A Study On The Administrative Theory Accounting Essay

Category: Accounting

Administrative theory emphasizes for an organization to carry out managerial activities more effectively. Famous writers on this were Henri Fayol, Max Weber, and Chester Barnard.

Henri Fayol's theory was directed to achieve the 'most rational' organization to fulfill various tasks assigned to a large group of labour. In other words, organizations are anticipated to clear and stiff aims, which are retained by every individual, by following the rules and regulations fulfilling the individual expectations, as per the given blueprint and structure.

Henry Fayol's 14 principles of management-

Chester Barnard (1886-1961) is an experienced manager and did extensive study in sociological theory in building a theory of the organization.

According to Barnard an organisations is a "cooperative system" of people having three important elements: (1) willingness to cooperate, (2) one purpose, and (3) communication.' Missing of any three elements would lead to an imbalanced organization.

Decision making process:

Decision making is to decrease un-ambiguity and changes in an organization. Uncertainty is reduced rather than totally removing. Decision is made with certainty and knowledge about alternatives is not too possible. Every decision has some risk and if there is no uncertainty there is no Decision making process and there are some steps to follow to implement Decision making.

Task 1

Decision Making is a Recursive Process

All the organizations always think about decision making and alternatives to solve the issue. The alternatives effect the criteria we apply to decision and vice versa. The following image explains the decision making process:

Understand Different Styles of Decision-Making

As per Myers-Briggs Type Indicator (MBTI), people are separated into thinkers and feelers:

Use Varied Logics in Innovation Projects

The present leaders in the business are going with formulated logics to solve the ambiguity even technology leaders has same logic to address the ambiguity of the fuzzy from end.Identify the Loop Poles

Ask yourself "What can go wrong in a situation? What is the possible outcome?" and decide that can live with those future problems.

Estimate the Chances

Probabilities are common for decision making and investments. The objective is to estimate the probable effects if a given event occurs.

According to Warren Buffett, top successful investor, is a chief of guessing the probabilities. He says, "Take the probability of loss times the amount of possible loss from the probability of gain times the amount of possible gain. "

Discuss with people before decision making

Figure out problems and make decisions more effectively by talking with people. However the vital thing is to communicate which is very important in business to resolve troubles and make decisions, both by yourself and with people.

Decision making tree

A decision tree is an important efficient tool of decision-making theory and practice. It will especially help in situations of difficult decision problems. A decision making tree is essentially a structure that represents, in a specially organized way, the decisions, events for uncertainty, also possible outcomes of all decisions and events.

Task 2

How to assess your strengths

Strength is a mixture of inbuilt aptitude, personal character, behavior, sharable skills and learned knowledge that when applied produces a consistently successful result. Following are the key questions to evaluate strengths. The skills are divided into three categories:

Accessing Weaknesses

Weakness prevents you from performing at best. Think to manage the activity and the steps you could take on a practical level to improve overcoming your weaknesses. The strategies that can be used to manage and avoid weaknesses are by practicing the task or activity, designing a system to deal with the weakness, concentrating on strength to overcome the weakness.

Reflective Action

Reflective action is a self sustaining process in which learning occurs through experience from one's own actions. The leaders and managers learn through this process while participating in training workshops and coaching sessions. In addition, they have an access to life-long process that allows them to learn from any situation they encounter.

Action Learning

In Action Learning, learning process is considered as 'relational Learning'. It is based on a collective process which involves a person participating in a shared process of understanding the frameworks of meaning-making.

Action learning is developed around various elements such as

Set- a small group of people

Learning Vehicle-the real time project on which the individual or the set lays focus

Set Adviser-A person who learns and helps the group in its work.

In our subject, let us consider the lecturer as the set adviser.

Action learning is built on the equation L=P+Q

Where L= Learning through questioning and gaining knowledge

P= Programmed language i.e personal or input language

Q= Questioning insight

As the Action learning process is based on experiential learning, for Q -Questioning insight to be effective, a cycle of learning is required.

Further, within the action learning cycle, different learning styles have to be adopted for the learner to reach to a new and different place of knowledge.

So,reflection should occur in all stages in the cycle for understanding an action and also for planning a new one.

Action learning is built on problem and not puzzle solving

'Puzzles' have a single solution to the question which is to be found. 'Problems' are those issues, challenges, and opportunities which have many right ways of doing things and hence more than one solution.

In the simple equation:

L = P + Q

Programmed knowledge (P) is probably sufficient to answer 'puzzles'. But it is insufficient to solve 'problems' where there are no right answers:

To deal with problems and to make precise decisions, you need questioning insight in addition to the programmed knowledge. In finding a solution to a problem, a holistic approach of learning has to be followed where complexity is taken into consideration while making decisions.

Learning as a Social Process

Action learning is a social framework for individuals which aims to solve a problem where the individuals pool their ideas and take action. Here, the learners take the responsibilty for their decisions and actions thereby managing the situation by actively interacting with the world. At the self development level, being involved in this process strengthens the individual's ongoing learning and builds their personal capacity. Whereas at the group level, collaborative enquiry allows for "shared work, knowledge and ways of knowing where new social meanings and realities are collectively constructed" .

The set adviser

The role of an adviser is important and also dangerous if entered into with preconceived outcomes. In other words, facilitator establishes and maintains an environment to learn and also to ensure the participants identify and consider their learning.

