How Management Control Affects the Implementation of Strategies in a Decentralized Organization: Focus on Formal and Informal Control in the Case of Atlas Copco

2013 ◽  
pp. 59-83
Author(s):  
Klas Sundberg
Keyword(s):  
Management Control ◽  
Informal Control

scholarly journals Unpacking the package

2015 ◽  
Vol 12 (4) ◽  
pp. 346-376 ◽  
Author(s):  
Mark Evans ◽  
Basil Phillip Tucker
Keyword(s):  
Organisational Change ◽  
Clean Energy ◽  
Management Control ◽  
Theory And Practice ◽  
Structured Interviews ◽  
Informal Control ◽  
Content Type ◽  
Energy Company ◽  
Management Controls ◽  
Control Package

Purpose – The purpose of this paper is to explore the ways in which both formal and informal control, operating as a package, are implicated in responding to organisational change arising from the introduction of the Australian Federal Government’s Clean Energy Act (2011). Design/methodology/approach – This investigation is based on a review of archival data, and semi-structured interviews conducted with 15 staff at different hierarchical levels within an Australian renewable energy company. Findings – Although formal management control systems and informal control both played important roles in the organisation’s reorientation to organisational change, it was the latter form of control that predominated over the former. The influence of the prevailing organisational culture, however, was pivotal in orchestrating both formal and informal control efforts within this organisation. Originality/value – This study contributes to management control theory and practice in two ways: first, it provides much needed empirical evidence about the ways in which management controls act as a package; second, it offers insights into the relative importance of the components of a management control package in the context of a particular organisational change. In addition, it responds to Laughlin’s (1991) call for empirical “flesh” to be added to the skeletal framework he advocates to make this conceptualisation of organisational change, “more meaningful”.

Heard It through the Grapevine: Conceptualizing Informal Control through the Lens of Social Network Theory

2018 ◽  
Vol 31 (1) ◽  
pp. 219-245 ◽  
Author(s):  
Basil P. Tucker
Keyword(s):  
Social Network ◽  
Network Theory ◽  
Social Network Theory ◽  
Management Control ◽  
Organizational Control ◽  
Research Attention ◽  
Informal Control ◽  
Body Of Knowledge ◽  
Considerable Body ◽  
Control Package

ABSTRACT The investigation of management control has been a continuing theme in management accounting research over the past four decades. Although studies in this area collectively constitute a considerable body of knowledge, the vast majority of research attention has been directed to the design or use associated with formal management control systems (MCS). However, although often recognized as fundamentally inherent within organizational control environments, few studies have explicitly investigated informal control, despite its pervasiveness and the effects repeatedly attributed to it in the overall organizational control package. Predicated on the view that this knowledge gap may be largely explainable by the difficulties associated with conceptualizing and, therefore, operationalizing informal control, the purpose of this study is to advance the use of social network theory as a means to provide a deeper understanding about how informal control operates within organizations, and as an aid in developing more fully specified control models. JEL Classifications: M41.

Management control systems and corporate social responsibility: perspectives from a Japanese small company

2018 ◽  
Vol 18 (1) ◽  
pp. 68-80 ◽  
Author(s):  
Masahiro Hosoda
Keyword(s):  
Corporate Social Responsibility ◽  
Control System ◽  
Social Responsibility ◽  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Informal Control ◽  
Content Type ◽  
Formal Control ◽  
Corporate Social

Purpose Corporate social responsibility (CSR) has become part of daily business for small- and medium-sized enterprises (SMEs) in Japan. The purpose of this study is to explore how management control systems (MCSs) can support the translation of activities into CSR actions using a case study of a SME in Japan. Design/methodology/approach The case is based on an interview with a CEO of a SME in Japan. The paper contributes to the discussion on CSR and MCSs and investigates the integration of CSR activities in SMEs in Japan through MCSs. Findings The case company’s formal control systems incorporate environmental and social aspects that are reflected in its top-down, stakeholder-centered approach into CSR through a formal CSR policy. An informal control system is evident and reflected in the CEO’s emphasis on creating shared value by implementing CSR. An interactive control system, a type of formal control system, is useful in the interactions between CEOs and employees and in translating the opinions of stakeholders into CSR actions. Formal control systems can be supported by informal control systems in the implementation of CSR activities. Originality/value This research contributes to the management accounting literature by showing that formal and informal control systems can support the motivation of employees and the integration of stakeholders’ opinions on the implementation of SMEs CSR activities in Japan. The MCS approach also contributes to SMEs in Japan that seek to address the demographic and economic challenges.

scholarly journals Is value statement an effective informal control for stimulating pro-environmental behaviors?

2020 ◽  
Author(s):  
Andson Braga de Aguiar
Keyword(s):  
Goal Setting ◽  
Environmental Behavior ◽  
Practical Implication ◽  
Business Environment ◽  
Management Control ◽  
Amazon Mechanical Turk ◽  
Environmental Compliance ◽  
Environmental Behaviors ◽  
Informal Control ◽  
Environmental Value

