Paradoxical tensions of the COVID-19 pandemic: a paradox theory perspective on the role of management control systems in helping organizations survive crises

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ralph Kober ◽  
Paul J. Thambar
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Short Term ◽  
Content Type ◽  
Strategic Objectives ◽  
Paradox Theory ◽  
Practical Implications

PurposeThis paper presents paradox theory as a useful theoretical lens for researchers exploring crises such as coronavirus disease 2019 (COVID-19). The authors argue that paradox theory, which emphasizes a “both/and” as opposed to an “either/or” approach, is ideally suited for management control systems (MCS) research on crises.Design/methodology/approachThe authors adopt a revelatory case approach to provide empirical examples of the insights that paradox theory can provide.FindingsThis paper highlights how MCS can be used to simultaneously manage short-term/operational and long-term/strategic objectives to navigate a crisis. Furthermore, it highlights how MCS can be mobilized during crises to identify and embrace opportunities.Practical implicationsThis paper illustrates the importance of MCS focusing on not just the short-term, but also the long-term, and managing multiple objectives in assisting organizations to survive crisis.Originality/valueThis paper highlights the benefits of using paradox theory to understand the role of MCS in helping organizations manage crises and to use a crisis as a source of opportunity.

Synthesizing management control frameworks

2010 ◽  
Vol 14 (1) ◽  
pp. 96-108 ◽  
Author(s):  
Winnie O'Grady ◽  
Paul Rouse ◽  
Cathy Gunn
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Content Type ◽  
Control Framework ◽  
Explicit Consideration ◽  
Multiple Levels ◽  
Viable System ◽  
Levers Of Control ◽  
Practical Implications

PurposeThe purpose of this paper is to investigate the holistic nature of control systems to understand how they operate across organizational levels and manage change.Design/methodology/approachThis paper takes an analytical approach using the viable system model (VSM) to assess the two main frameworks of control reported in the accounting literature.FindingsThe VSM provides an elegant framework for management control systems with explicit consideration of: multiple levels of control, communication channels, interactions with the environment, and the mechanisms for attaining balance between stability and change.Practical implicationsThe evaluation of current management control systems produces specific suggestions for improving the levers of control frameworkOriginality/valueThe VSM has not previously been aligned with management control frameworks.

Controls amid the chaos

2017 ◽  
Vol 33 (4) ◽  
pp. 13-15
Keyword(s):  
Control Systems ◽  
Design Methodology ◽  
Reading Time ◽  
Management Control ◽  
Management Control Systems ◽  
Content Type ◽  
Digital Revolution ◽  
Time Dynamics ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Evolving industries, the digital revolution and the effect of the global economic crisis has entailed huge challenges for those seeking to implement management control systems. In her article “Organizations with changing structures: how to control?” (2016), author Eva Lechner pulls aside the curtains on a festival organizer and shows that while its time dynamics and culture are very different to most industries, the need for controls still apply, and they can be successfully applied as long as keen attention is paid to their consequences. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Integrating environmental management control systems to translate environmental strategy into managerial performance

2019 ◽  
Vol 15 (4) ◽  
pp. 626-653 ◽  
Author(s):  
Peter G. Rötzel ◽  
Alexander Stehle ◽  
Burkhard Pedell ◽  
Katrin Hummel
Keyword(s):  
Environmental Management ◽  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Organizational Level ◽  
Environmental Strategy ◽  
Managerial Performance ◽  
Content Type ◽  
The Relationship

Purpose This study aims to investigate the role of environmental management control systems as mechanisms to translate environmental strategy into environmental managerial performance. Design/methodology/approach Based on survey data from 218 firms, the authors test a structural equation model. Findings The results show that environmental management control systems mediate the relationship between environmental strategy and environmental managerial performance. Moreover, the level of integration between regular and environmental management control systems significantly impacts the relationship between environmental management control systems and environmental managerial performance. Therefore, environmental management control systems are important mechanisms to translate environmental strategy into managerial performance, and a high level of integration can reinforce this role. Research limitations/implications The typical shortcomings of survey-based research apply to this study. Originality/value While previous research focuses primarily on environmental performance at the organizational level, this study addresses individual managerial performance with regard to environmental outcomes. In addition, the authors investigate how the level of integration between regular and environmental management control systems influences the relationship between environmental strategy and environmental managerial performance as well as the mediating role of environmental management control systems.

