Outsourcing relationship management: accounting in the decision mix

2018 ◽  
Vol 39 (5) ◽  
pp. 41-49
Author(s):  
Mirghani Nimir Ahmed
Keyword(s):  
Management Accounting ◽  
Accounting Information ◽  
Relationship Management ◽  
Internal Audit ◽  
Management Control ◽  
Control Mechanisms ◽  
Monitoring Cost ◽  
Content Type

Purpose The paper aims to examine the role of management accounting and accounting information in decisions to outsource and manage outsourcing relationships. Design/methodology/approach The paper uses a case study method. Data are collected through semi-structured interviews and informal discussions with executives of the participating companies. Official documents and secondary materials were analysed. Findings The findings of these cases present evidence of some roles given to accounting information and varying tasks assumed by accountants and finance staff in the outsourcing projects undertaken. These roles and tasks range from financial evaluation of new outsourcing proposals and alternatives, consultation and price negotiations in the planning and feasibility stages to the management of outsourcing relationships including monitoring, cost analysis, performance measurement, internal audit, design and implementation of risk-reward payment schemes. Managing the outsourced functions in one case involved in the use of informal control mechanisms such as trust, knowledge sharing, mutual understanding and cooperation between partners. Practical implications The paper highlights the role of management accounting and information in outsourcing relationship management and evaluation. The case findings provide the opportunity for management practitioners to understand the strategic role of management accountants in the management of inter-firm relationships. Originality/value The case study presents new empirical evidence of the role of management accounting and accounting information in the management control of outsourcing relationships.

Accounting without accounting

2014 ◽  
Vol 27 (3) ◽  
pp. 426-464 ◽  
Author(s):  
Fábio Frezatti ◽  
David B. Carter ◽  
Marcelo F.G. Barroso
Keyword(s):  
Design Methodology ◽  
Qualitative Case Study ◽  
Management Accounting ◽  
Business Management ◽  
Accounting Information ◽  
Effective Management ◽  
Accounting Information System ◽  
Content Type ◽  
New Perspective

Purpose – An effective management accounting information system (MAIS), as well as the accounting discourse related to it, can support, facilitate, enable, and constrain diverse business discourses. This paper aims to examine the discursive and organisational effects of an organisation accounting upon absent accounting artefacts, i.e. accounting without accounting. Situated within the discursive literature, this paper examines the construction of competing articulations of the organisation by focusing on what accounting does or does not do within an organisation. In particular, the paper acknowledges the fundamental importance of the accounting discourse in supporting, facilitating, enabling, and constraining competing organisational discourses, as it illustrates how the absence of accounting centralises power within the organisation. Design/methodology/approach – From a rhetorical, discursive perspective, the authors develop an in-depth qualitative case study in a manufacturing organisation where MAIS has been abandoned for approximately two years. Interpretive research approaches, from a post-structural perspective, provided the base for the structure of the research. The authors studied how other organisational discourses (such as entrepreneurship and growth), which are traditionally constructed with reference to accounting and other artefacts, continued to be produced and sustained. The non-use and non-availability of management accounting information created a vacuum that needed to be filled. The lack of discursive counterpoints and counter-evidence provided by MAIS created a vacuum of information, allowing powerful, proxy discourses to prevail in the organisation, increasing risks to business management. Findings – The absence of MAIS to support an accounting discourse requires that contingent discourses “fill in the discursive gap”. Despite appearances, they are no substitute for the accounting discourse. Thus, over time, the entrepreneurial, growth and partners' discourses lose credibility, without the corresponding use of management accounting information and its associated discourse. Originality/value – There are at least two main contributions from the case study and the findings presented in this paper: first, they provide a new perspective for studying MAIS, as a specific organisational discourse among other discourses that shape people relationship within the organisation as an examination of accounting without accounting. Second, this discussion reinforces the relevance of accounting discourse for other organisational discourses, supporting, facilitating, enabling, and constraining them, by demonstrating the effects of its absence.

Enabling characteristics of new budgeting practice and the role of controller

2016 ◽  
Vol 13 (1) ◽  
pp. 31-56 ◽  
Author(s):  
Tiina Henttu-Aho
Keyword(s):  
Design Methodology ◽  
Relevant Information ◽  
Management Control ◽  
Holistic View ◽  
New Developments ◽  
Role Change ◽  
Content Type ◽  
Paper Company

