Levers Of Control: Analysis Of Management Control Systems In A Slovenian Company

In the paper, we study management control from the Simons’ four levers of control framework point of view (i.e. diagnostic control systems, interactive control systems, beliefs systems, and boundary systems). The theoretical framework is tested by the use of an in-depth case study. We investigate how are MCS deployed by a case company according to Simons’ four levers of control and how does a company use them. The paper looks at tensions and balances between different styles of use of formal MCS, as well as between different types of control systems (e.g. formal vs. informal). The study’s contribution is that it incorporates a wider range of controls, including informal (i.e. social) mechanisms, to provide a more comprehensive analysis, as opposed to the majority of prior studies focusing on a more limited range of controls.

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Management Control Systems and Innovation: a levers of control analysis in an innovative company

Journal of Accounting & Organizational Change ◽

10.1108/jaoc-09-2020-0137 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Rúben Silva Barros ◽

Ana Maria Dias Simões da Costa Ferreira

Keyword(s):

Control Systems ◽

Single Case ◽

Management Control ◽

Management Control Systems ◽

Control Analysis ◽

Content Type ◽

Consistent Reinforcement ◽

Innovative Company ◽

Levers Of Control

Purpose Building on the growing body of research that has addressed management control systems and innovation, the purpose of this study is to assess the extent and nature of the use of controls in an innovative setting and how they work together unveiling the relationships and tensions amongst the Simons’ levers. Design/methodology/approach This study resorts to an in-depth and single case study in a company that has both a strong orientation to innovation and stable control practices in place. Evidence was collected from 32 interviews, visits to the company and internal documentation. Findings At the case company, it was possible to find the presence of controls according to all the levers of control. Likewise, joint effects of controls used according to interactive and beliefs approaches and diagnostic and boundary controls showed a consistent reinforcement that push the organization in a single direction. Signs of some countervailing reinforcement between these pairs were also detected, creating tensions. This in general shows that innovation can be weighed against the necessity of goal achievement taking place within fields in which the company can exploit the effort developed. Originality/value This study documents the collective use of controls in a context in which innovation is needed and how the combination of the levers of control with their inner workings and tensions allow the company to have a corporate environment of innovation that is friendly.

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Synthesizing management control frameworks

Measuring Business Excellence ◽

10.1108/13683041011027481 ◽

2010 ◽

Vol 14 (1) ◽

pp. 96-108 ◽

Cited By ~ 15

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.

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Effectiveness of Management Control Systems on Budget Realization in A Government Organization Based on Levers-of-Control Theory: A Case Study at The Indonesian Agency for Research And Development of Energy and Mineral Resources

Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018) ◽

10.2991/apbec-18.2019.68 ◽

2019 ◽

Author(s):

Hartanto Adhi Nugroho ◽

Dwi Hartanti

Keyword(s):

Control Theory ◽

Research And Development ◽

Control Systems ◽

Mineral Resources ◽

Management Control ◽

Management Control Systems ◽

Government Organization ◽

Levers Of Control

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People in suits: a case study of empowerment and control in a non-profit UK organisation

Journal of Public Budgeting Accounting & Financial Management ◽

10.1108/jpbafm-06-2019-0098 ◽

2020 ◽

Vol 32 (3) ◽

pp. 511-528

Author(s):

Roxana Corduneanu ◽

Laura Lebec

Keyword(s):

Control Systems ◽

Management Control ◽

Interactive Systems ◽

Employee Perceptions ◽

Structured Interviews ◽

Content Type ◽

Non Profit ◽

And Control

PurposeDrawing on Simons's levers of control (LoC) framework, the primary aim of this study is to advance an understanding of the balance between empowerment and constraint in a non-profit UK organisation. In particular, this study examines the antecedents and manifestations of LoC (im)balance, in relation to employees' level of engagement with the control systems in place.Design/methodology/approachFor this study, 27 semi-structured interviews were conducted with different organisational members, from directors to non-managerial staff, to gain an in-depth appreciation of the main differences between managerial intentions in the design of management control systems (MCS) and employee perceptions regarding the role of such systems.FindingsThis research reveals that suppression of interactive systems and internal inconsistencies between different types of controls hinder the balance between empowerment and constraint. This imbalance is then found to have important consequences for employee buy-in, in some cases, defeating the purposes of control.Research limitations/implicationsThis study enhances our understanding of the gap between the design of control systems and the employee perceptions of it in an unusual organisational setting (non-profit and bringing together clinical and non-clinical staff and operations).Originality/valueThe study of MCS and its role in organisations has long been the focus of both academic and practitioner research. Yet, while extant literature focused on management's perspective on MCS, few studies have explored employees' attitudes and behaviours that accompany the implementation of control. What is more, little is known about the specific uses and behavioural outcomes of MCS in the context of non-profit organisations. Drawing on Simons's LoC framework, this paper addresses these gaps in the literature and investigates the balance between control and empowerment of employees in a UK non-profit organisation with significant clinical remit.

