Keith Hoskin

Accounting and the examination: A genealogy of disciplinary power☆

Historical elaboration of Foucault’s concept of ‘power-knowledge” can explain both the late-medieval developments in accounting technology and why the near-universal adoption of a discourse of accountancy is delayed until the nineteenth century. It is the disciplinary techniques of elite medieval educational institutions - the new universities and their examinations -that generate new power-knowledge relations. These techniques embody forms of textual rewriting (including the new ‘alphanumeric” system) from which the accounting advances are produced and “control” is formalised. “Double-entry” is an aspect of these rewritings, linked also to the new writing and rewritings of money, especially the bill of exchange. By the eighteenth century accounting technologies are feeding back in a general way into educational practice (e.g. in the deployment of “book-keeping” on pupils) and this culminates in the introduction of the written examination and the mathematical mark. A new regime of “objective” evaluation of total populations, made up of individually “calculable” subjects, is thereby engendered and then extended - apparently tirst in the U.S. railroads - into modern comprehensive management and financial accounting systems (systems of “accountability” embodying Foucault’s “reciprocal hierarchical observation” and “normalising judgement”), while written examinations become used to legitimate the newly autonomous pro. fession of accountancy.

The genesis of accountability: The west point connections

Abstract We focus on the genesis of the new managerialism in U.S. business and factories in the nineteenth century and re-examine the published histories of the U.S. armories and the railroads. We trace the influence in both arenas of the engineering/military graduates from the U.S. Military Academy at West Point, who represent and reproduce the meticulous “grammatocentric” and “panoptic” system for human accountability introduced there in the years after 1817. Our overall concern is to re-analyse apparently economic-rational changes in accounting and accountability in a wider frame which explains their development as aspects of a general shift in power-knowledge relations—a shift which Foucault characterised as the development of disciplinary power and which we argue originated in elite educational institutions. We propose further examination (or re-examination) of the original accounting and administrative records relating to the armories and the railroads in order to establish the precise process of historical change.

Managing It All By numbers: A Review of Johnson & Kaplan's ‘Relevance Lost’

This review article sets out the Johnson and Kaplan diagnosis of the ‘problem’ with modern US cost accounting and management control systems (‘MAS’) and challenges both their historical analysis and their proposed remedy. It traces the genesis of the knowledge-based disciplinary power of managerialism from the 1830s in the US and contrasts the development of the US/UK focus of MAS on ‘managing by the numbers’, with the different way that knowledge-power has been used by, and has interacted with, managerialism in Japan. It argues that the problems to be confronted with MAS are inherent in the historical genesis of such systems and that it is the behavioural limitations in the way organisations deploy MAS that most need attention. In addition the interrelationships of control between the accounting measurements that create visibility within and without the organisation require that greater attention be addressed to the technical limitations of financial accounting. In conclusion it is suggested that the differing alignments of knowledge-based expertise and disciplinary practices of management control that have developed in the US/UK and in Japan reflect deeper differences in their cultural history.

Reappraising the Genesis of Managerialism

In a 1977 publication Alfred Chandler singled out the Springfield Armory as the site where single‐unit management was pioneered in the United States, crediting Superintendent Roswell Lee (1815‐1833) with establishing a first “managerial” approach to work discipline and labour accounting. However, as economic breakthrough came only in 1841/2, it has since been argued that Lee′s role has been overestimated. Re‐examines archival evidence to show that: the changes of 1842 at Springfield were not due to external economic pressures, but to pressure exerted by West Point graduates in the Ordnance Department; Lee, as the dominant arms manufacturer in the 1820s, was not “held back” by economic factors from implementing any changes he desired; and his system of work organization was never even potentially managerial, with his accounting system in particular having been fundamentally misinterpreted. The evidence reinforces the case for viewing the invention of modern business and managerialism as primarily a discipl...

KNOWING MORE AS KNOWING LESS? ALTERNATIVE HISTORIES OF COST AND MANAGEMENT ACCOUNTING IN THE U.S. AND THE U.K.

In attempting to understand the genesis and scope of modern cost and management accounting systems, accounting historians adopting what has been labeled a “Foucauldian” approach have been rewriting...

