Accounting for Managers: Interpreting accounting information for decision-making

(Sean Pound) #1

364 ACCOUNTING FOR MANAGERS


creating an underlying competitiveness in organizations, the preoccupation with
the ‘‘bottom line’’ is seen to discourage technological innovation and investments
in operational capability (e.g. Hayes & Abernathy, 1980; Johnson & Kaplan, 1987).
ER, it seems, has adopted this vocabulary just as those organizations that have it
are being exhorted to move towards longer-term, more strategic appreciations of
time. In the railway, assets have long lives and the lead-time on capital investment
is also long. To some extent the maintenance of the infrastructure is inevitably
compromised by its new culture. Quite possibly with innovations in transport,
the railway network will be an irrelevance in 50 years’ time; on the other hand, it
may not be. The green lobby, in particular, might argue that it is sensible to keep
options open in a way that at present may not be possible.


Postscript


The process of change in ER continues. The regional management structure is today
being dissolved. The operational side of the railway is currently being reorganized
and assimilated into the Businesses. The crafted accounts representing the railway
as a series of businesses have now permeated through management structures
and systems to operations on the ground. The railway quite literally has become
its businesses. There are no longer any regional General Managers, no vestiges
of the railway culture...or are there? High up on a building above one of
the main-line termini, out of sight except to observant motorists on a nearby
flyover, there is a residue of the past: a large illuminated logo – the logo of a
pre-nationalization railway.


Bibliography


Aldrich, H. E.,Organizations & Environments(Englewood Cliffs, NJ: Prentice-Hall, 1979).
Allaire, Y. & Firsirotu, M. E., Theories of Organizational Culture,Organizational Studies
(1984) pp. 51 – 64.
Ansari, S. & Euske, K. J., Rational, Rationalizing and Reifying Uses of Accounting Data in
Organizations,Accounting, Organizations and Society(1987) pp. 549 – 570.
Argyris, C. & Schon, D. A.,Organizational Learning(Reading, MA: Addison-Wesley, 1981).
Barley, S. R., Meyer, G. W. & Gash, D. C., Cultures of Culture: Academics, Practitioners
and the Pragmatics of Normative Control,Administrative Science Quarterly(March 1988)
pp. 24 – 60.
Berry, A., Capps, T., Cooper, D., Fergusson, P.,Hopper, T. & Lowe, A., Management Con-
trol in an Area of the National Coal Board,Accounting, Organizations and Society(1985)
pp. 3 – 28.
Blau,P.M.,The Dynamics of Bureaucracy: A Study of Interpersonal Relationships in Two
Government Agencies(Chicago, IL: University of Chicago Press, 1955).
Bruns, W. & Kaplan, R. S. (eds),Accounting and Management: A Field Study Perspective
(Cambridge, MA: Harvard Business School Press, 1987).
Brunsson, N.,The Irrational Organization(New York: Wiley, 1985).
Bryer, R. A., Accounting for the Railway Mania of 1845 – A Great Railway Swindle?,
Accounting, Organizations and Society(1991) pp. 439 – 486.
Burns, T. & Stalker, G. M.,The Management of Innovation(London: Tavistock Press, 1961).

Free download pdf