ABSTRACT:
How an accounting firm manages the way information in the work context is accessed and transferred will affect its success. This study tests hypotheses about the relationships between the job satisfaction in accounting firms and measurable dimensions of the concepts of the individual’s “nutrient information” and their firm’s “information consciousness”. Professional staff who are employed in a large international accounting firm in Australia and the US are surveyed. The results, after controlling for demographic factors, provide strong support for the positive effects of nutient information management and information consciousness management on job satisfaction. Conclusions are drawn about ways for professional accounting firms to manage the information needs of their knowledge workers as they accelerate into the information age.
1. Introduction
Professional accounting firms are in the information business in an information age. Advances in information and communications technologies, combined with the impact of global competition, rising customer expectations and the need to do more with less, has forced professional accounting firms to become more agile and responsive (Robitaille and Elitzur, 1998).
Large and medium-sized accounting firms have been particularly affected by the advent of information technology. These accounting firms have been impacted from two directions: the changing nature of information services required to satisfy their clients; the changing nature of information access and management required to satisfy their knowledge workers. The emphasis of this study is on the latter direction, which considers how information technology has impacted on the mindsets and practices of the professional staff in accounting firms. Within accounting public practice, there is mounting pressure for professional staff to be knowledge workers who can deliver customized services at high speeds, coupled with the ability to perform their job at any time or place. This is the emergence of the “virtual” accounting services enterprise which will “transcend concrete walls as collaborative networks link workers” (Chapman, 1998, p 23). More than ever, how an accounting firm manages the skills and contributions of its knowledge workers will determine its success. The retention of highly trained professional staff whom possess specialized knowledge and expertise, and can contribute to their organisation’s knowledge spiral, becomes increasingly critical to the competitiveness of large to medium-sized accounting firms.
To attract and retain the best available knowledge workers, accounting firms will need to appear as attractive as possible to those workers. In this respect, Chapman (1998) argues as follows:
Increasingly, individuals will be drawn to organizations whose structures and cultures take into consideration the values and needs of workers. Most experts agree that, next to advances in technology, workers’ increased desire for personal satisfaction will change the way we work more than any other trend. Competitive companies will need to make work satisfying for employees. (p.25)
A consistent theme in the literature about professionals’ job satisfaction and retention is the importance of information in their work context (e.g., Gregson (1992), Patten (1995), Quinn et al (1996), Reed et al (1994) and Robson et al (1992).
In addressing a research question about effects of information in the work context on the satisfaction of professionals in large accounting firms, this study draws from two bodies of literature (which, in fact, have tended to become aligned), namely, managing professionals and knowledge management. From this literature, two particular concepts of relevance to the research question in this study are identified. The first concept, from the earlier literature on managing professionals, is Shapero’s (1985) concept of “nutrient information”. This is said to be the type of information that allows professionals to direct and develop their own personal expertise. In the information age, the need for individuals to achieve growth in their nutrient information becomes even more important than envisaged by Shapero. For an accounting firm to be propelled by the energies of new technologies, mindsets and visionaries (sometimes called “information imagineering”), the role of nutrient information becomes central to the needs of individual knowledge workers.
The second relevant concept identified for use in this study is that of “information consciousness” created within an organisation. Drawing from the literature on knowledge management, Brown and Starkey (1994) relate this concept to organisational culture. It concerns a firm’s attitudes towards valuing information as a resource and the consequent processes of making information available, or facilitating knowledge sharing, amongst that firm’s professional staff.
Prior studies have not attempted to measure these concepts of an individual’s nutrient information or an organisation’s information consciousness, or to empirically test their effects on job satisfaction. The objectives of this study are to:
1. Develop hypotheses about the relationships between the job satisfaction of professional accountants (as knowledge workers) and measurable dimensions of the respective concepts of an individual’s “nutrient information growth” and their firm’s “information consciousness”.
2. Empirically test these hypotheses through a survey of professional staff who are employed at a large international accounting firm, sampling staff based in Australia and the US. Demographic variables will be controlled for in such tests.
3. Draw conclusions from the findings about ways for professional accounting firms to manage the information needs of their knowledge workers as they accelerate into the information age.