Purpose This paper aims to investigate the emergence of the enabling characteristics of new budgetary practices and their implications for the role of controller. Design/methodology/approach The longitudinal perspective of this qualitative case study is based on interviews of controllers and managers involved in budgetary work. This study monitored the four enabling characteristics of management control, namely, repair, internal transparency, global transparency and flexibility (Adler and Borys, 1996), related to the new budgeting practices in one global paper company. Findings The findings of the study demonstrate that the implementation of rolling forecasting was a major attempt at “repair” to remedy the incompleteness of accounting information, which made controllers experts in producing and delivering more realistic forward-looking information in the organization. The increasing internal and global transparency of new budgetary practices enabled controllers at various levels of organization to develop new competences, which helped controller network to build a holistic view of the totality of control and supply more relevant information in organization. Moreover, the inherent flexibility of the system was a major condition for improving organizational effectiveness in budgetary work. However, the study shows that the controller’s attitude towards enabling formalization is not necessarily positive if the system is not aligned with professional mindset and competence. Originality/value This study adds to the understanding of the complementarity between new developments of budgeting and controller role by addressing the enabling uses of management control systems, which have the potential to enhance the controller role change.

scholarly journals People in suits: a case study of empowerment and control in a non-profit UK organisation

2020 ◽  
Vol 32 (3) ◽  
pp. 511-528
Author(s):  
Roxana Corduneanu ◽  
Laura Lebec
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Interactive Systems ◽  
Employee Perceptions ◽  
Structured Interviews ◽  
Content Type ◽  
Non Profit ◽  
And Control

PurposeDrawing on Simons's levers of control (LoC) framework, the primary aim of this study is to advance an understanding of the balance between empowerment and constraint in a non-profit UK organisation. In particular, this study examines the antecedents and manifestations of LoC (im)balance, in relation to employees' level of engagement with the control systems in place.Design/methodology/approachFor this study, 27 semi-structured interviews were conducted with different organisational members, from directors to non-managerial staff, to gain an in-depth appreciation of the main differences between managerial intentions in the design of management control systems (MCS) and employee perceptions regarding the role of such systems.FindingsThis research reveals that suppression of interactive systems and internal inconsistencies between different types of controls hinder the balance between empowerment and constraint. This imbalance is then found to have important consequences for employee buy-in, in some cases, defeating the purposes of control.Research limitations/implicationsThis study enhances our understanding of the gap between the design of control systems and the employee perceptions of it in an unusual organisational setting (non-profit and bringing together clinical and non-clinical staff and operations).Originality/valueThe study of MCS and its role in organisations has long been the focus of both academic and practitioner research. Yet, while extant literature focused on management's perspective on MCS, few studies have explored employees' attitudes and behaviours that accompany the implementation of control. What is more, little is known about the specific uses and behavioural outcomes of MCS in the context of non-profit organisations. Drawing on Simons's LoC framework, this paper addresses these gaps in the literature and investigates the balance between control and empowerment of employees in a UK non-profit organisation with significant clinical remit.

Leadership, governance and the mitigation of risk: a case study

2015 ◽  
Vol 30 (2) ◽  
pp. 132-159 ◽  
Author(s):  
Jim Rooney ◽  
Suresh Cuganesan
Keyword(s):  
Risk Management ◽  
Social Relations ◽  
Financial Institution ◽  
Single Case ◽  
Management Control ◽  
Management Decision ◽  
Content Type ◽  
Management Controls

Purpose – The purpose of this study is to examine how managers in financial institutions satisfy themselves of the effectiveness of risk mitigation strategy and management control. It studies the co-opting of accounting tools within a single financial institution case study, examining the recursive and emergent characteristics of risk management practice. Design/methodology/approach – Adopting a field study approach within the strategy-as-practice perspective, the paper provides insights into the role of actor perceptions of risk and accounting as a calculative practice in the adaptive enactment of risk strategy. Findings – Results highlight the interactions between risk management strategy, management controls and actor interests at Lehman Brothers. The actions and reactions of risk management decision-makers such as Executive Committee and Board members are examined to better understand the role of accounting and leadership. Research limitations/implications – Results of this study may not be generalised beyond this single case study. Practical implications – The paper emphasises that concern for the social relations and the performative interests of actors in a risk management network needs to be understood and considered in accounting research. It is argued that the market prices of tradable financial asset will continue to be opaque without these insights. Originality/value – This study explores an under-researched topic in the accounting literature in examining how management controls are affected by and, in turn, affect risk strategising.

The use of budgetary and financial information by politicians in parliament: a case study

2019 ◽  
Vol 31 (4) ◽  
pp. 539-557 ◽  
Author(s):  
Susana Jorge ◽  
Maria Antónia Jorge de Jesus ◽  
Sónia P. Nogueira
Keyword(s):  
Public Sector ◽  
Information Needs ◽  
Accounting Information ◽  
Financial Information ◽  
Content Type ◽  
Members Of Parliament ◽  
Information Intermediaries ◽  
Public Sector Accounting