Action Learning Model

Action Research

Action research is a self-reflective enquiry conducted which is conducted by the participants in social situations.

Action Research helps the participants to improve their

The essential element of action research is experimenting with new ideas to improve and increase knowledge. Action learning follows a series of cycles to increase the knowledge.

Each cycle is carried out in four steps

Task 3

Wild cat Strikes:

Wildcat strikes has spread to power stations across Britain today with more than 2,000 workers at 17 different sites. The government has called independent mediator Acas to look into claims that British workers are allegally excluded from engineering and construction projects.

The workers were brought to that place on worse terms and conditions to get jobs in front of British workers. There are jobs in the country but there is a need for people with the skills.

So,people started to worry that their jobs could "certainly look to the Conservative Party to do more to promote employment and combat unemployment than is being done in this country at the moment".

The various judgments that have been made distorted the original intention and there is a need to bring in fresh directives to make it absolutely clear that people cannot be undercut in this way.

A true understanding of industrial strife demands consideration of related, less-spectacular manifestations as well.The object of study is not the labour dispute, the strike or the lockout but the total range of behavior and attitudes of opposition and divergent orientations between industrial owners and working people

The demand for a change in EU law to protect the interests of British workers has led to the need for a clear understanding for the call off of the strike. Rather than focusing on wildcat strikes only, it is necessary to place them in relation with the behavior that leads to and that which results from them.


Perception includes the processes associated with the recognition, transformation and organization of sensory information. It is closely related to all higher-order cognitive functions (such as reasoning, concept formation, problem-solving, memory, etc.) as well as sensory-motor behavior.

Attention is a fundamental component of perception that is often used to differentiate higher-order cognitive processes from are purely sensory processes. Some theories of memory, such as Paivio, Craik & Lockhart, distinguish various levels of processing based upon perceptual phenomena.

Theories of Perception:

Two major classes:

Five main theories:

Direct perception

Perception is a direct result of stimulus energy affecting receptor cells. No higher cognitive processes or internal representations are necessary

Template/Exemplar theory

We store examples of all the objects we have seen as exemplars or templates.

We compare a perceived object to this set of exemplars until we find a match.

Prototype theory

Instead of storing many exemplars or rigid templates, we store a prototype, which is like the average of an object.

We compare a perceived object to these prototypes until we find the closest match.

Feature theory

Perception starts with the identification of basic features that are put together into more complex objects, which are put together into more complex objects, etc. until we identify an object.

Example: Pandemonium

Neural basis for feature theory

Using single-cell recording the neurons in the primary visual cortex (occipital lobe) respond to visual features such as lines and corners.

These feature detectors are a result of how the early visual system is wired.

Structural description theory

Kind of like a three-dimensional version of feature theory, where the basic features are geometric shapes called geons rather than having lines and corners We recognize objects by matching the geons we are looking at to the stored geons in memory.

Top-down theories

Top-down theories include various degrees of influence of higher cognitive processes on what we actually perceive.

The primary example of this is the effect of context on perception, such as in the Word Superiority Effect.

Constructive and Defensive behavior:

It isessential to understand emotions in order to understand constructive thinking. Many feel that their emotions are a way in which makes them to automatically react to circumstances.

Most of the people are aware that it is possible to control their emotions, as well as the ways in which they express them. But, many feel that there is no way for them to actually stop the emotions from occurring in the first place.

For instance, when most people are treated in a manner which is unfair to them, they will react with anger. Once they become angry, they can decide whether or not they want to showcase this anger. One thing that most people don't realize is that their emotions are affected by the manner in which they see the circumstances, not the circumstances themselves.

The basic foundation for constructive thinking is the way you think and the things you think. In other words, you are what you think. Constructive thinking is as a way in which you think constructively about the world around you.

The key to constructive thinking is understanding that interpretations often will have an influence on your emotions.

Defensive Behaviour:

Defensive behavior is a method which is used by many of us to protect our self-esteem. Often, defensiveness is used to hide those parts of our personality or emotions that we can't or don't want to expose to others.

It is obserbed in people who are excessively concerned with guarding against the real or imagined threat of criticism, injury to one's ego, or exposure of one's shortcomings.

Eventually defensive behaviors is a "knee jerk reaction." You may be defensive about certain subjects, people or emotions and do not realize it. Defensiveness can become emotinal destructive when it becomes a day-to-day way of life.

You must first become aware of defense mechanisms if you want to deal and understand themm. Here are a few common signs of defensive behaviors:

Defensive behavior can be marked as sarcasm, diminishing silence, shaming or blaming, denial, anger, inflexibly sticking to one way of thinking, without listening to others, and not thinking at all

When you feel that you are getting defensive, here are a few things you can do:

Defensiveness does not serve you in positive ways. Often, defensive behavior will hurt you emotionally and physically more than it is having an impact on the other person/people.

Interpersonal skills:

Interpersonal skills can be defined as "the skills which are needed for effective communication with the opposite person or group". Eventhough there is literal variation over the exact skills which falls under this heading most authors tend to agree on a number of core areas in which competency is essential for effective interpersonal interactions.

These include the following:


Action learning helps everyone to learn the utmost and the best from one another, and shows how real problems are being solved. Further the action learning concepts applies to new conditions where they were not applied previously.