2. Literature Review And Development Of Hypotheses
2.1 Nutrient Information And Information Consciousness Within The Knowledge Management Literature
The
knowledge management literature is dominated by the writings of practitioners
and contains limited empirical research (Roos et al, 1997). In a review of this literature, Baxter and
Chua (1999) suggest that there is curiously little agreement about what
constitutes knowledge in organisations, except that knowledge can be “highly
situated in nature, dependent on the knower and the particular organisational
activities” (p.4). Nevertheless, there is an “emerging set of shared concepts” about
the way in which knowledge is classified and knowledge management is
characterised (Baxter and Chua, 1999, p 4).
Considerable
attention has been given to the different “levels” of knowledge in
organisations. Nonaka and Takeuchi (1995) classify knowledge at the individual,
group, organisational and inter-organisational levels. At the individual level,
knowledge is said to reside within individuals, usually as tacit knowledge
which is not articulated directly with others (Polanyi, 1997). This individual or personal level of
knowledge represents know-how that is embodied in the habitual practices and
reflexivity of individuals (Lakoff and Johnson, 1999). At this individual
level, Shapero (1985) drew an analogy between knowledge and organic life. He referred
to “nutrient information” as the information that furnishes nourishment, or
promotes growth and repairs the natural wastage, of an individual’s knowledge
base.
When
knowledge of individuals is made explicit it can be shared orally or in
written/pictorial form with others and becomes knowledge at the “group” level.
When individual or group knowledge is appropriated by the organisation (e.g.,
in standard operating procedures, internal databases, training manuals or joint
venture agreements) to create “structural capital”, it is referred to as
knowledge at the organisational or inter-organisational level (Mouritsen, 1998;
Sullivan, 1998).
A main branch of the literature on knowledge management per se is the process paradigm which, as explained in Baxter and Chua (1999), is “unified by a concern to facilitate the “sharing” of knowledge throughout an organisation” (p.5). From this perspective of knowledge management, the task of an organisation is to generate a knowledge spiral through the process of a “dynamic interaction between tacit and explicit knowledge” (Nonaka and Takeuchi, 1995, p.70). This knowledge spiral is achieved, according to Nonaka and Takeuchi (1995) by knowledge being appropriated by individuals and from individuals in the organisation. The extent to which an organisation is active in encouraging and facilitating the appropriation of knowledge by and from its individual professional workers is referred to by Brown and Starkey’s (1994) as organisational “information consciousness”. This is the processes of making information available, or facilitating knowledge sharing, amongst that firm’s professional staff.
2.2 Job Satisfaction and Nutrient Information
Research on job attitudes such as job satisfaction has been founded on a need-satisfaction theoretical model (Salancik and Pfeffer,1977). The model posits that when the characteristics of a job are compatible with the needs of the individual assigned to performing the job, the individual is satisfied. This will result in positive effects on attitudes, motivation and behavior. Studies on job design and motivation have been based on this model and confirmed that identifying and meeting employees' needs is critical to individual and organizational performance (e.g., Herzberg 1966; Herzberg et al. 1969; Locke, 1976; Smith et el. 1969; Vroom 1964). More specifically, the results of that research imply that employers who identify and meet employees’ needs tend to experience high job satisfaction and low turnover.
As already argued, information in the work context will be a major need of professionals (as knowledge workers) and be expected to affect their job satisfaction level. Davenport et al (1996) describe “knowledge workers” as those employees performing work whose essential activities are comprised of the acquisition, creation, packaging, or application of knowledge.
Existing research on information and satisfaction of accountants shows that information on co-workers' perceptions of the employee's work and feedback on the employee's performance are important to satisfaction and turnover of accountants (Gregson 1990b). Other studies support the importance of feedback and career development to job satisfaction among accountants (Albrecht et al. 1981; Bullen and Flamholtz 1985; Hellriegel and White 1973; Greenhaus et al. 1997; McKee and Stead 1988; Patten. 1995).
The concept of nutrient information
enables an understanding of why feedback is so important. Nutrient information
impacts the professional's ability to develop and maintain his/her expertise.
Such information is developed starting from a minimum base of technical
information and then growing with the knowledge and skills obtained from
on-the-job performance. Feedback from other professionals, particularly formal
performance evaluations by superiors, provides the neophyte professional with
information that is needed to gauge his/her extent of develop of skills and
expertise. Likewise, formal performance feedback enables the established
professional to gauge whether his/her skills and expertise have been nourished
to the desired level.