Management Accounting Practices and Discourses Change: The Role and Use of Management Accounting Systems

This paper aims to trace the development of management accounting systems (MAS) in a Portuguese bank, where an activity based costing system (ABC) has been trialled for implementation over the past few years, as a means to improving the economy, efficiency and effectiveness of employee activity. This initiative can be located in a wider cultural change in Portuguese banking towards global (i.e. US derived) strategies and processes, but within an organizational world where older traditions remain powerful. The research undertaken here is a longitudinal case study of organisational change in one institution based on a criticalinterpretive model. Although drawing on the interpretive tradition since it is concerned with actors’ perceptions, interpretations and beliefs, it also draws on a more historically focused Foucault-inspired critical framework of the kind developed in the work of Hoskin and Macve (e.g. 1986, 1988, 1994, 2000), and in the research into the financial sector undertaken by Morgan and Sturdy (2000). The particular model developed here is designed to enable the exploration of the effect of accounting practices on change across time from three perspectives – changing structures, changing discourses and the effect of both of these processes on power relations. The research highlights the increase in visibility and perceived importance of accounting in the banking sector, and how accounting is significant beyond its technical roles. The study provides new insights into how management accounting practices, along with other organisational systems, play an important role questioning, visualising, analysing, and measuring implemented strategies. As the language and practice of management have shifted towards strategy and marketing discourses, patterns of work, organisation and career are being restructured, in often under-appreciated ways, by accounting practices.

Financial control in the financial services industry: The case of Lloyd’s of London

During the last decade there have been many changes in the regulation of UK financial institutions designed both to increase competition and, through ‘self-regulation’, to improve accountability to clients and providers of capital. Much of the regulatory framework imposed by the state is embodied in the Financial Services Act 1986 (FSA) and in the related legislation for individual financial sectors, and the associated reporting and audit requirements emphasize the central importance of adequate financial reporting and financial controls.

Customers? The reconstruction of the ‘taxpayer’ in Inland Revenue discourse and practice

References to ‘customers’ have become commonplace in the policy discourses within UK government and other public sector bodies. It is a working assumption of UK public sector management that the concept of the ‘customer’ can be applied to any public sector service agency or department; and this paper analyses how the UK governments revenue department, formerly titled the Inland Revenue (IR), re-characterised firstly taxpayers and latterly tax claimants as ‘customers’, rather than ‘users’, of IR services. This paper identifies some problems, dilemmas and ambiguities associated with this reconceptualisation in the context of an organisation that is predominantly a regulating department. Far from being merely a reclassification of the taxpayer as customer, the emerging discourse and associated practices of the IR were in part embedded in organisational change, including the merger with HM Customs and Excise to form the present-day HMRC. Thus this case analysis illustrates the limits of consumerism as a strategic tool of a government revenue department and raises wider questions for public management.

Control, organization, and accounting: A genealogy of modern knowledge-power

Much social scientizing tends to be ahistorical, particularly with regard to its fundamental terms and constructs, which are implicitly defined atemporally as simply “being there,” the givens of discourse. The history of two such terms, “control” and “organization,” is investigated here. In an elaboration of Foucaults idea of power-knowledge relations, a two-stage history of the terms is set out linked to the historical emergence of accounting. In the first stage, the initial invention of the terms in the thirteenth century is aligned with the contemporaneous invention of the doubleentry system, with all these innovations embodying a new power of writing. However the constructs only develop their modern significance as forms of knowledge-power at a much later stage, following the establishment of a “disciplinary” power-knowledge nexus post-1800. Under this interpretation, accounting, control, and organization, far from being ahistorical givens of discourse, are constructs which help establish the modern world of “disciplinary,” that site where the power of expert knowledge must operate.

M[othering] View on “Notes towards Feminist Theories of Accounting: A View from Literary Studies”

Feminism offers new ways of seeing accounting both as practice and theory. However, just as accounting has increasingly recognized that its theoretical base and its everyday practice are problematic, so has feminism discovered new levels of questionability about feminist projects. Both fields are simultaneously discovering how power‐knowledge relations are deeply embedded within them.