FINANCIAL REGULATION AND BUDGETARY LAW

Financial Regulation And Budgetary Law

Financial Regulation And Budgetary Law

Covaleski and Aiken propose that accounting researchers can benefit by taking an organizational approach to investigating how accounting and its roles impact the coordination and control in an organization. They present a history of the development of accounting and then provide a framework that views accounting from a sociological perspective. This framework is then used to identify research opportunities for the study of accounting as an organizational control. 

Control then went beyond control of the work process. In the private sector, this was evidenced by bureaucratic control; distinguished by its connection with social structures in the workplace. In an effort to concentrate capital and accumulate wealth, new tools were put in place; all with the effect of tying the employee to the organization and controlling all aspects of the business. The impetus for this development was the contradiction between production processes which were guided by scientific management, and distribution systems, which were still subject to market forces. Thus, the visible hand of management stepped in to organize the flows into and out of the firm. We know this as vertical integration.

Changes in accounting paralleled changes in the control structure. Where accounting once focused on production alone; it now was used to monitor and provide information throughout the firm. There was a focus on divisional budgeting and intra-organizational information transfer.

In the public sector, accounting was used for budgeting purposes. Planning and resource allocation were both facilitated through program budgets.

Early Organizational Theories

Scientific Management

Scientific management provides a strong link between organization and accounting research. Accounting information was used to support control over the work process in pursuit of efficiency and productivity. Taylor's scientific management applied not only to control over individual workers, but structuring of divisions, and proper assignment of ...