The Impact of Management Accounting on the Improvement of Human Resources Management. An Italian Case Study in the IT Sector
Since economy is facing a new era, slightly and increasingly shifting form the industrial period to the service one, also the scientific world is changing to face the new information and managerial requirements. Human resources (HR) and intangible factors represent ones of the most important factors, but it is quite difficult to evaluate if the company is em-ploying them in the best way to guarantee the company to generate value in the short, but also in the middle and long terms. It traditional industrial companies are more focused on the measurable productivity and effectiveness of the work of the HR, traditional tools and framework could face some difficulties in the application in this changed context. This paper after summarizing the recent traditional theoretical frameworks, their evolution and the connected changes in the management accounting and management control systems, analyzes a case study of a successful Italian Small and Mid-dle Entity (SME) operating in the Information Technology sector (IT) recently introducing formal instruments for helping the company in guaranteeing both short term economic results and long term performance and innovation by the means of effective and useful R&D investments. The paper finds that even ‘old traditional tools’ of management accounting and managerial accounting can be extremely useful, if adapted, to optimize and rationalize the use of human resources. They can in fact provide useful information for the distribution of the working load, for the process analysis and to define the productivity of the worked hour. Management accounting can supply information useful to address the activity of the Sales area, helping it in its pricing activity, but also in identifying which human resources are underemployed and, as a consequence, available for working in new tasks. It also supplies some useful insights to better manage and quantify resources and costs connected to R&D projects.
The Impact of Management Accounting on the Improvement of Human Resources Management. An Italian Case Study in the IT Sector, Journal of Human Resource Management. Special Issue: Challenges and Opportunities in the Performance Measurement and Control Systems of Human Resources Management for the Services Industry.
Vol. 3, No. 2-1,
2015, pp. 33-38.
Hope J. and Hope T., Competing in the Third Wave. The Ten Key Management Issues of the Information Age (Boston, MA: Harvard Business School Press), 1997.
Toffler A., Powershift: Knowledge, Wealth, and Violence at the Edge of the 21st Century, New York, Bantam Books, 1990.
Hartmann F. and Vaassen E., The Changing role of Management Accounting and Control Systems. Accounting for Knowledge Across Control Domains, in “Management Accounting in the Digital Economy”, Edited by Bhimani A., Oxford University Press, 2008.
Drucker P.F., ‘The Coming of the New Organization’ Harvard Business Review (January-February), 1993, pp. 45-53.
Nonaka I. and Takeuchi H., The Knowledge-Creation Company. How Japanese Companies Create the Dynamic of Innovation (New York: Oxford University Press), 1995.
Quinn J.B., Intelligent Enterprise: A Knowledge and Service Based Paradigm for Industry, New York: The Free Press, 1992.
Clegg S.R., Modern Organizations – Organizations Studies in the Postmodern World, London: Sage Publications, 1990.
Peters T.J., Thriving on Chaos, New York, New York, Knopf, 1987.
Volberda H.W., ‘Toward the Flexible Form: How to Remain Vital in Hypercompetitive Environments’, Organization Science, 7/4,1996, pp. 359-74.
Andon P, Baxter J. and Chua W.F., ‘Management Accounting Inscriptions and the Post-Industrial Experience of Organizational Control’, in “Management Accounting in the Digital Economy”, Edited by Bhimani A., Oxford University Press, 2008.
Anthony R.N., Planning and Control Systems. A Framework for Analysis, Boston: Harvard Graduate School of Business, 1981.
Fombrun C., Tichy N.M. and Devanna M.A (Eds), Strategic Human Resource Management, New York, Wiley, 1984.
Beer M., Spector B., Lawrence P., Millis D.Q. and Walton R.E., Managing Human Assets, New York, Free Press, 1984.
Kamoche K., Toward a model of HRM in Africa, in Shaw, J.B., Kirkbride, P.S., Rowland, K.M. and Ferris, G.R. (Eds), Research in Personnel and Human Resource Management. Greenwich, Con.: JAI Press, 1993, pp. 259-278.
Penrose E.T., The Theory of the Growth of the Firm, Oxford, Blackwell, 1959.
Rumelt R.P., Towards a theory of the firm, in Lamb, R.B. (Ed.), Competitive Strategic Management, Englewood Cliffs, New Jork, Prentice-Hall, 1984, pp. 556-570.
Wernerfelt B. (1984), A resource-based view of the firm, in Strategic Management Journal, 5, 171-180.
Grant R.M., The resource-based theory of competitive advantage: implications for strategy formulation, California Management Review, 33, (3), 1991, pp. 114-135.
Barnay J.B., Firm resources and sustained competitive advantage, in Journal of Management, 17, 1991, pp. 99-120.
Amit R. and Schoemaker P.J.H., Strategic assets and organizational rent, in Strategic Management Journal, 14, 1993, pp. 33-46.
Ouchi W.G., A Conceptual Framework for the Design of Organizational Control Mechanism, Management Science (September), 1979, pp. 833-848.
Merchant K.A., The Control Function of Management, Sloan Management Review, Summer, 1982, pp. 43-55.
Merchant K.A., Modern Management Control Systems, Upper Saddle River, Prentice Hall, 1998.
Simons R., Levers of Control. How Managers Use Innovative Control systems to Drive Strategic Renewal, Boston, Harvard Business School Press, 1995.
Simons R., Performance Measurement and Control Systems for Implementing Strategy, Upper Saddle River, Prentice Hall, 2000.
IIRC, The International Framework, 2013.
Kamoche K., Strategic Human Resource Management within a Resource-Capability view of the Firm, in Journal of Management Studies, 33 (2), 1996, pp. 213-233.
Chapman C., Reflections on a contingent view of accounting, in Accounting, Organizations and society, 22, 1997, pp. 189-205.
Chenal R.H., Management control systems design within its organizational context: Findings from contingency-based research and directors for the future, in Accounting, Organizations and Society, 28, 2003, pp. 127-168.
Baiman S., Agency research in management accounting: a survey, in Journal of Accounting Literature (Spring), 1982, pp. 154-213.
Davila T., An exploratory study on emergence of management control systems: formalizing human resources in small growing firms, in Accounting Organizations and Society, 30, 2005, pp. 223-248.
Langfield-Smith K. (1997), Management control systems and strategy: A critical review, in Accounting, Organizations and society, 22, 207-232.
Luft J. and Shields M.D., Mapping management accounting: Graphics and guidelines for theory-consistent empirical research, in Accounting, Organizations and Society, 28, 2003, pp. 2/3.
Yin R.K., Case Study Research. Design and Methods. Third Ed. Sage Publications, 2003.
D’Ippolito T., La contabilità analitica d’esercizio svolta secondo il tipo combinato preventivo standard e consuntivo, Palermo, 1961.
Paganelli O., La contabilità analitica d’esercizio. Seconda Edizione, Pàtron Editore, Bologna, 1973.
Coda V. (1968), I costi di produzione, Giuffrè, Milano.
Sòstero U. (1991), Analisi dei costi: le logiche di attribuzione, Cedam, Padova.
Collins D.J., A resource-based analysis of global competition: a case of the bearings industry, in Strategic Management Journal, 12, 1991, 48-68.