Accounting and The Construction of The Governable Person

Accounting Organizations andSociety, Vol. 12,No. 3, pp. 235-265, 1987. 0361-3682187$3.00+.
00
Printed in Great Britain Pergamon Journals Ltd.
ACCOUNTING AND THE CONSTRUCTION OF THE GOVERNABLE PERSON*
PETER MILLER
Division of Economic Studies, University of Sheffield
and
TED O’LEARY
Department ofAccounting, University College, Cork
Abstract
The concern of the paper is historical. It addresses one familiar event within the literature of the history of
accounting-the construction of theories of standard costing and budgeting in the first three decades of
the twentieth century. A different interpretation of this event is offered from that commonly found. This is
seen to have significant implications for the relevance of historical investigation to the understanding of
contemporary accounting practices. Instead of an interpretation of standard costing and budgeting as one
stage in the advance in accuracy and refinement of accounting concepts and techniques, it is viewed as an
important calculative practice which is part of a much wider modern apparatus of power which emerges
conspicuously in the early years of this century. The concern of this form of power is seen to be the con-
struction of the individual person as a more manageable and efficient entity. This argument is explored
through an examination of the connections of standard costing and budgeting with scientitic management
and industrial psychology. These knowledges are then related to others which, more or less simultaneously,
were emerging beyond the contines of the firm to address questions of the efficiency and manageability of
the Individual. The more general aim of the paper is to suggest some elements of a theoretical understand-
ing of accounting which would locate it in its interrelation with other projects for the social and organisa-
tional management of individual lives.
Accounting has remained remarkably insulated essentially having functional roles in society,
from important theoretical and historical albeit ones which can change (American
debates which have traversed the social sci- Accounting Association, 1970). Little or no sus-
ences. Accounting history, for example, is a con- picion seems to surface that different
text in which one can begin to substantiate this methodological starting points could be enter-
lack of a problematisation of the roles of tained, which could lead to rather different
accounting. A standard concept which guides understandings of accounting’s history.
accounting history is one that sees accounting as There are ripples, however. Recently there
l Earlier drafts of this paper were presented at the Symposium of the Roles of Accounting in Organizations and Society, Uni-
versity of Wisconsin-Madison, U.S.A., July 1984, and at the Accounting Workshop of the European Institute for Advanced
Studies in Management, Brussels, Belgium, December 1984. We are obliged to the participants at both gatherings for very
helpful comments.
We express our thanks especially to Anthony Hopwood for ideas and encouragement, and for suggesting this collaboration.
Ted O’Leary Is grateful for the financial support of the Management Fund and the Development Fund, University College,
Cork We are both grateful to the Symposium Organizers, University of Wisconsin-Madison, for their financial contributions
towards travel costs.
235
236 PETER MILLERand TED O'LEARY
have b e e n a t t e m p t s to i n d i c a t e t h e d i r e c t i o n s a c c o u n t i n g history, it w o u l d seem, is that

w h i c h a fully social i n t e r p r e t a t i o n o f a c c o u n t i n g ( p u r e l y a e s t h e t i c c o n s i d e r a t i o n a p a r t ) it s h o u l d
m i g h t f o l l o w ( B u r c h e l l et aL, 1979, 1980). s e e k to elucidate:
T h e s e s e e m to us to b e v e r y useful first steps.
O u r c o n c e r n in this p a p e r c a n b e d e s i g n a t e d the evolution in accounting thought, practices and
institutions in response to changes in the environment
historical. W e are c o n c e r n e d w i t h t h e and societal needs. It also (should consider).., the effect
e m e r g e n c e o f s t a n d a r d c o s t i n g a n d b u d g e t i n g in that this evolution has worked on the environment
t h e early d e c a d e s o f this c e n t u r y a n d t h e w a y this (American Accounting Association, 1970, p. 53).
can b e r e l a t e d to o t h e r social practices. To iden-
tify o u r c o n c e r n as h i s t o r i c a l is, h o w e v e r , to b e g T h e utility o f a c c o u n t i n g history, its p o t e n t i a l in
t h e q u e s t i o n as to t h e m e a n i n g and significance r e l a t i o n to c u r r e n t t h e o r e t i c a l and p r a c t i c a l con-
o f h i s t o r i c a l analysis. Care is n e e d e d in formulat- cerns, is that t h r o u g h e l u c i d a t i n g t h e r e s o l u t i o n
ing an a p p e a l to an h i s t o r i c a l v i e w p o i n t f r o m o f p a s t i n c o n g r u i t i e s o f a c c o u n t i n g w i t h its envi-
w h i c h to u n d e r s t a n d c h a n g e s in a c c o u n t i n g r o n m e n t , it c o u l d facilitate t h e m o r e effective
t h o u g h t a n d p r a c t i c e . T h e r e are a n u m b e r of r e s o l u t i o n o f s u c h issues in t h e present. T h e
q u i t e different w a y s in w h i c h to u n d e r s t a n d t h e i m a g e to b e g a i n e d is that a c c o u n t i n g can
c o n t r i b u t i o n o f an h i s t o r i c a l p e r s p e c t i v e . O n e e n m e s h w i t h its c o n t e x t in w a y s that are inevita-
r e q u e s t v o i c e d f r o m t i m e to t i m e is for m o r e his- ble, given s o m e o v e r w h e l m i n g e n v i r o n m e n t a l
t o r i e s ( s e e e.g. Parker, 1981, p. 290; Solomons, shift, a n d that m a y e v e n b e socially desirable. W e
1968, p . 17). T h e s e w o u l d , it is suggested, d o n o t find s u c h an i n t e r p r e t a t i o n o f a c c o u n t -
u n c o v e r t h e h o w and t h e w h a t o f a c c o u n t i n g . ing's h i s t o r y to b e persuasive. In particular, t h e
What, for instance, was actually a c c o u n t e d for in f u n c t i o n a l t o n e o f t h e v e r y l a n g u a g e in w h i c h
a p a r t i c u l a r firm in t h e early n i n e t e e n t h century? a c c o u n t i n g h i s t o r y is d e f i n e d significantly oblit-
It is t e m p t i n g to rally a r o u n d this call. It has an e r a t e s t h e p o s s i b i l i t y o f a c c o u n t i n g ' s location,
i n n o c e n t a p p e a l a n d w o u l d a p p e a r to have u n d e - a l o n g w i t h a range o f o t h e r social p r a c t i c e s , in
n i a b l e force. r e l a t i o n to m o d e s o f o p e r a t i o n o f p o w e r .
In o n e s e n s e w e have n o o b j e c t i o n to t h e call O n e w a y o f c o u n t e r i n g s u c h an a p p r o a c h is to
for m o r e facts. H o w e v e r , t h e s i m p l i c i t y o f t h e invert the perspective. Accounting would then
r e q u e s t can b e misleading. W e w o u l d like to no l o n g e r b e v i e w e d as b e c o m i n g , o r as having
p r o p o s e a different a g e n d a for t h e i n t e r p r e t a t i o n c a p a c i t y to b e c o m e , an i n c r e a s i n g l y r e f i n e d
o f a c c o u n t i n g ' s past, o n e w h i c h casts a different t e c h n i c a l apparatus. It w o u l d also n o l o n g e r b e
light o n t h e u n d e r s t a n d i n g o f a c c o u n t i n g prac- v i e w e d as n e u t r a l b u t r a t h e r seen, o n c e t h e veils
tices. This is o n e w h i c h w e feel has c o n s i d e r a b l e o f c u r r e n t m i s p e r c e p t i o n have b e e n d r a w n back,
r e l e v a n c e for u n d e r s t a n d i n g a c c o u n t i n g today, to c l e a r l y reflect and to s e r v e c e r t a i n e c o n o m i c
and w h i c h e n a b l e s us to d e v e l o p a t h e o r e t i c a l o r p o l i t i c a l interests. Such an a p p r o a c h has
u n d e r s t a n d i n g o f a c c o u n t i n g as a social a n d achieved considerable currency when applied
organisational practice. to d i s c i p l i n e s o t h e r than a c c o u n t i n g (see, e.g.
O n e c o n c e p t i o n o f a c c o u n t i n g history, w h i c h Baritz, 1960; Scull, 1979; StedmanoJones, 1971 ).
a p p e a r s to have a significant level o f a c c e p t a n c e W e are n o t p e r s u a d e d b y this line o f a r g u m e n t
at t h e p r e s e n t time, is o n e w h i c h sees a c c o u n t i n g either. C e n t r a l to it is a n o t i o n that t h e r e is a
as changing, o r c a p a b l e o f b e i n g c h a n g e d , in m o r e o r less d i r e c t a n d u n p r o b l e m a t i c r e l a t i o n
r e s p o n s e to d e m a n d s e x p r e s s e d o r i m p l i e d b y a b e t w e e n e c o n o m i c a n d / o r p o l i t i c a l interests,
c h a n g i n g e n v i r o n m e n t . It is a n o t i o n o f a c c o u n t - " a n d t h e k n o w l e d g e s and t e c h n i q u e s w h i c h are
ing h i s t o r y in w h i c h r e f e r e n c e s to t h e m e t a p h o r h e l d to r e p r e s e n t s u c h interests. T h e t e r m s and
o f e v o l u t i o n are n o t i n f r e q u e n t ( A m e r i c a n c a t e g o r i e s t h r o u g h w h i c h s u c h i n t e r e s t s are rep-
A c c o u n t i n g Association, 1970; Chatfield, 1977; r e s e n t e d are s e e n to have n o effects. W h e t h e r it
Littleton & Z i m m e r m a n , 1962; Lee & Parker, is a thesis c e n t e r e d o n a n o t i o n o f k n o w l e d g e as
1979; Kaplan, 1984). W h a t is h e r e r e q u i r e d of a " s e r v a n t o f p o w e r " (Baritz, 1 9 6 0 ) o r k n o w -
ACCOUNTINGAND THE CONSTRUCTION OF THE GOVERNABLEPERSON 237
l e d g e v i e w e d as r e p r e s e n t i n g class interests, t h e series o f h i s t o r i e s o f t h e e m e r g e n c e o f t h e

difficulties remain. T h e n o t i o n o f c o n t r o l in s u c h h u m a n sciences. His s t u d i e s have c o v e r e d
a v i e w c o m e s to s u b s t i t u t e for n o t i o n s o f p r o g - m e d i c i n e ( F o u c a u l t , 1973), t h e e m e r g e n c e o f
ress o r e v o l u t i o n in s t a n d a r d histories. W h e r e a s p s y c h i a t r y ( F o u c a u l t , 1967), a n d t h e p r i s o n
t h e l a t t e r s e e a c c o u n t i n g as p r o g r e s s i n g in t e r m s ( F o u c a u l t , 1 9 7 7 ) to n a m e just s o m e o f t h e m o r e
o f an u n p r o b l e m a t i c social utility, t h e f o r m e r s e e i m p o r t a n t . T h e h i s t o r i c a l focus for t h e s e has gen-
h i s t o r y as t h e e l a b o r a t i o n o f b e t t e r and m o r e erally b e e n o n t h e p e r i o d a r o u n d 1800 w h i c h h e
subtle forms of control. sees as a c r u c i a l p o i n t in t h e f o r m a t i o n o f t h e
It s e e m s to us that t h e r e is a v e r y real n e e d to m o d e r n era. O t h e r w r i t e r s in a similar v e i n h a v e
d e v e l o p an u n d e r s t a n d i n g o f a c c o u n t i n g a n d its e x p l o r e d t h e p e r i o d c l o s e r to t h e p r e s e n t d a y
p a s t w h i c h is d i s t i n c t f r o m t h e s e t w o ( D o n z e l o t , 1979; Castel e t al., 1982). A l o n g s i d e
a p p r o a c h e s . This is t h e t h r u s t o f o u r a t t e m p t in the historical studies a number of methodologi-
this p a p e r , u n d e r t a k e n t h r o u g h a d i s c u s s i o n o f cal issues c o n c e r n i n g t h e u n d e r s t a n d i n g o f his-
the emergence of standard costing and budget- torical processes have been addressed
ing w i t h i n t h e a c c o u n t i n g literature, a n d t h e ( F o u c a u l t , 1972, 1981). In t h e m o r e r e c e n t
relation between these and a number of other studies an e x p l i c i t c o n c e r n w i t h t h e issue o f
r e l a t e d social a n d o r g a n i s a t i o n a l p r a c t i c e s . O u r p o w e r has e m e r g e d .
c o n c e r n is w i t h a p a r t i c u l a r e p i s o d e in t h e his- T h e r e a r e t h r e e issues w e w o u l d like to single
t o r y o f a c c o u n t i n g w h i c h w e see as crucial, a n d o u t for o u r p u r p o s e s h e r e f r o m this vast a n d still
its r e l e v a n c e a n d i m p l i c a t i o n s for u n d e r s t a n d i n g g r o w i n g b o d y o f material. T h e s e c o n c e r n w h a t
contemporary accounting. can b e c a l l e d a " g e n e a l o g i c a l " q u e s t i o n c o n c e r n -
If o u r c o n c e r n in this p a p e r c a n b e c a l l e d his- ing t h e r o l e o f h i s t o r i c a l investigation; an "ar-
torical, it entails an u n d e r s t a n d i n g o f h i s t o r i c a l chaeological" question concerning the way one
p r o c e s s e s w h i c h is unfamiliar in t h e a c c o u n t i n g g o e s a b o u t d o i n g history; a n d a thesis c o n c e r n -
literature. It m a y b e useful to refer to o n e o r t w o ing t h e i n t e r d e p e n d e n c e o f b o d i e s o f k n o w l e d g e
l a n d m a r k s in r e l a t i o n to w h i c h t h e c o n c e r n s o f and relations of power.
this p a p e r m a y b e identified. T h e n o t i o n o f g e n e a l o g y is d e c e p t i v e l y simple.
The interpretation of historical processes we It c o n c e r n s c e n t r a l l y a q u e s t i o n i n g o f o u r con-
h a v e u t i l i z e d takes m u c h o f its i n s p i r a t i o n f r o m temporarily received notions by a demonstra-.
t h e w o r k o f M i c h e l F o u c a u l t and his associates tion of their historical emergence. The point of
( C a s t e l e t al., 1982; D o n z e l o t , 1979; Foucault, h i s t o r y in this s e n s e is to m a k e i n t e l l i g i b l e t h e
1973, 1977, 1981). In n o s e n s e w o u l d w e w i s h w a y in w h i c h w e t h i n k t o d a y b y r e m i n d i n g us o f
to suggest that s u c h s t u d i e s offer a p a n a c e a for its c o n d i t i o n s o f formation. W h e t h e r t h e t e r m s
t h i n k i n g a b o u t a c c o u n t i n g . In any case t h e y d o be efficiency, r a t i o n a l i t y o r motivation,
n o t d i r e c t l y a d d r e s s a c c o u n t i n g o r for that mat- g e n e a l o g i c a l analysis h e l p s us to a p p r e c i a t e t h e i r
t e r e c o n o m i c p r o c e s s e s . But d e s p i t e t h e differ- e p h e m e r a l c h a r a c t e r . But g e n e a l o g y is n o t just a
e n c e in t h e field o f s t u d y w e feel that t h e r e is m a t t e r o f de-bunking, a valuable e n o u g h enter-
s o m e t h i n g d i s t i n c t i v e in s u c h an a p p r o a c h p r i s e in its o w n right. It c o n c e r n s also a p a r t i c u -
w h i c h is useful in an a t t e m p t to u n d e r s t a n d lar a p p r o a c h to t h e t r a c i n g o f t h e e m e r g e n c e o f
a c c o u n t i n g as a social a n d o r g a n i s a t i o n a l prac- our frequently unquestioned contemporary
tice. C l e a r l y w e c a n d o no m o r e h e r e than p o i n t rationales. This is o n e w h i c h d o e s n o t entail
to w h a t w e s e e to b e s o m e i m p o r t a n t t h e m e s . A l o o k i n g for a single p o i n t in h i s t o r y w h i c h w o u l d
n u m b e r o f r e c e n t s t u d i e s a d d r e s s t h e s e issues in be the point of origin of our current practices.
m u c h g r e a t e r d e p t h (Sheridan, 1980; C o u s i n s & T h e e m e r g e n c e o f o u r c o n t e m p o r a r y beliefs is
Hussain, 1984; B u r c h e l l e t al., f o r t h c o m i n g ; Mil- v i e w e d r a t h e r b y r e f e r e n c e to a c o m p l e x o f dis-
ler, f o r t h c o m i n g ) . p e r s e d events. G e n e a l o g y d o e s n o t l e a d us to
Over a period of some twenty years Michel solid foundations; rather, it f r a g m e n t s a n d dis-
F o u c a u l t has w o r k e d o n w h a t c a n b e c a l l e d a t u r b s w h a t w e m i g h t like to s e e as t h e basis o f o u r
238 PETERMILLERand TED O'LEARY
c u r r e n t ideas a n d practices. Applied to a c c o u n t - that o n e s h o u l d look in trying to u n d e r s t a n d

ing it m e a n s q u e s t i o n i n g a search for the origins redefinitions of the p r a c t i c e of a c c o u n t i n g . It is
of a c c o u n t i n g in the i n v e n t i o n of t e c h n i q u e s , the positive c o n d i t i o n s of a c o m p l e x g r o u p of
w h e t h e r in r e c e n t c e n t u r i e s or in antiquity. relations w i t h i n w h i c h a c c o u n t i n g exists that w e
O t h e r types of events, such as the political objec- s h o u l d address.
tives of states, b u t also historical c o n t i n g e n c y , T h e third aspect of Foucault's w o r k of rele-
particular national c o n d i t i o n s a n d the develop- v a n c e to this p a p e r c o n c e r n s the relationship
m e n t of related disciplines, all e n t e r into the b e t w e e n k n o w l e d g e a n d power. Foucault's argu-
explanation. G e n e a l o g y o p e n s o u t into a m u c h m e n t s o n this q u e s t i o n are distinctive. He
less c e r t a i n field than the standard histories of suggests that w e c a n u n d e r s t a n d the develop-
a c c o u n t i n g w o u l d lead us to believe. m e n t of m o d e r n societies in t e r m s of p o w e r , and
The archaeological q u e s t i o n is historical also. the shift in its m o d e of exercise. The b r o a d e s t
Its focus is o n o u r m o s t legitimated forms of con- shift h e refers to is o n e w h i c h he suggests took
t e m p o r a r y discourse, and the real historical con- place a r o u n d 1800 and is from w h a t he calls
ditions w h i c h have led to their e m e r g e n c e . It sovereign power to disciplinary power.
c o n c e r n s the m o r e sociological aspects of the Sovereign p o w e r is identified as a d i m i n i s h e d
e m e r g e n c e a n d f u n c t i o n i n g of discourses as well form of power. Its u l t i m a t e r e c o u r s e is s e i z u r e - -
as their i n t e r n a l c o n c e p t u a l features. The status of things, of bodies and ultimately of life. Discipli-
of o u r m o s t legitimated forms of discourse ( l a w nary p o w e r is m u c h r i c h e r a n d entails penetrat-
a n d m e d i c i n e , for example, b u t also e c o n o m i c s ing into the very w e b of social life t h r o u g h a vast
a n d a c c o u n t i n g ) are seen to d e p e n d , a m o n g s t series of regulations and tools for the administra-
o t h e r things, o n i n s t i t u t i o n a l a n d legal criteria as t i o n of e n t i r e p o p u l a t i o n s and of the m i n u t a e of
well as o n pedagogical n o r m s for their function- p e o p l e ' s lives. The calculated m a n a g e m e n t of
ing. Archaeology directs o u r a t t e n t i o n to these social life is o n e way of designating the form of
features of discourse. It also has an epistemolog- o p e r a t i o n of disciplinary power. It c a n b e wit-
ical aspect. This c o n c e r n s the relationship bet- nessed, Foucault suggests, in the fields of p u b l i c
w e e n discourses a n d the o b j e c t s to w h i c h they health, housing, c o n c e r n s w i t h longevity, b u t
refer. Again t h e r e is an e l e m e n t of de-bunking. also in the schools, workshops, barracks a n d
Applied to o u r c o n c e r n s in this p a p e r o n e c o u l d prisons.
for i n s t a n c e say that t h e r e is n o o b v i o u s r e a s o n Foucault's a r g u m e n t s c o n c e r n i n g p o w e r are
w h y w e s h o u l d have c o m e to talk in t e r m s of effi- closely linked to his investigation of the
c i e n c y a n d standards. Such n o t i o n s do n o t exist e m e r g e n c e of the h u m a n s c i e n c e s (Foucault,
in the o b j e c t itself or in l i m b o w a i t i n g to b e dis- 1970). The shift he identifies from sovereign to
covered. They are s e e n rather to have b e e n disciplinary p o w e r is i n t i m a t e l y c o n n e c t e d w i t h
f o r m e d in a c o m p l e x of relations established bet- c h a n g e s in o u r forms of knowledge. His argu-
w e e n a h e t e r o g e n e o u s range of discourses a n d m e n t is e x p r e s s e d in the f o r m u l a " p o w e r / k n o w -
practices. This is w h y w e talk b e l o w of the stan- ledge" and the c o n s t i t u t i v e i n t e r d e p e n d e n c e of
dard costing and b u d g e t i n g c o m p l e x , and relate the two t e r m s of the e q u a t i o n m the o p e r a t i o n of
it to a range of o t h e r discourses and practices the h u m a n sciences s h o u l d b e u n d e r s t o o d i n
w h i c h share a c o m m o n v o c a b u l a r y and set of relation to the e l a b o r a t i o n of a range of
objectives. Standard costing is, w e suggest, t e c h n i q u e s for the supervision, a d m i n i s t r a t i o n
i n t e r t w i n e d w i t h o t h e r attempts w i t h i n the and d i s c i p l i n i n g of p o p u l a t i o n s of h u m a n indi-
e n t e r p r i s e and o u t s i d e it to e m b a r k o n a vast pro- viduals. This is seen to take place in particular
ject of standardisation a n d n o r m a l i s a t i o n of the i n s t i t u t i o n s and in social relations in a w i d e r
lives of individuals. It is, w e argue, to this w e b of sense. This is n o t to suggest that all i n s t i t u t i o n s
relations established b e t w e e n , for example, are h o m o g e n e o u s and c o t e r m i n o u s w i t h the
basic technical r e q u i r e m e n t s a n d adjustments, type of a d m i n i s t r a t i o n w h i c h o c c u r s in society at
a n d elaborate forms of philosophical discourse, large. Viewed in t e r m s of p o w e r a n d at the level
o f c e r t a i n g e n e r a l p r i n c i p l e s for its o p e r a t i o n c o s t i n g a n d b u d g e t i n g and t h e i r alliance w i t h

