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This paper aims to explore how changes in the coercive and enabling orientations of the organizational rule system influence the attention managers pay to rules.

The findings of a case study covering a multinational energy company, which are interpreted based on insights from the coercive/enabling bureaucracy literature and the evolution of rules literature, help explain how rules can direct attention.

The findings suggest that the tensions between corporate management’s intentions for an organization’s rule system and the attention middle (country) managers pay to those rules were the main driver of dialectic changes in the rule system. The more coercive the rule system became, the more middle managers diverted their attention away from rule compliance. The paper shows how the dialect change process constituted a dynamic interaction between mindful “rule setters” and mindful “rule followers.” The alignment between intentions and attention was reestablished by better balancing the coercive and enabling orientations of the rule system: enabling better flexibility, enhancing internal transparency based on local business logic and improving global transparency through closer alignment of local and global growth and efficiency goals. Surprisingly, the repair characteristic was not as important.

The findings contribute to the literature by showing how the enabling and coercive characteristics of an organizational rule system constitute managerial attention artifacts. The paper demonstrates how tensions between corporate intentions and local contingencies in the context of global organizations can lead to constrictive change and create a win-win situation for both central and local actors by better balancing the coercive and enabling orientations of the rule system. It also offers new insights into the dialectic change process in an organization’s rule system based on attention view toward organizational rules.

The typical accounting curriculum focuses on technical knowledge, which makes it challenging to devote time toward developing other important skills, such as examining how accounting rules may impact a company’s financial statements. Recently, the accounting rules for lease transactions changed significantly, and this chapter provides an overview of an assignment used in an intermediate accounting course to engage students in a real-world application. Students had the opportunity to apply accounting rules to a publicly traded company, measure the significance of changes to generally accepted accounting principles, read financial disclosures, reinforce concepts of present value and ratio analysis, and engage in critical thinking. This type of assignment does not have to be limited to leases, and instructors could discuss any accounting rule by following a similar model, whether the rule itself is current or proposed. This would offer students context beyond textbook learning.

Argues that organizational rules have developed over time to serve the needs of both workers and managers. Unfortunately, it is being found that rules are double‐edged; they restrict both the rule maker and the potential rule breaker. It is clear that many existing workplace rules do not serve the needs of anyone involved. Discusses several reasons why rules are difficult to change and suggests ways in which to facilitate changes in workplace rules. Concludes that, in order for rules governing existing workplace practices to change, all the relevant stakeholders must expect to gain from their revision.

The purpose of this paper is to investigate the drivers that induce companies to change their rules for managing product development. Most companies use a form of rule-based management approach, but surprisingly little is known about what makes companies change these rules. Furthermore, this management technology also has developed over time into different versions, but what drives firms from one version to another has only been suggested, not empirically studied.

The dynamics of the rules of five companies are analyzed over a period of more than ten years based on three rounds of interviews with 40 managers.

Previous research has assumed that the dynamics of product development rules are based on internal learning processes, and that increasingly competent management will stimulate the implementation of newer and more complex rule regimes. However, the analysis here indicates that there are different drivers, both internal and external, that cause companies to adopt new rules or modify their existing ones, such as changes in organizational structures, organizational conflicts and changes in ownership or strategy. In addition, contrary to the predictions in previous research, companies sometimes move back and forth between different generations of rules. Companies that have moved to a more flexible third generation of rules might revert to their second generation rules, or supplement their flexibility with an increased level of management control and information systems. A model is proposed to explain the relationship between the drivers of rule change and the actual dynamics of rules, incorporating two sets of moderators: organizational moderators and rule-related moderators.

The findings indicate that many factors influence the modification of rules, and that there is no simple linear progression from one generation to another. Organizational learning is one among several other factors that influences the dynamics of rules for managing product development. Further research is needed to explore the dynamic relationship between different factors, the proposed moderators and changes to rules. Lack of historical record keeping in companies puts special requirements on research concerning rules.

Companies need to consider how and why their present versions of rules have emerged, whether or not the existing rules can actually solve the challenges they face today, whether or not the rules support the intended company strategy, and what mechanisms influence their product development rules.

A great deal of research has investigated the relationship between the uses of structured rule-based approaches to manage product development, but little is known about what makes these rules change. This is the first study to uncover the multitude of drivers that stimulate change in product development rules and to suggest sets of moderators that influence the outcome.

The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the preferences and ideology of the FTC’s leaders, developments in the field of economics, and the tenor of the times. The over-riding current role is to provide well considered, unbiased economic advice regarding antitrust and consumer protection law enforcement cases to the legal staff and the Commission. The second role, which long ago was primary, is to provide reports on investigations of various industries to the public and public officials. This role was more recently called research or “policy R&D”. A third role is to advocate for competition and markets both domestically and internationally. As a practical matter, the provision of economic advice to the FTC and to the legal staff has required that the economists wear “two hats,” helping the legal staff investigate cases and provide evidence to support law enforcement cases while also providing advice to the legal bureaus and to the Commission on which cases to pursue (thus providing “a second set of eyes” to evaluate cases). There is sometimes a tension in those functions because building a case is not the same as evaluating a case. Economists and the Bureau of Economics have provided such services to the FTC for over 100 years proving that a sub-organization can survive while playing roles that sometimes conflict. Such a life is not, however, always easy or fun.

