Organization Context of Management Accounting in relation to case study of ERP in Ivy League University
This essay will be briefly summaries the main issues in the case study in connection to management control and accountability. There are at least two but up to four theoretical lenses are used in this essay to analyse the problems in different angle within the case study, these theoretical lenses include Contingency Theory, Social Constructionist, Institutional Theory and Agency Theory. All these theories will eventually be allocated in two paradigms which are the Functionalist and Postmodernist paradigm for further comparison and contrast. The explanation of how does each perspective of paradigms can be interpreted differently in relation to the case will be evaluated in this essay.
Summary of main issues in the case study in relation to management control and accountability
In comprehension of the case study, Enterprise Resource Planning Systems (ERP) is used in Ivy League university as a tool of control in financial activities. However the ERP was created for the interest of top management rather than the interest of lower management. The Socialmaterial perspective also known as the fusion of technology and human work in organisation (Orlikowski & Scot 2008) was a theory used in case study to illustrate the relationship of the stuff towards ERP, Socialmaterial broke apart when ERP accounting practice started to change, and people in organisation begin to resist as they are forced to use the new practice logic instead of their existing practice. This segregation of technology and human work in organisation has disrupt the staffs’ ability in managing and control, this disruption has also lead to problems in accountability as the staffs have poor understanding in the new system and causes them unable to perform their work properly. The configuration stage of ERP in this case study has clearly showed the concern of control and accountability...