t h e r e is n o n e t h e l e s s h e l d to b e an i m p o r t a n t scientific m a n a g e m e n t , t o p i c s w h i c h w e a d d r e s s
inter-relation between a diverse range of prac- in d e t a i l b e l o w . In t h e n i n e t e e n t h c e n t u r y discip-
tices. line w i t h i n t h e e n t e r p r i s e t o o k t h e f o r m o f d i r e c t
O u r a t t e m p t in this p a p e r to u n d e r s t a n d o n e c o n f r o n t a t i o n s b e t w e e n t h e w o r k e r and t h e
p a r t i c u l a r i m p o r t a n t p e r i o d in a c c o u n t i n g ' s his- boss. In t h e e a r l y t w e n t i e t h c e n t u r y , a n d t h r o u g h
t o r y has b e e n i n f l u e n c e d b y t h e s e t h r e e b r o a d t h e c h a n g e s w e will b e r e f e r r i n g to, t h e
themes. However the historical period e m p l o y e e c o m e s to b e s u r r o u n d e d b y calcula-
F o u c a u l t ' s r e s e a r c h e s address, t h e i n s t i t u t i o n s t i r e n o r m s a n d standards, i n t e r p o s i n g b e t w e e n
t h e y c o n c e r n , a n d t h e a b s e n c e o f a c l e a r l y identi- him and the boss a whole range of intermediary
fiable " m e t h o d " m e a n that w e c a n n o t c l a i m to b e m e c h a n i s m s . W i t h this shift d i s c i p l i n e c o m e s to
testing a m e t h o d b y t r a n s p o s i n g its field o f appli- b e s e e n to r e s i d e n o t in t h e will o f t h e b o s s b u t in
cation. W e h a v e s t u d i e d a different p e r i o d , t h e e c o n o m i c m a c h i n e itself, in t h e n o r m s a n d
n a m e l y that a r o u n d t h e y e a r 1900, a n d a diffe- s t a n d a r d s f r o m w h i c h t h e w o r k e r c a n b e s e e n to
r e n t discipline, n a m e l y a c c o u n t i n g . In o u r pre- depart. A c c o u n t i n g is, w e argue, an i m p o r t a n t
l i m i n a r y investigations w e w e r e l e d to f o r m u l a t e a s p e c t o f this d e v e l o p m e n t o f a r a n g e o f calcula-
a n u m b e r o f w o r k i n g p r o p o s i t i o n s , a n d it is t h e s e tive p r o g r a m m e s and t e c h n i q u e s w h i c h c o m e to
which directly inform the paper. These concern r e g u l a t e t h e lives o f i n d i v i d u a l s at w o r k in t h e
g e n e r a l m e t h o d o l o g i c a l p r i n c i p l e s , an a t t e m p t early t w e n t i e t h c e n t u r y . It is for this r e a s o n that
to l o c a t e a c c o u n t i n g w i t h i n a w i d e r set o f cal- w e talk o f s t a n d a r d c o s t i n g as b e i n g l o c a t e d
culative techniques, and some reflections on the w i t h i n a significant r e o r i e n t a t i o n o f t h e e x e r c i s e
level o f o u r analysis a n d w h a t w e s e e to b e its sig- of power within the enterprise.
nificance. It m a y b e useful to briefly c o m m e n t o n A t h i r d issue w e w a n t e d to a d d r e s s is t h e
the most important of these concerns. w i d e r f r a m e w o r k w i t h i n w h i c h c h a n g e s in
A first a n d g e n e r a l m e t h o d o l o g i c a l p o s t u l a t e a c c o u n t i n g t o o k place. O u r c o n c e r n in t h e p a p e r
c a n b e c a l l e d " c o n s t r u c t i v i s t " . By this w e m e a n is w i t h t h e e n t e r p r i s e and t h e nation, v i e w i n g
that w e h a v e b e e n c o n c e r n e d w i t h t h e w a y t h e s e as d i s t i n c t levels for t h e e l a b o r a t i o n o f a
a c c o u n t i n g , in c o n j u n c t i o n w i t h o t h e r p r a c t i c e s , r a n g e o f t e c h n i q u e s o f s u p e r v i s i o n and administ-
s e r v e s to c o n s t r u c t a p a r t i c u l a r field o f visibility. r a t i o n o f i n d i v i d u a l lives. E x t e n d i n g o u r v i e w
Rather t h a n v i e w a c c o u n t i n g as a n e u t r a l t o o l o f b e y o n d t h e e n t e r p r i s e a n d b e y o n d a c c o u n t i n g it
o b s e r v a t i o n w e h a v e a t t e m p t e d to e x a m i n e h o w b e c a m e c l e a r to us that an i m p o r t a n t redefini-
a c c o u n t i n g assists in r e n d e r i n g visible c e r t a i n t i o n o f t h e tasks a n d o b j e c t i v e s o f g o v e r n m e n t
crucial aspects of the functioning of the enter- t o o k p l a c e a r o u n d t h e early y e a r s o f this c e n t u r y .
prise. Q u e s t i o n s o f w a s t a g e a n d efficiency are C e n t r a l to this r e d e f i n i t i o n was t h e e m e r g e n c e
e x a m p l e s w h i c h w e a d d r e s s in t h e p a p e r . o f t h e social sciences, in p a r t i c u l a r p s y c h o l o g y
A s e c o n d p o i n t w h i c h e m e r g e d in o u r r e a d i n g a n d sociology. In c o n j u n c t i o n w i t h a c h a n g e d
o f t h e l i t e r a t u r e w a s that this p r o c e s s o f r e n d e r - c o n c e p t i o n o f t h e r o l e o f t h e state, t h e social sci-
ing visible a l i g h t e d o n t h e i n d i v i d u a l p e r s o n . e n c e s w e r e a b l e to e n t e r an alliance w i t h t h e
M o r e p a r t i c u l a r l y it d i d so b y s u r r o u n d i n g t h e state a n d to u n d e r t a k e a q u i t e n o v e l f o r m of
i n d i v i d u a l at w o r k b y a series o f n o r m s a n d stan- a d m i n i s t r a t i o n and s u r v e i l l a n c e o f i n d i v i d u a l
dards. T h r o u g h s u c h n o r m s a n d s t a n d a r d s t h e lives. C e n t r a l to this p r o j e c t w a s t h e p o s s i b i l i t y
inefficiencies o f t h e p e r s o n w e r e r e n d e r e d of comparing the capacities of individuals
c l e a r l y visible. This was a n o v e l s t e p for a c c o u n t - ( h e a l t h , intelligence, l o n g e v i t y ) against specific
ing. It is significant also in r e l a t i o n to t h e issue o f standards. It is o u r c o n t e n t i o n that o n e c a n
p o w e r i d e n t i f i e d above. At t h e risk o f b e i n g mis- understand the emergence of standard costing
u n d e r s t o o d w e shall b e h i g h l y s c h e m a t i c to a n d b u d g e t i n g in t h e e a r l y y e a r s o f t h e t w e n t i e t h
r e g i s t e r w h a t w e s e e to b e t h e significant c h a n g e c e n t u r y b y situating it w i t h i n this m o r e g e n e r a l
brought about by the emergence of standard shift in t h e f o r m o f a d m i n i s t r a t i o n o f social life
which occurs around the turn of the century. c o n c e r n is w i t h r e n d e r i n g visible all f o r m s o f ac-
A f o u r t h a n d final issue c o n c e r n s t h e level o f tivity o f t h e i n d i v i d u a l in v i e w o f t h e i r c o n t r i b u -
analysis w e have u n d e r t a k e n here. W e have t i o n to t h e efficient o p e r a t i o n o f t h e e n t e r p r i s e
p l a c e d g r e a t e s t e m p h a s i s o n w h a t w e m i g h t call a n d o f society.
p r o g r a m m a t i c d i s c o u r s e s as o p p o s e d to
a c c o u n t i n g as it was p r a c t i s e d in p a r t i c u l a r firms.
This is n o t b e c a u s e w e r e g a r d t h e l a t t e r as u n i m - STANDARD COSTING AND BUDGETING
portant. N o r is it b e c a u s e w e v i e w o u r c o n c e r n s
as e n t i r e l y i n d e p e n d e n t f r o m this m o r e techni-
cal level o f analysis. To clarify o u r views it m a y B e t w e e n 1900 a n d 1930 t h e r e a p p e a r s in t h e
h e l p to identify w h a t w e s e e to b e t w o d i s t i n c t a c c o u n t i n g l i t e r a t u r e an initial d e l i n e a t i o n o f
orders of events and the interrelation between t h e o r i e s o f s t a n d a r d c o s t i n g a n d b u d g e t i n g . This
them. T h e o n e w e h a v e c o n c e n t r a t e d o n in this is a n o v e l e v e n t w i t h i n accounting. At a p u r e l y
p a p e r can b e c a l l e d t h e d i s c u r s i v e p r o g r a m m e s t e c h n i c a l level t h e i n n o v a t i o n b r o u g h t a b o u t
for t h e a d m i n i s t r a t i o n a n d c a l c u l a t i o n o f was n o t h i n g less than an e n t i r e re-casting o f t h e
activities w i t h i n t h e e n t e r p r i s e and in s o c i e t y as d e f i n i t i o n o f c o s t a c c o u n t i n g . Its p r i m a r y con-
a w h o l e . T h e o t h e r w e w o u l d call t e c h n o l o g i c a l c e r n w o u l d h e n c e f o r t h n o l o n g e r b e t h e ascer-
and c o n c e r n s t h e actual o p e r a t i o n o f a c c o u n t i n g t a i n m e n t o f o n l y t h e actual c o s t s ( N i c h o l s o n ,
practices, their elaboration through particular 1913; Church, 1917; Epstein, 1978, pp. 9 0 -
p r o c e d u r e s and t e c h n i q u e s . O u r p o i n t is that 120), o f p r o d u c t i o n o r o f activities. T h e r e w o u l d
t h e s e t w o levels are distinct, y e t c r u c i a l l y b e an e x p a n s i o n o f d o m a i n to p e r m i t a c o n c e r n
interdependent. A discursive programme (for for t h e f u t u r e as w e l l as for t h e past.
t h e c a l c u l a t i o n o f i n d i v i d u a l inefficiences, s a y ) T h e v i r t u e o f t h e s e n o v e l p r a c t i c e s lay in t h e i r
o n l y fulfils its v o c a t i o n w h e n it has as its c o u n t e r - c a p a c i t y to r o u t i n e l y raise q u e s t i o n s o f w a s t e
p a r t an a d e q u a t e t e c h n o l o g y . W h a t t h e p r o g - a n d efficiency in t h e e m p l o y m e n t o f r e s o u r c e s ,
r a m m e c o n t r i b u t e s to t h e t e c h n o l o g y is a m o r e w h e t h e r h u m a n , financial o r material, at as m a n y
g e n e r a l r e n d e r i n g o f r e a l i t y in a f o r m s u c h that it levels o f analysis as r e q u i r e d . O n e c o u l d , for
c a n b e k n o w n , a r e n d e r i n g visible o f c e r t a i n e x a m p l e , r o u t i n e l y p o i n t to, a n d analyse, var-
activities in a w a y w h i c h is intelligible b y v i r t u e iances o f actual f r o m s t a n d a r d o r p l a n at t h e level
o f c e r t a i n g e n e r a l categories. A p r o g r a m m e is of t h e p r o f i t o f t h e total firm, o r at t h e level o f
also t h e s p a c e for t h e a r t i c u l a t i o n o f p r o b l e m s , m a t e r i a l o r l a b o u r use in p r o d u c t i o n or, i n d e e d ,
n e g o t i a t i o n and conflict o v e r interests. T h e r e is, at t h e level o f e v e r y a c c o u n t a b l e p e r s o n w i t h i n
o f c o u r s e , c o n s i d e r a b l e p l a y in t h e m e c h a n i s m t h e firm.
w h i c h links t h e p r o g r a m m a t i c level w i t h t h e The existing histories note the importance of
t e c h n o l o g i c a l . Yet it is p r e c i s e l y t h e l o o s e n e s s of t h e i n t r o d u c t i o n o f s t a n d a r d costing. For Sowell
t h e linkage w h i c h m a k e s it i m p o r t a n t to r e c a l l its (1973) standard costing entailed the develop-
existence. m e n t o f a set o f t e c h n i q u e s and a t h e o r e t i c a l
T h e s e are t h e p r i n c i p l e t h e m e s w h i c h inform r a t i o n a l e for t h e "scientific" p r e d e t e r m i n a t i o n o f
o u r t h i n k i n g in this p a p e r . If t h e y have validity t h e c o s t s o f r a w material, l a b o u r a n d o v e r h e a d ,
for t h e u n d e r s t a n d i n g o f a c c o u n t i n g as an organi- as w e l l as for t h e analysis o f t h e v a r i a n c e o f s u c h
sational a n d social p r a c t i c e t h e i m p l i c a t i o n s are c o s t s f r o m t h e actual o r historical costs. Sol-
significant. A c c o u n t i n g c a n n o l o n g e r b e re- o m o n s ( 1 9 6 8 ) identifies similar t h e m e s across a
g a r d e d as a n e u t r a l a n d o b j e c t i v e p r o c e s s . It r a n g e o f w r i t e r s , in p a r t i c u l a r H a r r i n g t o n Emer-
c o m e s r a t h e r to b e v i e w e d as an i m p o r t a n t p a r t son ( 1 9 1 9 ) a n d C h a r t e r H a r r i s o n ( 1 9 3 0 ) .
o f a n e t w o r k o f p o w e r r e l a t i o n s w h i c h are built W h a t i n t e r e s t s us h e r e is t h e w a y t h e e x i s t i n g
into t h e v e r y fabric o f o r g a n i s a t i o n a l a n d social histories construe the development of standard
life. It is a c o n s t i t u t i v e e l e m e n t in a form o f nor- costing. T h e y t e n d to n a r r a t e t h e e m e r g e n c e o f
malising s o c i o - p o l i t i c a l m a n a g e m e n t w h o s e s t a n d a r d c o s t i n g a n d b u d g e t i n g a c c o r d i n g to
ACCOUNTINGAND THE CONSTRUCTIONOF THE GOVERNABLEPERSON 241
t w o d i s t i n c t criteria. O n e of these consists in a calculative practices a i m e d n o t o n l y at steward-

careful a n d detailed e x p o s i t i o n o f the ideas and ship b u t efficiency also.
t e c h n i q u e s i n the t e r m s of those who, at the W e c a n identify the shift e n t a i l e d in the
time, h a d d e v e l o p e d o r articulated them. Such e m e r g e n c e of s t a n d a r d c o s t i n g d u r i n g the
an a p p r o a c h is taken b y Sowell ( 1 9 7 3 ) w h o p e r i o d 1900 a n d 1930 across a n u m b e r of cent-
declares his task as that of p r e s e n t i n g "in ral texts of that period. Garcke & Fells ( 1911 )
c h r o n o l o g i c a l succession, those r e l a t e d events, make the following s t a t e m e n t c o n c e r n i n g the
forces, individuals, a n d ideas that have contri- role of systematic cost a c c o u n t s a n d their rele-
b u t e d to a n d / o r have d e v e l o p e d i n t o " (p. 2 ) a v a n c e for managerial action:
theoretical a n d t e c h n i c a l c o m p l e x called stan-
dard costing. That achieved, t h r o u g h an it is only by means of systematic records that leakage,
waste, and fraud can be prevented, and that employers
i m m e n s e w e a l t h of s o u r c e material c o n s u l t e d
can know the cost of any article of their manufacture, and
a n d d e s c r i b e d , Sowell e n d s his work. A s e c o n d be able to determine accurately and scientifically, not
approach, w h i c h S o l o m o n s ( 1 9 6 8 ) adopts, is to merely approximately and by hap-hazard, the actual pro-
c o n s t r u e these n o v e l practices t h r o u g h the lens fit they make or loss they sustain, not only on the aggre-
of progress, to o u t l i n e the difficult a n d o f t e n gate transactions during a given period, but also upon
each individual transaction (Garcke & Fells, 1911, pp. 3-
e r r o r - p r o n e paths w h e r e b y c o s t i n g has progres-
5).
sed to its c u r r e n t level of sophistication. Thus,
for example, h e p o i n t s to "weaknesses" i n o n e of
I n a similar m a n n e r A. L. D i c k i n s o n ( 1908, cited
the early o u t l i n e s of a s t a n d a r d costing, that of
in Garcke & Fells, 1911, pp. 7--8), states the prin-
Emerson, i n d i c a t i n g its failures in analytic p o w e r
cipal o b j e c t s of a m o d e m cost system. T h e y
a n d in clarity of t h o u g h t relative to w r i t i n g
s h o u l d comprise:
w h i c h follows it in time.
W e w i s h i n this p a p e r to place a different ( 1) Ascertaining the cost of the same product at diffe-
i n t e r p r e t a t i o n o n the e m e r g e n c e of s t a n d a r d rent periods in the same mill, or at the same period in dif-
costing. W e do n o t v i e w the d e v e l o p m e n t of ferent mills, and so to remedy inequalities in cost by
s t a n d a r d c o s t i n g a n d b u d g e t i n g as part of the reducing all to the results shown by the best.
u n f o l d i n g of a socially useful theoretical-techni- (2) The provision of an accurate, running book of
inventories on hand, so facilitating reduction in stocks
cal c o m p l e x , w h o s e u n d e r l y i n g logic is o n e of and capital invested to the lowest state consistent with
progress. W e wish to locate it r a t h e r as an impor- efficiency.
tant c o n t r i b u t i o n to a c o m p l e x of practices (3) The preparation of statistical information as to
w h i c h consist i n a form of socio-political man- costs of parts, quantity, and variety of output, relative effi-
a g e m e n t w h o s e c o n c e r n is w i t h individual per- ciency of different classes of labour, and relative costs of
labour and material, between different mills and periods.
sons a n d their efficient f u n c t i o n i n g . (4) The preparation of periodical statements of profit
Standard c o s t i n g a n d b u d g e t i n g p r o v i d e d and loss in a condensed form, readily giving directors all
q u i t e n o v e l t h e o r i s a t i o n and t e c h n i q u e w h i c h material information as to the results of the business.
s e r v e d to r e n d e r visible the inefficiencies of the
i n d i v i d u a l p e r s o n w i t h i n the enterprise. In T h e s e s t a t e m e n t s are a d m i r a b l e i n their
r o u t i n e l y raising q u e s t i o n s of waste a n d ineffi- rigour. It is, h o w e v e r , w h a t is m i s s i n g from t h e m
c i e n c y in the e m p l o y m e n t of h u m a n , financial w h i c h is significant for o u r p u r p o s e s here. Mis-
a n d material resources, they s u p p l e m e n t e d the sing from b o t h is a clear s t a t e m e n t of the pur-
traditional c o n c e r n s of a c c o u n t i n g w i t h the poses that m i g h t b e fulfilled b y standard or pre-
fidelity o r h o n e s t y of the p e r s o n . Cost a c c o u n t - d e t e r m i n e d costs. Missing, as a c o n s e q u e n c e , are
ing c o u l d n o w e m b r a c e also the i n d i v i d u a l per- materials dealing w i t h h o w a r o u t i n e t e c h n o l o g y
s o n a n d make t h e m a c c o u n t a b l e b y r e f e r e n c e to of s t a n d a r d or p r e d e t e r m i n e d costs m i g h t oper-
p r e s c r i b e d standards of p e r f o r m a n c e . With this ate.
step a c c o u n t i n g significantly e x t e n d e d its By 1930 t h e r e had b e e n a clear establishment,
d o m a i n , e n m e s h i n g the p e r s o n w i t h i n a w e b of in texts o n b o t h sides of the Atlantic, of several
242 PETER MILLER and TED O'LEARY
n e w p r o m i n e n t a d d i t i o n s to t h e v o c a b u l a r y o f c o m b i n e d mechanical sciences and psychology, w i t h the