The individual in an accounting firm will also be concerned with maintaining his/her status as a professional. Such maintenance requires consideration of the long-term development opportunities available at current and higher levels within the firm as well as opportunities outside the firm. Hope and Hope (1997) point out that for professionals, personal development is of primary importance. Similarly, Bartlett and Goshal (1995) emphasize that employers must provide professional workers with the opportunity for continuous learning and skill updating, and facilitate the planning of their career direction in pursuit of such opportunities. Hence, in this study we base nutrient information management on two elements: feedback on performance and career planning. An accounting firm that can meet its professional staffs' needs for nutrient information would be expected to have a more satisfied staff. Thus, two proposed hypotheses related to nutrient information management are:
Hypothesis l: The receipt of feedback
in the form of formal performance evaluations is positively related to job
satisfaction.
Hypothesis 2: The receipt of
demonstrated interest in career development is positively related to job
satisfaction.
2.3 Job Satisfaction and
Organisational Information Consciousness
Brown and Starkey’s (1994) study on the
effect of organizational culture on information and communication found that
attitudes toward information and communication had a strong influence on the
effectiveness of the organization. In the work context, they identified five
major elements of information and communication. Four of the elements related
to the process of how information is made available in an organization -
through a formal MIS system, through operational communication taking place
outside the MIS, through the “grapevine”, and through oral or written media.
The fifth element, the degree of “information consciousness”, focused on how
much value is placed on information as a resource and on the systems that have
been implemented to retrieve, manipulate and transmit information. It captures
the company's attitude towards information. It also concerns the resources
devoted by an organization to information activities and information seeking,
evaluation and dissemination. These elements of valuing information and making
efforts to actively seek and use information represent the concept of
information consciousness of an organization.
Brown and Starkey (1994) applied this concept of information consciousness in a case study of the relationship between organizational culture, communication, and information. In their study, the degree of information consciousness was determined by evaluating the firm with respect to two factors. The first factor was the extent to which employees, including senior executives, had a sophisticated understanding of the concepts of “information as a resource” and “information management”. The second factor was the existence of on-site availability of published resources, including the circulation of documents, with professional information.
Shapero (1985) focused on the facilitation of access to information and made recommendations concerning the physical arrangement of offices, financial resources to support access to information, and the provision of training in accessing information. Considering the research of both Brown and Starkey (1994) and Shapero's (1985), the following four elements may appropriately capture the construct of information consciousness: (1) the extent employees feel that seeking information is “encouraged” throughout the organization; (2) the extent employees are familiar with the types of information sources available in the organization and receive training on how to access different sources; (3) the extent information is “easily” available and accessible; and, (4) the extent financial resources are provided to employees to access information.
At this point, no study on job satisfaction among accountants has focused on the degree of information consciousness. We propose that a firm that provides an environment that facilitates access to relevant information and in which seeking and using information is encouraged and supported will be likely to meet accountants’ information needs. Hence, accountants in such firms are likely to be more satisfied with their jobs than accountants in other firms. Four hypotheses testing the degree of information consciousness are:
Hypothesis 3: The firm's
encouragement of networking and outside involvement is positively related to
job satisfaction,
Hypothesis 4: Training on how to use
available information resources is positively related to job satisfaction.
Hypothesis 5: Ease of obtaining
information is positively related to job satisfaction
Hypothesis 6: Financial support for
information access and sharing is positively related to job satisfaction.
Based on the above discussion, the study variables and their expected impact on the job satisfaction of accountants (“Knowledge Workers”) in the professional accounting firm are:
3. Methodology
3.1 The sample
The sample for this study was drawn from
professional staff employed by a large international accounting firm. After
consultation with firm management, survey questionnaires were mailed to the
managing partners of offices in the United States (U.S.) and Australia who
distributed them to all professional staff below the level of partner. Partners
were excluded as they oversee all professional staff and are responsible for
meeting employee needs. Out of 330 questionnaires distributed, 141 responses
were received from two U.S. and three Australian offices located in metropolitan
areas for a response rate of 43 percent. One response was completed by a
partner and was therefore discarded, leaving 140 useable responses.
