IDEAS home Printed from https://ideas.repec.org/a/eee/aosoci/v33y2008i4-5p517-550.html
   My bibliography  Save this article

Accounting for the horizontal organization: A review essay

Author

Listed:
  • Chenhall, Robert H.

Abstract

There have been many approaches that have sought to identify the principles of best practice organizational management. The Horizontal Organization (HO) has been proposed as a method that draws on ideas from marketing, production, organizational behaviour and human resource management. It identifies specific value propositions with a customer-oriented focus and then develops process efficiency and continuous improvements, flattened structures with a team-based focus, human resource policies concerned with empowerment and a supportive and committed culture to help institutionalize change. The key distinguishing feature is to move away from traditional vertical, functional structures to lateral structures, processes and information to support the HO. This essay reviews three approaches, which when taken together, distil the key elements of the HO. These are Ostroff (1999). The horizontal organization, New York, Oxford University Press; Schonberger (1996). World class manufacturing: The Next decade, New York, The Free Press; and Galbraith (2005).Designing the customer-centric organization, a guide to strategy, structure, and process, San Francisco, Jossey-Bass. Of particular interest is how these authors envisage a role for management accounting in the design and application of the HO. The essay will review the essence of HO and critically examine the extent to which there have been complementary developments in management accounting, and how effective practice and research have been in developing a horizontal dimension to management accounting. It is concluded that innovations in management accounting, such as activity-based accounting and holistic performance measurement like balanced scorecards, have not had any significant affects on those developing ideas related to HO. Reasons why this is so are canvassed and areas where accounting innovations may provide valuable input to implementing the HO are discussed. Recent developments in management practices that elaborate on HO and implications for a horizontal dimension to accounting are examined.

