The growth of the modern business enterprises are seen to have increased much complexity of working in terms of changes in unit divisions and processes. However it is also seen that these form of changes increase accountability and ownership. There is more transparency and information flow that can improve accounting and auditing practices. This report discusses a few salient issues in reference to a reading of Chnadler (1977) and a case study.
Structure and Processes in Administrative Coordination: The modern business enterprise grew as a result of a transformative stage in the market (Casson & Godley, 2007). The visible hand of management was what led to the formation and the dominance of the multi-unit modern business enterprises from around the 1850’s according to Chandler (1977). Chandler defines the structures and processes that are involved in administrative coordination in the visible management context. These actually enabled improve continuous information flow on accounting and statistics that had strategic value and business purpose.
This strategic value addition was possible because of the internal structuring. The structure of a modern business enterprise will include many specific operating units. Each of these operating units will be managed by hierarchies of executives. A full time manager is in charge of the units which ensure there is more management and ownership of work. The set of books associated with these units can also be audited separately. This was a much efficient initiative compared to the traditional American business firms where the single unit division meant that there were many restraints when it came to coordination of audit management.