Purpose The purpose of this paper is to research the use of accounting information by politicians. Based on the Portuguese Parliament setting, it seeks to understand how useful politicians consider this information to be, what type of budgetary and financial information they use, and for what purposes. Finally, the research also seeks to find out whether politicians resort to expert intermediaries or advisors help them in the use of this information. Design/methodology/approach Following a qualitative and interpretative methodology, the study draws upon interviews with Members of Parliament in Portugal (and their technical advisors (TAs)) from all political parties, in particular the members of the Budget, Finance and Administrative Modernization Committee (COFMA) of the Parliament. Findings Research shows that, due to the general lack of knowledge and the complexity of the accounting information, politicians in the Parliament do not use it frequently, only occasionally. To be better or worse informed for the debates and other activities depends on each Member of Parliament’s personal willingness to prepare oneself, notwithstanding some aggregated and previously analyzed information made available by official technical support units. Parliamentarians may also resort to TAs, who prepare the information at their request. Both intermediaries and TAs are deemed important to support parliamentarians’ understanding of more technical budgetary and financial issues. Practical implications This paper shows that politicians acknowledge there is room for improving the role of information intermediaries and advisors, who would support them to better understand and use accounting information. Parliamentary groups incharge of hiring advisors, as well as accounting professionals, in Portugal and in other countries, must be aware of the very useful role accountants play in this process. Social implications While allowing to understand whether and how politicians use accounting information, this research contributes to the process of public sector accounting reforms in Portugal, and at an international level, inasmuch as public sector accounting and reporting standards should better address these users’ information needs. Assuming that these reforms would foster more accurate, transparent and useful information for accountability and decision making, it is essential that politicians acknowledge and become real users of accounting information, in order to accomplish those objectives. Originality/value This study contributes to the general knowledge of how politicians use accounting information. Academic studies so far have not gathered enough evidence about the type of accounting information that is actually important for politicians. This paper highlights that use of such information by politicians depends on individual skills and their willingness to receive the appropriate advice.

Hospital accreditation systems and salience of organisational tensions

2021 ◽  
Vol 35 (9) ◽  
pp. 57-80
Author(s):  
Geraldine Robbins ◽  
Breda Sweeney ◽  
Miguel Vega
Keyword(s):  
Active Role ◽  
Management Control ◽  
External Control ◽  
Hospital Accreditation ◽  
Management Control System ◽  
Content Type ◽  
Prior Literature ◽  
Depth Interviews

PurposeThis study examines how an externally imposed management control system (MCS) – hospital accreditation – influences the salience of organisational tensions and consequently attitudes of management towards the system.Design/methodology/approachData are collected using a case study of a large public hospital in Spain. In-depth interviews were conducted with 27 senior and middle managers across different functions. Relying on the organisational dualities classification in the literature, tensions are unpacked and analysed.FindingsEvidence is presented of how hospital accreditation increases the salience of organisational tensions arising from exposition of the organisational dualities of learning, performing, organising and belonging. Salient tensions were evident in the ambivalent attitudes of management towards the hospital accreditation system.Practical implicationsThe role of mandatory external control systems in exposing ambivalence and tensions will be of interest to organisational managers.Originality/valueThe study extends the management control literature by identifying an active role for an external MCS (accreditation) in increasing the salience of organisational tensions and triggering ambivalence. Contrary to the prior literature, the embedding of both poles of an organisational duality into the MCS is not a necessary precondition for increased tension salience. The range of attitudes towards MCSs beyond those specified in the previous literature (positive/negative/neutral) is extended to include ambivalence.

Exploring the venture capitalist – entrepreneur relationship: evidence from India

2016 ◽  
Vol 23 (1) ◽  
pp. 64-89 ◽  
Author(s):  
Swati Panda ◽  
Shridhar Dash
Keyword(s):  
Venture Capitalist ◽  
Treatment Technique ◽  
Control Mechanisms ◽  
Content Type ◽  
Secondary Sources ◽  
Study Approach ◽  
Rich Description ◽  
Multiple Case

Purpose – Maintaining cooperation and avoiding opportunism is essential for a healthy venture capitalist (VC) – entrepreneur relationship. Therefore, the purpose of this paper is to explore the role of control and trust for developing a cooperative VC-entrepreneur relationship in an agency environment in the Indian context. Design/methodology/approach – The study adopts a multiple case study approach to investigate ten VC-entrepreneur dyads. It uses data collected from both primary and secondary sources. Content analysis was used as the data treatment technique. Findings – The empirical evidence indicates that VC-entrepreneur relationships emerging in the early stages suffer from low agency risks and use more of relational mechanisms to curb opportunism and develop cooperation while relationships at an advanced stage suffer from higher agency risks and employ more of control mechanisms to address it. Practical implications – The findings can be utilized to enhance cooperation in VC-entrepreneur relationship by identifying the appropriate context to apply relational or control mechanisms, which would eventually lead to better performance of the venture. Originality/value – This distinction results in the development of a theoretical model which shows how the dual governance mechanisms of control and trust interact with one another to affect confidence in partner cooperation as an entrepreneurial venture raises multiple rounds of venture capital across various stages. The data collected from Indian VC-entrepreneur dyads offers a rich description of the relationship dynamics across the Indian entrepreneurial ecosystem.

