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By Catherine Gowthorpe

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Contract-out to Contractor A, or Contractor B, or retain the service in-house). Scott (2004) also identifies a change in ‘power processes’. The hierarchical organisational structures described by Weber and prescribed by Fayol are becoming obsolete in many commercial organisations because of the blurring of organisational boundaries described above. He says: ‘As the operational boundaries of firms and agencies extend outwards to include temporary workers and contractors, managers are obliged to learn to manage horizontally (without authority) as well as vertically’ (p.

Effective reporting may need to involve non-financial information in order to capture the human element of activities. This would be especially important in those organisations (the majority in many countries) that rely for their success on intellectual capital and the successful interaction of people. Summary: two ways of thinking about the organisation By the middle of the twentieth century, then, two distinct ways emerged of thinking about the organisation. qxd 4/28/08 7:06 AM Page 24 24 CHAPTER 2 MANAGEMENT ACCOUNTING AND ORGANISATIONS at the same time, it is an adaptive social structure’ (Selznick’s emphasis) (pp.

Needless to say, the process in real life is somewhat messier and less precise. Managers spend much time and effort in an attempt to anticipate future events and trends, but of course information on such matters is highly speculative. Even understanding current events and trends can present significant challenges. Managers work in rapidly changing environments beset by difficulties and uncertainties. g. shortage of raw materials, war, civil unrest, new competitors, new product inventions and so on).

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