Organizational Design and Management Accounting Change

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Abstract

Changing management accounting systems requires more than appropriate implementation.It is argued that structural characteristics of an organization, centralization in particular, should also be taken into account when deciding on a change.Centralization implies higher costs of communication because the decision-maker has to obtain information from organizational participants who have incentives to inffluence the decision.A limit on communication reduces inffluence costs but at the same time it also lowers the quality of the decision.As a result of that, centralized organizations (i) will implement changes in their accounting systems less often than decentralized ones (ii) will more often implement top-down, i.e. ignore local information.
Original languageEnglish
Place of PublicationTilburg
PublisherAccounting
Number of pages26
Volume2000-61
Publication statusPublished - 2000

Publication series

NameCentER Discussion Paper
Volume2000-61

Fingerprint

Centralization
Communication
Management accounting change
Organizational design
Organizational management
Costs
Decision maker
Accounting systems
Top-down
Incentives
Local information
Management accounting systems

Keywords

  • organizational design
  • management accounting change
  • centralization
  • influence costs

Cite this

Matejka, M., & De Waegenaere, A. M. B. (2000). Organizational Design and Management Accounting Change. (CentER Discussion Paper; Vol. 2000-61). Tilburg: Accounting.
Matejka, M. ; De Waegenaere, A.M.B. / Organizational Design and Management Accounting Change. Tilburg : Accounting, 2000. (CentER Discussion Paper).
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Matejka, M & De Waegenaere, AMB 2000 'Organizational Design and Management Accounting Change' CentER Discussion Paper, vol. 2000-61, Accounting, Tilburg.

Organizational Design and Management Accounting Change. / Matejka, M.; De Waegenaere, A.M.B.

Tilburg : Accounting, 2000. (CentER Discussion Paper; Vol. 2000-61).

Research output: Working paperDiscussion paperOther research output

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T1 - Organizational Design and Management Accounting Change

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N2 - Changing management accounting systems requires more than appropriate implementation.It is argued that structural characteristics of an organization, centralization in particular, should also be taken into account when deciding on a change.Centralization implies higher costs of communication because the decision-maker has to obtain information from organizational participants who have incentives to inffluence the decision.A limit on communication reduces inffluence costs but at the same time it also lowers the quality of the decision.As a result of that, centralized organizations (i) will implement changes in their accounting systems less often than decentralized ones (ii) will more often implement top-down, i.e. ignore local information.

AB - Changing management accounting systems requires more than appropriate implementation.It is argued that structural characteristics of an organization, centralization in particular, should also be taken into account when deciding on a change.Centralization implies higher costs of communication because the decision-maker has to obtain information from organizational participants who have incentives to inffluence the decision.A limit on communication reduces inffluence costs but at the same time it also lowers the quality of the decision.As a result of that, centralized organizations (i) will implement changes in their accounting systems less often than decentralized ones (ii) will more often implement top-down, i.e. ignore local information.

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KW - management accounting change

KW - centralization

KW - influence costs

M3 - Discussion paper

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Matejka M, De Waegenaere AMB. Organizational Design and Management Accounting Change. Tilburg: Accounting. 2000. (CentER Discussion Paper).