c o s t s a c c o u n t s keeping. T h e s e are " t h e s t a n d a r d result that today every man, woman, and child in this
country is reaping the harvest (Harrison, 1930, pp. 2 7 -
cost", " t h e v a r i a n c e analysis", " t h e b u d g e t " ,
28).
" b u d g e t a r y c o n t r o l " . This is t h e r u p t u r e w i t h
w h i c h w e a r e c o n c e r n e d a n d its implications. W i t h this s t e p t h e p o s s i b i l i t y o f a k n o w l e d g e o f
One way of designating the change would be e v e r y i n d i v i d u a l w i t h i n t h e e n t e r p r i s e w a s estab-
f r o m t h e " r e g i s t r a t i o n o f c o s t s o f p r o d u c t i o n " to lished. A visibility and an a l l o c a t i o n o f r e s p o n s i -
" t h e r e n d e r i n g o f all activities c a p a b l e o f suspi- bility c o u l d b e a t t a c h e d to t h e individual. T h e
c i o n as to t h e i r costliness". p e r s o n ' s activities w e r e at last r e n d e r e d k n o w a -
Charter Harrison (1930) expresses most b l e a c c o r d i n g to p r e s c r i b e d s t a n d a r d s a n d devia-
c l e a r l y t h e dissatisfaction w i t h t h e o l d s y s t e m tions f r o m t h e n o r m . S t a n d a r d c o s t i n g and
and t h e p r o m i s e o f t h e new: budgeting made possible a pinpointing of
r e s p o n s i b i l i t i e s for p r e v e n t a b l e inefficiencies at
The most serious defect of the job-order cost plan was
t h e level o f t h e v e r y i n d i v i d u a l f r o m w h o m t h e y
that it failed, most utterly and dismally to achieve wh a t
should be the primary purpose of any cost system,
d e r i v e d . T h e h u m a n e l e m e n t in p r o d u c t i o n , a n d
namely, to bring promptly to the attention of the manage- most importantly the individual person, could
men t the ex istence of preventable inefficiencies so that n o w b e k n o w n a c c o r d i n g to t h e i r c o n t r i b u t i o n
steps could be taken to eliminate these at the earliest pos- to t h e efficiency o f t h e e n t e r p r i s e .
sible m o m e n t (Harrison, 1930, p. 8).
T h e significance o f s t a n d a r d c o s t i n g and
b u d g e t i n g as an innovation, h o w e v e r , is n o t o n l y
A n d again: internal to a c c o u n t i n g a n d t h e o r g a n i s a t i o n a n d
one of the primary advantages of standard c o s t s . . , is that m a n a g e m e n t o f the e n t e r p r i s e . W e suggest that it
the clerical w o r k involved in the operating of a properly should be located alongside the emergence of a
designed standard cost system is very m u c h less than that r a n g e o f d i s c o u r s e s a n d p r a c t i c e s w h i c h , in b o t h
required to operate any c o m p l e t e job-order cost plan. Britain a n d t h e U.S.A. in t h e e a r l y y e a r s o f this
That this is so is evident w h e n it is considered that w i t h
c e n t u r y , c o n c e r n e d t h e m s e l v e s w i t h t h e physi-
standard costs we are dealing w i t h the p r i n c i p l e o f
exceptions, that is to say w i t h variations f r o m the stan- cal a n d m e n t a l h e a l t h o f t h e p o p u l a t i o n . In t h e i r
dards (Harrison, 1930, p. 12, emphasis added). c o n c e r n w i t h efficiency t h e s e p r a c t i c e s have a
m a c r o - and a m i c r o - l e v e l c o n c e r n . T h e y t o o k as
F o r o u r c o n c e r n s in this p a p e r t h e r e is o n e cru- t h e i r o b j e c t b o t h t h e h e a l t h a n d efficiency o f t h e
cial d i m e n s i o n to this innovation. T h e p r i n c i p l e n a t i o n s as a w h o l e , and d e t a i l e d q u e s t i o n s con-
o f s t a n d a r d c o s t s m a d e it p o s s i b l e to a t t a c h to c e r n i n g t h e habits, life-styles and activities o f t h e
e v e r y i n d i v i d u a l w i t h i n t h e firm n o r m s a n d stan- individual. T h e u n d e r l y i n g p r e o c c u p a t i o n was
d a r d s o f b e h a v i o u r . Everyone, in r e l a t i o n to all w i t h w a y s in w h i c h m o d i f i c a t i o n s in t h e l a t t e r
activities w h i c h t h e y d i r e c t l y c a r r i e d o u t o r m i g h t e n r i c h t h e former, an o v e r t l y political
d i r e c t e d , c o u l d b e r e n d e r e d s u s c e p t i b l e to a c o n c e r n in w h i c h t h e h e a l t h and o u t p u t o f t h e
c o n t i n u a l p r o c e s s of j u d g m e n t . This i m p l a n t i n g i n d i v i d u a l was r e l a t e d to that o f t h e collectivity.
o f n o r m s m o r e o v e r c o n c e r n e d n o t just n o r m s o f Standard c o s t i n g can, w e argue, b e r e g a r d e d as
p h y s i o l o g i c a l b e h a v i o r for t h e w o r k e r at t h e an i m p o r t a n t a s p e c t o f this b r o a d e r c o n c e r n
b e n c h , b u t also t h e m e n t a l activity o n t h e p a r t o f w i t h e x t a b l i s h i n g n o r m s a n d s t a n d a r d s for t h e
t h e e x e c u t i v e . W i t n e s s C h a r t e r H a r r i s o n again: activities of individuals and their implications for
efficiency. At t h e level o f t h e e n t e r p r i s e s t a n d a r d
We have increased the efficiency of the average man c o s t i n g a n d b u d g e t i n g c o n t r i b u t e d , w e suggest,
because we have applied the principles of scientific man- a facilitative t e c h n o l o g y w h i c h e n a b l e d a w h o l e
agement to his w o r k - - instead of letting him p r o c e e d
r a n g e o f activites o f t h e p e r s o n to b e r e n d e r e d
haphazardly w e have set before him carefully determin e d
standards of accomplishment rendered possible by stan-
visible and a c c o u n t a b l e . W i t h i n t h e e n t e r p r i s e ,
dardization of conditions, and have given him scientific o n e c o u l d at last literally m a k e all individuals
training s u p p l e m e n t e d by an efficiency reward. We have accountable.
T h e v a g u e n e s s as to w h e t h e r t h e n o t i o n o f be the more important of these concerns and

s t a n d a r d in t h e initial f o r m u l a t i o n s o f s t a n d a r d p r a c t i c e s . T h e s e can b e l o c a t e d at a n u m b e r o f
c o s t i n g m e a n t an ideal o r an a t t a i n a b l e standard, d i s t i n c t levels. O n e o f t h e s e is w h a t w e call, fol-
and the question of the possibility of actually l o w i n g o t h e r s (Searle, 1970; Hays, 1959; Haber,
l o c a t i n g t h e s o u r c e o f w a s t e s ( S o l o m o n s , 1968, 1964), a d i s c o u r s e o f n a t i o n a l efficiency. This
p. 41 ) are n o t c r u c i a l for o u r p u r p o s e s . F o r it is h a d an e x i s t e n c e t h r o u g h p o p u l a r p o l i t i c a l voc-
neither the truth-value of standard costing nor abulary, j o u r n a l i s t i c writings, as w e l l as t h e state
its p r a c t i c a l utility w h i c h w e a r e s e e k i n g to a n d g o v e r n m e n t a l apparatuses. A s e c o n d con-
evaluate. Rather, w e a r e c o n c e r n e d to l o c a t e c e r n s p h i l o s o p h i c a l a n d s o c i o l o g i c a l writings,
s u c h a p r a c t i c e as a f o r m o f social p o w e r , an a n d t h e e m e r g e n c e in t h e m o f a n o t i o n that o n e
i m p o r t a n t e l e m e n t o f w h i c h is an ability to sub- could actively intervene within society and
j e c t t h e i n d i v i d u a l to an i n c r e a s i n g l y d e t a i l e d w i t h i n t h e lives o f indivuals. T h e g e n e r a l aim to
f o r m o f o b s e r v a t i o n and scrutiny. In its p u r e s t w h i c h s u c h w r i t i n g s s a w this as c o n t r i b u t i n g w a s
form, s u c h a t y p e o f p o w e r consists in t h e indi- t h e rational a d m i n i s u ' a t i o n o f t h e social and
vidual a t t e n d i n g to his o r h e r o w n deficiencies. It t h e active p r o m o t i o n o f p r o g r e s s . T h e state was
is a f o r m o f p o w e r in w h i c h t h e i n d i v i d u a l to p l a y a c e n t r a l r o l e in s u c h a p r o g r a m m e . A
b e c o m e s an a u t o - r e g u l a t e d entity, b u t o n e for t h i r d level is that o f t h e a c t u a l p r a c t i c e s o f socio-
w h o m t h e s t a n d a r d s a c c o r d i n g to w h i c h t h e y political management (eugenics, mental
j u d g e t h e i r lives h a v e b e e n e s t a b l i s h e d for them. h y g i e n e , m e n t a l t e s t i n g ) in r e l a t i o n to w h i c h
S t a n d a r d c o s t i n g a n d b u d g e t i n g is, w e suggest, s u c h s c h e m e s o p e r a t e d . As n o t e d a b o v e w e d o
c e n t r a l to s u c h a p r o c e s s . n o t v i e w s u c h p r a c t i c e s as t h e s i m p l e i m p l e m e n -
t a t i o n o f t h e first t w o levels identified. It s e e m s
to us, h o w e v e r , that t h e y c a n b e v i e w e d in t e r m s
THE EFFICIENT N A T I O N AND THE EFFICIENT o f a n d as r e l a t e d to t h e s e m o r e g e n e r a l sets o f
INDIVIDUAL concerns.
Standard costing and budgeting provided a The discourse of national efficiency

w a y o f e x p r e s s i n g in m o n e y t e r m s t h e c o n t r i b u - A n u m b e r o f w r i t e r s h a v e a r g u e d forcefully
t i o n o f i n d i v i d u a l s to t h e c o l l e c t i v e efficiency o f (Searle, 1970; Hays, 1959; Haber, 1964), that t h e
t h e e n t e r p r i s e . This a l l o w e d d e v i a t i o n s f r o m t h e n o t i o n o f efficiency e m e r g e s in t h e early y e a r s o f
n o r m to b e l o c a t e d at t h e level o f t h e individual. this c e n t u r y as a " c o n v e n i e n t label" u n d e r w h i c h
T h e c o l l e c t i v e efficiency o f t h e n a t i o n d u r i n g c o u l d b e g r o u p e d a r a n g e o f a s s u m p t i o n s , beliefs
this p e r i o d w a s e x p r e s s e d in different t e r m s a n d and d e m a n d s c o n c e r n i n g g o v e r n m e n t , i n d u s t r y
w i t h different o b j e c t i v e s in mind. N o n e t h e l e s s a n d social organisation. W h i l s t b e i n g careful n o t
s u r p r i s i n g parallels e m e r g e in t h e a t t r i b u t i o n o f a to t h i n k that this n o t i o n o f efficiency is u s e d in
visibility to t h e i n d i v i d u a l ( h i s health, intelli- t h e s a m e w a y b y all c o m m e n t a t o r s , n o r that it
g e n c e ) t h r o u g h w h i c h t h e i r c o n t r i b u t i o n to col- p r e s u p p o s e s a g r e e m e n t o n m a t t e r s o f social o r
l e c t i v e efficiency c o u l d b e d e t e c t e d . T h e r e is a industrial p o l i c y , it d o e s s e e m to b e a v e r y c o m -
s i m i l a r i t y also in t h e m a n n e r in w h i c h s u c h m o n t h e m e in t h e e a r l y y e a r s o f this c e n t u r y . O f
d e t e c t i o n was to b e a c h i e v e d . Statistical devia- c o u r s e , it is a n o t i o n w h i c h varies n o t just f r o m
tions f r o m a n o r m w e r e c e n t r a l to this task o f t h e o n e field o f a p p l i c a t i o n to a n o t h e r , b u t f r o m o n e
i n d i v i d u a l i s a t i o n o f difference. A n d a p l e t h o r a o f n a t i o n a l c o n t e x t to a n o t h e r .
techniques of socio-political management were O n e c a n b e g i n to s u b s t a n t i a t e t h e e x i s t e n c e o f
d e v e l o p e d w h i c h a l l o w e d o b s e r v a t i o n to p e n e t - a d i s c o u r s e o f n a t i o n a l efficiency t h r o u g h jour-
r a t e to t h e m i n u t i a e o f t h e e v e r y d a y lives o f indi- nalistic writings, t h e a r g u m e n t s o f politicians, as
viduals ( A r m s t r o n g , 1 9 8 3 ) in an a t t e m p t to cor- w e l l as m e d i c a l a n d p a c a - m e d i c a l writings. T h u s
rect departures from the norm. t h e British w r i t e r A r n o l d W h i t e ( 1 9 0 1 ) in his
W e w a n t to i d e n t i f y h e r e w h a t s e e m to us to r a t h e r d e m a g o g i c b o o k Efficiency and Empire,
most of the material of which had first appeared of science in the art of politics.
in newspaper articles the previous year, proc- The improvement of the national physique
laimed the need for a thoroughgoing reappraisal was one element of a programme of efficiency.
of the nation's political and moral values. White The need for this was seen to be highlighted by
was a polemicist, yet in a Britain which was the physical unfitness of those w h o came for-
stumbling through the successive revelations ward for recruitment for the Boer War. Thus in
and disasters of the Boer War such arguments Manchester in 1900, 8000 out of 11,000 would-
were not out of place. be volunteers had to be turned away on grounds
Inefficiency was considered by White to of ill-health, and of the remainder 2000 were
derive from both physical and moral deteriora- declared fit only for the militia (Searle, 1970;
tion. The middle classes had, he argued, b e c o m e Winter, 1980).
largely "a class of pleasure-seekers" whilst the The m o o d that developed around the ques-
working classes "artificially restrict their labour" tion of physical health was one of pessimism
(p.310). Meanwhile drink exercised its which at times shifted to hysteria. The concern
despotism over all social groups. The result was was that Britain was breeding a race of degener-
a softening of the fibre of the ruled and the rulers ates, and that this became more acute the further
alike. But the first element of efficiency, accord- one went down the social scale. White had
ing to White, was health (p.95). Here the prob- suggested restrictions on marriage to alleviate
lem was seen to be most acute. "Our species", he the problem ( 1901, p. 111 ). The eugenic move-
proclaimed dramatically, "is being propagated ment was the more extreme version of such
and continued increasingly from undersized, arguments with demands for "the sterilization of
street-bred people". (p.lO0). White was refer- the unfit" gaining ground and appearing in polit-
ring here to "Spectacled school-children, hun- ical debate. This was, moreover, not a matter of
gry, strumous, and epileptic" who "grow into party politics, eugenics appealing to Fabian
consumptive bridegrooms and scrofulous brides socialists and Conservatives alike. The sick had
•.." (pp. 101-102)• Outside certain institutions to be taken in hand both for their own good and
such as the Army, the Navy and the police, the for the efficient functioning of society.
population was seen to consist mainly in "hospi- Efficiency was a key-word also in relation to
tal out-patients, enfeebled with bad air, seden- the machinery of government, education, and
tary lives, drink, and disease." (pp. 107-108). In the role of the scientific expert in government.
short, the nation was rapidly deteriorating and The purpose of the State was to promote the
the State was doing virtually nothing to prevent "good life" of its citizens and to develop the
this deterioration. moral nature of man (Dyson, 1980, p.192). To
White was only one of many journalists to achieve this the application of scientific know-
suggest the need for a new political alignment, ledge and training was deemed necessary. It is
which would give expression to a programme of not altogether clear whether this meant leaving
"national efficiency". Such themes, moreover, key decisions in the hands of experts, or making
were not absent from the arguments and state- politics and public administration itself a sci-
ments of politicians. Whilst an astute politician ence. Both lines of argument clearly existed, the
such as Roseberry shied away from White's jour- latter finding its institutional form in the found-
nalistic excesses, he admitted, however, to being ing of the London School of Economics by the
in "substantial agreement" with White's opin- Webbs at the very end of the nineteenth century.
ions (Searle, 1970, p.54). The question of The principle at work here was that "social
national efficiency was, at heart, one which con- reconstructions require as much specialized
cerned social organisation. Central here was the training and sustained study as the building of
utilisation of Germany and Japan as models or bridges and railways, the interpretation of the
exemplars of a form of social organisation which law, or technical improvements in machinery
promoted efficiency through the incorporation and mechanical processes" (quoted in Searle,
1970, p . 8 5 ) . Again this w a s a t h e m e w h i c h c u t between the expert and the citizen which was
a c r o s s p a r t y politics. R o s e b e r r y , t h e l e a d e r o f t h e essential to g o o d g o v e r n m e n t ( H a b e r , 1964,
"Liberal I m p e r i a l i s t s " c a l l e d for g o v e r n m e n t b y p. 110). Efficient g o v e r n m e n t w a s to b e a c h i e v e d
"scientific m e t h o d s " . Asquith, for his part, t h r o u g h e x p e r t g o v e r n m e n t officials a c t i n g in
s u g g e s t e d that social r e f o r m s h o u l d b e c a r r i e d t h e i n t e r e s t s o f citizens, s i n c e t h e l a t t e r c o u l d n o
o u t " n o t as a m o r a l q u e s t i o n . . , b u t as a q u e s t i o n l o n g e r realistically a c h i e v e t h e level o f e x p e r t i s e
o f social a n d i m p e r i a l efficiency" ( q u o t e d in required:
Collini, 1979, pp. 83--84).
This o f c o u r s e is n o m o r e t h a n a s u g g e s t i v e Citizens of larger cities must frankly recognize the need
g l a n c e at t h e l i t e r a t u r e w h i c h w o u l d e n a b l e o n e for professional service on behalf of citizen interests...
Even efficient private citizens cannot deal helpfully with
to s u b s t a n t i a t e t h e e x i s t e n c e a n d d e p t h o f a dis- expert governmental questions. Efficient citizens will
c o u r s e o f n a t i o n a l efficiency in Britain in t h e evidence their efficiency by supporting constructive
e a r l y y e a r s o f this c e n t u r y . W e feel it is e n o u g h , efforts for governmental betterment (quoted in Haber,
h o w e v e r , to s u p p o r t o u r a r g u m e n t s that t h e 1964, p.112).
t e r m efficiency p r o v i d e d a d e g r e e o f c o h e r e n c e
to t h e i d e n t i f i c a t i o n a n d e x p r e s s i o n o f a d i v e r s e T h e utilisation o f n o t i o n s o f efficiency in rela-
r a n g e o f n a t i o n a l c o n c e r n s . If it is t h e case that tion to t h e b u s i n e s s o f g o v e r n m e n t c a n b e s e e n
this e n t i t l e s us to talk o f an i d e o l o g y o f efficiency in s u c h b o d i e s as t h e P r e s i d e n t i a l C o m m i s s i o n
in Britain d u r i n g this p e r i o d w a s this t r u e also o f o n E c o n o m y a n d Efficiency w h i c h w a s r e p l a c e d
t h e U n i t e d States? It w o u l d a p p e a r that this c a n b y a B u r e a u o f Efficiency w h e n t h e W i l s o n ad-
b e a n s w e r e d in t h e affirmative, as l o n g as o n e m i n i s t r a t i o n t o o k office ( H a b e r , 1964, p. 1 1 3 -
b e a r s in m i n d t h e different s o c i o - p o l i t i c a l c o n - 114). This w a s n o t s i m p l y f e d e r a l c o n c e r n , t h e
t e x t o f A m e r i c a n society. T h e p r o g r e s s i v e era, as states s o o n s e t t i n g u p t h e i r o w n efficiency c o m -
o n e a u t h o r has e x p r e s s e d it, "is a l m o s t m a d e to missions. W i n c o n s i n b e g a n in 1911, and b y 1917
o r d e r for t h e s t u d y o f A m e r i c a n s in l o v e w i t h effi- at least s i x t e e n states h a d f o r m e d s u c h c o m m i s -
c i e n c y " ( H a b e r , 1964, p.ix; Hays, 1959). T h e "ef- sions. T h e a c h i e v e m e n t s o f s u c h c o m m i s s i o n s
ficiency craze" of the progressive era consisted s e e m to h a v e c o n s i s t e d p r i n c i p a l l y in con-
in "an o u t p o u r i n g o f ideas a n d e m o t i o n s in s o l i d a t i n g state agencies, i m p r o v i n g c o s t
w h i c h a g o s p e l o f efficiency w a s p r e a c h e d with- a c c o u n t i n g t e c h n i q u e s , a n d in g r a n t i n g m o r e
o u t e m b a r a s s m e n t to b u s i n e s s m e n , w o r k e r s , p o w e r to t h e g o v e r n o r ( H a b e r , 1964, p. 115 ).
doctors, housewives and teachers..." (Haber, T h e g r e a t m e r i t o f t h e n o t i o n o f efficiency was,
1964, p.ix). Efficiency in this s e n s e r e f e r r e d to a h o w e v e r , its pliability, o r at least its ability to
p e r s o n a l a t t r i b u t e , to a m e c h a n i c a l p r i n c i p l e o f s u p p l y a p o i n t o f focus for a r g u m e n t s c o v e r i n g a
t h e o u t p u t - i n p u t ratio o f a m a c h i n e , to a c o m - vast r a n g e o f issues. It w a s n o t o n l y social effi-
m e r c i a l efficiency in t h e f o r m o f profit, a n d to c i e n c y that w a s o f c o n c e r n in t h e e a r l y y e a r s o f
efficiency c o n c e i v e d as a r e l a t i o n s h i p b e t w e e n this c e n t u r y . T h e efficient utilisation o f natural
m e n . I n this last, a n d p o s s i b l y for o u r p u r p o s e s resources around the principle of conservation
h e r e m o s t i m p o r t a n t sense, efficiency m e a n t w a s c e n t r a l also. T h e n o t i o n o f c o n s e r v a t i o n , to
social efficiency, w h i c h in t u r n m e a n t social b e a c h i e v e d t h r o u g h p l a n n e d and efficient utili-
organisation. sation o f natural r e s o u r c e s , a p p l i e d to s u c h
If o n e c a n s p e a k h e r e o f a " p o l i t i c s o f effi- issues as w a t e r r e s o u r c e m a n a g e m e n t a n d t h e
c i e n c y " , it w a s a r o u n d t h e issues o f d e m o c r a c y c o n s e r v a t i o n o f forests (Hays, 1959). A n d t h e
a n d e x p e r t i s e that this p o l i t i c s c e n t r e d . Scien- elasticity o f t h e t e r m " c o n s e r v a t i o n " a l l o w e d it
tific w i s d o m w a s t o b e u s e d to a d v a n c e t h e c a u s e to e x t e n d b a c k to t h e q u e s t i o n o f t h e c o n s e r v a -
o f " g o o d g o v e r n m e n t " , w h e t h e r at t h e level o f tion o f h u m a n health. T h e National C o n s e r v a t i o n
t h e m u n i c i p a l i t y o r t h e factory. " D e m o c r a c y " C o n g r e s s o f 1910 h a d o r g a n i z e d a s t a n d i n g c o m -
was to m e a n g o v e r n m e n t for t h e p e o p l e b a s e d m i t t e e o n "vital r e s o u r c e s " w h i c h c o n c e r n e d
i n c r e a s i n g l y o n q u e s t i o n s o f fact, a p a r t n e r s h i p itself w i t h p u b l i c h e a l t h as w e l l as h a v i n g units
o n forests, lands, w a t e r s a n d minerals. T w o years pp.43--44). I n the p e r i o d w e have b e e n addres-

