There has been a substantial amount of research interest over the last decade in group/organisational memory systems. For example, software researchers have investigated the possibility of capturing design rationale, the key reasoning that underpins design decisions (Moran and Carroll, 1996). However, time and again projects have failed. A given information codification scheme encourages particular ways of thinking about information and the problem at hand: typically, information must
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3.3.1 Metaphors for organisational memory systems

Section 2 argued for a model of knowledge deriving from the situated interpretation of abstract representations. There is an active process by which different interpretations may result from a given information source. This is in contrast to the popular notion that knowledge can be unproblematically encoded and digitally stored and accessed.

Bannon and Kuutti (1996) argue that the term ‘organizational memory’ is widely used to mean a repository based on an implicit ‘memory as bin
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3.1 A knowledge management technology framework

In the introduction to a book on knowledge management technologies, Borghoff and Pareschi (1998) described a framework for organisational memory that has been developed within Xerox to promote understanding of the roles and interplay between different technologies (Figure 4).

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2.5 Design implications

The difficulties just described have very practical implications when it comes to designing technologies. Consider the following quotations:

in selecting any representation we are in the very same act unavoidably making a set of decisions about how and what to see in the world …

a knowledge representation is a set of ontological commitments. It is unavoidably so because of the inevitable imperfections of
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1.2 Pressing questions

In the late 1990s, when this unit was first prepared, if you surveyed the field of knowledge management technology you were assailed by technology vendors offering Knowledge Management Solutions. As we write in 2005 , an internet search on ‘knowledge management ICT’ will still return thousands of hits, but the ‘knowledge’ buzzword has faded in potency, the hype bandwagon has trundled on, and vendors now market the same products under business process banners which reflect greater real
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References

Aisbitt, S. (2004) ‘Why did(n't) the accountant cross the road?’ OUBS working paper, 04/04.
Bromwich, M. (1992) Financial Reporting, Information and Capital Markets, (in particular Chapter Two ‘The market provision of accounting information’) London, Pitman Publishing.
Burchell, S., Clubb, C. and Hopwood, A. (1985) ‘Accounting in its social context: towards
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2.4 Means of regulation

We have started to draw attention to cultural variables already when talking about the perceived objectives of financial reporting. In this next section, cultural issues can be seen to have a considerable impact on the methods used in each country to regulate its accounting, and indeed on whether regulation is perceived to be necessary.

One of the fundamentals in this area is the underlying legal system. The literature recognises two models: the common law model and the Roman law model.
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2.2 Objectives of financial reporting

The International Accounting Standards Board (IASB) has a conceptual framework that aims to set out publicly which qualities should be in the forefront of the standard-setters' minds when making accounting rules. The IASB explains that ‘the objective of financial statements is to provide information about the financial position, performance and changes in the financial position of an entity that is useful to a wide range of users in making economic decisions’ (IASC, 1989, paragraph 12). (
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1.8 Conclusion

This section has demonstrated that regulation evolves in response to a number of factors. Some of the more significant ones, such as economic development, ‘borrowed’ legislation, colonisation and imperialism and economic domination, have been discussed here. The consequence of this is that accounting regulation has evolved differently in various countries. The reasons for the diversity in accounting regulations will be considered in more detail in Author(s): The Open University

1.4 Information for investors

The next major evolution in accounting was the impact of the Industrial Revolution, when, in the nineteenth century, much of the infrastructure of financial reporting as we now know it was laid down. The special impact of the Industrial Revolution on accounting sprang from the change in the size of the average business and the capital necessary. Before the revolution, businesses were small scale, involving one owner or a partnership, liability was unlimited and the distinction between the own
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1.3 Managing the national economy

The earliest regulation in Europe was not motivated by stewardship concerns, but was aimed at small businesses whose owners did not take the trouble to measure the success of their business. Consequently they went into liquidation, often, as is the case with small business networks, taking other businesses down with them. The 1673 Savary Ordonnance in France, which is regarded as the first national accounting rule created in the world and was subsequently taken up into the French Comme
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1.1 Reporting international financial information

This unit is not concerned with how accounting information is captured or stored, nor how it is used internally within an international group, although those are certainly significant issues, but rather with how public financial statements are prepared, audited and used. Essentially, we are dealing with how reports on a company's financial situation are compiled for external purposes and how that compilation is constrained and shaped. Reporting rules are not exactly the same in any two countr
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Learning outcomes

By the end of this unit you will be able to:

  • identify factors that have influenced the development of financial reporting;

  • provide examples of how those factors have effected change in particular countries;

  • list a number of variables that affect the development of accounting rules in different jurisdictions;

  • explain the contingent model of accounting change;

  • apply the theories of accounting development to new situations
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Acknowledgements

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Unit Image

praatafrikaans: http://www.flickr.com/photos/praatafrikaans/171602015/


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4 The public policy-action relationship: activities

Having read this unit you now have the opportunity to reflect on the public policy-action relationship in more detail. There are two activities and two self assessment questions (SAQs) for you to complete.

Activity 1 A focus for reading

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