The role of management control systems in situations of institutional complexity

2015 ◽  
Vol 12 (4) ◽  
pp. 395-424 ◽  
Author(s):  
Utz Schäffer ◽  
Erik Strauss ◽  
Christina Zecher
Keyword(s):  
Control Systems ◽  
Radical Change ◽  
Institutional Logics ◽  
Management Control ◽  
Management Control Systems ◽  
Institutional Complexity ◽  
Content Type ◽  
Ex Post ◽  
Structural Responses

Purpose – This study investigates in depth how decision-making of different organisational members is shaped by various management control systems (MCSs) that reflect different institutional logics, how the entire organisation deals with the arising institutional complexity and which role different management controls as a system play in such situations. Design/methodology/approach – A case study was conducted on a German Mittelstand firm whose MCSs were shaped by three different logics over time: a family logic, a stakeholder logic and a shareholder logic. Findings – This paper shows how different actors of an organisation confronted with institutional complexity used selective coupling of different MCS components and compartmentalizing MCS components to deal with clashing institutional logics. Thereby, it was possible for the actors to balance different sub-communities within the firm that were shaped by conflicting but yet complementary logics that were required for organisational survival. Research limitations/implications – This study contributes to the understanding of how an MCS can be exploited for organisational structural responses to multiple logics. Due to this research design, the present study deals with challenges of ex post rationalization. Practical implications – The results show options for organisational leaders to deal with different kind of worldviews (i.e. logics) that shape employees’ behaviour. Particularly, this paper explains how leaders can restructure their MCSs to influence human behaviour in times of radical change. Originality/value – This paper contributes to the literature on MCSs by showing what role MCSs play in structural responses to institutional complexity.

Empowering middle managers in social services using management control systems

2020 ◽  
Vol 32 (2) ◽  
pp. 267-289 ◽  
Author(s):  
Per Nikolaj Bukh ◽  
Anne Kirstine Svanholt
Keyword(s):  
Control Systems ◽  
Social Services ◽  
Middle Managers ◽  
Quality Care ◽  
Management Control ◽  
Management Control Systems ◽  
Top Management ◽  
Content Type ◽  
Conflicting Objectives

PurposeThis paper examines how a public sector organization combined management control systems (MCS) to comply with increased uncertainty and conflicting objectives of tight budget control, flexibility, and quality care simultaneously. It also analyzes how middle managers interpret management control intentions and manage conflicting objectives, and how locally developed MCS are coupled with top management goals.Design/methodology/approachThis paper uses a case-study approach, based on interviews with top and middle managements, as well as document studies conducted at a medium-sized Danish municipality.FindingsBoth constraining and enabling control systems empower middle managers and facilitate tight budget controls. Furthermore, middle managers play a crucial role in the use of MCS, develop local control systems, adjust existing control systems and influence the decisions and strategies of top management.Research limitations/implicationsThis paper is context-specific, and the role of accounting in professional work varies due to the specific techniques involved.Practical implicationsThis paper shows how MCS, including budgeting and planning systems, can be applied in social services to help middle managements obtain tight budget controls while also improving service quality.Originality/valueThis paper adds to the limited extant research on the role of middle management in a control framework and demonstrates how MCS can balance conflicting goals in social services when uncertainty increases. Furthermore, this paper shows how the vertical coupling of MCS is tight when budgeting is employed for planning purposes.

Integrating management control systems, mindfulness and sustainability: an occupational health and safety perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wahab Shahbaz ◽  
Aymen Sajjad
Keyword(s):  
Occupational Health ◽  
Control Systems ◽  
Organizational Context ◽  
Health And Safety ◽  
Occupational Health And Safety ◽  
Management Control ◽  
Management Control Systems ◽  
Content Type ◽  
Corporate Social

Purpose The purpose of this paper is to integrate the notions of management control systems (MCS), mindfulness and sustainability, and introduce a framework demonstrating how sustainability outcomes – specifically occupational health and safety (OHS) improvements – can be accomplished by incorporating mindfulness-based interventions (or mindfulness-based training) as an effective MCS enabler. Design/methodology/approach The authors have conducted an integrative literature review to synthesize the knowledge of the mindfulness, sustainability and MCS literatures with a specific focus on OHS. Findings The findings revealed that there is a dearth of research that has investigated the potential linkages between mindfulness, MCS and sustainability. While some studies have explored the role of MCS in promoting sustainability and corporate social responsibility concepts, as well as the linkages between mindfulness and sustainability, this paper specifically looked at how mindfulness-based interventions can be applied in the organizational context to enhance OHS sustainability outcomes. Research limitations/implications This paper introduces a framework that shows how mindfulness-based interventions, as a means of MCS, can be used to enhance desired OHS sustainability outcomes. Originality/value This paper extends the sustainability, mindfulness and MCS literature by explicating how mindfulness-based interventions can be used as one of the key MCS enablers that support sustainability and OHS outcomes. Accordingly, the authors argue that this is one of the few early review papers that have investigated the potential connections between mindfulness, sustainability and MCS in the OHS context.