later, the Congress d e v o t e d the e n t i r e t y of its sing h e r e s u c h a r e s i g n e d s u b m i s s i o n to social
a n n u a l session to "the c o n s e r v a t i o n of h u m a n laws was b e i n g r e p u d i a t e d in sociological and
life" (Hays, 1959, p.176). And in 1909 the p h i l o s o p h i c a l debates. T h e literature of prag-
National C o n s e r v a t i o n Congress had i n c l u d e d m a t i s m was c e n t r a l to this repudiation. As o n e
s p e e c h e s o n the c o n s e r v a t i o n of the morals of a u t h o r has e x p r e s s e d it:
youth, the c o n s e r v a t i o n of c h i l d r e n ' s lives
t h r o u g h the e l i m i n a t i o n of child labour, the con- Spencer's outlook had been the congenial expression of
servation of civic beauty, the e l i m i n a t i o n of a period that looked to automatic progress and laissez
faire for its salvation;pragmatism was absorbed into the
waste in e d u c a t i o n a n d war, the c o n s e r v a t i o n of
national culture when men were thinking of manipula-
m a n h o o d , a n d the c o n s e r v a t i o n of the Anglo- tion and control• Spencerianismhad been the philosophy
Saxon race. of inevitability; pragmatism became the philosophy of
possibility (Hofstadter, 1955, p.123).
Philosophical and sociological conceptions of
a rationally administered social Pragmatism offered p h i l o s o p h i c a l legitimacy
These w e r e the m o s t forceful a n d readily iden- to a p e r i o d that was b e c o m i n g i n c r e a s i n g l y con-
tifiable forms in w h i c h the n o t i o n of n a t i o n a l effi- c e r n e d w i t h the rational, p u r p o s e f u l d i r e c t i o n
c i e n c y a p p e a r e d in the U.S. Again w e feel they a n d c o n t r o l of social affairs. Particularly in the
p r o v i d e s u p p o r t to o u r a r g u m e n t that the t e r m w r i t i n g s of James p r a g m a t i s m sought to assert:
efficiency was a significant o n e in the socio-
political d e b a t e s of the time. W e w o u l d like n o w • . . the fundamental idea of an open universe in which
uncertainty, choice, hypotheses, novelties and pos-
to shift the p e r s p e c t i v e to the philosophical a n d sibilities are naturalized . . . (John Dewey, cited in
sociological d e b a t e s of the same period. At this Hofstadter, 1955, p. 123).
level w e argue that the e m e r g e n c e in the early
d e c a d e s of the t w e n t i e t h c e n t u r y of a particular In seeking to naturalize these c o n c e p t s , the
sociological and p h i l o s o p h i c a l form of a r g u m e n t h o p e was p e r m i t t e d that there was a space
a d d e d legitimacy to, a n d p r o v i d e d a b r o a d w i t h i n w h i c h h u m a n rationality c o u l d actively
rationale for, the p r o j e c t of n a t i o n a l efficiency. shape a n d reform the social organization.
In particular it c o n t r i b u t e d a theoretical princi- Pragmatism was primarily an A m e r i c a n
ple for an art of g o v e r n m e n t f o u n d e d o n two p h e n o m e n o n . I n Britain a similar t h e m e
c e n t r a l notions. The first of these was the affir- e m e r g e d t h r o u g h p h i l o s o p h e r s of w h a t w o u l d
m a t i o n of the possibility of a rationally adminis- b e c o m e the N e w Liberalism in politics
t e r e d and m a n a g e d social order, s o m e t h i n g ( F r e e d e n , 1978). Here, o n e finds H o b h o u s e
w h i c h was to b e u n d e r t a k e n w i t h the aid of a arguing that the h u m a n m i n d m u s t itself b e s e e n
n e u t r a l a n d o b j e c t i v e knowledge. The s e c o n d to lie w i t h i n the overall p r o c e s s of evolution. I n
was a specific c o n c e p t i o n of the n a t u r e of the so far as m i n d has e v o l v e d to a c o m p l e x rational-
social relations w h i c h linked the individual to ity, t h e n it is o n l y fitting that this c o n s e q u e n c e of
society. T h e image h e r e was of the individual as the e v o l u t i o n a r y process s h o u l d i n f l u e n c e
a part of a social m a c h i n e c o n c e i v e d as an f u r t h e r evolution. H u m a n rationality, in its dis-
organism. t i n c t i v e l y scientific form, had p r o v i d e d h u m a n -
The sociologist S p e n c e r ( 1 8 7 8 ) had p r o p o s e d ity with: "the vastly i n c r e a s e d p o w e r of c o n t r o l -
a scientific study of society w h o s e p u r p o s e ling the c o n d i t i o n s , e x t e r n a l and internal, of
w o u l d b e " n o t to g u i d e the c o n s c i o u s c o n t r o l of life c o . . . " ( H o b h o u s e , 1911, p.156). For Hob-
societal e v o l u t i o n , b u t rather to s h o w that s u c h house:
c o n t r o l is an absolute impossibility, a n d that
the best that organized k n o w l e d g e c a n do is to the turning-point in the evolution of thought . . . is
teach m e n to s u b m i t m o r e readily to the reached when the conception of the development of
d y n a m i c factors in progress" (Hofstadter, 1955, humanity enters into explicit consciousness as the
ACCOUNTING AND THE CONSTRUCTION OF THE GOVERNABLE PERSON 247
directing principle of human endeavour... (Hobhouse, dilemma of how the more traditional liberal
1911, p.155). ideal of the freedom of the individual was to be
rendered compatible with an organic concep-
Social science conceived in this manner could tion of the social (Freeden, 1 9 78, p p . 2 5 - 7 5). F o r
become an instrument which would contribute
H o b h o u s e ( 1 9 1 1 ), s o c i e t y c o n s i s t e d of:
to the better control and directing of human
progress. Social science could serve human ... individual persons and nothing but individual persons,
n e e d s as n a t u r a l s c i e n c e d o e s , t h r o u g h b e i n g just as the body consists of cells and the product of cells
consciously adapted and harnessed to the pur- ... (p.30).
poseful achievement of ends. According to the
American sociologist, Lester Ward: B u t i n t h e s a m e w a y t h a t o n e w o u l d fail t o
u n d e r s t a n d t h e life o f a b o d y b y e x a m i n i n g its
It is only through the artificial control of natural phen- s e p a r a t e cells, s o o n e w o u l d a l s o fail t o u n d e r -
momena that science is made to minister to human stand society in terms only of individual persons.
needs; and if social laws are really analogous to physical
laws, there is no reason why social science may not re-
ceive practical applications such as have been given to We must equally take into account that organic intercon-
physical science (Ward, 1918, p.352; cited in Hofstadter, nection whereby the living processes of each separate
1955). cell cooperate together to maintain the health of the
organism which contains them all. So, again, to under-
The introduction of a space for rational choice stand the social order we have to take into account, not
only the individuals with their capabilities and achieve-
e n t a i l e d t h e p o s s i b i l i t y f o r a n a p p l i e d s o c i a l sci-
ments, but the social organization in virtue of which
e n c e . K n o w l e d g e c o u l d l o c a l i s e . Its f u n c t i o n these individuals act upon one another and jointly pro-
could become that of following human rational- duce what we call social r e s u l t s . . . (Hobhouse, 1911,
ity, i n o r d e r t o i m p r o v e its e f f e c t i v e n e s s , t h r o u g h p.29).
a multiplicity of arenas or sites of action. Social
s c i e n t i f i c k n o w l e d g e s a n d p r a c t i c e c o u l d , as it An important task facing the social reformer
were, form partnership with the state, assisting was the redesign of the social organization so
the latter in the purposeful, deliberate improve- that the cooperation of individuals to produce
m e n t o f b o t h t h e s o c i a l o r g a n i z a t i o n , a n d t h e life social results could work in the least wasteful
a n d b e h a v i o u r o f t h e i n d i v i d u a l w i t h i n it. way. But unlike Webb's mechanistic imagery, in
This changed conception of the nature of the which the freedom of the individual seemed to
s o c i a l a n d t h e p o s s i b i l i t y o f its r a t i o n a l a d m i n i s t - disappear in the filling of a social role, Hobhouse
ration was expressed in the conception of the argued that:
social machine and the organic relations which
w e r e s e e n t o l i n k i n d i v i d u a l s t o it. I n B r i t a i n , f o r ... the life of the body is not perfected by suppressing the
life of the cells, but by maintaining it at its highest point
example, the Fabian socialist Sidney Webb
of efficiency. Nor is the organism developed by reducing
would proclaim that: the cells to a uniform type, but rather by allowing each
type to vary on its own lines, provided always that the
• . . we must take even more care to improve the social several variations are in the end mutually compatible.
organism of which we form part, than to perfect our own These things are applicable to society, from the widest to
individual developments. Or rather the perfect and fit- the narrowest form thereof (pp.90-91 ).
ting development of each individual is not necessarily the
utmost and highest cultivation of his own personality, but
the Falling, in the best possible way, of his humble func- These two dimensions to the sociological and
tion in the great social machine (Webb, 1899, p.58; cited philosophical debates of the time combined
in Freeden, 1978). well. A rationally administered social was one in
which a concern with the individual could be
And the working-out of a philosophy for what f o r m u l a t e d i n t e r m s o f t h e c o l l e c t i v e g o a l s o f so-
would become the New Liberalism of British ciety. A concern with individual behaviours was
p o l i t i c s t o o k , as o n e o f its i m p o r t a n t s t r a n d s , t h e a concern with society because the two were
organically i n t e r d e p e n d e n t . Social reform c o u l d states followed suit d u r i n g the following t w o

b e c o n c e i v e d in a m a n n e r analogous to the decades. Much d e b a t e followed such legislation,
reform of the enterprise. Both r e q u i r e d the b u t the e u g e n i c p r i n c i p l e was u p h e l d in 1927 b y
e l i m i n a t i o n of inefficiencies. P o v e r t y a n d the U n i t e d States S u p r e m e Court, w h e n it was
d e s t i t u t i o n r e p r e s e n t e d losses for the e n t i r e held that sterilization fell w i t h i n the police
social body. Issues of social reform m i g h t n o w b e p o w e r of the state:
p r e s s e d n o t o n l y u p o n m o r a l grounds, b u t u p o n
i n t e n s e l y practical o n e s as well ( F r e e d e n , 1978, It would be strange if it could not call upon those who
p p . 1 1 7 - 1 6 9 ) . It was a m a t t e r of e n h a n c i n g the already sap the strength of the State for those lesser sac-
rifices, often not felt to be such by those concerned, in
efficiency of individuals, a n d of seeking to recon- order to prevent our being swamped with incompe-
struct the bases of their i n t e r a c t i o n s so as to tence. It is better for all the world, if instead of waiting for
achieve a m i n i m i z a t i o n of vital wastes (Ritchie, their imbecility, society can prevent those who are man-
1891: Hobson, 1914; Ward, 1881 ). ifestlyunfit from continuingtheir kind. The principle that
sustains compulsory vaccination is broad enough to
cover cutting the Fallopian tubes (cited in Hailer, 1963,
S o m e actual practices o f socio-political man- p.139).
agement
Active i n t e r v e n t i o n in the lives of individuals
was a w a y of e n h a n c i n g the r e s o u r c e s of the I n a famous a p h o r i s m the j u d g e m e n t con-
nation. Such views w e r e n o t just abstract c l u d e d b y stating "Three g e n e r a t i o n s of imbe-
theoretical f o r m u l a t i o n s b u t had a real e x i s t e n c e ciles are e n o u g h " ( i b i d ) . E u g e n i c p r i n c i p l e s con-
at the level of practices. Eugenics is o n e e x a m p l e t i n u e d to spread d u r i n g the first t h r e e d e c a d e s of
of such practices. Eugenics was c o n c e r n e d w i t h this c e n t u r y , so that b y 1931 s o m e thirty states
the d e t e r i o r a t i o n of the n a t i o n ' s physical stock had passed a sterilization law at o n e t i m e or
and its effect o n the efficiency of the h u m a n another. It s h o u l d b e added, h o w e v e r , that b y
c o m p o n e n t of the n a t i o n ' s resources. Eugenics 1944 o n l y 42,000 official sterilisations had actu-
p r o v i d e d w h a t m i g h t b e t e r m e d a strategic link ally b e e n p e r f o r m e d .
b e t w e e n a c e r t a i n t h e o r y of social administra- But it is n o t e u g e n i c s in a n d of itself that con-
t i o n a n d a c e r t a i n c o n c e p t i o n of h u m a n abilities c e r n s us here. Eugenics is interesting, rather, as
(Rose, 1979). A r g u m e n t s c o n c e r n i n g the the m o s t e x t r e m e e x a m p l e of a form of social
d e t e r i o r a t i o n of the n a t i o n a l p h y s i q u e p o s e d the m a n a g e m e n t w h o s e c o n c e r n is the efficiency of
q u e s t i o n of the m o s t a p p r o p r i a t e m o d e of inter- the individual. Eugenics u l t i m a t e l y failed as a dis-
v e n t i o n in the o r g a n i s a t i o n of the p o p u l a t i o n . I n t i n c t strand of social m a n a g e m e n t ( R o s e , 1979).
Britain the p r i n c i p a l c o n t r i b u t i o n of the Yet alongside eugenics, initially d e r i v i n g sup-
e u g e n i c s m o v e m e n t (Mackenzie, 1976), was, p o r t from it a n d u l t i m a t e l y s u p p l a n t i n g it as a
perhaps, that it p r o v i d e d a p r i n c i p l e of legitima- form of social m a n a g e m e n t , w e can see d e v e l o p
t i o n for a series of o p e r a t i o n s o n those individu- in the first three d e c a d e s of this c e n t u r y a vast
als s u s p e c t e d of sapping the n a t i o n ' s vigour range of social i n t e r v e n t i o n s w h i c h take as their
t h r o u g h their o w n defects, w h e t h e r in the field target the inefficient individual. Mental h y g i e n e
of i n t e l l i g e n c e testing (Sutherland, 1972; Rose, is an i m p o r t a n t e x a m p l e of such d e v e l o p m e n t s .
1 9 7 9 ) or social administration. I n the U n i t e d In the U n i t e d States in 1909 the National Com-
States e u g e n i c s d e v e l o p e d further as a "practi- m i t t e e for Mental H y g i e n e is f o u n d e d w i t h its
cal" m o v e m e n t . (cf. Hailer, 1963; Pickens, 1968; aim being:
Castel et al., 1982). In 1907, after a n u m b e r of
attempts in the p r e c e d i n g d e c a d e o r so, (cf. To work for the protection of the mental health of the
public; to help raise the standard of care for those in
Kamin, 1974, p . l O ) legislation was passed in
danger of developing mental disorder or actually insane;
I n d i a n a and Michigan p r o v i d i n g for the steriliza- to promote the study of mental disorders in all their
t i o n of " c o n f i r m e d criminals, idiots, i m b e c i l e s forms and relations, and to disseminate knowledge con-
a n d rapists" (Castel et al., 1982, p.47). Many cerning their causes, treatment, and prevention; to
obtain from every source reliable data regarding condi- tive attitude of finding ways and means for people to live
tions and methods of dealing with mental disorders; to their lives at their best. Medicine has long enough main-
enlist the aid of the Federal Government so far as may tained as ideals freedom from disease and the putting off
seem desirable; to coordinate existing agencies and help of death. It is time that these were replaced by ideals of
organize in each State in the Union an allied, but indepen- living, of actual creative accomplishment. The art of liv-
dent, Society for Mental Hygiene, similar to the existing ing must replace the avoidance of death as a prime objec-
Connecticut Society for Mental Hygiene (cited in Castel tive, and if it ever does succeed in replacing it in any
etal., 1982, p.34). marked degree, it will be found that it has succeeded bet-
ter in avoiding death than the old methods that had that
Rapidly o b t a i n i n g financial support, t h e particular objective as their principal goal. Health is a
positive, not a negative concept (cited in Castel et al.,
results o f its first s t u d y c a r r i e d o u t in a B a l t i m o r e 1982, p.37).
s c h o o l in 1913 are h e l d to s h o w that 10% o f t h e
s c h o o l c h i l d r e n w e r e in n e e d o f p s y c h i a t r i c T h e advantages w e r e e v i d e n t . O n e w as n o w
assistance. T h e w a r w a s to add c o n s i d e r a b l e fully entitled, e v e n r e q u i r e d , to d o s o m e t h i n g to
f o r c e to s u c h d e v e l o p m e n t s , t h e " w a r n e u r o s e s " individuals m a n i f e s t i n g m i n o r d e v i a t i o n s f r o m a
p r o v i d i n g n e w m a t e r i a l for o b s e r v a t i o n and statistical n o r m w h i c h t w o d e c a d e s earlier m i g h t
highlighting the relationship b e t w e e n psychic h a v e passed u n n o t i c e d . O n e c o u l d n o w cl ai m to
d i s o r d e r s and e v e r y d a y living c o n d i t i o n s . In this b e able to d o s o m e t h i n g , for instance, to c h i l d r e n
respect the greatest contribution of the mental
w h o m a n i f e s t e d s u c h b e h a v i o u r s as "tantrums,
h y g i e n e m o v e m e n t lay in t h e t r e a t m e n t o f th e stealing, seclusiveness, truancy, cruelty, sensi-
p r o b l e m s o f soldiers r e t u r n i n g h o m e . tiveness, restlessness, and fears" ( Cast el et al.,
T h e m e n t a l h y g i e n e m o v e m e n t in A m e r i c a 1982, p.38). At least in p r i n c i p l e , t h e r e was
w as p a r t i c u l a r l y c o n c e r n e d w i t h c h i l d r e n ' s
h e n c e f o r t h no limit to t h o s e s p h e r e s o f p e r s o n a l
p r o b l e m s , an d p l a y e d a l e a d i n g r o l e in t h e c h i ld life w h i c h , o n c e r e n d e r e d visible, c o u l d n o w b e
g u i d a n c e m o v e m e n t w h i c h first f l o u r i s h e d in t h e
r e g a r d e d as p o t e n t i a l l y d i s r u p t i v e o f t h e efficient
'twenties. T h e i m p o r t a n c e o f s u c h d e v e l o p -
f u n c t i o n i n g o f t h e individual.
m e n t s lay in t h e n e w f o r m o f social m a n a g e m e n t
T h e f o cu s for all t h e s e n e w f o r m s o f social
w h i c h t h e y p e r m i t t e d . In t h e w o r d s o f o n e offi-
i n t e r v e n t i o n was t h e individual. W h a t t h e y
cial o f t h e c h i l d g u i d a n c e m o v e m e n t :
a c h i e v e d w as to b r i n g to t h e surface all t h o s e
the (children's) clinic treats these problems by treating aspects o f an individual's p e r s o n a l life w h i c h
not only the child through whom they become manifest, m i g h t b e d e t r i m e n t a l to t h ei r physical and m e n -
but as well the family, schools, recreational and other tal health, and t h e r e b y to t h ei r efficiency, and to
involved factors and persons which contribute to the o p e n t h e s e up to t h e possibility o f a w i d e r a n g e
problem, and whose disorder the problem may reflect o f f o r m s o f social m a n a g e m e n t . I n t e l l i g e n g e test-
(cited in Castel etal., 1982, p.35).
ing p r o v i d e d a f u r t h e r and i m p o r t a n t d i m e n s i o n
to this o v e r a l l strategy o f r e n d e r i n g visible t h e
It was n o w p o s s i b l e to i n t e r v e n e in th e w h o l e
l e v e l o f f u n c t i o n i n g o f t h e individual. T h e advan-
r a n g e o f b e h a v i o u r s o f t h e s e individuals w h o s e
tage o f i n t e l l i g e n c e tests was that t h e y s u p p l i e d
p e r f o r m a n c e fell b e l o w t h e n o r m . T h e g u i d i n g
an e l a b o r a t e and s u p p o s e d l y o b j e c t i v e m e a n s
p r i n c i p l e was n o t t h e c u r i n g o f disease and th e
w h e r e b y o n e c o u l d d i f f er en t i at e o n e individual
e r a d i c a t i o n o f defects, b u t t h e i m p r o v e m e n t o f
f r o m another. It d i d so w i t h t h e aid o f statistics
t h e h e a l t h o f t h e individual, t h e o p t i m i s a t i o n o f
w h i c h s e r v e d to s h o w t h e e x t e n t of t h e indi-
t h e i r f u n c t i o n i n g . W il li a m W h i t e w a s to state this
vidual's d e v i a t i o n f r o m t h e n o r m ( H a c k i n g ,
p r i n c i p l e cl earl y in his inaugural address to t h e
1975; Rose, 1979). I n t e l l i g e n c e tests w e r e first
First I n t e r n a t i o n a l C o n g r e s s o f Mental Hygiene:
d e v e l o p e d in F r a n c e b y Alfred Binet in 1905,
Mental hygiene is on this account alone more important a l t h o u g h as early as 1895 t h e p r i n c i p l e s w e r e
than ever before, and its significance can be seen to be stated clearly:
gradually changing from one of the simple prevention of
mental disease, which is a negative program, to the posi- we must search with the present knowledge and
methods at hand for a series of tests to apply to an indi- ( c i t e d in Castel et al., 1982, p.45). A l t h o u g h it
vidual in order to distinguish him from others and to ena- a p p e a r s that s u c h figures w e r e r a p i d l y r e v i s e d
ble us to deduce general conclusions relative to certain
d o w n w a r d , t h e y p r o v i d e d an i m p o r t a n t i m p e t u s
of his habits and faculties... (Binet & Henri, trans quoted
from Rose, 1979, p.8). for t h e s p r e a d o f m e n t a l t e s t i n g to o t h e r areas o f
social life.
I n t e l l i g e n c e tests w e r e i m p o r t e d to t h e U n i t e d In Britain t h e w a r also was significant for t h e
States b y T e r m a n at Stanford, G o d d a r d at t h e Vin- d e v e l o p m e n t o f p s y c h o l o g i c a l testing. T h e influ-
e l a n d Training S c h o o l in N e w Jersey, a n d Yerkes e n c e o f t h e w o r k o f C.S.Myers is c r u c i a l here.
at Harvard. M e n t a l t e s t i n g at that t i m e h a d c l o s e Q u e s t i o n s s u c h as fitness in r e l a t i o n to l e n g t h o f
connections with the eugenics movement. The w o r k i n g time, t h e s e l e c t i o n a n d training o f
p r o b l e m s w e r e s e e n to b e t h o s e o f criminality, industrial w o r k e r s , t h e e s t i m a t i o n o f " a c c i d e n t
p a u p e r i s m , i n d i g e n c e a n d inefficiency, all o f p r o n e n e s s " as a p e r s o n a l attribute, all s h o w e d
t h e s e b e i n g a t h r e a t to a w e l l - o r d e r e d social t h e value in b e i n g a b l e to identify t h e p e r s o n a l
b o d y . T h e difficulty, h o w e v e r , lay in d e t e c t i n g p s y c h o l o g i c a l c h a r a c t e r i s t i c s o f t h e individual.
s u c h i n s i d i o u s characteristics. F o r w h i l s t a lay- M y e r s d e v i s e d a n d a p p l i e d s e l e c t i o n tests for
p e r s o n c o u l d d e t e c t t h e m o s t e x t r e m e a n d man- m e n using listening d e v i c e s for l o c a t i n g e n e m y
ifest forms, h o w w a s o n e to identify t h e high- submarines, and worked on problems of the
g r a d e defectives? T h e i n e x p e r t o b s e r v e r c o u l d " w a r n e u r o s e s " . Myers insisted o n t h e
easily m i s t a k e s u c h i n d i v i d u a l s as e n t i r e l y nor- p s y c h o l o g i c a l n a t u r e o f w h a t w a s called "shell
mal. Mental testing p r o d u c e d a " s o l u t i o n " in its shock" and proposed and practiced
p r o v i s i o n o f a m e a n s o f s y s t e m a t i c a l l y identify- p s y c h o t h e r a p e u t i c m e t h o d s o f t r e a t m e n t . His
ing t h e fine differentiation b e t w e e n i n d i v i d u a l s p o s i t i o n was e m p h a t i c :
across h u g e masses o f individuals. Statistics a n d
the normal curve supplied another important The physiological factors involved in purely muscular
fatigue are now fast becoming negligible, compared with
i n g r e d i e n t in t h e f o r m o f a m e c h a n i s m for iden-
the effects of mental and nervous fatigue, monotony,
tifying d e v i a t i o n from t h e n o r m ( G a l t o n , 1883; want of interest, suspicion, hostility, etc. The psychologi-
Hacking, 1975; Rose, 1979; Sutherland, 1972). cal factor must therefore be the main consideration of
In the U n i t e d States t h e q u e s t i o n o f immigra- industry and commerce in the future (Myers, 1920,
tion c o n t r o l offered a suitable e x p e r i m e n t a l pp.V-VI ).
g r o u n d for m e n t a l testing. T h e testing o f "the
g r e a t mass o f average i m m i g r a n t s " in 1912 h a d The psychological attributes of the person
r e v e a l e d that 83% o f t h e Jews, 80% o f t h e Hun- w e r e , i n d e e d , to p r o v i d e t h e m o s t fruitful
garians, 79% o f t h e Italians, and 87% o f t h e Rus- g r o u n d for t h e e x p r e s s i o n o f c o n c e r n s to impli-
sians w e r e " f e e b l e - m i n d e d " . It is w e l l to recall cate the individual within the objectives of the
that f e e b l e - m i n d e d n e s s was a w a y o f qualifying e n t e r p r i s e and society.
for d e p o r t a t i o n , and it a p p e a r s that m e n t a l test-
ing significantly i n c r e a s e d t h e n u m b e r o f d e p o r -
tations for this r e a s o n (Kamin, 1974, p. 16). THE FIRM AS A SITE IN THE CONSTRUCTION
T h e first w o r l d w a r was a f u r t h e r p o w e r f u l fac- O F THE GOVERNABLE PERSON
t o r in e n c o u r a g i n g t h e s p r e a d o f m e n t a l testing.
T h e t e s t i n g p r o g r a m m e , t h e Alpha a n d Beta tests, T h e a m b i g u i t i e s o f t h e w o r d efficiency ena-
w a s a p p l i e d to s o m e t w o m i l l i o n m e n , p u b l i c b l e d it to o p e r a t e across a series o f d i s p e r s e d
i n t e r e s t in s u c h tests b e i n g given a s t i m u l u s strategies c o n c e r n e d w i t h m a n a g i n g t h e life o f
w h e n it w a s r e v e a l e d that t h e " m e n t a l age" o f t h e the person. These ranged from broad political
average w h i t g e draftee was o n l y 13 (Yerkes, p l a t f o r m s to p s y c h o l o g i c a l a n d s o c i o l o g i c a l con-
1921). E x t r a p o l a t i n g s u c h results to t h e e n t i r e cerns with individuals who deviated from
p o p u l a t i o n o f t h e U n i t e d States y i e l d e d a figure s p e c i f i e d n o r m s in a v a r i e t y o f ways. W e h a v e
o f s o m e 50 m i l l i o n m e n t a l l y d e f e c t i v e citizens! a r g u e d that t h e s t a n d a r d c o s t i n g - b u d g e t i n g c o m -
p l e x c a n b e v i e w e d i n t e r m s of s u c h a p r e o c c u - of the i n d i v i d u a l c o u l d c o m e to b e e x p r e s s e d in
pation. Standard c o s t i n g a n d b u d g e t i n g , how- m o n e y t e r m s a n d related to e x p e c t e d standards
ever, w e r e i n t e n d e d to o p e r a t e w i t h i n a particu- a n d norms.
lar site - - that o f the firm. O u r c o n c e r n n o w is to U n d o u b t e d l y , the b o d y of t h o u g h t a n d prac-
identify the w a y i n w h i c h s t a n d a r d c o s t i n g a n d tice that b e c a m e k n o w n as scientific manage-
b u d g e t i n g , i n c o n j u n c t i o n w i t h scientific man- m e n t was e n m e s h e d w i t h i n that A m e r i c a n q u e s t
a g e m e n t a n d i n d u s t r i a l psychology, c a m e to for n a t i o n a l efficiency to w h i c h w e have referred
define the firm as a v e r y p a r t i c u l a r k i n d of space. in the p r o c e d i n g s e c t i o n (Haber, 1964; Hays,
It s h o u l d b e o n e i n w h i c h efficiency a n d rational- 1959). A c c o r d i n g to F. W. Taylor ( 1 9 1 3 , pp. 5 -
ity w o u l d prevail. Such o b j e c t i v e s w o u l d b e 7), in the i n t r o d u c t o r y pages of his c e l e b r a t e d
stated n o t just i n t e r m s of the overall o b j e c t i v e s Principles of Scientific Management, the task
of the enterprise, b u t at the level of the activities was to a d v a n c e n a t i o n a l efficiency t h r o u g h
a n d u l t i m a t e l y m o t i v a t i o n s of the i n d i v i d u a l r e m e d i a t i o n of those vast wastes which, going
e m p l o y e e . Initially the w o r k e r o n the factory far b e y o n d the p o o r use a n d i n a d e q u a t e conser-
floor, a n d finally e v e r y e m p l o y e e , w o u l d c o m e vation of n a t u r a l resources, s e c r e t e d t h e m s e l v e s
to b e identified i n t e r m s of their c o n t r i b u t i o n to w i t h i n the dally actions of everyone. Roosevelt
s u c h ends. This was to r e q u i r e a p r o c e s s of con- had b e e n p r o p h e t i c , says Taylor, i n r e g a r d i n g the
tinual m o n i t o r i n g a n d observation. T h e s t a n d a r d c o n s e r v a t i o n of n a t u r a l r e s o u r c e s as n o m o r e
c o s t i n g a n d b u d g e t i n g c o m p l e x was, w e argue, a t h a n p r e l i m i n a r y to s u c h a w i d e r q u e s t i o n of the
c e n t r a l e l e m e n t in s u c h a process. efficiency of the p e r s o n and, thereby, of the
T h e c r e a t i o n of a s t a n d a r d c o s t i n g w i t h i n the nation.
a c c o u n t i n g literature, a c c o u n t i n g historians For Taylor the c o r e of the issue was that,
have a c k n o w l e d g e d , o w e s a c o n s i d e r a b l e d e b t w h e r e a s wastes of n a t u r a l r e s o u r c e s have an easy
to that m o v e m e n t which, o r i g i n a t i n g i n the visibility, wastes of h u m a n r e s o u r c e s are h i d d e n :
U.S.A., b e c a m e k n o w n as "scientific manage-
We can see our forests vanishing, our water-powers
m e n t " . A c c o r d i n g to S o l o m o n s ( 1968, p. 37), for going to waste, our soil being carried by floods into the
example, o n e c a n n o t read F. W. Taylor's p a p e r of sea. We can see and feel the waste of material things.Awk-
1903 o n Shop M a n a g e m e n t w i t h o u t n o t i c i n g ward, inefficient,or ill-directed movements of men, how-
that it c o n t a i n s m a n y of the essential e l e m e n t s of ever, leave nothingvisible or tangible behind them. Their
w h a t w o u l d later b e c o m e s t a n d a r d costing. appreciation calls for an act of memory, an effort of the
imagination. And for this reason, even though our daily
A c c o u n t i n g historians have d r a w n o u r attention, loss from this source is greater than from our waste of
also, to a n o t h e r l e a d i n g p r o p o n e n t of scientific material things, the one has stirred us deeply, while the
m a n a g e m e n t ideas, H a r r i n g t o n E m e r s o n (see, other has moved us but little ( Taylor, 1913, pp. 5-6 ).
e.g. Sowell, 1973, pp. 2 0 6 - 1 9 ; Epstein, 1978, pp.
9 0 - 1 2 0 ) . N o t o n l y did his w o r k o n efficiency Scientific m a n a g e m e n t w o u l d take u p o n itself
explictly envisage a r e q u i r e m e n t for s o m e t h i n g the p r o j e c t of r e p l a c i n g that vagueness a n d o t h e r
akin to a s t a n d a r d c o s t i n g ( E m e r s o n , 1919, pp. acts of the i m a g i n a t i o n w i t h exact scientific
149-172), but apparently he exercised a strong k n o w l e d g e of the e x t e n t of the wastes caused
i n f l u e n c e o n the w r i t i n g s of G. Charter Harrison, t h r o u g h i n a d e q u a t e h u m a n a c t i o n a n d social
w h o s e 1930 b o o k has b e e n taken as an early organisation. And, it w o u l d also set itself the task
e x a m p l a r of a fully-integrated a n d rationalised of their systematic elimination.
s t a n d a r d - c o s t i n g a n d b u d g e t i n g system (Sowell, W e are n o t c o n c e r n e d h e r e to c o n t e s t Taylor's
1973, pp. 2 2 0 - 7 0 ) . claims to scientificity. It is, rather, w i t h the way
Taking scientific m a n a g e m e n t a n d cost in w h i c h s u c h claims f u n c t i o n e d that w e are
a c c o u n t i n g as an i n t e r l i n k e d c o m p l e x , w e wish interested. Lay k n o w l e d g e s and practices of all
to suggest an e x p l a n a t i o n as to the k i n d of pro- kinds, s u c h as trades, crafts a n d traditional prac-
ject to w h i c h it c o n t r i b u t e d . This was o n e in tices, w e r e to b e p l a c e d u n d e r s u s p i c i o n as to the
w h i c h n o t i o n s of efficiency identified at the level wastefulness of their m o d e s of operation. As the
above q u o t e shows, Taylor was in little d o u b t aged that scientific m a n a g e m e n t w o u l d c o n q u e r