Suggested Citation

  • Chenhall, Robert H., 2008. "Accounting for the horizontal organization: A review essay," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 517-550.
  • Handle: RePEc:eee:aosoci:v:33:y:2008:i:4-5:p:517-550
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0361-3682(07)00052-9
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chenhall, Robert H. & Langfield-Smith, Kim, 2007. "Multiple Perspectives of Performance Measures," European Management Journal, Elsevier, vol. 25(4), pages 266-282, August.
    2. Mouritsen, Jan & Thrane, Sof, 2006. "Accounting, network complementarities and the development of inter-organisational relations," Accounting, Organizations and Society, Elsevier, vol. 31(3), pages 241-275, April.
    3. Nouri, H. & Parker, R. J., 1998. "The relationship between budget participation and job performance: The roles of budget adequacy and organizational commitment," Accounting, Organizations and Society, Elsevier, vol. 23(5-6), pages 467-483.
    4. Tomkins, Cyril, 2001. "Interdependencies, trust and information in relationships, alliances and networks," Accounting, Organizations and Society, Elsevier, vol. 26(2), pages 161-191, March.
    5. Fullerton, Rosemary R. & McWatters, Cheryl S., 2002. "The role of performance measures and incentive systems in relation to the degree of JIT implementation," Accounting, Organizations and Society, Elsevier, vol. 27(8), pages 711-735, November.
    6. Colwyn Jones, T. & Dugdale, David, 2002. "The ABC bandwagon and the juggernaut of modernity," Accounting, Organizations and Society, Elsevier, vol. 27(1-2), pages 121-163.
    7. Henri, Jean-Francois, 2006. "Management control systems and strategy: A resource-based perspective," Accounting, Organizations and Society, Elsevier, vol. 31(6), pages 529-558, August.
    8. Widener, Sally K., 2004. "An empirical investigation of the relation between the use of strategic human capital and the design of the management control system," Accounting, Organizations and Society, Elsevier, vol. 29(3-4), pages 377-399.
    9. Hopwood, Anthony G., 1996. "Looking across rather than up and down: On the need to explore the lateral processing of information," Accounting, Organizations and Society, Elsevier, vol. 21(6), pages 589-590, August.
    10. Scott, Thomas W. & Tiessen, P., 1999. "Performance measurement and managerial teams," Accounting, Organizations and Society, Elsevier, vol. 24(3), pages 263-285, April.
    11. repec:bla:joares:v:33:y:1995:i::p:1-34 is not listed on IDEAS
    12. Gietzmann, Miles B., 1996. "Incomplete contracts and the make or buy decision: Governance design and attainable flexibility," Accounting, Organizations and Society, Elsevier, vol. 21(6), pages 611-626, August.
    13. Moers, Frank, 2005. "Discretion and bias in performance evaluation: the impact of diversity and subjectivity," Accounting, Organizations and Society, Elsevier, vol. 30(1), pages 67-80, January.
    14. Merchant, Kenneth A. & Van der Stede, Wim A. & Zheng, Liu, 2003. "Disciplinary constraints on the advancement of knowledge: the case of organizational incentive systems," Accounting, Organizations and Society, Elsevier, vol. 28(2-3), pages 251-286.
    15. Henri, Jean-Francois, 2006. "Organizational culture and performance measurement systems," Accounting, Organizations and Society, Elsevier, vol. 31(1), pages 77-103, January.
    16. Armstrong, Peter, 2002. "The costs of activity-based management," Accounting, Organizations and Society, Elsevier, vol. 27(1-2), pages 99-120.
    17. Frances, Jennifer & Garnsey, Elizabeth, 1996. "Supermarkets and suppliers in the United Kingdom: System integration, information and control," Accounting, Organizations and Society, Elsevier, vol. 21(6), pages 591-610, August.
    18. Malmi, Teemu, 1999. "Activity-based costing diffusion across organizations: an exploratory empirical analysis of Finnish firms," Accounting, Organizations and Society, Elsevier, vol. 24(8), pages 649-672, November.
    19. Ditillo, Angelo, 2004. "Dealing with uncertainty in knowledge-intensive firms: the role of management control systems as knowledge integration mechanisms," Accounting, Organizations and Society, Elsevier, vol. 29(3-4), pages 401-421.
    20. Bisbe, Josep & Otley, David, 2004. "The effects of the interactive use of management control systems on product innovation," Accounting, Organizations and Society, Elsevier, vol. 29(8), pages 709-737, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:spacre:v:17:y:2014:i:1:p:88-97 is not listed on IDEAS
    2. Hall, Matthew, 2010. "Accounting information and managerial work," LSE Research Online Documents on Economics 28539, London School of Economics and Political Science, LSE Library.
    3. David Naranjo-Gil, 2016. "The Role of Management Control Systems and Top Teams in Implementing Environmental Sustainability Policies," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-12, April.
    4. Gallemore, John & Labro, Eva, 2015. "The importance of the internal information environment for tax avoidance," Journal of Accounting and Economics, Elsevier, vol. 60(1), pages 149-167.
    5. Ernesto Lopez-Valeiras & Jacobo Gomez-Conde & David Naranjo-Gil, 2015. "Sustainable Innovation, Management Accounting and Control Systems, and International Performance," Sustainability, MDPI, Open Access Journal, vol. 7(3), pages 1-14, March.
    6. repec:gam:jsusta:v:8:y:2016:i:4:p:359:d:68076 is not listed on IDEAS
    7. Chenhall, Robert H. & Moers, Frank, 2015. "The role of innovation in the evolution of management accounting and its integration into management control," Accounting, Organizations and Society, Elsevier, vol. 47(C), pages 1-13.
    8. Cadez, Simon & Guilding, Chris, 2008. "An exploratory investigation of an integrated contingency model of strategic management accounting," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 836-863.
    9. Frow, Natalie & Marginson, David & Ogden, Stuart, 2010. ""Continuous" budgeting: Reconciling budget flexibility with budgetary control," Accounting, Organizations and Society, Elsevier, vol. 35(4), pages 444-461, May.
    10. Hall, Matthew, 2010. "Accounting information and managerial work," Accounting, Organizations and Society, Elsevier, vol. 35(3), pages 301-315, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:aosoci:v:33:y:2008:i:4-5:p:517-550. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/aos .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.