scholarly journals Coping with the COVID-19 pandemic: the technical, moral and facilitating role of management control

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emilio Emilio Passetti ◽  
Massimo Battaglia ◽  
Lara Bianchi ◽  
Nora Annesi
Keyword(s):  
Local Community ◽  
Health And Safety ◽  
Management Control ◽  
Middle Level ◽  
Late Winter ◽  
Control Mechanisms ◽  
Content Type ◽  
Social Interventions ◽  
Object Of Control

PurposeThe study analyses how management control supports the organisation's response to the COVID-19 pandemic lockdown.Design/methodology/approachVideo interviews with top and middle-level managers who were directly involved in handling the response to the COVID-19 crisis in late winter and spring 2020 form the empirical base. The object-of-control framework and the distinction between organic and mechanistic management controls inform the exploratory case analysis of a large food retail cooperative in Italy.FindingsBoth organic and mechanistic management control mechanisms enabled an immediate response and management of the crisis. The use of cultural, action and results controls supported employees' health and safety coordination, a tight monitoring of financial performance and social interventions in support of the local community.Originality/valueThe study provides original exploratory insights on the use and role of management control in the context of an unprecedented emergency and an unplanned setting (i.e. a pandemic crisis), which is an under-investigated topic in the accounting literature. The study shows how management control operated, linking moral and technical aspects as well as facilitating organisational adaptation and pandemic effects mitigation.

Levers of control, complementariness, tensions and budget use: a case study

2020 ◽  
Vol 24 (3) ◽  
pp. 401-416
Author(s):  
Kaveesha Rathnasekara ◽  
Tharusha Gooneratne
Keyword(s):  
Qualitative Methodology ◽  
Management Control ◽  
Domain Theory ◽  
Content Type ◽  
Face To Face ◽  
Study Approach ◽  
Control Framework ◽  
Budgetary Control

Purpose The purpose of this paper is to identify the complementariness and tensions in the use of management control systems diagnostically and interactively, using a budgetary control example, drawing empirical evidence from a clustered firm, “Pattern On”, which is engaged in the manufacture of apparels. Design/methodology/approach This paper uses the qualitative methodology and case study approach. Face-to-face in-depth interviews were carried out as the main source of data collection, supplemented by an analysis of internal documents. Findings The field data from this study shows that both diagnostic and interactive controls appear in the clusters of PatternOn. However, the extent of use, the way they are perceived by employees, consequences, complementariness and tensions differ among the clusters. It further suggests that interactive and diagnostic controls have their own positive and negative implications on organisational activities. Therefore, rather than ruling one type as superior; what is best depends on the particular organisational circumstances. Research limitations/implications This paper is a useful addition to the current body of management accounting literature, particularly to budgeting and to the levers of the control framework and highlights the use of a domain theory in a research study. Practical implications It provides insights to practitioners regarding the simultaneous use of controls, diagnostically and interactively, and how any resulting tensions are managed. Originality/value Using a budgetary control example, this paper shows how controls are used diagnostically and interactively while emphasising the complementariness and tensions created by such levers. This is important as most prior research has explored diagnostic and interactive use in isolation, while budgetary control, as well as the role of domain theory has not been their focus.

The priming role of qualitative research in constructivist management control teaching

2019 ◽  
Vol 16 (4) ◽  
pp. 463-490
Author(s):  
Annick Ancelin-Bourguignon
Keyword(s):  
Qualitative Research ◽  
Science Research ◽  
Management Control ◽  
Future Research ◽  
Educational Science ◽  
Content Type ◽  
Cross Cultural Comparison ◽  
Research Integration

Purpose Drawing on educational science research and concepts, this paper aims to organize and analyze prior accounting literature on the integration of research into teaching and provides evidence for the relevance of integrating research into constructivist management accounting teaching. Design/methodology/approach Evidence shall be drawn from the autoethnographic account of a case study, namely, an MiM course in a French business school. Findings The presentation of qualitative research plays a priming role in collective debates where knowledge is co-produced by the group of students. Research limitations/implications The analysis opens up many avenues for future research on constructivist accounting teaching (e.g. teachers’ profiles, cross-cultural comparison) and its consequences. Practical implications The case provides examples of how, in practice and beyond general principles, the constructivist teacher adapts to his/her audience and their educational heritage. It also invites a holistic consideration of teaching arrangements, the relationships between their elements and their collective impact on learning. Originality/value The case study, the analysis of which draws on educational science frameworks and concepts, provides an in-depth account of research integration into constructivist accounting teaching.

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