Enacting governance at the local level through management control systems: the case of a multinational energy company

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fabrizio Granà ◽  
Giulia Achilli ◽  
Cristiano Busco ◽  
Maria Federica Izzo
Keyword(s):  
Control Systems ◽  
Local Level ◽  
Management Control ◽  
Knowledge Generation ◽  
Management Control Systems ◽  
Content Type ◽  
Energy Company ◽  
Epistemic Object ◽  
Subsidiary Managers ◽  
Practical Implications

Purpose This paper draws on the case of a multinational energy company to explore the role played by management control systems (MCSs) in enacting governance policies at the local (subsidiary) level. Design/methodology/approach This research mobilizes the literature on governmentality to interpret MCSs as technologies of government that can be drawn upon to translate governance policies into practice. In particular, the authors discuss this process by interpreting “governance” as an epistemic object, that is an object that generates knowledge because of its inherent incompleteness and abstract nature. Findings The paper shows how MCSs act as technical objects insofar they attract, bind and engage local subsidiary managers in the generation of knowledge about governance policies (i.e. the epistemic object) set at the global level, thereby enacting these policies locally. Practical implications The findings have practical implications by showing how subsidiary managers engage with MCSs to translate and implement broader governance policies in their daily activities. Originality/value This research contributes to the accounting literature on governmentality by showing the role of MCSs as technologies that enact governance at the local level through the process of knowledge generation that these technologies enable. Such knowledge is triggered by the engagement between different participating subjects, attracted by MCSs in the attempt to define governance in practice.

scholarly journals Sinabung volcano: how culture shapes community resilience

2019 ◽  
Vol 28 (3) ◽  
pp. 290-303
Author(s):  
Marta Mori ◽  
Ronan McDermott ◽  
Saut Sagala ◽  
Yasmina Wulandari
Keyword(s):  
Structured Interviews ◽  
Content Type ◽  
Aid Dependency ◽  
Relief Operations ◽  
Long Term Impact ◽  
Cultural Experts ◽  
Practical Implications

Purpose The purpose of this paper is to explore how culture, including traditions and social structures, can influence resilience and how culturally sensitive relief operations can put affected people and their context at the core of any interventions. Design/methodology/approach A case study of the Mt Sinabung volcano area in Indonesia was undertaken. As part of the case study, an analysis of interventions was conducted, which was complemented by semi-structured interviews with Karo cultural experts and humanitarian organisations. Findings Culture influences the manner in which the Karo people react to volcano eruptions with varying implications for recovery. In addition, relief organisations which understand people’s actions through a cultural lens have better managed to tailor programs with long-term impact, thereby avoiding aid dependency. Practical implications Practical examples of disaster management activities that adequately account for the beneficiaries’ way of living prior to the eruptions are provided. Aid actors are provided with guidance concerning how to better tailor their activities in line with a cultural lens. Originality/value The study provides empirical grounding for claims concerning the role of culture in planning interventions in Indonesia and other similar contexts.

Labor lawsuits and debt maturity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Omer Unsal
Keyword(s):  
Chief Executive ◽  
Debt Maturity ◽  
Employee Relations ◽  
Short Term ◽  
Content Type ◽  
Negative Effect ◽  
Debt Market ◽  
Legal Fees

Purpose This paper aims to investigate how firms’ relationships with employees define their debt maturity. The authors empirically test the role of employee litigations in influencing firms’ choice of short-term versus long-term debt. The authors study employee relations by analyzing the importance of the workplace environment on capital structure. Design/methodology/approach The author’s test hypotheses using a sample of US publicly traded firms between 2000 and 2017, including 3,056 unique firms with 4,256 unique chief executive officer, adopting the fixed effect panel model. Findings The authors document that employee litigations have a significant negative effect on the use of short-term debt and a significant positive affect on long-term debt. Employee litigations, along with legal fees, outcomes and charging parties, matter the most in explaining debt maturity. In addition, frequently sued firms abandon the short-term debt market and use less shareholders’ equity to finance their operations while relying more on the longer debt market. Originality/value To the best of the authors’ knowledge, this is the first study to examine the role of employee mistreatment in debt maturity choice. The study extends the lawsuit and finance literature by examining unique, hand-collected data sets of employee lawsuits, allegations, violations, settlements, charging parties, case outcomes and case durations.

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