Effect of Globalisation on Management Accounting
CHAPTER 4
CHANGES FACING MANAGEMENT ACCOUNTANTS IN POSTMODERN TIMES
4.1 INTRODUCTION
In seeking answers to typical questions associated with morphogenic change (see paragraph 3.2), it becomes apparent that business, and consequently management accountants, have been faced by a confluence of forces of change during the past decade. Chapter 3 defined change, and more particularly the concept of morphogenic change. The three major drivers of change were discussed in paragraph 3.3, namely computer and communication technology, globalisation and the influence of knowledge management in business organisations.
Verma (2002:9), in her deliberations on the impact of change on the development of accounting (based on research by Gray and Hofstede (1988), Robson (1991), and Doupnik and Salter (1995)), came to the conclusion that accounting developed because of the complex interaction between it and the external environment.
Therefore management accounting, as a role player in the business environment and a subfield of accounting, has by no means been unaffected by the drivers of change. Siegel and Sorensen (1999:3) contend that management accounting should undergo perpetual change to remain relevant. They describe change in the world of management accountants as follows:
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The characterisation of management accountants in leading-edge companies has gone from 'bean counter' and 'corporate cop' on the periphery of business decision making, to 'business partner' and 'valued team member' at the very centre of strategic activity.
Smart Pros (2004:I) support Siegel and Sorensen in stating that management accountants need to shift their focus away from historical information and an inward perspective (see paragraph 2.2) which largely ignores the supply chain, because it is no longer valid. Wyatt (2002:10) speaks of an overriding phenomenon in terms of the future of management accounting, namely that business customs and practices are changing.
This chapter investigates the
CHANGES FACING MANAGEMENT ACCOUNTANTS IN POSTMODERN TIMES
4.1 INTRODUCTION
In seeking answers to typical questions associated with morphogenic change (see paragraph 3.2), it becomes apparent that business, and consequently management accountants, have been faced by a confluence of forces of change during the past decade. Chapter 3 defined change, and more particularly the concept of morphogenic change. The three major drivers of change were discussed in paragraph 3.3, namely computer and communication technology, globalisation and the influence of knowledge management in business organisations.
Verma (2002:9), in her deliberations on the impact of change on the development of accounting (based on research by Gray and Hofstede (1988), Robson (1991), and Doupnik and Salter (1995)), came to the conclusion that accounting developed because of the complex interaction between it and the external environment.
Therefore management accounting, as a role player in the business environment and a subfield of accounting, has by no means been unaffected by the drivers of change. Siegel and Sorensen (1999:3) contend that management accounting should undergo perpetual change to remain relevant. They describe change in the world of management accountants as follows:
68
The characterisation of management accountants in leading-edge companies has gone from 'bean counter' and 'corporate cop' on the periphery of business decision making, to 'business partner' and 'valued team member' at the very centre of strategic activity.
Smart Pros (2004:I) support Siegel and Sorensen in stating that management accountants need to shift their focus away from historical information and an inward perspective (see paragraph 2.2) which largely ignores the supply chain, because it is no longer valid. Wyatt (2002:10) speaks of an overriding phenomenon in terms of the future of management accounting, namely that business customs and practices are changing.
This chapter investigates the