Respondents ranged in age from the early
20's to over 50. Most of the respondents were in their late 20's and early
30's. Over 80 percent of the sample were under 35. About 60 percent of the respondents were male and 40
percent were female. On average,
respondents had been in public accounting for 5.51 years and the majority of
the respondents were in the tax and auditing areas.
3.2 Measures
Study variables and their measures are described in Tables 1 and 2. Table 1 provides detailed information on the information constructs developed for this study. We identified twenty-six items designed to measure the employee’s perceptions of nutrient information provided and the degree of information consciousness within the firm. We conducted a factor analysis based on these items to explore to what extent they related to the two elements assumed to capture nutrient information and the four elements assumed to capture information consciousness.
As given in Table 1, a varimax rotation resulted in six factors - EVALUATION, CAREER, MOTIVATION, TRAINING, EASE and FINANCIAL SUPPORT. The first two factors, EVALUATION and CAREER, relate to the nutrient information management concept. EVALUATION relates to the provision of feedback in a formal evaluation process. The CAREER factor emphasizes recognition of accomplishments and interest in the employee's career by more senior members of the firm. The last four factors, MOTIVATION, TRAINING, EASE and FINANCIAL SUPPORT, relate to the information consciousness concept. MOTIVATION addresses perceived encouragement to expand knowledge through reading, participating in organizations, and networking with other professionals. TRAINING refers to whether or not sufficient information and training on the available resources in the office and in the firm had been provided. EASE includes the ease of sharing information in the office as well as ready access to necessary information resources. The measure for FINANCIAL SUPPORT addresses reimbursement for the costs of attending meetings or obtaining technical publications.
Table 1
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Factor
Loading
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1 |
2 |
3 |
4 |
5 |
6 |
FACTOR 1 – EVALUATION [eigenvalue 3.007] |
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1. My performance is formally evaluated by
job/project. |
.778 |
.092 |
.107 |
.203 |
.049 |
.002 |
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2. The formal evaluation is provided on a
timely basis. |
.661 |
.297 |
.277 |
.175 |
.119 |
.053 |
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3. I am provided with written comments on
performance. |
.833 |
.135 |
.164 |
.118 |
.038 |
.094 |
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4. Based on the feedback on my performance, I
know what improvements are expected of me. |
.660 |
.438 |
.220 |
.092 |
.214 |
-.096 |
FACTOR 2 – CAREER [eigenvalue 2.614] |
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1. My supervisor(s) acknowledges good
performance, helps me to understand my future opportunities, and inquires
about my concerns and plans. |
.448 |
.760 |
.179 |
.154 |
.148 |
.101 |
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2. People in more senior positions help me to
understand my future opportunities and inquire about my concerns and plans. |
.393 |
.755 |
.248 |
.159 |
.104 |
.058 |
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3. My achievements and performance are
recognized. |
.190 |
.747 |
.134 |
.274 |
.158 |
.186 |
FACTOR 3 – MOTIVATION [eigenvalue 4.449] |
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1. Firm members encourage me to read, eg. the
Wall Street Journal, Journal of Accountancy. |
.241 |
.121 |
.668 |
.225 |
.174 |
.070 |
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2. I am encouraged to contact outside
colleagues for information. |
.089 |
.184 |
.766 |
.082 |
-.055 |
.115 |
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3. I am encouraged to attend conferences and
professional meetings. |
.175 |
.145 |
.593 |
.186 |
.286 |
.304 |
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4. I am encouraged to network with other
professionals. |
.210 |
.088 |
.750 |
.082 |
-.024 |
.137 |
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5. I am encouraged to be involved with
outside educational activities, eg. taking or teaching classes or seminars. |
.135 |
.010 |
.785 |
.146 |
.213 |
.074 |
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6. I am encouraged to participate actively in
professional organizations. |
.110 |
-.001 |
.783 |
.150 |
.124 |
.020 |
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7. I am encouraged to contact other
specialists within the firm to obtain needed information. |
.007 |
.208 |
.658 |
.148 |
.105 |
.048 |
FACTOR 4 – TRAINING [eigenvalue 4.251] |
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5. I am informed of the types of technical
resources available to me in the office. |