that such wastes w e r e vast. G i l b r e t h also w o u l d the e n t i r e social space. W h i l e his proposals origi-
illustrate the s h o c k i n g waste t h r o u g h a w k w a r d n a t e d i n the factory:
a n d b l u n d e r i n g m o v e m e n t s in a trade as old as
bricklaying ( Drury, 1915, pp. 1 0 8 - 1 1 3 ) . Taylor It is hoped, however, that it will be clear.., that the same
principles can be applied with equal force to all social
himself w o u l d p o i n t to the n e e d for a s c i e n c e of
activities: to the management of our homes; the manage-
such m u n d a n e tasks as shovelling and pig-iron ment of our farms;the management of the business of our
handling, u r g e n t l y to replace haphazard m o d e s tradesmen, large and small; of our churches, our philan-
of work. thropic institutions, our universities, and our gov-
This r e n d e r i n g suspicious of the i n a d e q u a c y ernmental departments (Taylor, 1913, p. 8).
of lay k n o w l e d g e s a n d practices is important. It
h e l p e d to legitimate the a t t e m p l t of scientific To achieve such an o b j e c t i v e w i t h i n the enter-
m a n a g e m e n t to appropriate the work-life of the prise m e a n t c o n s t r u c t i n g n o r m s or standards of
individual with a v i e w to i n t e r v e n i n g in it in w h a t efficiency m i g h t mean. I m p l a n t e d w i t h i n
o r d e r to o p t i m i s e its efficiency. A r o u n d the pil- the task p e r f o r m a n c e of the w o r k e r these w e r e
lars of efficiency, the n e e d to eliminate wastes, to p r o v i d e a basis for o b s e r v i n g deviations from
and the assuredness of s c i e n c e over and a b o v e expectations. It is in this c o n t e x t that w e can
informal knowledges, scientific m a n a g e m e n t appreciate the i n t e r s e c t i o n of scientific manage-
sought to establish for itself a right to interfere in m e n t and cost a c c o u n t i n g . For it s e e m s that from
p e o p l e ' s lives. This right was e v e n t u a l l y to b e an early date, scientific m a n a g e m e n t w r i t e r s had
taken over b y an army of t e c h n i c i a n s of the social r e c o g n i s e d the p o t e n t i a l of an efficiency mea-
a n d e c o n o m i c life of the enterprise. sure g r o u n d e d in m o n e y , in costs saved and pro-
Scientific m a n a g e m e n t reflects the almost fits earned. As early as 1886, for example, H. R.
messianic role for the e n g i n e e r i n g profession en- T o w n e , t h e n p r e s i d e n t of the A m e r i c a n Society
visaged by some of its leaders in the U.S.A.: of Mechanical Engineers a n d a m e n t o r of
To attain the high efficiency of the atomic energy of the Taylor's, had w a n t e d to c o n s t r u e the e n g i n e e r as
fish, the high mechanical efficiency of the bird, the high an e c o n o m i s t ( T o w n e , 1886). For T o w n e , the
lighting efficiencyof the firefly,is not an ethical or finan- true significance of an e n g i n e e r ' s efforts to pro-
cial or social problem, but an engineering problem; and m o t e efficiency, s o m e special cases of vital
to the engineering profession, rather than to any other, n a t i o n a l security apart, o u g h t u l t i m a t e l y to b e
must we look for salvationfrom our distinctly human ills,
so grievously and pathetically great (Emerson, 1919, p. j u d g e d in t e r m s of e c o n o m i c s . Efficiencies w e r e
5). d e e m e d true o n l y if they c o u l d u l t i m a t e l y b e
s h o w n to b e so in t e r m s of costs saved. O n e finds
C o u p l e d w i t h its r e j e c t i o n of the m e r i t of lay H a r r i n g t o n E m e r s o n ( 1 9 1 9 ) e c h o i n g these sen-
k n o w l e d g e a n d practices, the scientific manage- t i m e n t s later, arguing a n e e d for e n g i n e e r s and
m e n t literature also reveals a belief i n the possi- a c c o u n t a n t s to collaborate towards the mean-
bility of actually i m p r o v i n g the efficiency of the ingful e x p o s i t i o n of inefficiencies. It is hardly
person. It reflects a p h i l o s o p h y w h i c h refuses to. surprising, then, that e n g i n e e r s associated w i t h
accept that greatness and success are solely acci- scientific m a n a g e m e n t s h o u l d have c o m e to
d e n t s of birth. "In the future", says Taylor ( 1913, o c c u p y such a c e n t r a l role in the c o n s t r u c t i o n of
pp. 6 - 7 ) , standard costing.
T h e w o r k of G. Charter Harrison p r o v i d e s a
it will be appreciated that our leaders must be trained way of identifying this b r i d g e w h i c h was estab-
right as well as born right, and that no great man can
(with the old system of personal management) hope to lished b e t w e e n e n g i n e e r i n g and a c c o u n t i n g .
compete with a number of ordinary men who have been Harrison's claims to title span the professional
properly organized so as efficientlyto cooperate. b o d i e s of industrial e n g i n e e r i n g , c h a r t e r e d
a c c o u n t a n c y a n d costs a c c o u n t a n c y . To h i m has
In the later years of his career Taylor envis- b e e n a t t r i b u t e d the w r i t i n g of o n e of the earliest
full art i cu l at i o n s o f standard costing, a w o r k o f the workman fails to do his task, some competent teacher
w h i c h S o l o m o n s w o u l d say in 1968 that it w a s should be sent to show him exactly how his work can
best be done, to guide, help, and encourage him, and, at
still part o f t h e c u r r e n t literature. H a r r i s o n takes
the same time, to study his possibilities as a workman (pp.
f r o m E m e r s o n ( 1 9 1 9 ) his c o n c e p t o f t h e funda- 69-70).
m e n t a l d e f e c t o f e x i s t i n g c o s t a c c o u n t i n g prac-
tices. P r i o r to its i n t e r s e c t i o n w i t h scientific
But o v e r w h o m was this individualisation t o
management, cost accounting's prime defect
b e e x e r c i s e d ? It is c l e a r that l e a d e r s o f t h e scien-
was that it had:
tific m a n a g e m e n t m o v e m e n t h ad e n v i s a g e d that
their principles could embrace everyone, with
Failed most utterly and dismally to achieve what should
be the primary purpose of any cost system, namely, to n o task at all t o o l o w l y o r i m p o r t a n t to escape.
bring promptly to the attention of the management the Both p h y s i o l o g i c a l and m e n t a l w o r k w e r e to b e
existence of preventable inefficiencies so that steps e m b r a c e d . But d e s p i t e that h o p e, scientific man-
could be taken to eliminate these at the earliest possible a g e m e n t w o u l d r e m a i n e n t r a p p e d at t h e l ev el o f
moment (Harrison, 1930, p. 8).
fairly m u n d a n e , p h y s i o l o g i c a l tasks ( D r u r y ,
1915). Its first-hand t e c h n o l o g i e s for c o n s t r u c t -
In r e c t i f y i n g this d e f i c i e n c y c o s t a c c o u n t i n g
ing norms, s u c h as t h e t i m e and m o t i o n study,
w o u l d e x p a n d its d o m a in . It w o u l d s u p p l y t h e
w e r e hardly e q u i p p e d for a n y t h i n g m o r e .
e n g i n e e r s and t h e i r scientific m a n a g e m e n t w i t h
This is p r e c i s e l y w h e r e standard c o s t i n g again
a facilitative t e c h n o l o g y for e x p r e s s i n g t h e i r
b e c o m e s significant. T o g e t h e r w i t h b u d g e t i n g it
n o r m s and standards in t e r m s o f m o n e y . T h e
w o u l d s e e m to h a v e p r o v i d e d an i m p o r t a n t
e arl i er c o n c e r n o f c o s t a c c o u n t i n g w i t h
e s c a p e route, a l l o w i n g t h e p r i n c i p l e s o f standar-
t h e r e g i s t r a t i o n o f th e m o v e m e n t s o f w o r k e r s
dising and n o r m a l i s i n g to m o v e away f r o m t h e
and materials as t h e y " a t t a c h e d " t h e m s e l v e s to
f act o r y floor. At least in p r i n c i p l e t h e y c o u l d
p r o d u c t i o n (Epstein, 1978, pp. 9 0 - 1 2 0 ) w o u l d
n o w e m b r a c e e v e r y o n e w i t h i n t h e firm. Harri-
b e a u g m e n t e d . This e x p a n s i o n w o u l d r e f l e c t a
son's ( 1 9 3 0 ) standard c o s t i n g t e x t offers, in t h e
c o n c e p t o f t h e w o r k e r as a l m o s t c e r t a i n l y ineffi-
t e r m s o f scientific m a n a g e m e n t , a rationale for
cient, n e e d i n g to b e e n m e s h e d w i t h i n a
s u c h an e n d e a v o u r :
routinely-applicable calculative apparatus
w h i c h standard c o s t i n g w o u l d p r o v i d e . We have increased the efficiency of the average man
This alliance o f c o s t a c c o u n t i n g w i t h t h e because we have applied the principles of scientific man-
e n g i n e e r s was i m p o r t a n t in t h e c o n s t r u c t i o n o f agement to his work...
n o r m s o f efficfency. It p r o v i d e d a w a y for m a k i n g Our accounting methods today are the best evidence
of our failure to apply scientific management principles
t h e individual w o r k e r r o u t i n e l y k n o w a b l e and
to the development of our executives. For the five-dol-
a c c o u n t a b l e in t e r m s o f w a s t e d actions. And sci- lars-a-day man our accounting records clearly set up the
entific m a n a g e m e n t w a s s u c h an individualising objective and the accomplishment in comparision there-
e n d e a v o u r p a r excellence. It was a m a t t e r o f with. But when we come to our records for executives
c e a s i n g to treat o f w o r k e r s o n l y in t h e a n o n y m - what do we find?... Of accomplishment, it is true that our
profit and loss account tells the story of the ultimate
o u s t e r m s o f groups, classified by tr a d e o r skill.
result, but of executive objectives shown in relation to
A t t e n t i o n was to b e paid instead to t h e perfor- the accomplishment, our records are silent... (p. 27-
m a n c e o f e a c h individual w o r k e r . T a y l o r i s m 28).
w o u l d insist that e a c h w o r k e r b e s in g l e d out, to
b e r e w a r d e d o r p u n i s h e d o n t h e basis o f his o r Standard c o s t i n g had already e n m e s h e d t h e fac-
h e r individual p e r f o r m a n c e (Taylor, 1913, p. t o r y w o r k e r w i t h i n a c a l c u l u s o f efficiency. It
121; Haber, 1964, p. 23). W h e n o n e c e a s e s to s h o u l d n o w m o v e on, b y m e a n s o f t h e b u d g e t o r
deal w i t h m e n in large gangs o r groups, says profit plan, to d o t h e s a m e for e x e c u t i v e s .
Taylor ( 1 9 1 3 ) ,
No man can realize his fullest possibilities, whether he be
and proceeds to study each workman as an individual, if a five-dollar-a-day trucker in the factory or a five-
thousand-dollar-a-year executive, unless he has before But the scientific m a n a g e m e n t - - c o s t a c c o u n t -