ABSTRACT This study aimed to examine when and how a pro-environmental value statement is effective at stimulating pro-environmental behavior. Specifically, it examines whether the effect of pro-environmental value statements on pro-environmental behavior depends on participation in goal setting and whether that effect is explained by goal commitment. Few recent empirical studies examine the behavioral effects of value statements, despite the potential of this informal control to stimulate appropriate behaviors. Also scarce are studies on management control examining the effects of different types of control on pro-environmental behavior. Pro-environmental behaviors are important in the business environment as they promote a reduction in pollutants and contribute to the effective design of environmental management systems and to environmental performance. Thus, it is important to identify how management control mechanisms can promote or inhibit this type of behavior. The contribution to the management control literature is to show in which context and through which process value statements can be an effective informal control. In addition, the practical implication is that decentralized organizations can benefit from the use of value statements as a control mechanism, providing they enable participation in goal setting. Participants were recruited via the Amazon Mechanical Turk platform and they had to decide about compliance with an environmental agreement in an experimental study. I manipulate the presence of a pro-environmental value statement and the participation in setting the profit goal. Research findings indicate that a pro-environmental value statement reduces commitment to the profit goal and thus increases environmental compliance, but only when the goal-setting is participative. When the goal-setting is imposed, a pro-environmental value statement does not affect commitment and environmental compliance. The main contribution is to indicate that decentralized organizations can stimulate appropriate behaviors by communicating prioritized values through a value statement when participation in goal setting is allowed.

Balanced Scorecard in the strategic planning of a construction company

2018 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Roberth Frias ◽  
Maria Medina
Keyword(s):  
Strategic Planning ◽  
Strategic Management ◽  
Balanced Scorecard ◽  
Organization Theory ◽  
Management Control ◽  
Management Tool ◽  
The Balanced Scorecard ◽  
Construction Company ◽  
Construction Companies ◽  
The Impact

This research focused on the strategic management tool Balanced Scorecard and strategic planning, as a guide to guide the management of companies, allowing communication and the functionality of the strategy using KPIs that allow to identify, maintain control and increase efficiency and the achievement of optimal results. For the deductive hypothetical analysis, the specific factors that affect business management performance were grouped into two variables: Balanced Scorecard and Strategic Planning. The objective of the work was to demonstrate the impact of the Balanced Scorecard in the strategic planning of a construction company. In order to support the research, the following theories were approached: the Financial Theory, the Economic Theory of the Company, the Transaction Costs, the Network Theory, the Organization Theory, the Dependence on Resources, the Strategic Management Theory and the Business Diagnosis Theory. The result obtained confirms the hypothesis that there is a significant incidence of the Balanced Scorecard in the strategic planning of construction companies. In conclusion, the construction company has obtained significant improvements in the results in each of the indicators evaluated with the implementation of the Balanced Scorecard, demonstrating improvements in their management results, affirming that there is better performance and management control allowing them to achieve the organizational objectives set.

Management of grazing systems

1989 ◽  
pp. 117-122 ◽  
Author(s):  
J. Hodgson
Keyword(s):  
Management Practices ◽  
Management Control ◽  
Grazing Management ◽  
Relative Importance ◽  
Stocking Rate ◽  
Pastoral Systems ◽  
Starting Point ◽  
Alternative Means ◽  
Grazing Systems ◽  
Stocking Rates

Recent assessments of the relative importance of stocking rate. stocking policy and grazing management on the output from pastoral systems are used as a starting point to argue the need for objective pasture assessments to aid control of livestock enterprises to meet production targets. Variations in stocking rates, stocking policy and other management practices all provide alternative means of control of pasture conditions which are the major determinants of pasture and animal performance. Understanding of the influence of pasture conditions on systems performance should provide a better basis for management control and for Communication between farmers, extension officers and researchers. Keywords: Stocking rate, pasture condition, pasture cover

Gestión de riesgos empresariales: los necesarios cambios

Oikos ◽  
2016 ◽  
Vol 19 (39) ◽  
pp. 93 ◽  
Author(s):  
Ricardo Vega Bois
Keyword(s):  
Risk Management ◽  
Quality Management ◽  
Management System ◽  
Quality Management System ◽  
Iso 9000 ◽  
Management Control ◽  
System Requirements ◽  
Requirements Quality ◽  
Management Recommendations ◽  
Environmental Audits

RESUMENLa normas de la serie ISO 9000 – 2000, Sistema de Gestión de Calidad, Requisitos de un Sistema de Gestión de Calidad, Recomendaciones para la mejora de desempeño en base a un Sistema de Gestión de calidad y Directrices para la realización de auditorías medioambientales y de calidad, han sido base para la evaluación, implementación, aplicación y seguimiento de sistemas de Control de Gestión Empresarial, estando en la actualidad (2015) en un procesos de revisión y propuesta, lo que implicará algunos cambios de forma y otros de fondo interesantes de considerar.Palabras clave: gestión, riesgos, control de gestión, calidad, normas internacionales.Enterprise risk management: the necessary changesABSTRACTThe standards ISO 9000 - 2000 Quality Management System, System Requirements Quality Management Recommendations for improving performance based on a Quality Management System and Guidelines for conducting environmental audits and quality have been the basis for evaluation, implementation, enforcement and monitoring systems Control Management, being at present (2015) in a review and proposal processes, which involve some changes in form and other interesting background consider.Keywords: management, risk, management control, quality international standards.Gestão de riscos empresariais: as mudanças necessárias RESUMO As normas da série ISO 9000-2000, Sistema de Gestão da Qualidade, Requisitos de um Sistema de Gestão de Qualidade, Recomendações para a melhora do desempenho com base a um Sistema de Gestão da Qualidade e Diretrizes para a realização de auditorias meio ambientais e de qualidade, têm sido a base para a avaliação, implementação, aplicação e fiscalização de Sistemas de Controle de Gestão Empresarial, sendo na atualidade (2015) num processo de revisão e proposta, que implicará algumas mudanças na forma e outros de fundo interessante de considerar.Palavras-chave: gestão, risco, controle de gestão, qualidade, normas internacionais.

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