.042 |
.167 |
-.029 |
.752 |
.302 |
.241 |
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6. I am informed of the types of technical
resources available to me throughout the firm. |
.178 |
.163 |
.125 |
.795 |
.183 |
.150 |
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7. I fully understand how to access the
information resources available in the office. |
.171 |
-.026 |
.123 |
.772 |
.283 |
.123 |
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8. I fully understand how to access the
information resources available throughout the firm. |
.179 |
.013 |
.248 |
.806 |
.147 |
.053 |
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9. I have received adequate training on the
types of information available in the office and how to access them. |
.057 |
.260 |
.249 |
.768 |
.134 |
-.123 |
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10. I have received adequate training on the types
of information available throughout the firm and how to access them. |
.135 |
.211 |
.324 |
.762 |
.111 |
-.148 |
FACTOR 5 – EASE [eigenvalue 2.911] |
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1. The office is arranged so that it is easy
for me to meet and talk to my colleagues. |
-.094 |
.444 |
.141 |
.169 |
.665 |
-.027 |
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2. The office maintains sufficient
information resources for normal, daily requirements, eg. there is ready
access to current professional standards, industry performance data, etc. |
.165 |
.010 |
.010 |
.254 |
.814 |
.158 |
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3. When information is needed from an outside
source, the office readily obtains and provides such information. |
.022 |
.127 |
.257 |
.258 |
.735 |
.022 |
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4. The office provides ready access to the information
needed to stay current in my field. |
.226 |
.067 |
.157 |
.279 |
.815 |
.068 |
FACTOR 6 – FINANCIAL [eigenvalue 1.409] |
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18. The office reimburses expenses I incur to
attend professional meetings and conferences. |
.172 |
.033 |
.211 |
.111 |
.187 |
.804 |
|
19. The office reimburses me for the cost of
additional professional or technical publications that I am interested in. |
-.193 |
.308 |
.388 |
.051 |
-.031 |
.625 |
Table 2 presents the dependent and control
variables and their measures. The dependent variable, job-satisfaction
(SATISFACTION) was measured using the Job Descriptive Index (JDI) (Smith et al.
1969). The JDI is a widely used measure of job satisfaction, validated in
public accounting settings, (e.g., Gregson 1992; Reed et al. 1994; Schell &
DeLuca 1991). It measures job satisfaction in terms of satisfaction with the
work itself, the supervisor, co-workers, pay, and opportunity for promotion.
The reliability of the measure for SATISFACTION was evaluated and found to be
acceptable with a Cronbach alpha of 0.89 (Cronbach 1951).
Control variables included in the regression analysis are AUTONOMY, AGE, DIVISION, GENDER, LEVEL, TENURE, and COUNTRY. Prior research has shown that each of the variables of autonomy, age, gender, position or level in the firm, and tenure have been factors related to job satisfaction among accountants (Aranya and Ferris 1984; Albrecht et al. 1981; Barkman et al. 1987; McKee and Stead 1988; Benke and Rhode 1980; Gregson 1990a, 1990b; Hellriegel and White 1973; Norris and Niebuhr 1983). The measure for AUTONOMY consists of three items from the Job Diagnostic Survey (JDS) (Hackman and Oldham 1980), an instrument extensively used in the social sciences. The items address the freedom and independence available in the job and the opportunity to exercise personal judgment. The reliability of the AUTONOMY measure was evaluated and found to be acceptable with a Cronbach alpha of 0.72.
The measurement of AGE, DIVISION, GENDER, LEVEL, and TENURE is described in Table 2. COUNTRY is included in this study to control for country differences because the data were collected in two countries.
Table 2
Dependent and Control Variables
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Variable |
Variable Name |
Measure |
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Dependent Variable: |
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Job Satisfaction |
SATISFACTION |
Job Descriptive Index [72 items*] |
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Control Variables: |
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Autonomy in the job |
AUTONOMY |
Job Diagnostic Survey [3 items] |
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Age of respondent |
AGE |
1=20-24; 2=25-29; 3=30-34; 4=35-39; 5=40-44; 6=45-49; 7=50-54; 8=55-59; 9=60+ |
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Country in which office located |
COUNTRY |
1=U.S.; 2=Australia |
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Division |
DIVISION |
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