MANAGEMENT ACCOUNTING AND ORGANISATIONAL CHANGE
MANAGEMENT ACCOUNTING AND ORGANIZATIONAL CHANGE: IMPACT OF ALIGNMENT OF MANAGEMENT ACCOUNTING SYSTEM, STRUCTURE AND STRATEGY ON PERFORMANCE
Introduction
In the search to understand management accounting in competitive environments and advance technologies, change has increasingly become a focus for research. Many firms have experienced significant changes in their organizational design, competitive environments and technologies. Business environments exhibit a variety of structures and processes, including flat and horizontal organizational forms, multidimensional matrix structures, networks of “virtual organizations” and self- directed work teams. When business organizations respond to challenges by embarking on a change management path, they are faced with choices of which one of the management methods, techniques, and systems would be most effective (Waldron, 2005).
Every organization is located within a particular configuration of contingencies. It is dependent on the market and technological environment in which it operates its scale and diversity of operations, the technology applied to its work, and the type of personnel it employs. To achieve congruence, an appropriate design is the one which best suits it’s contextual and operational contingencies. According to Moores and Yuen (2001, p.352), “to be internally consistent, organizations must have tightly independent and mutually supportive parts in terms of strategies, structures and process”. The management of organizations faces a challenge to reinforce the management accounting system, strategies and structures together in order to achieve competitive advantage and enhance performance. Thus, research needs to be carried out to help management make appropriate decisions in order to achieve this congruence.
This study examines companies in Malaysia’s manufacturing industry in responding to the rapid changes in technological and competitive environment in Malaysia as a result of globalization.
Introduction
In the search to understand management accounting in competitive environments and advance technologies, change has increasingly become a focus for research. Many firms have experienced significant changes in their organizational design, competitive environments and technologies. Business environments exhibit a variety of structures and processes, including flat and horizontal organizational forms, multidimensional matrix structures, networks of “virtual organizations” and self- directed work teams. When business organizations respond to challenges by embarking on a change management path, they are faced with choices of which one of the management methods, techniques, and systems would be most effective (Waldron, 2005).
Every organization is located within a particular configuration of contingencies. It is dependent on the market and technological environment in which it operates its scale and diversity of operations, the technology applied to its work, and the type of personnel it employs. To achieve congruence, an appropriate design is the one which best suits it’s contextual and operational contingencies. According to Moores and Yuen (2001, p.352), “to be internally consistent, organizations must have tightly independent and mutually supportive parts in terms of strategies, structures and process”. The management of organizations faces a challenge to reinforce the management accounting system, strategies and structures together in order to achieve competitive advantage and enhance performance. Thus, research needs to be carried out to help management make appropriate decisions in order to achieve this congruence.
This study examines companies in Malaysia’s manufacturing industry in responding to the rapid changes in technological and competitive environment in Malaysia as a result of globalization.
References: Online articles on management accounting Previously conducted research papers on different issues of management accounting magazines, brochure ctc Web link http://www. en.wikipedia.org/wiki/about management accounting http://en.wikipedia.org/wiki http://en.wikipedia.org/wiki/management accounting system