Policy, Accounting and the Problem of Order

Abstract

Since the evolution of theories of organisation in relation to environment the issue of environmental turbulence has come to dominate the literature of management. The strategists in organisations have become the repositories of this turbulence. A policy statement is defined as a statement which absorbs uncertainty, that is, states which are regarded as having a probabilistic formulation may be regarded via an interpretive policy statement as having quasi‐certainty. This protective function of policy permits parts of an organisation to operate in a regular, technically efficient fashion. In this sense all organisation boundaries are policy statements. Within the confines of ordered, stable or quasi‐stable states the disciplines of accounting and operations research may flourish. The accountants in organisations have become the repositories of this order. Accounting is a language of order, an instrument of control which is ordered, narrowly rational and reflects in the organisation that which is similar to the super‐ego. Environmental turbulence threatens chaos and chaos is the antithesis of order. The tension which is experienced in many organisations is exactly the tension between chaos and order, between the threat of being overcome and the need to maintain organisation boundaries. This tension exists in individuals and persons become established in roles which are psychologically comfortable for them (i.e. the accountant is an accountant because he is comfortable with high levels of order and stability). This paper will argue that the use of accountants and accounting as the repository of the problem of order is not accidental and that it is caused by the splitting and projection of parts of whole problems of organisation into variously attuned receptacles. Further, any attempt by accountants to break away from the role of repositories of order will be resisted by other organisational participants mainly because the anxiety associated with a contingent ‘free for all’ is unacceptable.

Citation

Berry, A.J. (1979), "Policy, Accounting and the Problem of Order", Personnel Review, Vol. 8 No. 2, pp. 36-41. https://doi.org/10.1108/eb055382