Lecture 11 + 13 - Ideology & the broader picture Flashcards
(!) Describe ideology & relate it to PM
- Basis for values, understanding, boundaries & interactions
- Embedded in management technique: Capitalism & acc. models
- Embedded in social practice: Abstract & within eg. cultural or profession
- Differences in thoughts, ideas, beliefs to maintain social order
- Focus on social order
- Differ in individuals & space
- Embedded in rules & methods
- May be unknown, naturalized or automated
- Important when managing national & multinational companies
- Culture more broad. Ideology only belief related to social order
- Risk of stereotyping
- Risk conflicts
- Differ from Hofstede: Uniform across societies
- Eg. Salary based on performance vs. cooperation skills
Ideology as a basic ideas to integrate & keep social order:
- How to make hierarchies
- How to make people act or obey
- How to manage uncertainty
Relation to PM
- Large part of our basic assumptions
- Foundation for our values
- Basis to understand & perceive boundaries & interactions
- Embedded in social practice
- System of abstract thoughts w. aims & ideas formed in social group: Eg. Cultural or prof.
(?) Describe the US ideology
General:
- Social relations based on “fair contract”
- Facts > Opinions
- Fair exchange: Contribution measured & rewarded
- Faith in objectivity
- Ref. Agency theory
- Ref. Hofstede
- Ref. Result control
___________
High individualism:
- Freely engaging people
- Work yourself up
- “Every man architect of own fortune”
- Poss. for everyone to work from bottom to top
Work ethic:
- Strict moral life & predestination
Hierarchy & obedience:
- Lydighed
- By laws, acts & rules
- By reward system
- Fairness by objective management systems
Belief in management techniques & high status of management education:
- TM from business schools
- Management systems legitimize managers
- Eg. ABC
Uncertainty avoidance:
- Since laws
- BSC w. pre-determined concept & generic cause-&-effect
- Optimistic rhetoric: “Do it”
(?) Describe the France ideology
General:
- Social relations based on honor
- Ref. Self control
- Not top-down
- Ideology > BSC
- Duties & rights relate to belonging to group & pride in “rank”
- Success & power: Social or educational background > Performance
- Defensive to external control: Not focus
- Low prestige in management education
- Uncertainty managed by rituals of social group
- Fair contracts not usable
__________
Hierarchy & obedience:
- Accepted if honor
- Social order important
- Earlier: Fact of birth
- Today: Fact of education
- Limited belief in work yourself up
- Tradition of absolutist monarchy
Management techniques:
- Social structure > Make hierarchies
- Honor > Make people obey
- Social groups & institutions > Reduce uncertainty
- PM´s & rewards offensive to honor & self-control
- Don’t legitimize managers: Business education not prestige
Tableau de bord & BSC:
- TDB: Negotiation & subjective construction
- BSC: No bottom-up
- Performance vs. non performance based rewards
- Discussion vs. Implementing
Describe the danish MC tradition
General:
- Cooperation > Individual performance
- Tradition of personnel control: Self-control or social control
- High in internal commitment
- Today more self-realization & independence
- Function best w. minimum of external control
- Today more performance measures
- US approach may not fit
- Disciplining technique of social norm: Don’t want lower rank
- Don’t like visible hierarchy
- Consensus making
- Social & self monitoring
Lutheran:
- Believe in authority: Rely on gods will
- People has certain place in hierarchy
Grundtvigian:
- Importance of community
- Freedom of individual
- Dialogue & exchange of experience > Lectures
- Nationality: Everyone in same boat
- Humble: Know they are best, don’t show
- Flat hierarchy & horizontal relations
Dialogue & negotiation:
- Pragmatic DM: Satisfaction
- Consensus making
Result control:
- Learn & monitor
- Reward not linked to PM´s
Describe high-modernity & globalization
Self-reliance:
- People unique & independent
- Commit to self-realization; Not others
- Aware of oneself unconscious
- No conscious will-based control
Unstable social relations:
- No social control
Globalization of US ideology:
- Freedom to pursue own success
Describe hofstede
- Cultural dimensions
- Assume dimensions are stable
- Dim. relative to each other
- Culture difficult to study if part of it: Req. to be outsider
Describe the triple bottom line / TBL
General:
- Clarify boundaries
- Extend BSC
- Improve interactions w. stakeholders
Social Sustainability:
- Part of CSR
- Community, social surroundings & internal ress.
- Measured by investment in labor compensation & profit from it
Describe ESG
(!) Describe the traditional & new role of the management accountant
Traditional role:
- Objective
- Financial ledger & reporting
- Info for planning, DM & control
- Score keeping
- Registration
- Monitoring
__________
New role:
- Routine task automatic or recorded
- Prof. analyzer & “consultant”: Service & team player
- Strategic business partner
- Integral members of process oriented team
- HQ-info & reporting
- Non-financial measure & reporting
- System dev. & implementation
- Horizontal comm.
- Integrator of communication
New skillset:
- High level accounting skills
- Understand, design & comm. new systems
- Understand info tech
- Understand strategy, business & social context
- Analytical capabilities
- Interaction & communication skills
- Judgements & ethics
(!) Describe the changing context
Business context:
- Globalization
- Competitive advantages
- New tech: Digitization. Info tech.
- Centralization & integrated networks
- Outsourcing & IOR
- M&A: Fusion & opkøb
- Cross-cultural interaction
- Knowledge & service industries
Society:
- Change & uncertainty
- Growth
- Crisis
- Sustainability
Personality type:
- Self-realization
- Pleasure & emotions
Management trends:
- Democratization of man. processes
- Self-management
- Management fashion
- Simplistic models
- Competition among professions
- Strategy, finance and HR
New public management:
(!) Describe the evolution of finance business partnership
.
Describe the change in image of the accountant
The obsolete man:
- 1975
- Creates problems
- Accountant responsible to management
- Computer power as personified solution
- From pre-modernity to modernity: Personal to system relation
Chess game:
- 1985
- Business as competitive game in closed world
- Accountant = Intelligent rational man
- System provide detailed info for rational DM
- Modernity: Trust system & science. Individual as rational human being
The adventurous man:
- 1997
- Adventure, tech & globalization
- Challenge accountant to explore
- Tools instruct action man
- Tool for disaggregated look, cost cut & action tool
- High-modernity: Trust system
- Interaction separated & places change
- Self-realisation
Gain without pain:
- 2006
- Hedonistic enjoyment
- Negation of efforts & achievement. System do hard work
- The enjoying accountant
- Hyper-modernity: Super system
- Narcissistic & hedonistic self
- Controlled by pleasure, simulacrum & extreme events
Today:
- More strategic & managerial role
(!) Describe what digitalization does
- Engage employees more effective
- Improve training & dev.
- Encourage better feedback by managers
- Enable continuous assessment & real-time analysis
- Create data based projections of employee performance
- Minimize human error