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Management control systems as inter-organizational trust builders in evolving relationships: Evidence from a longitudinal case study

Accounting Organizations and Society ◽

10.1016/j.aos.2008.02.006 ◽

2008 ◽

Vol 33 (7-8) ◽

pp. 968-994 ◽

Cited By ~ 87

Author(s):

Maria L. Vélez ◽

José M. Sánchez ◽

Concha Álvarez-Dardet

Keyword(s):

Control Systems ◽

Organizational Trust ◽

Management Control ◽

Management Control Systems ◽

Longitudinal Case Study

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How management control systems enable and constrain integrated thinking

Meditari Accountancy Research ◽

10.1108/medar-05-2020-0880 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Ruth Dimes ◽

Charl de Villiers

Keyword(s):

Decision Making ◽

Control Systems ◽

Economic Benefits ◽

Management Control ◽

Management Control Systems ◽

Practical Implementation ◽

Successful Implementation ◽

Content Type ◽

Perceived Trust

Purpose This paper aims to examine how management control systems (MCS) can enable and constrain the successful adoption of integrated thinking in an organisation. Design/methodology/approach The study adopts a case study approach, involving in-depth interviews and documentary evidence. Findings The case study organisation perceived trust to be critical to the successful adoption of integrated thinking, and informal social controls with strong endorsement from senior management frequently substituted for more formal technical controls in helping to develop a trust-based organisational culture. These cultural changes improved collaboration and brought economic benefits by encouraging outcome-based decision-making rather than capital-based decision-making, thereby enabling employees to identify and address poorly performing projects earlier. However, established performance measurement systems geared towards reporting and rewarding accounting profits created tension, constraining the potential benefits of integrated thinking by reinforcing business unit protectionism. Practical implications Integrated thinking can be seen as a form of management with the potential to improve organisational outcomes. An improved understanding of factors that might enable or constrain integrated thinking could facilitate its spread. Originality/value Despite several calls for research on the practical implementation of integrated thinking, this has not been studied extensively. To the best of the authors’ knowledge, this study is one of the firsts to contribute to a better understanding of the role of MCS in the successful implementation of integrated thinking in an organisation. The study also contributes to the MCS literature.

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Sustainability reporting integrated into management control systems

Pacific Accounting Review ◽

10.1108/par-08-2012-0034 ◽

2015 ◽

Vol 27 (2) ◽

pp. 189-207 ◽

Cited By ~ 25

Author(s):

Jennifer Kerr ◽

Paul Rouse ◽

Charl de Villiers

Keyword(s):

Control Systems ◽

Balanced Scorecard ◽

Sustainability Reporting ◽

Management Control ◽

Management Control Systems ◽

Management Control System ◽

Content Type ◽

The Balanced Scorecard ◽

External Reporting

Purpose – This paper aims to examine how three different organisations integrate sustainability reporting into management control systems (MCS). Design/methodology/approach – A case study examination of sustainability reporting integrated into MCS in three New Zealand organisations. Findings – The integration of sustainability reporting into MCS holds advantages for organisations to operationalise sustainability objectives, broaden stakeholder accountability as well as intensify interactions with stakeholders, formalise organisation beliefs and improve communication of sustainability measures internally. While frameworks such as the balanced scorecard (BSC) can facilitate implementation of sustainability reporting, some organisations may choose to fully integrate the latter into their management control system. Originality/value – Sustainability reporting is sometimes seen as an external reporting philosophy that can be managed as a separate project. The authors show it can be integrated into MCS, either entirely or through tools such as the BSC. The authors develop a framework that may be useful in future studies to locate our case organisations.

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