2.6 Conclusion This section has considered the reasons for different systems of accounting regulation in more detail. A number of factors external to accounting (e.g. the legal system and so-called ‘accidents of history’) have been important in shaping accounting regulations differently from one jurisdiction to another. The contingent model of accounting change provides an explanation of how accounting regulation continues to evolve and how dealing with one issue can have unintended consequences, leadin
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.
1.2 The machinery of government: policy as rational planning Much of the policy literature is imbued with a rather mechanical conception of change: ideas about ‘pulling levers’ to make things happen, or about applying different ‘tools’ or ‘instruments’, all conceive the policy system as something like a machine itself. Component parts – the government departments, regulatory bodies, delivery organisations, and even the people who staff them – are viewed as connected though static and predictable mechanisms. The system is seen as non-ada
4.2 Bureaucracy Bureaucracy as a concept has had an interesting career: it begins in France in the eighteenth century. By the nineteenth century, the German state constructed by its first Chancellor, Bismarck, was a model bureaucracy in both its armed forces and civil administration. Weber (1978) realised that the creation of the modern state of Germany had only been possible because of the development of a disciplined state bureaucracy and a bureaucratised standing army – innovations pioneered in Prussia
3.2 Institutions in flux Although the implosion of the Soviet Union, after the dismantling of the Berlin Wall in 1989, has extended the flow of global capitalism, de Soto (2000) argues that the lack of capitalist institutions – and specifically legally enforceable rights to own property – has frustrated Western expectations about achieving increased prosperity through free-market economic development: ‘Ten years ago, few would have compared the former Soviet bloc nations to Latin America. But today they look as
3.1 Interconnectedness In making sense of the stretch from the here-and-now to the wider context, social science has often seized on distinct levels: the micro – dealing with things that happen in organisations, for instance – and the macro or national level. Explanations are often generated at either the micro or the macro level and critical connections between the two are ignored (Flyvbjerg, 2001, p. 138). Arguably, increased talk about globalisation provides a convenient label for things that g
2.5 Clusters A striking contradiction of the internet revolution is that, although cyberspace allows firms to be located anywhere, they still seem to cluster together in global cities such as New York, London and Sydney (Castells, 2001). Four years after publishing a book proclaiming The Death of Distance, Frances Cairncross noted in the book's second edition that, ‘Economists, most of whom have long ignored or despised economic geography, are now taking a fresh interest in it’ and, after revie
1.1 The wider context This unit explores the management of local knowledge-generating practices with regard to their wider contexts. Although these local practices might be considered in terms of individuals acting and thinking as if they were autonomous, independent agents interacting with other agents, such practices are simultaneously shaped by shared skills and understandings. As Karl Marx pointed out, when the hero of Daniel Defoe's (1660–1731) novel Robinson Crusoe (Defoe, 1994, first published in 1
5.2 An integrated perspective on relationship management: the six markets model Christopher et al. (1991) developed a complementary model to Piercy's. Based on the idea of stakeholders, the ‘six market model’ of relationship management works equally well in either a commercial or non-profit setting. I have combined the Piercy and Christopher et al. models in the following table to illustrate some of the critical issues in the key relationships that organisations need to address. 5.1 Managing relationships You should now understand that markets and the customers within them are the responsibility of all managers within an organisation. An organisation needs to identify what will create extra value for its customers, and design a value-driven operating system that will concentrate all its efforts on producing it. This process of going to market involves the organisation in managing the relationships between itself and its customers and competitors, and also in the co-ordination of the organisati 4.5 Is M&S market led? Allow half an hour. Read Case study 1 and then use the evidence there to answer the following questions. Do you think that M&S is market led? Which value dis 4.1 Choosing customers Think about your own organisation – or your own experiences as a customer. I'm sure you'll agree that, over the last few years, customers have become very sophisticated. They expect higher standards, lower costs, and a wide range of goods and services that are provided at their convenience. If an organisation does not provide what they want, they find one that can. Most companies have experienced changes in their markets, such as new customer demands and expectations, and new competit 6.2 Conflicting objectives You have just seen how an objective to maximise market share may not be compatible with an objective to maximise profits. Businesses may have multiple objectives, many of which conflict. Think, for example, how difficult it would be for an oil refinery to both maximise profits and minimise the effect upon the environment of its production activities. Similarly, maintaining high product quality while minimising costs would be extremely difficult. Imagine if a business was struggling. Its 4.2 Qualitative v. quantitative data Accountants do not, traditionally, deal with qualitative data, such as whether a customer was happy or sad, or whether it looked like it would rain when a customer bought an umbrella. Why do you think accountants do no 1 What is accounting about? Let's start with a question – we shall call questions ‘Activities’. For many of these activities you will need a pen and paper, or you can use the unit Forum, to note down your own ideas. Once you have completed the Activity you should return to the text, read the comments that follow the activity, and then think again about your answer. Change it, if you like. Once you are happy that you have understood the comments and that your own answer is alright, you should continue to read the t 4.6 Recruiting and selecting internal candidates Where an existing member of staff is applying for a post, you will already have knowledge of their personality, skills, fit with the organisation and so on. However, whether the job they are applying for is very similar to or different from the one they are doing currently, you need to ensure that they receive the same treatment as other candidates. Being an internal candidate is not easy. It can be both an advantage and a disadvantage to be known! Maintaining our theme of objectivity, the re 4.4 Job description From your analysis of the job you can write a job description which will state what the job holder is responsible for and what they are required to do (see Example 1). 3.3 Person–organisation fit This approach stresses that people's behaviour and performance are strongly influenced by the environment in which they find themselves. So being successful in a job in one organisation does not necessarily imply success in a similar job in another. In assessing the suitability of a job applicant a manager should explore the reasons why a person has performed well in their existing job and consider whether similar conditions apply in the new job. Advocates of the person-organisation fit appro Introduction Culture is just one perspective that can help us to understand more about a business. 'Business culture' is not just about how others see a business, but also about how the individuals within an organisation understand it. In this unit we explore how the concept of culture developed from research into differences between cultures at a national level. It is possible to see, or ‘feel’, that one business is different from another, and that this involves more than just how it presents itself References
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