him at all times ( 1) a carefully determined objective, (2) ing c o m p l e x was n o t t h e o n l y o n e in the early
records showing the relationship between accomplish- d e c a d e s of the c e n t u r y to c o n c e r n itself w i t h the
ment and this objective, and (3) if he has failed to realise
the objective, information as to the causes of such failure. efficiency of the p e r s o n and their c o n t r i b u t i o n
Standard costs furnish the factory superintendent with to collective efficiency. While standard costing
this information as regard factory costs, and standard pro- a n d b u d g e t i n g p r o v i d e d the lens t h r o u g h w h i c h
fit or budget systems give the executive this information e n g i n e e r s and m a n a g e r s m i g h t gaze at w o r k e r s
as regards profits (Harrison, 1930, pp. 27-28).
a n d m a n a g e r s a n d their inefficiencies, others
w e r e also i n t e r e s t e d to join in the process of
The e n g i n e e r s (e.g. Emerson, 1 9 1 9 ) had envis- observation. Specifically, these w e r e the early
aged that standard c o s t i n g w o u l d b e n o m o r e industrial psychologists. A central figure h e r e
t h a n an a p p e n d a g e to their p r i n c i p l e s of scien- was Hugo M u n s t e r b e r g . He f o r m u l a t e d the task
tific m a n a g e m e n t . It w o u l d b e a c o n v e n i e n t cal- of industrial p s y c h o l o g y as follows:
culative apparatus in r e s p e c t of the c o r e data the
e n g i n e e r w o u l d supply. But a c c o u n t i n g ' s facility Our aim is to sketch the outlines of a new science which
is to intermediate between the modern laboratory
to o p e r a t e in t e r m s of m o n e y effected a surpris-
psychology and the problems of economics: the
ing m e t a m o r p h o s i s . By c o n c e n t r a t i n g u p o n an psychological experiment is systematically to be placed
e n d - r e s u l t of m o n e y , a c c o u n t i n g c o u l d standar- at the service of commerce and industry (Munsterberg,
dise efficiency for a m u c h larger group. I n the 1913, p. 3).
case of m o r e " m e n t a l " type of work, it c o u l d sim-
ply express e x p e c t a t i o n s in t e r m s of a m o n e y What was n o w b e i n g addressed was h o w the
o u t c o m e , leaving u n c e r t a i n the q u e s t i o n of the p s y c h e of the w o r k e r m i g h t b e k n o w n and man-
means. aged, so as to serve efficiency o n an e v e n g r a n d e r
A line of c o n t i n u i t y can, w e suggest, be estab- scale than the p r o m i s e of the e n g i n e e r s a n d the
lished from scientific m a n a g e m e n t to standard cost accountants. T h e industrial psychologists
costing to budgeting. It is a c o n t i n u i t y w h i c h c a n be seen as a further g r o u p that w o u l d i n v a d e
c e n t r e s o n the n o r m , o n s u r r o u n d i n g the p e r s o n the firm, g e n e r a t i n g a n d applying a k n o w l e d g e of
w i t h e x p e c t i o n s of behaviour. While scientific the individual. W i t h this d e v e l o p m e n t c o n c e r n s
m a n a g e m e n t m i g h t s e e m to have faded into of the m i n d as well as of the b o d y w o u l d b e intro-
e x t i n c t i o n , it has n o t d o n e so w i t h o u t leaving a d u c e d into the p r o j e c t of e n m e s h i n g the indi-
significant residue, in standard c o s t i n g and vidual w i t h i n n o r m s of e c o n o m i c p e r f o r m a n c e .
budgeting. If Taylorism and scientific manage- T h e r e seems little d o u b t that the early indust-
m e n t m o r e generally had envisaged the enter- rial p s y c h o l o g y literature shares m u c h in orien-
prise as machine-like, cost a c c o u n t i n g , t h r o u g h tation w i t h the scientific m a n a g e m e n t - c o s t
the b u d g e t and b u d g e t a r y control, w o u l d pro- a c c o u n t i n g c o m p l e x w e have just looked at.
vide a m e a n s for r e n d e r i n g that image opera- Industrial p s y c h o l o g y w o u l d also lay claim to
tional. M o n e y w o u l d , as it were, b e c o m e the scientific status. And it w o u l d do so in a m o r e
c o m m o n c u r r e n c y w i t h w h i c h to integrate and careful m a n n e r t h a n Taylorism. Relative to the
aggregate the activities of individuals as c o m p o - "helpless psychological dilettantism" of others
nents. For b o t h b r a i n - w o r k a n d physical-work, w h o w o u l d seek to m o t i v a t e the worker,
i n d e e d for every a c c o u n t a b l e p e r s o n w i t h i n the ( M u n s t e r b e r g , 1913, p. 56), it w o u l d t h e r e b y
firm, standards and deviations t h e r e f r o m seek to establish for itself a privileged position.
r e c k o n e d in m o n e y c o u l d r e c o r d the indi- N o w that it had m o v e d b e y o n d philosophical or
vidual's c o n t r i b u t i o n s , and also their failure to theological speculation, p s y c h o l o g y c o u l d offer
c o n t r i b u t e , to the e n d s of the m a c h i n e as a a practical c o n t r i b u t i o n to the goals of civilisa-
whole. At h a n d was a calculative apparatus tion ( M u n s t e r b e r g , 1913). It w o u l d establish a
t h r o u g h w h i c h d e e p q u e s t i o n s of responsibility laboratory w i t h i n w h i c h to place the p e r s o n as a
c o u l d r o u t i n e l y be p r e s s e d u p o n individuals. s u b j e c t u p o n w h o m e x p e r i m e n t s c o u l d b e con-
d u c t e d . This w o u l d place it alongside the n a t u r a l psychotechnics does not stand in the services of a party,
sciences. Its p e r i p a t e t i c l a b o r a t o r y w o u l d b e the but exclusively in the service of civilisation (Munster-
factory, i n d u s t r i a l psychologists m o v i n g freely berg, 1913, p. 20).
from the o n e to the o t h e r w i t h great ease (Myers,
1920). To any p r o j e c t of e n m e s h i n g the individual
I n d u s t r i a l p s y c h o l o g y w o u l d share w i t h scien- w i t h i n n o r m s of efficiency, an e x p e r t psycholog-
tific m a n a g e m e n t a c o n c e n t r a t i o n u p o n the indi- ical s e l e c t i o n process, as well as psychological
vidual. I n d e e d as M u n s t e r b e r g ( 1 9 1 3 ) p o i n t s i n t e r v e n t i o n in i n t e r p r e t i n g task p e r f o r m a n c e
out, the e n t i r e p r o j e c t of an applied psychology, variables, is d e c l a r e d indispensable. Later, as w e
w i t h i n w h i c h industrial p s y c h o l o g y c a n b e sited, shall see, the b o d y of psychological literature
had b e c o m e possible o n l y w h e n psychologists w h i c h w o u l d e m e r g e in altered form from these
c a m e to r e c o g n i s e the i m p o r t a n c e of individual b e g i n n i n g s w o u l d significantly i n t e r s e c t w i t h
differences. T h e q u e s t for universal laws of the b u d g e t i n g a n d standard costing. In so doing, it
m i n d , for all of its i m p o r t a n c e , had d e n i e d w o u l d help to b r i n g into particular relief the
psychologists the possibility of b r i n g i n g their c o m p l e x individuality of the p e r s o n w i t h i n the
skills to b e a r u p o n the practical w o r l d of affairs: firm. This c o n s t r u c t has, w e shall suggest, rein-
forced a rationale for " b e h a v i o u r a l scientists" to
In practical life we never have to do with what is com- intensify their a t t e n t i o n to m a n a g i n g the organi-
mon to all human beings, even when we are to influence sationally d y s f u n c t i o n a l p r o p e r t i e s of the per-
large masses; we have to deal with personalities whose son.
mental life is characterised by particular traits of national.
ity, or race, or vocation, or sex, or age, or special
interests, or other features by which they differ from the
average mind which the theoretical psychologist may A GESTURE TOWARDS THE PRESENT
construct as a type (Munsterberg, 1913, p. 9).
I n so far as the c o n c e r n of this p a p e r is histori-
It is the i n d i v i d u a l w h o m the psychologist is to cal w e w o u l d like it to b e read as a "history of the
help. His or h e r particular aptitudes or skills are present". By this w e m e a n an a t t e m p t to identify
to b e e x p e r t l y ascertained, so that the the dispersed e v e n t s w h i c h i n t e r s e c t to establish
psychologist c a n r e c o m m e n d a p e r s o n - t a s k fit o u r c o n t e m p o r a r y , a n d often u n q u e s t i o n e d ,
that is c o n g r u e n t w i t h individual w e l l - b e i n g a n d rationales. This far, h o w e v e r , w e have b e e n
the e x i g e n c i e s of efficiency (see e.g. Myers, p o i n t i n g largely to n o t i o n s a n d practices w h i c h
1920). A n d m o t i v a t i o n a l difficulties in task per- have b e e n s u p p l a n t e d or significantly redefined.
f o r m a n c e are to b e s e e n as s t e m m i n g from m e n - W e w o u l d like n o w to try schematically to iden-
tal traits w h i c h the n o n - e x p e r t c a n n o t effec- tify s o m e of the r e l o c a t i o n s a n d shifts w h i c h
tively diagnose. O n l y b y s u c h i n t e r v e n t i o n s of have o c c u r r e d in m o r e r e c e n t times. W e c a n n o t
the p s y c h o l o g i s t will t h e r e b e avoided that h o p e in any w a y to d o justice to the r i c h n e s s of
which the i n t e r v e n i n g period. It is simply s o m e of the
lines w h i c h e m e r g e o u t of a n d following the
social statistics show with an appalling clearness, what a
p e r i o d 1 9 0 0 - 1 9 3 0 to w h i c h w e wish to refer.
burden and what a danger to the social body is growing
from the masses of those who do not succeed and who by This is u n d e r t a k e n w i t h a v i e w to locating the
their lack of success become discouraged and embitted c o n t i n u i t i e s b e t w e e n the p r e s e n t a n d the p e r i o d
(Munsterberg, 1913, p. 35). w e have addressed above. It also entaills regis-
t e r i n g the effect and i m p l i c a t i o n s of the shifts
Finally, the early industrial psychologists w h i c h have o c c u r r e d in the a c c o u n t i n g litera-
share w i t h Taylorism an appeal to efficiency as a ture.
t r a n s c e n d e n t purpose. T h e y too, it seems, w a n t O n e issue w h i c h interests us particularly in
their e n d e a v o u r p l a c e d b e y o n d the reach of poli- this c o n t i n u i t y of c o n c e r n s , c o u p l e d w i t h a rede-
tics: finition of t e r m s a n d objectives, is the i n t r o d u c -
t i o n of the n o t i o n of the "behavioural" into w i t h i n discourse. It c o u l d n o t b e otherwise. T h e

a c c o u n t i n g (Devine, 1960; Bedford and p o i n t w e w o u l d d r a w from this is that i m p o r t a n t
Dopuch, 1961; Ashton, 1983). O u r suggestion is practical issues p r o d u c e the c o n d i t i o n s u n d e r
that this p r o d u c e d a m o d e r n i s a t i o n of the w h i c h c e r t a i n p r o b l e m s c o m e to b e expressed.
a c c o u n t i n g c o m p l e x , b u t o n e w h i c h entailed a T h e y do not, h o w e v e r , d e t e r m i n e the t e r m s
significant c o n t i n u i t y w i t h the c o n c e r n to a c c o r d i n g to w h i c h they are expressed. O u r con-
e n m e s h the individual w i t h i n a c o m p l e x w e b of c e r n here is w i t h the latter.
calculative practices. It is n o t that a c c o u n t i n g A third p o i n t relates to the n o t i o n s of rational-
simply e x p a n d s its d o m a i n t h r o u g h the intro- ity and efficiency, and the e x t e n t to w h i c h the
d u c t i o n of the b e h a v i o u r a l w i t h i n its sphere. It is c h a n g e s w e p o i n t to r e p r e s e n t a c o n t i n u a t i o n of
rather a r e d e f i n i t i o n of the t e r m s a c c o r d i n g to such a c o n c e r n . O u r a n s w e r w o u l d b e emphati-
w h i c h the a c c o u n t i n g c o m p l e x is u n d e r s t o o d caUy affirmative. Yet w e w o u l d again wish to
that is at issue. This is a c h i e v e d t h r o u g h incor- d r a w a t t t e n t i o n to the redefinitions w h i c h
p o r a t i n g w i t h i n the d o m a i n of a c c o u n t i n g a occur. Rationality itself c o m e s to b e prob-
c h a n g e d n o t i o n of the person. The c h a n g e con- lematised. All individuals c o m e to b e v i e w e d as
c e r n s the a t t r i b u t i o n to the individual of a com- decision-makers, albeit in different respects.
p l e x set of m o t i v e s a n d frustrations, a p o t e n t i a l Rationality r e m a i n s as an issue of the relation
hostility to the budget, for example. The indi- b e t w e e n p e r s o n a l and collective efficiency, yet
vidual is v i e w e d as a m e m b e r of informal groups it is c o n s t r u c t e d a c c o r d i n g to a different c o n c e p -
outside, from w h i c h c a n b e d r a w n c o n s i d e r a b l e t i o n of the p e r s o n and a revised n o t i o n of the
s u p p o r t a n d into w h i c h t h e r e is always the organisation.
d a n g e r that h e or she may withdraw. In recogni- O u r i n t e r p r e t a t i o n of the i n t r o d u c t i o n of the
tion of such a d a n g e r a c c o u n t i n g comes, w e b e h a v i o u r a l into a c c o u n t i n g entails a slight
argue, to redefine its territory b y i n c l u d i n g detour. This is t h r o u g h the psychological a n d
w i t h i n its legitimate s p h e r e of o p e r a t i o n pre- sociological f o r m u l a t i o n of an interest in the
cisely these c o n c e r n s . h u m a n relations aspect of organisations d u r i n g
A s e c o n d issue, and o n e w e have referred to the s e c o n d q u a r t e r of the t w e n t i e t h c e n t u r y .
already, c o n c e r n s the level at w h i c h the redefin- Central here are the H a w t h o r n e investigations
ition takes place. Stated baldly, and as a question, w h i c h e x t e n d e d for five years from 1927 u n t i l
the issue is this: is o u r c o n c e r n h e r e simply w i t h 1932 (Mayo, 1933; W h i t e h e a d , 1938; Roethlis-
discourses? The a n s w e r is clear. The r e d e f i n i t i o n b e r g e r & Dickson, 1939). T h e familiarity of the
of a c c o u n t i n g t h r o u g h the i n t r o d u c t i o n of the various c o m m e n t a r i e s o n the H a w t h o r n e
b e h a v i o u r a l was carried o u t in r e l a t i o n to very researches entails the possible d a n g e r that w e
real practical problems. O n e of the p i o n e e r i n g b e c o m e i n u r e d to the n o v e l t y of their i n v e n t i o n
studies in this field (Argyris, 1 9 5 2 ) was i n d e e d of an art of g o v e r n m e n t for the enterprise. This
u n d e r t a k e n as a r e p o r t to the C o n t r o l l e r s h i p w o u l d b e u n f o r t u n a t e b e c a u s e the reformula-
F o u n d a t i o n itself. C o n c e r n e d w i t h "the p o i n t at tion they p r o d u c e d in s u c h a p r o j e c t was pro-
w h i c h m e n a n d b u d g e t s m e e t " the f o r e w o r d found. The effect of the H a w t h o r n e researches
d e c l a r e d clearly the aims of the report: was to e n a b l e a c o n c e r n to d e v e l o p w i t h the life
of the p e r s o n in all its d i m e n s i o n s as a p r o b l e m
we hope the report sheds light on one of the most basic
"Control" questions faced by management - - how to for the collective e n d s of the total organisation.
gain acceptance - - the real acceptance of standards and Roethlisberger & Dickson express this a m b i t i o n
goals (Argyris, 1952, foreword). clearly:
In terms of the concept of an industrial organization as a

T h e starting p o i n t for the r e t h i n k i n g of a c c o u n t -
social system many of the human problems of manage-
ing t h r o u g h the i n t r o d u c t i o n of the b e h a v i o u r a l ment can be reformulated. A traditional statement of
was a c o n c r e t e p r o b l e m . T h e f o r m u l a t i o n of the these problems frequently distorts the actual human situ-
terms of such an issue was effected, h o w e v e r , ation in the industrial plant. The workers, supervisors, or
executives are often considered apart from their social m u s t c o n s t r u c t a w o r k si t u at i o n w h i c h is also a

setting and personal history and are treated as essentially social situation. T h r o u g h this o n e will b e able to
"economic men". Simple cause and effect analysis of their i m p l i c a t e t h e p e r s o n a l d i m e n s i o n s o f t h e life o f
behaviour is substituted for the richer situational context
in which their lives are lived and in which the relation of the w o r k e r within the e c o n o m i c objective of the
mutual interdependence obtains (Roethlisberger & organisation:
Dickson, 1939, p. 569). Where the work situation is such that it does not allow
the worker's preoccupations or attention to be socially
T h e e m p h a s i s w h i c h e m e r g e s is o n c o l l e c t i v e expressed or directed by conversation or by other
goals and m u t u a l i n t e r d e p e n d e n c e o f t h e v a r i o u s activities, an ideal setting is created for the development
c o m p o n e n t parts o f t h e e n t e r p r i s e . This w a s to of morbid preoccupations. He is likely to spend his time
brooding about his personal problems or his relations
entail a r e c o n c e p t u a l i s a t i o n o f w h a t o n e c o u l d with his co-workers and supervisors. Where the social
e x p e c t f r o m b u d g e t s a n d o t h e r f o r m s o f standar- situation is such that it does allow for the social expres-
disation o f m a n a g e r i a l e x p e c t a t i o n s . O n e c o u l d sion of preoccupation, much brooding about factors inci-
n o l o n g e r base b u d g e t s and p e r f o r m a n c e stan- dental to the worker's personal history can be alleviated
dards solely o n an a s s u m p t i o n o f rational (Roethlisberger & Dickson, 1939, pp. 573-574).
e c o n o m i c p e r s o n a l m o t i v a t i o n s . T o d o so risked
producing severe unintended consequences N o w of course the c o n c e r n with the personal
a n d resistances. In p l a c e o f s u c h l i m i t e d v i e w s d i m e n s i o n o f t h e life o f t h e w o r k e r w as a m u c h
m u s t b e p u t t h e p e r s o n c h a r a c t e r i s e d b y senti- m o r e c o m p l e x issue than t h e s e b r i e f r e m a r k s
ments, to w h o m m a n a g e r i a l p o l i c i e s m u s t b e suggest. T h e i r r e l e v a n c e for o u r c o n c e r n s h er e,
a d d r e s s e d in t e r m s o f t h e i r m e a n i n g s to that per- h o w e v e r , are in t e r m s o f t h e w a y s u c h t h e m e s
so n in t h e i r p a r t i c u l a r p e r s o n a l and social cir- p r o v i d e d a basis for t h e r e d e f i n i t i o n o f a c c o u n t -
c u m s t a n c e s . T h e c o n c e r n w i t h efi$ciency and ing w h i c h w as to o c c u r in t h e third q u a r t e r o f
rationalisation m u s t b e a r t i c u l a t e d w i t h an this century. Put simply, t h e r e d i f i n i t i o n t o o k
u n d e r s t a n d i n g o f t h e possibilities o f s e c u r i n g place through the incorporation (within the
c o o p e r a t i o n and a c c e p t a n c e o f m a n a g e r i a l goals. d o m a i n o f a c c o u n t i n g ) o f just t h e s e p e r s o n a l and
A negotiative conception of management should h u m a n r el at i o n s c o n c e r n s .
b e s u b s t i t u t e d for o n e b a s e d o n t h e c r u d e impos- Argyris ( 1 9 5 2 ) is t h e c l e a r e s t early formula-
ition o f standards. T h e c o n c e p t o f m a n a g e r i a l tion o f s u c h a c o n c e r n . T h e F o r e w o r d to Argyris'
c o n t r o l w o u l d h a v e to b e r e d e f i n e d so as to st u d y r e m i n d s us o f t h e d e f e c t s o f a c c o u n t i n g
i m p l i c a t e individuals w i t h i n t h e c o l l e c t i v e ob- t e c h n i q u e s as p r e v i o u s l y c o n c e i v e d . S o m e o f
j e c t i v e s o f t h e e n t e r p r i s e . T o a c h i e v e this o n e these, it is argued:
w o u l d h a v e to a t t e n d to a q u i t e different d i m e n -
have reached the ultimate state of dwelling within an
sion o f t h e e n t e r p r i s e to that p r e v i o u s l y : electronic tube and emerging only to shake a mechanical
finger at erring human beings (Argris, 1952, foreword).
A great deal of attention has been given to the economic
function of industrial organization. Scientific controls
have been introduced to further the economic purposes T h e p o i n t o f Argyris' st u d y was that this c o n c e p -
of the concern and of the individuals within it. Much of t i o n o f a c c o u n t i n g m u s t b e drastically revised.
this advance has gone on in the name of efficiency or H e d r e w a t t e n t i o n to " w h a t p e o p l e think o f
rationalization. Nothing comparable to this advance has b u d g et s", distinguishing b e t w e e n "budget
gone on in the development of skills and techniques for
p e o p l e " , "factory s u p e r v i s o r s " and " e m p l o y e e s "
securing cooperation, that is, for getting individuals and
groups of individuals working together effectively and o r " f a c t o r y p e o p l e " . T h e p o i n t o f this categorisa-
with satisfaction to themselves (Roethlisberger & t i o n w as to d e m o n s t r a t e that different g r o u p s o f
Dickson, 1939, pp. 552-553). p e o p l e had different v i e w s o n budgets, o n h o w
t h e y w e r e u s e d and w h y t h e y o f t e n w e r e n o t
E c o n o m i c e n d s are m e d i a t e d t h r o u g h p e r s o n a l met. T h e n e g a t i v e c o n s e q u e n c e s o f b u d g e t s
and social s e n t i m e n t s . O n e c a n n o t h o p e to w h i c h w e r e simply imposed on people w e r e
a c h i e v e t h e f o r m e r if t h e latter are ignored. O n e i d e n t i f i e d cl ear l y by Argyris. P r e s s u r e to m e e t
targets laid d o w n in b u d g e t s risked i n c r e a s i n g a c c o u n t o f t h e c o m p l e x i t y o f t h e individual's

