Impact of Organizational Culture on Procedure and Technique of Accounting: Case Study of Cole's Supermarket, Australia

Running head: IMPACT OF ORGANIZATIONAL CULTURE ON ACCOUNTING
Impact of Organizational Culture on Procedure and Technique of Accounting: Case Study of
Cole's Supermarket, Australia
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1IMPACT OF ORGANIZATIONAL CULTURE ON ACCOUNTING
Table of Contents
Brief Summary of Theory and Progression in the Field......................................................2
Common Themes/Findings across the Four Articles...........................................................3
Different Themes/Findings across the Four Articles...........................................................4
Managerial Implication of the Four Articles.......................................................................6
Study Limitations and Future Research Direction Proposed in the Four Articles..............7
References............................................................................................................................9
Bibliography......................................................................................................................10

2IMPACT OF ORGANIZATIONAL CULTURE ON ACCOUNTING
Brief Summary of Theory and Progression in the Field
Several researches such as Fullerton, Kennedy and Widener (2014) has indicated that
organizational culture has increased inferences on the accounting processes and techniques
employed within the company. This is for the reason that accounting is deemed to a broader
concept than just being methodologies, financial statements and numbers. It is relied on the basic
standards and rules in order to preserve a company’s business purpose and is also shaped by a
number of internal and external aspects. Research conducted by O’Neill, Sohal and Teng (2016)
also added that the accounting practice generally signifies and indicates the organizational
culture within which it is carried out.
There are two models that explain the impact of organizational culture on the techniques
and processes of accounting used within the companies. Anglo-American model is a model that
drastically impacts the professional standard setting bodies, focuses on the capital markets and is
dependent on equity offered by public and debt financing. This model also highly regards the
presentation of true and fair financial statements and is also deemed to be the foundation of
accounting standards within Australia. Another theory is Hofstede’s cultural theory that includes
certain manifestations regarding the organizational culture. Fullerton, Kennedy and Widener
(2014) stated that in consideration to the accounting practices, two major aspects associated with
impacting the organizational culture includes individualism verses collectivism along with
“strong uncertainty avoidances verses weak uncertainty avoidances”. This theory considers that
culture is not only found within an organization’s accounting practices but also within everyday
operations of the company.
Common Themes/Findings across the Four Articles
Theme 1: Organizational culture
Bortolotti, Boscari and Danese (2015) defined organizational culture as vital estimations
and understandings shared by a group or reviews like in a nation or ethnic group. It can also be
indicated as shared values, principles, traditions along with manner of conducting things that
impacts the way in which organizational members takes decisions. Organizational culture is also
deemed to have a positive impact on successful implementation of accounting standards and
policies. Chen et al. (2015) elaborated that culture serves as a set of important understandings
that are shared by the community members within an organization’s common culture in contrast
to personality within an individual.
Theme 2: Accounting techniques and procedures
Fullerton, Kennedy and Widener (2014) indicated that the accounting techniques and
procedures are included within the wide area of accounting management practices used within
organizations. Accounting standards and methods are basically explained within the counting
management process followed within the companies. This also includes the procedures, policies
as well as internal control techniques that include two major methods such as cost and accruals.
O’Neill, Sohal and Teng (2016) also elaborated that cash accounting processes and techniques
are focused on reporting expenses and revenue as they are paid and received. Accrual accounting
follows reporting techniques in companies as they are incurred and earned.