Management accounting and strategic human resource management: A UK/Canadian comparative analysis

Abstract

There is growing evidence that Strategic Management Accounting (SMA) activities are being pursued in an interdisciplinary manner. One such discipline where management accounting could contribute is in Strategic Human Resource Management (SHRM). The integration of business strategy and Human Resource Management minimises the risk of neglecting human resources as a vital source of organisational competitive advantage. It also provides a broader range of solutions for solving complex organisational problems and ensures that human resources are given consideration when setting company goals. This empirical study examines the current role of management accounting in relation to the SHRM process using data from surveys of Finance Directors and Human Resource Directors from both Canada and the UK. The results reveal that Canadian Finance professionals are more involved in providing information for developing, evaluating and controlling Human Resource (HR) strategy than UK Finance professionals. Both HR and Finance respondents considered that there was a need for a closer partnership between HR and Finance professionals.

Citation

Vedd, R. and Kouhy, R. (2001), "Management accounting and strategic human resource management: A UK/Canadian comparative analysis", Journal of Applied Accounting Research, Vol. 6 No. 2, pp. 90-120. https://doi.org/10.1108/96754260180001029