tension, r e s e n t m e n t , and suspicion. This w o u l d motivations, t h ei r d i v e r s e n e e d s and desires:
o f t e n lead to t h e f o r m a t i o n o f g r o u p s as a w a y o f
c o m b a t t i n g m a n a g e m e n t pressure. T h e real It is possible that the failure of management accountants
to consider the more complex motivating forces which
danger, h o w e v e r , lay in t h e l o n g e r term. In t h e
organisation theory recognizes in the individual contri-
s h o r t t e r m m a n a g e m e n t m a y r e c o g n i s e th e dan- butes to the use of accounting systems and procedures
gers and r e d u c e t h e pressure. In p r i n c i p l e t h e which produce "side-effects" in the form of a variety of
g r o u p s h o u l d disappear. H o w e v e r t h e c o n c l u - unanticipated and undesired responses from particip-
sion to w h i c h Argyris c a m e was that t h e r e was a ants. For example, many management accounting
techniques intended to control costs, such as budgeting
t e n d e n c y for t h e g r o u p to remain. If it r e m a i n e d ,
and standard costing, may virtually defeat themselves
it w o u l d c o n t i n u e to cause p r o b l e m s w e l l after because they help to create feelings of confusion, frustra-
th e initial irritant had b e e n r e m o v e d . tion, suspicion and hostility. These techniques may not
T h e r e m e d y p r o p o s e d was t h e i n t r o d u c t i o n o f motivate effectively because they fail to consider the
a n e g o t i a t i v e politics for t h e g o v e r n m e n t o f th e broad spectrum of needs and drives of the participants
(Caplan, 1966, p. 506).
e n t er p ri s e. A n u m b e r o f t e r m s c a m e to o p e r a t e
w i t h i n this b r o a d s p a c e - - c o o p e r a t i o n , bargain-
ing, c o m m u n i c a t i o n . O f c o u r s e as a n e g o t i a t i v e T h e cl ear l e s s o n was that a c c o u n t a n t s s h o u l d
politics it was w e i g h t e d heavily in t h e favour o f a c c e p t as r e l e v a n t t h o s e b o d i e s o f k n o w l e d g e
o n e side. T h e p o i n t h o w e v e r was clear. As far as w h i c h h i t h e r t o t h e y h ad o v e r l o o k e d , W h a t
b u d g e t s w e r e c o n c e r n e d o n e s h o u l d s e e k to gain m i g h t h a v e s e e m e d to Harrison ( 1 9 3 0 ) as n o
a c c e p t a n c e o f b u d g e t s by all t h o s e w h o m t h e y m o r e than c o m m o n s e n s e , n a m e l y that b u d g e t s
affected. A c c o u n t i n g s h o u l d b e r e f o r m u l a t e d so o u g h t to b e set so as to e n c o u r a g e t h e i r achieve-
as to take a c c o u n t o f s u c h factors. T h e w o r k e r as m e n t , was c o m i n g to b e s e e n as itself r a t h e r a
a c o m p l e x p e r s o n and as a m e m b e r o f an infor- large t e r r i t o r y for investigation, r e q u i r i n g t h e
mal g r o u p s h o u l d b e i n c o r p o r a t e d w i t h i n m e d i a t i o n o f o t h e r and unfamiliar t h e o r i e s and
a c c o u n t i n g ' s domain. c o n c e p t s . I n d eed , o n e m i g h t say, the w h o l e
This shift to a b e h a v i o u r a l c o n c e p t i o n o f m e a n i n g o f cost a c c o u n t i n g ' s ef f ect i v en ess was
a c c o u n t i n g can b e i n d i c a t e d across a r a n g e o f b e i n g challenged. Instead o f d e p e n d i n g just
writings w h i c h h a v e a p p e a r e d o v e r t h e past t w o upon the technical sophistication of the
d e c a d e s and m o r e (Caplan, 1966; Hofstede, a c c o u n t i n g system, e f f e c t i v e n e s s w as c o m i n g to
1968; H o p w o o d , 1974; Schiff & Lewin, 1974; b e s e e n as crucially d e p e n d e n t u p o n w h e t h e r
Harrison et al., 1981). D e v i n e ( 1 9 6 0 ) w o u l d t h e s y s t e m w o u l d actually i m p e l p e o p l e to
argue that t h e b e h a v i o u r a l a s s u m p t i o n s o f ac- a c h i e v e d e s i r e d p u r p o s e s ( B e n s t o n , 1963; Cap-
c o u n t i n g n e e d e d drastic revision: lan, 1966; H o p w o o d , 1973). T h e e n c i r c l i n g o f
t h e p e r s o n w i t h cal cu l at i v e p r a c t i c e s w h i c h
Let us... turn to that part of accounting which is related w o u l d r o u t i n e l y c o n s t r u c t o r m o n i t o r his or h e r
directly to the psychological reactions of those who con-
c o n t r i b u t i o n s to efficiency, as traditionally
sume accounting output or are caught in its threads of
control. On balance it seems fair to conclude that e f f e c t e d by b u d g e t i n g , was s e e n to b e d e p e n d e n t
accountants seem to have waded through their relation- u p o n an i n a d e q u a t e p s y c h o l o g y .
ships to the intricate psychological network of human O t h e r studies w e r e to refine t h e issues at stake
activity with a heavy-handed crudity that is beyond h e r e (e.g. Likert & Seashore, 1963; B e c k e r &
belief. Some degree of crudity may be excused in a new G r e e n , 1962). T h e e n c o u n t e r b e t w e e n t h e per-
discipline, but failure to recognise that much of what pas-
ses as accounting theory is hopelessly entwined with so n and t h e b u d g e t was to lead a c c o u n t a n t s to
unsupported behaviour assumptions is unforgiveable o b s e r v e t h e organizational life o f t h e p e r s o n at
(Devine, 1960, p. 394). first hand. Q u e s t i o n s w o u l d b e asked as to t h e
e x t e n t o f t h e r e l e v a n t psychological, sociologi-
A n o t h e r w r i t e r (Caplan, 1 9 6 6 ) w o u l d a r g u e that cal and o r g a n i z a t i o n t h e o r i e s w h i c h a c c o u n t a n t s
a c c o u n t i n g as a m a n a g e m e n t t o o l n e e d e d to take o u g h t to k n o w , and t h e o p t i o n s w h i c h e x i s t e d
for c o l l a b o r a t i o n s w i t h the m o r e established a n d the p r o j e c t of organisational m a n a g e m e n t ,

" b e h a v i o u r a l scientists" ( D e v i n e , 1960; Hofstedt w o u l d have to e n t e r a p e r p e t u a l series of m o v e s
et al., 1970). A n d s o m e s u b s t a n t i v e empirical a n d c o u n t e r - m o v e s . T h e p r o j e c t of m a n a g e m e n t
studies w o u l d b e carried out. T e n d i n g to take v i e w e d in these t e r m s c o u l d n e v e r t e r m i n a t e
b u d g e t i n g a n d s t a n d a r d c o s t i n g as p o i n t s of b e c a u s e the p e r s o n was always s e e n to possess
d e p a r t u r e , s u c h studies w o u l d e x p l o r e the the possibilities of c h o i c e w h i c h c o u l d b e
impact, b o t h u p o n the p s y c h o l o g i c a l w e l l - b e i n g organisationally dysfunctional. T h e decision-
of the p e r s o n a n d u p o n his or h e r p r o p e n s i t i e s to m a k i n g p e r s o n is s e e n to have an i n e r a d i c a b l e
m e e t organizational efficiency or goals, of those e l e m e n t of freedom. The task of organisational
"unintended consequences" produced by such m a n a g e m e n t w o u l d c o m e to b e u n d e r s t o o d as
calculative practices ( s e e e.g. Hofstede, 1968; the s u p e r v i s i o n a n d d e f i n i t i o n of this freedom,
H o p w o o d , 1973). More k n o w l e d g e was n e e d e d , s o m e t h i n g w h i c h c o u l d always b e subverted. An
i n o r d e r that the systems a n d their m e t h o d s of e x p a n d e d g r o u p of " b e h a v i o u r a l scientists", in-
use m i g h t b e redesigned, so as to e n h a n c e the c l u d i n g at least s o m e a c c o u n t a n t s , w o u l d set
w e l l - b e i n g of p e r s o n a n d organization. O n e itself the task of a t t e n d i n g to s u c h questions.
m i g h t say that the d i s c o v e r y of the m o t i v a t i o n a l O n e c a n locate s u c h a shift t h r o u g h the writ-
c o m p l e x i t y of the p e r s o n revealed the i n a d e q u - ings of Barnard ( 1 9 3 8 ) , S i m o n ( 1 9 5 7 ) , March &
acy of s u c h as b u d g e t s in p r o c u r i n g i n d i v i d u a l Simon ( 1 9 5 8 ) a n d Cyert & March ( 1 9 6 3 ) . T h e s e
efficiency. A space was o p e n e d for fresh w o r k s w e r e to b e s e e n as having e n r i c h e d the
a p p r o a c h e s to that e n d e a v o u r . And in a d d i t i o n to c o n c e r n s of a c c o u n t a n t s w i t h h u m a n motiva-
e m p i r i c a l field studies, a c c o u n t a n t s w o u l d c o m e tion, a n d they a c h i e v e d rapid r e c o g n i t i o n w i t h i n
n o t o n l y to join the p s y c h o l o g i s t in l a b o r a t o r y the a c a d e m i c a c c o u n t i n g literature (Devine,
o b s e r v a t i o n s of the organizational subject, b u t 1960; Benston, 1963). As early as 1937 Barnard
e v e n to make s o m e significant a t t e m p t s to con- was l e c t u r i n g o n the d i s t i n c t i o n b e t w e e n per-
s t r u c t similar laboratories of their o w n (see e.g. sonal e n d s a n d organizational ends. He was to
Libby, 1981 for a review). A c c o u n t a n c y w o u l d suggest the e x i s t e n c e o f " a sort of dual personal-
e n t e r alliances w i t h the o t h e r b e h a v i o u r a l sci- ity", o n e w h i c h was organisational a n d o n e
e n c e s to gaze u p o n a n d to d i r e c t the organiza- w h i c h was personal. An i m p o r t a n t issue this
tional life of the p e r s o n . raised was that of their c o n g r u e n c e o n m a t t e r s of
O n e p a r t i c u l a r e x p r e s s i o n of the shift w e are authority. The latter was s e e n to d e p e n d cru-
referring to h e r e was the re-casting of organisa- cially o n p e r s o n a l a c c e p t a n c e and n o t o n p u r e l y
tion t h e o r y t h r o u g h a n o t i o n of the p e r s o n vie- formal criteria:
w e d as a decision-maker. For o u r c o n c e r n s h e r e
Ifa directive communication is accepted by one to whom
this is an i m p o r t a n t d e v e l o p m e n t . It had the it is addressed, its authority for him is confirmed or estab-
effect of significantly r e d e f i n i n g the p r o j e c t of lished. It is admitted as the basis of action. Disobedience
m a n a g e m e n t a n d the a t t e m p t to establish of such a communication is a denial of its authority for
m e c h a n i s m s for the i m p l i c a t i o n of the i n d i v i d u a l him. Therefore, under this definition the decision as to
whether an order has authority or not lies with the per-
w i t h i n organisational objectives. O r r a t h e r it
sons to whom it is addressed, and does not reside in "per-
r e n d e r e d p r o b l e m a t i c the n a t u r e of the social sons of authority" or those who issue these orders (Bar-
b o n d w i t h i n the enterprise. nard, 1938, p. 163).
T h e i n t r o d u c t i o n of the n o t i o n of the p e r s o n
as a d e c i s i o n - m a k e r r e n d e r e d o b s o l e t e the image A u t h o r i t y is interpersonal. T h e individual is s e e n
of the i n d i v i d u a l as a m a c h i n e a n d s u b s t i t u t e d to b e free to d e c i d e for or against a c c e p t a n c e of
o n e of an i n d i v i d u a l capable of choice. This ele- n o r m s , i n s t r u c t i o n s a n d standards; at the very
m e n t of c h o i c e e n t a i l e d i n the n o t i o n of the deci- least they are n o l o n g e r v i e w e d as u n p r o b l e m a t -
s i o n - m a k i n g i n d i v i d u a l p l a c e d the p e r s o n a l ically internalised. T h e r e a c t i o n s of s u b o r d i n a t e s
d i m e n s i o n of i n d i v i d u a l b e h a v i o u r at the mar- is s e e n to b e m e d i a t e d b y varying d e g r e e s of con-
gins of the possibility of control. T h e individual, viction. W h e r e a s for an organisation:
decision is in its important aspects a social process.., the members of the coalition. One such control-sys-
process of decision in individuals.., is a psychological t e m is t h e b u d g e t :
process socially conditioned (Barnard, 1938, cited in
Sofer, 1972, p. 165). The budget in a modern, large-scale corporation plays
March & Simon (1958), Simon (1957) and two basic roles. On the one hand, it is used as a manage-
ment control device to implement policies on which
C y e r t & M a r c h ( 1 9 6 3 ) w e r e to d e v e l o p this
executives have decided and to check achievement
notion of the decision-making organisation. "De- against established criteria. On the other hand, a budget
c i d i n g " c a m e t o b e v i e w e d n o t as a m o m e n t a r y isa device to determine feasible programs. In either case,
a c t b u t as a p r o c e s s w h i c h p e r v a d e d t h e e n t i r e it tends to define - - in advance - - a set of fixed commit-
organisation: ments and (perhaps more important) fixed expectations.
Although budgets can be flexible, they cannot help but
Although any practical activity involves both "deciding" result in the specification of a framework within which
and "doing", it has not commonly been recognised that a the firm will operate, evaluate its success, and alter its
theory of administration should be concerned with the program (Cyert & March, 1963, pp. 110-111 ).
processes of decision as well as with the processes of
action. This neglect perhaps stems from the notion that T h e b u d g e t m a y set o r g a n i s a t i o n a l o b j e c t i v e s .
decision-making is confined to the formulation of over-all B u t it is n o n e t h e l e s s c o n s t r a i n e d b y t h e m o r e
policy. On the contrary, the process of decision does not
general constraints of the motivational complex-
come to an end when the general purpose of an organiza-
tion has been determined. The task of "deciding" per- ity o f individuals. W h a t is i n t e r e s t i n g for o u r p u r -
vades the entire administrative organization quite as p o s e s h e r e is t h e p r o p o s e d r e s o l u t i o n t o this dif-
much as does the task of "doing" - - indeed, it is integrally ficulty. O n e n o l o n g e r s e e k s o n l y to f o r c e p e o p l e
tied up with the latter. A general theory of administration into the structures of the budget. Rather one
must include principles of organization that will insure
redefines the accounting side of the equation
correct decision-making, just as it must include princi-
ples that will insure effective action (Simon, 1957, p. 1). through the incorporation of a concept of the
p e r s o n as m o t i v a t i o n a l l y c o m p l e x . T h e b u d g e t
A drastic revision of the concept of "economic a n d s t a n d a r d c o s t i n g c o m e t o b e d i s p l a c e d in
man" was seen to be needed. The revision meant f a v o u r o f a task o f s e e k i n g t o e n g i n e e r t h e ration-
incorporating the environment and the ality o f t h e p e r s o n . T h e i m p l i c a t i o n a n d n o r m a l i -
psychological attributes of individuals within a sation of the individual within calculative prac-
new conception of the individual human being. t i c e s is n o l o n g e r to b e a c h i e v e d t h r o u g h single-
C y e r t & M a r c h ( 1 9 6 3 ) w e r e to f o r m u l a t e this minded pursuit of budget requirements (Hop-
shift in a " b e h a v i o u r a l t h e o r y o f t h e f i r m " w i t h i n wood, 1973).
which such a notion of the person and of deci- Let us try a n d e x p r e s s w h a t w e s e e t o b e at
s i o n s w e r e c e n t r a l . T h e b u d g e t a n d its ability to issue h e r e , for it is n o t s i m p l y a m a t t e r o f defini-
d e f i n e o r g a n i s a t i o n a l o b j e c t i v e s w a s c e n t r a l to tions. W h a t w e s e e t o b e o c c u r r i n g in t h e t e x t s
u n d e r s t a n d i n g t h e f i r m in s u c h a m a n n e r . T h e w e h a v e c i t e d is a r e c o n c e p t u a l i s a t i o n o f t h e
i s s u e w a s e x p r e s s e d simply. I n d i v i d u a l s h a v e boundaries of the accounting complex through
goals; c o l l e c t i v i t i e s d o not. A m e a n s o f g e n e r a t - an i n c l u s i o n w i t h i n it o f a r e v i s e d n o t i o n o f t h e
i n g c o l l e c t i v e g o a l s so t h a t t h e y a r e c o n g r u e n t p e r s o n a n d t h e firm. W i t h this shift a c c o u n t i n g
w i t h p e r s o n a l g o a l s w a s s e e n to b e r e q u i r e d . c o m e s t o f u n c t i o n as an i n t e r d e p e n d e n t e l e m e n t
The elaboration of organisational goals came in a r a n g e o f o p e r a t i o n s w h o s e c o n c e r n is w i t h
to b e d e f i n e d in a w a y w h i c h s a w t h e m as i n h e - the implication of the individual within organisa-
r e n t l y c o n f l i c t u a l . T h e o r g a n i s a t i o n was, after all, tional objectives. What we are suggesting, admit-
only a "coalition" of individuals, some of them tedly by merely gesturing towards some relev-
organized into subcoalitions (Cyert & March, a n t e x a m p l e s , is t h a t an i m p o r t a n t r e f o r m u l a t i o n
1963, pp. 2 7 - 2 9 ) . C o o p e r a t i o n w a s a p r o c e s s o f of the objectives of accounting occurs through
negotiation, of bargaining. But human beings the introduction of the notion of the behavioural
have limited capacities. Control-systems are w i t h i n its t e r m s o f r e f e r e n c e . It is n o t j u s t a
n e e d e d to i d e n t i f y t h e c o n s i d e r a t i o n s r e l e v a n t to b r o a d e n i n g o f t h e c o n c e r n s o f a c c o u n t i n g . It is a
significant r e d e f i n i t i o n o f t h e t e r m s a n d o b j e c - o f i n t e r v e n t i o n s into an e n h a n c e d state o f life.

tives o f a c c o u n t i n g as a social p r a c t i c e . A c c o u n t - W e h a v e s u g g e s t e d that t h e firm c a n b e s e e n as
ing w o u l d s e e k to w o r k m o r e c l o s e l y w i t h o n e o f t h e sites in s o c i e t y t o w a r d s w h i c h s u c h
psychology within a complex of human sciences p r o j e c t s w o u l d a d d r e s s t h e m s e l v e s . Specifically,
w h o s e o b j e c t w a s d e f i n e d as t h e p e r s o n and his w e h a v e l o o k e d at scientific m a n a g e m e n t , at t h e
o r h e r life w i t h i n t h e organisation. T h e redefini- b i r t h o f industrial p s y c h o l o g y a n d o f m o d e r n
t i o n w h i c h takes place, h o w e v e r , d o e s n o t oblit- cost accounting.
e r a t e t h e c o n c e r n s o f a c c o u n t i n g w e h a v e iden- V i e w e d in t e r m s o f a c o n c e r n w i t h n a t i o n a l
tiffed a b o v e as e m e r g i n g in t h e e a r l y d e c a d e s o f efficiency, t h e p r o j e c t o f scientific m a n a g e m e n t
this c e n t u r y . To a d a p t M a r c h ' s ( 1 9 7 8 ) useful h e l p e d to r e n d e r a p p a r e n t a n d r e m e d i a b l e t h e
analogy, a c c o u n t i n g c o n t i n u e s to b e c o n c e r n e d w a s t e lying d e e p w i t h i n t h e e v e r y m o v e o f t h e
w i t h t h e active e n g i n e e r i n g o f t h e organisation- w o r k e r . N o r m s o r s t a n d a r d s w e r e to b e con-
ally useful p e r s o n . It c o m e s to possess, h o w e v e r , s t r u c t e d for t h e d o i n g o f w o r k o f e v e r y kind.
a m u c h m o r e p r o m i s i n g set o f c o n c e p t s , T h o s e n o r m s , r e f l e c t i n g as t h e y w o u l d an
t e c h n i q u e s a n d m e c h a n i s m s w i t h w h i c h to i n c r e a s e d level o f efficiency, w e r e e x p e c t e d to
a c h i e v e s u c h an o b j e c t i v e . y i e l d that e x t r a o u t p u t a n d p r o s p e r i t y w h i c h
w o u l d r e n d e r class conflict o b s o l e t e . Such a con-
g r u e n c e o f self-interest o f w o r k e r , e m p l o y e r a n d
IMPLICATIONS AND CONCLUSIONS t h e social b o d y alike, j o i n e d to t h e a s s u r a n c e o f
s c i e n c e , w a s to r e n d e r t h e w o r k e r a c q u i e s c e n t
W e h a v e p o i n t e d in this p a p e r to a n u m b e r o f in this "taking h o l d " o f his o r h e r p h y s i o l o g y , in
e v e n t s o c c u r r i n g r o u g h l y w i t h i n t h e first t h r e e o r d e r to e x p e r i m e n t w i t h it a n d to i m p r o v e its
d e c a d e s o f this c e n t u r y w h i c h w e s e e to b e sig- p r o d u c t i v e capabilities.
nificant for t h e u n d e r s t a n d i n g o f a c c o u n t i n g as a W e have n o t e d t h e alliance o f scientific man-
social a n d o r g a n i s a t i o n a l p r a c t i c e . T h e s e e v e n t s a g e m e n t and costing. F r o m its earliest begin-
have b e e n t h e c o n s p i c u o u s e m e r g e n c e o f diffe- nings, it seems, t h e scientific m a n a g e m e n t litera-
r e n t b o d i e s o f e x p e r t k n o w l e d g e a n d p r a c t i c e , as t u r e h a d r e c o g n i s e d t h e p o w e r o f an efficiency
w e l l as political, j o u r n a l i s t i c a n d p h i l o s o p h i c a l m e a s u r e m e n t g r o u n d e d in c o s t s a n d profits. A n d
d i s c o u r s e s , all o f w h i c h share as a p o i n t o f con- w e have n o t e d t h e i n f l u e n c e o f scientific man-
v e r g e n c e t h e a c t i v e m a n a g e m e n t o f t h e life o f a g e m e n t o n t h e c o n s t r u c t i o n o f s t a n d a r d cost-
t h e p e r s o n in its v a r i e d facets. C l u s t e r i n g a r o u n d ing, w h i c h itself m e r g e s into b u d g e t i n g . T h e
t h e w o r d efficiency, w e have suggested, o n e c a n r e s u l t a n t calculative a p p a r a t u s was to entail t h e
w i t n e s s w i t h i n this p e r i o d a d i v e r s e g r o u p , p o s s i b i l i t y for g o i n g b e y o n d a r o u t i n e r e n d e r i n g
including engineers, psychologists, accountants, visible o f o n l y t h e factory-floor w o r k e r ' s effi-
m e d i c a l p r a c t i t i o n e r s , p r o p o n e n t s o f eugenics, ciency. W e h a v e v i e w e d t h e s u p e r i m p o s i t i o n o f
journalists a n d politicians, p r o p o s e v a r i o u s p r o - a notion of standardized magnitudes upon the
j e c t s for i m p r o v i n g t h e life o f t h e p e r s o n and, t r a d i t i o n a l a c c o u n t i n g s t a t e m e n t s o f i n c o m e and
t h e r e b y , o f t h e nation. At stake, it seems, is an financial p o s i t i o n as facilitating t h e normaliza-
u r g e n t felt n e e d to identify a n d to e l i m i n a t e tion (in terms of economic accomplishment) of
s h o r t c o m i n g s in s u c h m a t t e r s as p e o p l e ' s m e n t a l e v e r y o n e w i t h i n t h e firm. Budgeting, o n e m i g h t
a n d p h y s i c a l health, a n d t h e quality o f t h e i r say, w o u l d s e r v e as an e s c a p e - r o u t e b y w h i c h
offspring, as w e l l as t h e i r c o n t r i b u t i o n to t h e s t a n d a r d s c o u l d leave t h e f a c t o r y floor a n d
economy, the protection of the empire, and pub- e n m e s h , p o t e n t i a l l y , e v e r y o n e in t h e firm. With-
lic life generally. A t h e m e r u n n i n g t h r o u g h all o u t effacing t h e n o t i o n o f t h e p e r s o n as p o t e n t i a l
t h e d i s c o u r s e s a n d p r a c t i c e s w e h a v e l o o k e d at is thief, that l o n g e r - s t a n d i n g s t e w a r d s h i p c o n c e r n
a p o s i t i v e c o n c e r n to take a n d to i m p r o v e t h e life of accounting, standard costing and budgeting
o f t h e p e r s o n . Q u i t e literally, t h e p e r s o n w a s to w o u l d r e n d e r a c c e s s i b l e to v a r i o u s e x p e r t a n d
b e w o r k e d u p o n , to b e m a n a g e d t h r o u g h a s e r i e s a u t h o r i t a t i v e i n t e r v e n t i o n s t h e i n d i v i d u a l as "al-
m o s t c e r t a i n l y inefficient". Cost a c c o u n t i n g is to b e r e g a r d e d as n o r m a l o r s t a n d a r d has first

