Role Theory

Role Theory

Even though the term role existed among the European countries for several centuries, it is only during the 1920s and 1930s did they start applying it as a sociological concept. The theoretical works done by people like Ralph George, Herbert mead, and Talcott Parsons made this term more popular in the sociological discourse. George Herbert further coined the term mind and self, which were the precursors to the role theory. According to this theory, each role as a set of norms, rights, behaviors, duties, and expectations that must be met by the person executing it. (Van der Horst, 2016 p. 66). Therefore, an individual’s behavior is context-specific; they behave in a manner that can be predicted, depending on social factors and other factors..

As such, role theory is an essential element of social psychology theory. Due to this, it can be used by researchers to predict and explain various accounting practices (Hall, 2016, p. 74). It is used in predicting and explaining budgeting and performance in multiple organizations. The concepts of this theory are used to make judgments and decisions on organizational context influence on various employees. It is also used in the analysis and clarification of multiple accounting data (Birnberg et al., p.120). As such, role theory is essential in disciplining and structuring the research process. The theory is applied in the execution of management practices at the organizational level of analysis. They provide a better explanation of why some practices in management accounting could affect the performance of an organization due to the actions of some people. This theory can be used by business managers to understand the relationship between various business operations and management accounting. The role theory is an excellent example of psychological theory, and therefore, it can be used to hypotheses, such as the setting of objectives, motivational processes, and learning; these values are essential for better organizational performance.

This theory is also crucial in understanding the impacts of management accounting practices at the individual level analysis. This is through understanding the correlation between the management practices and the individual-level of analysis. Through particular psychological mechanisms, it is possible to build theoretical frameworks consisting of the moderator and the intervening variables. This theory helps in designing the decision-making models with parameters and variables, for example, the expected selling prices and cost of specific goods and services. They therefore influence an individual’s decision making on what variables to include when formulating particular theoretical frameworks. The affect the judgments of decision-makers, which ultimately affects the social relationship of persons within an organization.

This theory is associated with several assumptions; for example, it is assumed that people define their own roles and for others according to social reading and learning. People also formulate anticipations on the roles they and others will execute. Individuals seem to act within the boundaries of their roles. People tend to encourage their colleagues to confine themselves within the limits they have set for them. According to this theory, roles are systematized behavioral arrangements and expectations that attend a given hierarchical position or are involved in a certain scenario. Roles are confined within a set of expectations, and they avail behavioral boundaries, guidelines, and prescriptions. With such assumptions and guidelines, the application of the role theory becomes even easier in various relevant fields.

References

Birnberg, J.G., Luft, J. and Shields, M.D., 2006. Psychology theory in management accounting research. Handbooks of Management Accounting Research, 1, pp.113-135.

Hall, M., 2016. Realising the richness of psychology theory in contingency-based management accounting research. Management Accounting Research, 31, pp.63-74.

Van der Horst, M., 2016. Role theory. Sociology-Oxford Bibliographies. 47-98