The Presence of Bureaucracy in the Balanced Scorecard

Abstract

Despite being widely pilloried, bureaucratic processes are present in many organizations as a form of neo-bureaucracy. In this paper, we analyse whether a technique used in Management Accounting Systems (MAS), known as the Balanced Scorecard (BSC), represents a bureaucratic order. We propose the following set of concepts to identify a bureaucratic order: authority, jurisdiction, professional qualifications, knowledge, rationality, discipline, accountability, systematization and transparency. We discuss the presence of such a set of concepts in the design and implementation of the BSC and conclude that the BSC is an example of a neo-bureaucratic order. This paper also underlines another important finding, the value of bureaucracy in attaining good MAS. The theme we explore is overlooked in the accounting literature. This paper can be a starting point for further research. A pesar de haber sido ampliamente criticado, los procesos burocráticos están presente en muchos modelos organizacionales como una forma de neo-burocracia. En este artículo analizamos si una técnica utilizada en los Sistemas de contabilidad de gestión (MAS), conocida como Balanced Scorecard (BSC), representa una orden burocrática. Proponemos el siguiente conjunto de conceptos para identificar una orden burocrática: autoridad, jurisdicción, calificaciones profesionales, conocimiento, racionalidad, disciplina, responsabilidad, sistematización y transparencia. Discutimos la presencia de dicho conjunto de conceptos en la concepción e implementación del BSC y concluimos que el BSC es un ejemplo de un orden neo-burocrático. Este trabajo también subraya otro hallazgo importante, el valor de la burocracia para lograr un buen MAS. El tema que exploramos se pasa por alto en la literatura contable. Este artículo puede ser un punto de partida para futuras investigaciones.

Bureaucracy and the balanced scorecard in health care settings

“…We explore whether features of bureaucracy were present in the BSC used to manage the LHU. Based on Oliveira et al (2019), nine bureaucracy features were proposed: systematization, rationality, authority, jurisdiction, professional qualification, knowledge, discipline, transparency, and accountability. Were these features present in the LHU's use of the BSC?…”

“…Neo-bureaucracy maintains the classic bureaucratic concepts of systematization, rationality, authority, jurisdiction, professional qualification, knowledge, discipline, transparency, and accountability (Oliveira et al, 2019). However, as outlined below, it does so in a different way.…”

“…The use of a BSC implies initiating, continuing or adapting the bureaucratic order in an organization. This often evinces the presence of neo-bureaucratic concepts (Oliveira et al , 2019).…”

The current role of management accounting: paradigm shift and future challenges

“…The study of performance topics began in the early 1990s. The results of our analysis show a variety of topics, such as the Balanced Scorecard (Chen et al, 2016;Hoque, 2014;Oliveira et al, 2019), the influence of MA systems information on managerial performance (Chong, 1996;Gul and Chia, 1994;Mia and Chenhall, 1994), performance evaluation (Bol et al, 2016;Dai et al, 2018;Voußem et al, 2016) and the link between performance measurement and SUS (Dutta et al, 2013;Lee and Wu, 2014;Silva and Guenther, 2018).…”

Survey-based Evidence on Positive Synergies between Adaptive Culture and a Balanced Scorecard

“…Some voices oppose the "tyranny" of BSC and its negative effects, e.g., on innovation, and state that the BSC is a "myth," "rhetoric from a management guru," or no more than a hierarchical top-down model (Nørreklit, 2000;Voelpel et al, 2006). Defenders of the BSC argue that firms' experiences are proof that the BSC does not hamper innovation (Kaplan & Norton, 2006), and that its incorporation of some bureaucratic principles is their way of counterbalancing common negative perceptions regarding bureaucracy (Costa et al, 2019).…”