248 ACCOUNTING FOR MANAGERS
ža qualitative study of a single organization or a small number of organizations
through case studies comprising interviews, observation and documentary
research that aims to explain accounting practice in the context in which it
is situated.
Both methods are valuable in helping to understand accounting practice. The
reader is encouraged to look at some of the literature referred to in the chap-
ters throughout this book in order to understand the context of accounting in
organizations.
Hopperet al.(2001) traced the development of accounting research through
four approaches:
žconventional teaching emphasizing the needs of the professional account-
ing bodies;
žthe application of economics and management science;
žhistory and public-sector accounting;
žbehavioural and organizational approaches.
The first approach is that traditionally taken by students of accounting. The
second approach relies heavily on econometric and mathematical models, which
are outside the scope of this book. This book has taken the view that managers
who use accounting information do not need as thorough an understanding of
how to prepare accounting information, but rather that they should take a more
interpretive and critical perspective. This implies a concern with the behavioural
and organizational approach, rooted in organizational history and the unique
circumstance of each organization.
Power (1991) described his own experience of a professional accounting educa-
tion and argued that ‘the lived reality of accounting education shows that it does
not serve the functional ends that are claimed for it’ (p. 347). He described:
the institutionalization of a form of discourse in which critical and reflective
practices are regarded as ‘waffle’...of a cynicism and irony among students
towards the entire examination process...and the public game that they are
required to play. (p. 350)Power (1991) concluded that this ‘may be dysfunctional for the profession itself
and for the goal of producing flexible and critical experts’ (p. 351).
Research in management accounting tends to fall into two distinct categories:
žThe normative view – what ought to happen – that there is one best way of doing
accounting, that accounting information is economically rational and serves an
instrumental purpose in making decisions in the pursuit of shareholder value.
The normative view has been evident in this book through the presentation of
accounting tools and techniques in each chapter.
žThe interpretive and critical view – what does happen – the explanation of how
accounting systems develop and are used in particular organizational settings.
This view recognizes that people do not necessarily make decisions based on
economically rational reasons but have limited information, limited cognitive