The Research Of Cost Management Based On Postmodern Organization

Since 1980, especially in 1990s, two social factors have changed the behaviors of the corporations. Firstly, high-speed development of communication technology has provided boundless possibility for renovation of business management. Secondly, the organization innovation of corporation, which bases on the stratagem, cuts down the levels of the organization, constructs the worker team, changes the structure of the organization, and transforms the overall arrangement of decision and responsibility distribution. Two social changes have radically changed the behaviors of the corporations and destroyed the key hypothesis of designing the cost system in early 1900s. However, the effect of technology is merely focused on the cost management in the research, especially, in the frontiers of cost management theory, such as the strategic cost management, the activity based cost management and the balanced scorecard, which appeared in 1980s.In tracking their origin, we take unlimitedly technology as the most important factor and ignore the effect of institutional change.Actually, the new forms of corporation, rising in organization reconstruction, such as business process reengineering, the worker team, the virtual enterprise, the network organization, the boundaryless organization, the complicated organization, the learning organization, etc, are the origin of enterprise energy. Turning to postmodern organization directly work on cost management activity of an organization. At present age, strategic cost management, activity based cost management and balanced scorecard system of enterprises already have post modernity. The cost management body has diversity, and cost measure trends to focus on estimating uncertainty. The object of cost management is not to minimize cost but acquire cost superiority; the principles of cost management are not minimization and centralization etc, but full participation and activity as the score; the mission of management is not to provide data for the financial statement but cost management and control; the mode of standardization and specialization cost management is not valid, and turn toward : Strategy-oriented, and activity as the core, the basis of the users′satisfaction, capacity to activate human resources as a driving force. Some corporations use more flexible way to design effective cost accounting systems, management control systems and performance measure systems.As an organization, the postmodern organization has a specific economic character. Post modernization of organization and construction of virtual enterprise or network organization are two means to deal with"hierarchy failure". The foundation of the cost theory is transaction cost theory. Therefore, this dissertation consists of the flat roof of research, postmodern organization management and the economic character of postmodern organization (transaction cost).The first part includes chapter 1, summarizes the postmodern theory and postmodern organization theory. The cost management of postmodern organization is uphold by postmodern organization theory, while its philosophical foundation is postmodern theory, so this dissertation identifies some basic concepts, such as postmodern, postmodern theory, postmodern organization and their characters, etc in this chapter, and summarizes postmodern theory and postmodern organization theory.The second part consists of 4 chapters from the chapter 2 to chapter 5, constructs a basic frame of the productive cost management of postmodern organization. In classical economics and new classical economics, an enterprise is one of components of market and has apriority as an organization, so they do not discuss its economic character but focus on its actions of business management, like its production function and its extension, and the cost theory is suited to them. Undoubtedly, it is absolutely necessary in the cost theory of the postmodern organization. At present, it is short of systematic research of postmodern organization cost management, and these chapters would like to probe into it. In order to interpret their trends, reasons and their applicability,the second chapter analyses the post modernity of activity based costing, activity based cost management, and strategic cost management etc at present; In contrast to modern hierarchical organization, chapter 3 researches and induces the objects, principles, and missions of postmodern organization on grounds of chapter 2; chapter 4 induces the ways of cost management in postmodern organization by comparative means; chapter 5 puts definitely forward a performance measure system of postmodern organization and trends to construct a performance evaluation system of postmodern organization cost management.The third part, includes chapter 6 and chapter 7, discusses the economic characters of postmodern organization as a kind of organization. Transaction cost economics regards a corporation as a substitute of market to unlock the dark box in the western economics and observe the economic characters of a corporation as a kind of organization, such as saving transaction cost. If it is only concerned in transaction cost, the greater the scope of a corporation is, the more transaction cost is saved. However, interior transaction cost (organizing cost or management cost) of a corporation will increase when its scope outstretches, it is possible to exceed transaction cost which is saved. So the economic characters of constructing a corporation will lose, and"hierarchy failure"will be the result. This is a dilemma of modern hierarchical organization. To construct post modernization of organization and virtual enterprise or network organization are valid means of getting rid of"hierarchy failure". Chapter 6 suggests that post modernization of organization is an important strategy to reduce interior transaction cost by deduction, and describes it with theoretical model by analytical research. Chapter 7 is a kind of reading a virtual enterprise or network organization, and demonstrates some different means comparative to post modernization of organization.The innovations of this dissertation are as follow:Firstly, the dissertation analyzes the post modernity of strategic cost management theory and activity based cost management theory, and demonstrates that postmodern organization is the very optimal environment for strategic cost management theory and activity based cost management theory.Secondly, it clarifies the object, principles and missions of postmodern organization, and constructs a frame of organization costing ways and cost management.Thirdly, it demonstrates that post modernization of organization is an important strategic means. A corporation can reduce interior transaction cost, extend its border and get rid of"hierarchy failure"by post modernization of organization.