The purpose of this paper is to address the extant and arguably excessive focus on routines in management accounting research and a relative neglect of rules. It seeks to advance our understanding of how rules and routines may interact in the technology-enabled context of management accounting and control of contemporary organizations.

The authors draw on, and develop, insights from extant literature and from two case studies to explore how rules and routines may interact.

The paper proposes a framework on the interactions of rules and routines across multiple dimensions. The authors adopt a wide notion of rules to include formal rules, rules as internal cognitive structures of human actors and rules technologically embedded in non-human actors. The authors argue that rules underlie and may precede routines, distinguish between repeated practices and routines and explore the role of technology in today’s management accounting practices.

This research shows how the process of routinization and, ultimately, institutionalization of practices involves multiple dimensions of rules, as well as both human and non-human actors. With this understanding, researchers and practitioners will be better equipped to, respectively, understand nuances of management accounting change and actually achieve change in practice.

This paper highlights the importance of rules in the routinization and institutionalization of management accounting practices and proposes a framework which explores the interactions of rules and routines across three realms: material, action and psychological. Including a material realm, related with technologically embedded rules, in the proposed framework contributes to institutional theory by acknowledging today’s increasing role of technology in organizational life.

This study explores how a hospital works, which is important for further enhancing hospital performance. Following the introduction of a Hospital Planning Centre (HPC), changes are explored in a hospital in terms of integration (the coordination and alignment of tasks), differentiation (the extent to which tasks are segmented into subsystems), rules, coordination mechanisms and hospital performance.

A case study was conducted examining the hospital’s social network, rules, coordination mechanisms and performance both before and after the introduction of the HPC. All planning and execution tasks for surgery patients were studied using a naturalistic inquiry and mixed-method approach.

After the introduction of the HPC, the overall network structure and coordination mechanisms and coordination mechanisms remained largely the same. Integration and certain rules changed for specific planning tasks. Differentiation based on medical discipline remained. The number of local rules decreased and hospital-wide rules increased, and these remained largely in people’s minds. Coordination mechanisms remained largely unchanged, primarily involving mutual adjustment and standardization of work both before and after the introduction of the HPC. Overall, the hospital’s performance did not change substantially. The findings suggest that integration seems to “emerge” instead of being designed. Hospitals could benefit, we argue, from a more conscious system-wide approach that includes collective learning and information sharing.

This exploratory study provides in-depth insight into how a hospital works, yielding important knowledge for further research and the enhancement of hospital performance.

This study aims to evaluate whether the Big-4’s commenting efforts influence the characteristics of Financial Accounting Standards Board’s (FASB’s) Final_Standards using the content of their comment letters. Whether auditors lobby standard-setters to help their clients or to help themselves and whether they are successful are questions highly relevant to issues of auditor independence and audit effectiveness.

Based on components of Mergenthaler (2009), this study develops a rules-based continuum change score to measure how much more (less) rules-based a Final_Standard is compared to its exposure draft to evaluate the influence of the Big-4 on the FASB’s standard-setting for 63 accounting standards.

The findings show that extensive comment letters and increased uncertainty language are associated with increases in the rules-based attributes included in Final_Standards. These results suggest the Big-4 prioritize a reduction in their own litigation risk over the possible preferences of their clients for less rigid standards. Moreover, the results are consistent with their comment letters influencing the FASB’s decision to include more rules-based attributes in Final_Standards.

This study develops a potential proxy for audit risk by assessing the changes in the rules-based characteristics of proposed accounting standards and using the content of the comment letters to evaluate whether the Big-4 accounting firms may influence the FASB’s Final_Standards. Overall, this study provides a unique perspective on the influence of constituents on the FASB’s standard-setting.

Knowledge discovery in databases aims to discover useful and significant information from multiple databases. However, in the remote sensing field, the large size of discovered information makes it hard to manually look for interesting information quickly and easily. The purpose of this paper is to automate the process of identifying interesting spatiotemporal knowledge (expressed as rules).

The proposed approach is based on case‐based reasoning (CBR) process. CBR allows the recognition of useful and interesting rules by simulating a human reasoning process, and combining objective and subjective interestingness measures. It takes advantage of statistics' power from objective criteria and the reliability of subjective criteria. This helps improve the discovery of interesting rules by taking into consideration the different properties of interestingness measures.

The proposed approach combines several interestingness measures with complementary properties to improve the detection of the interesting rules. Based on a CBR process, it, also, offers three main advantages to users in a remote sensing field: automatism, integration of the users' expectations and combination of several interestingness measures while taking into account the reliability of each one. The performance of the proposed approach is evaluated and compared to other approaches using several real‐world datasets.

This study reports a valuable decision support tool for engineers, environmental authority and personnel who want to identify relevant discovered rules. The resulting rules are useful for many fields such as: disaster prevention and monitoring, growth volume and crops on farm or grassland, planting status of agricultural products, and tree distribution of forests.