w o u l d e x p a n d its d o m a i n , to e n m e s h t h e p e r s o n b e e n c o n s t r u c t e d . But o n c e a n o r m is to hand,
in a c a l c u l u s o f e x p e c t a t i o n s . In thus c o n s t r u c t - a n d e s p e c i a l l y w h e n it gains e x p r e s s i o n w i t h i n a
ing a n o t i o n o f t h e p e r s o n w e have a r g u e d that r o u t i n e l y a p p l i c a b l e calculative a p p a r a t u s like
standard costing and budgeting provided a s t a n d a r d c o s t i n g o r b u d g e t i n g , t h e p e r s o n can
facilitative t e c h n o l o g y w h e r e b y , in time, various b e c o m e a s u b j e c t for v a r i o u s h u m a n sciences.
i n t e r v e n t i o n s to i m p r o v e t h e p e r s o n ' s perfor- The deviations of the person from a norm, with
m a n c e w o u l d b e c o m e possible. For t h e w h o l e all o f t h e i r p o s s i b l e causes and c o n s e q u e n c e s ,
project of enmeshing the person within norms b e c o m e available for i n v e s t i g a t i o n and for r e m e -
o f efficiency, o n c e begun, c a m e q u i c k l y e n o u g h dial action. And, w e w o u l d suggest, o n e distinc-
to b e s e e n as a c o m p l e x , s o p h i s t i c a t e d tive c o n t r i b u t i o n o f s t a n d a r d costing, h i t h e r t o
endeavour. a p p a r e n t l y i g n o r e d , is its c o n t r i b u t i o n to a m u c h
I m p o r t a n t in b r i n g i n g a b o u t s u c h a sense o f w i d e r p r o c e s s , w h e r e b y t h e life o f t h e p e r s o n
c o m p l e x i t y w a s industrial p s y c h o l o g y , to w h o s e c o m e s to b e v i e w e d in r e l a t i o n to s t a n d a r d s a n d
b i r t h w e have briefly attested. M o r e o r less norms of behaviour.
s i m u l t a n e o u s l y w i t h t h e e m e r g e n c e o f scientific N o w o f c o u r s e t h e p r o c e s s e s w h i c h w e have
management and standard costing, b e e n r e f e r r i n g to h e r e are o f a g r e a t e r c o m p l e x -
p s y c h o l o g i s t s b e g a n to argue the i n a d e q u a c y o f ity than w e have b e e n able to indicate. But w h a t
such endeavours' concept of the person. Wastes w e w a n t e d to d o was to at least m a k e a start in
and inefficiencies, for t h e i r d e t e c t i o n a n d elimi- untangling some of the strands of the contribu-
nation, w e r e n o w a r g u e d to r e q u i r e t h e e x p e r - t i o n o f a c c o u n t i n g to a m o d e o f o p e r a t i o n o f
tise o f t h o s e w h o c a n k n o w t h e p e r s o n ' s mind. A p o w e r in o u r s o c i e t i e s w h i c h , w e argue, e m e r g e s
p r o j e c t w o u l d b e initiated w h i c h establishes t h e in its d i s t i n c t i v e f o r m at t h e b e g i n n i n g o f this
individual's p s y c h e as t h e k e y m e d i a t i n g f o r c e in century. This is o n e w h i c h , w e feel, c a n n o t b e
m a t c h i n g p e r s o n a n d task and in i n t e r p r e t i n g e x p l a i n e d a d e q u a t e l y b y o v e r - z e a l o u s adher-
task p e r f o r m a n c e variables. And w e have e n c e e i t h e r to a n o t i o n o f e c o n o m i c d e t e r m i n a -
p o i n t e d out, albeit t o o s k e t c h i l y and briefly, h o w tion a n d interests, o r to an e x p l a n a t i o n w h i c h
a r e d e f i n e d industrial p s y c h o l o g y c o m e s , later in h i n g e s o n a d e s i r e o n b e h a l f o f t h e p r o f e s s i o n s to
t h e c e n t u r y , to significantly i n t e r s e c t w i t h c o n t i n u a l l y e x t e n d t h e i r field o f o p e r a t i o n s . O f
accounting. By the 1950s, w e have suggested, c o u r s e this is n o t to i m p l y that e c o n o m i c pres-
t h e p e r s o n as m a c h i n e has b e e n r e p l a c e d b y t h e sures a n d p r o f e s s i o n a l influences are u n i m p o r -
m o t i v a t i o n a l l y - c o m p l e x d e c i s i o n - m a k e r . This tant. It is, rather, to suggest w h a t w e s e e to b e a
a d d s greatly to t h e c o m p l e x i t y o f r e n d e r i n g effi- different line o f investigation for t h e u n d e r s t a n d -
c i e n t his o r h e r e c o n o m i c p e r f o r m a n c e , a n d p r o - ing o f a c c o u n t i n g in r e l a t i o n to p o w e r in o u r
d u c e s a r e d e f i n i t i o n o f w h a t w e have c a l l e d t h e societies. This is o n e w h i c h l o c a t e s it as an im-
accounting complex. p o r t a n t p a r t o f that c o m p l e x o f i n t e r v e n t i o n s
In l o o k i n g at s u c h p r o c e s s e s in this m a n n e r w e w h i c h can b e given the n a m e the h u m a n sciences.
have w a n t e d to suggest a w a y o f v i e w i n g W e h a v e o u t l i n e d briefly h o w o u r t h i n k i n g o n
a c c o u n t i n g as having c o n t r i b u t e d to a m o r e gen- t h e s e m a t t e r s has b e e n significantly i n f l u e n c e d
eral p r o j e c t o f s o c i o - p o l i t i c a l m a n a g e m e n t . This b y the w o r k of Michel Foucault and his associates.
is o n e w h i c h o p e r a t e s t h r o u g h a variety o f ex- W e d o n o t feel that o u r c o n c e r n s in this p a p e r
p e r t k n o w l e d g e s a n d practices. T h e efficiency can b e a d e q u a t e l y c a p t u r e d b y r e f e r r i n g to a gen-
o f individual p e r s o n s a n d t h e i r c o n t r i b u t i o n to eral p r o c e s s o f r a t i o n a l i s a t i o n o f W e s t e r n indust-
c o l l e c t i v e efficiency is c e n t r a l to s u c h p r o c e s s e s . rial s o c i e t i e s ( W e b e r , 1978). In talking o f p r o -
But t h e efficiency o f t h e p e r s o n in t h e firm, as w e j e c t s for social and o r g a n i s a t i o n a l m a n a g e m e n t
have s e e n T a y l o r p o i n t out, is n o t s o m e t h i n g w e have w a n t e d to give w e i g h t to t h e actual con-
w h i c h can b e o b s e r v e d w i t h t h e n a k e d eye. s t r u c t i o n o f s u c h p r o j e c t s , a n d to t h e t e r m s in
I n d e e d , o n e m i g h t say, it c a n n o t exist until w h a t w h i c h t h e y are c o n s t r u c t e d . W e have s o u g h t
ACCOUNTING AND THE CONSTRUCTION OF THE GOVERNABLEPERSON 263
tentatively to explain how accounting supplies r a m m a t i c f r a m e w o r k s a n d p o w e r r e l a t i o n s in

an important contribution to a complex of inter- terms of which the lives of individuals are
v e n t i o n s d i r e c t e d at p r o v i d i n g m e c h a n i s m s for v i e w e d , m e a s u r e d a n d s u p e r v i s e d . In g e s t u r i n g
t h e i m p l i c a t i o n o f i n d i v i d u a l s w i t h i n t h e life o f towards recent developments within account-
the organization and of society. The general i n g w e w a n t e d to s u g g e s t w a y s o f i n t e r p r e t i n g
p r i n c i p l e o p e r a t i v e h e r e has b e e n w e l l e x p r e s - the construction of the notion of the complex
sed by Rexford Tugwell, government advisor, p e r s o n as a r a t i o n a l e f o r a s e r i e s o f p r a c t i c a l in-
economics professor, and staunch advocate of t e r v e n t i o n s . T o p u t this r a t h e r p r o v o c a t i v e l y ,
t h e a p p l i c a t i o n s o f s c i e n t i f i c m a n a g e m e n t to t h e o n e c o u l d say t h a t w h a t is at i s s u e in t h e s e m o r e
wider society: r e c e n t d e v e l o p m e n t s is a f o r m o f p o w e r w h i c h
operates through freedom: a freedom for the
is it possible that, instead of appealing to sets of emotions i n d i v i d u a l to h a v e an i n f o r m a l life w i t h i n t h e
of an immediate and piecemeal sort, the problem of moti-
organization, to deviate from criteria of rational-
vation might be resolved by fixing in each individual
mind a rationale of ends to be tried for, and of the means ity, to b r o o d o n p e r s o n a l p r o b l e m s , a n d t o b e in-
available? For if this cannot be done, it seems very little f l u e n c e d b y t h e e n v i r o n m e n t o u t s i d e t h e firm. In
use to hope that group action will ever become coherent its m o r e r e c e n t d e v e l o p m e n t a c c o u n t i n g has
and cooperative in a larger, a genuinely social sense;... p r o v i d e d for s u c h a f r e e d o m in its a t t e m p t t o in-
( Tugwell, 1933).
corporate the behavioural and the decisiontaker
w i t h i n its s p h e r e . I n so d o i n g w e w o u l d s u g g e s t
I n d e f i n i n g o u r c o n c e r n as w i t h t h e " c o n s t r u c - t h a t a c c o u n t i n g t o d a y c a n b e v i e w e d as in c o n -
tion of the governable person" we would not t i n u i t y w i t h , a l b e i t in a c o n s i d e r a b l y m o d i f i e d
w a n t t o i m p l y an i m a g e o f a t o t a l l y o b e d i e n t indi- f o r m , a m o d e o f e x e r c i s e o f p o w e r w h i c h w a s in-
vidual. W e w a n t e d r a t h e r t o e x a m i n e t h e p r o g - s t a l l e d in t h e e a r l y d e c a d e s o f this c e n t u r y .
BIBLIOGRAPHY
American Accounting Association, Report of the Committee on Accounting History, Accounting Review,
Supplement to vol. XLV (1970).
Argyri.s, C., The Impact o f Budgets on People (New York: Controllership Foundation, 1952).
Armstrong, D., Political Anatomy o f the Body (Cambridge: Cambridge University Press, 1983).
Ashton, R. H. (ed.), The Evolution o f Behavioural Accounting Research ( New York: Garland, 1983 ).
Baritz, L., The Servants o f Power (Westport, CT: Greenwood Press, 1960).
Barnard, C., The Functions o f the Executive (Cambridge, MA: Harvard University Press, 1938).
Becker, S. & Green, D., Budgeting and Employee Behavior, Journal o f Business (October 1962) pp.
392--402.
Bedford, N. & Dopuch, N., Research Methodology and Accounting Theory--Another Perspective, Accoun-
tingReview (July 1961) pp. 351-61.
Benston, G., The Role of the Firm's Accounting System for Motivation, Accounting Review (April 1963)pp.
347-54.
Burchell, S., Clubb, C. & Hopwood, The Development of Accounting in its International Context, Seminar
on an Historical and Contemporary Review o f the Development o f lnternational Accounting, Atlanta
(August 1979).
Burchell, S., Clubb, C., Hopwood, A., Hughes,J. & Nahapiet,J., The Roles of Accounting in Organizations and
Society, Accounting Organizations and Society (1980) pp. 5-27.
Burchell, G., Gordon, C. & Miller, P. (eds), The Foucault Effect: Studies in the History of Government
Rationality (Brighton, Sussex: Harvester Press, forthcoming).
Caplan, E. H., Behavioral Assumptions of Management Accounting, Accounting Review (July 1966) pp.
496-509.
Castel, R., Castel, X. & Lovell, X., The Psychiatric Society (New York: Columbia University Press, 1982).
264 PETER MILLER and TED O'LEARY
Chattield, M. (ed.), Contemporary Studies in the Evolution o f Accounting Thought (Belmont, CA:
Dickenson, 1977).
Church, A. H., Manufacturing Costs and Accounts (New York: McGraw Hill, 1917).
Collini, S., Liberalism and Sociology (Cambridge: Cambridge University Press, 1979).
Cousins, M. & Hussain, A., Michel Foucault ( London: Macmillan, 1984).
Cyert, R. & March, J., The Behavioral Theory oftheFirm (Englewood Cliffs, NJ: Prentice Hall, 1963).
Devine, C. T., Research Methodology and Accounting Theory Formation, Accounting Review (July 1960)
pp. 387-399.
Donzelot, J., The Policing o f Families (London: Hutchinson, 1979).
Drury, H. B., Scientific Management (New York: Columbia University Press, 1915 ).
Dyson, K., The State Tradition in Western Europe ( Oxford: Martin Robertson, 1980).
Emerson, H.,Efficiency as a Basis for Operation and Wages ( New York: Engineering Magazine Co., 1919).
Epstein, M.J., The Effect o f Scientific Management on the Development o f the Standard Cost System ( New
York: Arno, 1978).
Foucault, M., Madness and Civilisation (London: Tavistock, 1967).
Foucault, M., The Order of Things (London: Tavistock, 1970).
Foucault, M., The Archaeology of Knowledge (London: Tavistock, 1972).
Foucauh, M., TheBirth of the Clinic (London: Tavistock, 1973).
Foucault, M., Discipline andPunish (Harmondsworth: Allen Lane/Penguin, 1977).
Foucault, M., TheHistory o f Sexuality, vol 1 (Harmondsworth: Penguin, 1981 ).
Freeden, M., The New Liberalism (Oxford: Oxford University Press, 1978).
Galton, F., Inquiries in to Human Faculty and its Development (London: J. M. Dent, 1883).
Garcke, E. & Fells, J. M., Factory Accounts, 6th ed. (London: Crosby Lockwood, 1911 ).
Haber, S., Efficiency and Uplift: Scientific Management in the Progressive Er~ 1890-1920 (Chicago:
University of Chicago Press, 1964).
Hacking, I., The Emergence o f Probability (Cambridge: Cambridge University Press, 1975).
Hailer, M. H., Eugenics (NJ: Rutgers University Press, 1963).
Harrison, G. C., Standara Costing (New York: Ronald Press, 1930).
Harrison, R. H., Harrison, G. L. & Watson, D. J. H. (eds), The Organizational Context of Management
Accounting (London: Pitman, 1981 ).
Hays, S. P., Conservation and the Gospel o f Efficiency (Cambridge, MA: Harvard University Press, 1959).
Hobhouse, L. T., Social Evolution and Political Theory (New York: Columbia University Press, 1911 ).
Hobson, J. A., Work and Wealth: A Human Valuation (London: Macmillan, 1914).
Hofstadter, R., Social Darwinism in American Thought (Boston: Beacon Press, 1955 ).
Hofstede, G., The Game o f Budget Control (London: Tavistock, 1968).
Hofstedt, T. R. & Kinard, J. C., A Strategy of Behavioral Accounting Research, Accounting Review (January
1970) pp. 38-54.
Hopwood, A., An Accounting System and Managerial Behaviour ( London: Saxon House, 1973).
Hopwood, A., Accounting andHuman Behaviour (London: Haymarket, 1974).
Kamin, L. J., The Science and Politics ofL Q. ( Potomac, MD: L. Erlbaum Associates, 1974 ).
Kaplan, R., The Evolution of Management Accounting, Accounting Review (July 1984) pp. 390-418.
Lee, T. A. & Parker, R. H., The Evolution of CorporateFinancialReporting (London: Nelson, 1979).
Libby, R., Accounting andHuman Information Processing (Englewood Cliffs, NJ: Prentice Hall, 1981 ).
Likert, R. & Seashore, S. E., Making cost control work, Harvard Business Review (November-December
1963) pp. 96-108.
Littleton, A. C. & Zimmerman, V. K., Accounting Theory: Continuity and Change (Englewood Cliffs, NJ:
Prentice Hall, 1962).
Mackenzie, D., Eugenics in Britain, SocialStudies of Science, (1976) pp. 499-532.
March, J. G., Ambiguity, Bounded Rationality and the Engineering of Choice, Bell Journal o f Economics
(1978) pp. 587-608.
March, J. G. & Simon, H. A., Organizations (New York: John Wiley, 1958).
Mayo, E., The Human Problems o f an Industrial Civilisation (New York: Macmillan, 1933).
Merkle, J., Management and ldeology (Berkely, CA: University of California Press, 1981 ).
Miller, P., Domination andPower (London: Routledge, forthcoming).
Munsterberg, H., Psychology and Industrial Efficiency (London: Constable, 1913).
Myers, C. S., Mind and Work (London: University of London Press, 1920).
Nicholson, J. L., Cost Accounting (New York: Ronald Press, 1913).
ACCOUNTING AND THE CONSTRUCTION OF THE GOVERNABLE PERSON 265
Noble, D.,America byDesign (New York: Galaxy Books, 1977).

Parker, R. H., The Study of Accounting History, Hopwood, A. and Bromwich, M. (eds), Essays in British
Accounting Research (London: Pitman, 1981 ).
Pickens, D., Eugenics and the Progressives (Nashville, TN: Vanderbilt University Press, 1968 ).
Ritchie, D. G., The Principles o f State Interference (London: Swan Sonnenschein, 1891 ).
Rose, N., The Psychological Complex: Mental Measurement and Social Administration, Ideology and
Consciosness (Spring 1979) pp. 5--68.
Roethlisberger, F.J. & Dickson, W. J., Management and the Worker (Cambridge, MA: Harvard University
Press, 1939).
Schiff, M. & Lewin, A. Y. ( eds ), Behavioral Aspects o f Accounting (Englewood Cliffs, NJ: Prentice Hall,
1974).
Scull, A. T., Museums o f Madness: The Social Organization o f lnsanity in 19th Century England ( London:
Allen Lane, 1979).
Searle, G. R., The Quest for National Efficiency (Oxford: Blackwell, 1970).
Sheridan, A., Michel Foucault: the Will to Truth (London: Tavistock, 1980).
Simon, H. A., Administrative Behavior (New York: Free Press, 1957).
Sofer, C., Organizations in Theory and Practice (London: Heinemann, 1972).
Solomons, D., The Historical development of costing, in Solomons, D. (eds) Studies in Cost Analysis
(London: Sweet and Maxwell, 1968).
Sowell, E. M., The Evolution o f the Theories and Techniques o f Standard Costs (Alabama: University of
Alabama Press, 1973).
Spencer, H., The Study o f Sociology (London: Kegan Paul, 1878).
Stedman-Jones, G., Outcast London (Harmondsworth: Penguin, 1971 ).
Sutherland, G., The Magic of Measurement: Mental Testing and English Education, 1900-40, Transactions
o f the Royai Historical Society (5th series, 1977) pp. 135-153.
Taylor, F. W., The Principles o f Scientific Management (New York: Harper and Brothers, 1913 ).
Towne, H. R., The Engineer as Economist, Proceedings o f the American Society o f Mechanical Engineers
(1886).
Tugwell, R., The Industrial Discipline and the GovernmentalArts (New York: Columbia University Press,
1933).
Ward, L., The Scientific Basis of Positive Political Economy ( 1881 ), in Ward, L., Glimpses o f the Cosmos,
(NewYork: Putnam, 1913).
Weber, M., Economy and Society (eds Roth, G. and Wittich, C.) (Berkeley, CA: University of California
Press, 1978).
White, A., Efficiency and Empire (London: Methuen, 1901 ).
Whitehead, T. N., The Industrial Worker (Cambridge, MA: Harvard University Press, 1938).
Winter, J. M., Military Fitness and Civilian Health in Britain During the First World WarJournal o f Contem-
porary History (1982) pp. 211--244.
Yerkes, R. M., Psychological Examining in the US. Army (Washington, DC: Memoirs of the National
Academy of Sciences, vol. 15, 1921).

Accounting and The Construction of The Governable Person

Uploaded by

Copyright:

Available Formats

Accounting and The Construction of The Governable Person

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Accounting and The Construction of The Governable Person

Uploaded by

Copyright:

Available Formats

Accounting Organizations andSociety, Vol. 12,No. 3, pp. 235-265, 1987. 0361-3682187$3.00+.

ACCOUNTING AND THE CONSTRUCTION OF THE GOVERNABLE PERSON*

have b e e n a t t e m p t s to i n d i c a t e t h e d i r e c t i o n s a c c o u n t i n g history, it w o u l d seem, is that

l e d g e v i e w e d as r e p r e s e n t i n g class interests, t h e series o f h i s t o r i e s o f t h e e m e r g e n c e o f t h e

c u r r e n t ideas a n d practices. Applied to a c c o u n t - that o n e s h o u l d look in trying to u n d e r s t a n d

o f c e r t a i n g e n e r a l p r i n c i p l e s for its o p e r a t i o n c o s t i n g a n d b u d g e t i n g and t h e i r alliance w i t h

t w o d i s t i n c t criteria. O n e of these consists in a calculative practices a i m e d n o t o n l y at steward-

n e w p r o m i n e n t a d d i t i o n s to t h e v o c a b u l a r y o f c o m b i n e d mechanical sciences and psychology, w i t h the

T h e v a g u e n e s s as to w h e t h e r t h e n o t i o n o f be the more important of these concerns and

Standard costing and budgeting provided a The discourse of national efficiency

o n forests, lands, w a t e r s a n d minerals. T w o years pp.43--44). I n the p e r i o d w e have b e e n addres-

organically i n t e r d e p e n d e n t . Social reform c o u l d states followed suit d u r i n g the following t w o

above q u o t e shows, Taylor was in little d o u b t aged that scientific m a n a g e m e n t w o u l d c o n q u e r

thousand-dollar-a-year executive, unless he has before But the scientific m a n a g e m e n t - - c o s t a c c o u n t -

t i o n of the n o t i o n of the "behavioural" into w i t h i n discourse. It c o u l d n o t b e otherwise. T h e

In terms of the concept of an industrial organization as a

executives are often considered apart from their social m u s t c o n s t r u c t a w o r k si t u at i o n w h i c h is also a

targets laid d o w n in b u d g e t s risked i n c r e a s i n g a c c o u n t o f t h e c o m p l e x i t y o f t h e individual's

for c o l l a b o r a t i o n s w i t h the m o r e established a n d the p r o j e c t of organisational m a n a g e m e n t ,

significant r e d e f i n i t i o n o f t h e t e r m s a n d o b j e c - o f i n t e r v e n t i o n s into an e n h a n c e d state o f life.

m o s t c e r t a i n l y inefficient". Cost a c c o u n t i n g is to b e r e g a r d e d as n o r m a l o r s t a n d a r d has first

tentatively to explain how accounting supplies r a m m a t i c f r a m e w o r k s a n d p o w e r r e l a t i o n s in

Noble, D.,America byDesign (New York: Galaxy Books, 1977).

You might also like