Accounting information and managerial work

Abstract

Despite calls to link management accounting more closely to management (Jonsson, 1998), much is still to be learned about the role of accounting information in managerial work. This lack of progress stems partly from a failure to incorporate in research efforts the findings regarding the nature of managerial work, as well as inadequate attention devoted to the detailed practices through which accounting information is actually used by managers in their work. In this paper I draw on prior research to develop a series of propositions focused on three primary insights into how and why managers use accounting information in their work. First, managers primarily use accounting information to develop knowledge of their work environment rather than as an input into specific decision making scenarios. In this role, accounting information can help managers to develop knowledge to prepare for unknown future decisions and activities. Second, as accounting information is just one part of the wider information set that managers use to perform their work, it is imperative to consider its strengths and weaknesses not in isolation but relative to other sources of information at a manager's disposal. Third, as managers interact with information and other managers utilising primarily verbal forms of communication, it is through talk rather than through written reports that accounting information becomes implicated in managerial work. These insights have important implications for how managers use accounting information, and, in particular, require reconsideration of the types accounting information that managers find, or could find, helpful. The paper also considers how existing experimental and field-based methods could fruitfully be adapted to focus on the detailed activities through which managers engage with accounting information.

Performance measurement, modes of evaluation and the development of compromising accounts

“…Our analysis also has implications for the ways in which performance measures and other accounting information can be mobilized by managers and practitioners as a resource for action (c.f., Ahrens & Chapman, 2007;Hall, 2010). In particular, our results indicate that 'imperfect' performance measures can actually be helpful, that is, they can be used by practitioners to generate productive dialogue, despite, or, as our analysis shows, because of, their perceived imperfections.…”

Realising the richness of psychology theory in contingency-based management accounting research

“…As Hopwood (1983: 298) argued over 30 years ago, 'the accountant's Account is merely one of the many that attempt to make visible and salient particular aspects of organizational life.' Yet, despite numerous observations to support this argument, much management accounting research, including psychologically based contingency research, continues to focus on the use of only the accountant's account with little attention focused on other types of accounts individuals may use (Hall, 2010). This reflects the predominant approach in contingency-based research on examining a reduced set of contextstructure variables and their relationship with performance, in contrast to a more holistic approach examining many contextual and structural variables simultaneously (Gerdin and Greve, 2004;Grabner and Moers, 2013).…”

“…Surveys, particularly the typical approach of cross-sectional designs, are necessarily restricted to examining psychological states (e.g., the level of role ambiguity) rather than psychological processes (e.g., the experience of role ambiguity, how it is formed, and how it comes to affect performance). And although experiments offer the opportunity to examine processes (for example, see Webb (2004), or more generally see Hall (2010) on process-based experiments), they face the typical limitation of not necessarily reflecting the way in which psychological process unfold in organisations. This can be an important difference, as psychological processes in the 'wild' can take on a very different character to those observed in the laboratory (see, for example, Hutchins (1995) and Lave (1988)).…”

“…3 This points to the continued richness of pioneering studies and the opportunities for current research that can be created from revisiting them. For similar approaches, see Chapman (1997), who re-examined the classic early contingency studies, and Hall (2010), who re-examined studies of accounting information in managerial work. management accounting research.…”

Attending Weak Signals: The Prevention of Work-related Illnesses

“…It may also be assumed that even formal information can be confusing (Hedberg & Jönsson, 1978), but that confusion may be reduced if informal information, like oral communications, rumors, and observations, are also used in decision-making (Hall, 2010;Jönsson, 1998). Although leaders may use informal information to interpret formal information (Preston, 1986), they may also use formal information to suppress informal information, so that relevant, early signs of a need for change are neglected (Hedberg & Jönsson, 1978).…”