Impact of Misfit between Management Control System and Business Strategy on Performance

2013 ◽  
Author(s):  
R.M.M.H.D. Rajapakshe
Keyword(s):  
Control System ◽  
Business Strategy ◽  
Management Control ◽  
Management Control System

scholarly journals Assessment and Prioritize Risk Factors of Financial Measurement of Management Control System for Production Companies Using a Hybrid Z-SWARA and Z-WASPAS with FMEA Method: A Meta-Analysis

Mathematics ◽  
2022 ◽  
Vol 10 (2) ◽  
pp. 253
Author(s):  
Sara Rahmati ◽  
Mohammad Hossein Mahdavi ◽  
Saeid Jafarzadeh Ghoushchi ◽  
Hana Tomaskova ◽  
Gholamreza Haseli
Keyword(s):  
Risk Factors ◽  
Decision Making ◽  
Control System ◽  
Financial Management ◽  
Business Strategy ◽  
Meta Analysis ◽  
Management Control ◽  
Management Control System ◽  
Deviation Analysis ◽  
Fmea Method

The management control system in an industry is managerial, directional, hindrance, and cohesive action in order to cohere and regulate various branches and sub-branches. In fact, it is a system that supports the real state of matters in the right way. This method is intended at assuring that the purposes and activities carried out have the desired outcomes and eventually lead to the objects and purposes of the company. In this matter, the financial and non-financial management control system is essential both when it comes to strategy community; Consequently, in this paper, the management control system is classified into financial and non-financial categories because such analysis gives a chance to get a broad assessment of a management control system relationship in organizations. In this paper, we evaluate the relationship between business strategy and management control system and their influences on financial performance measurement of a manufacturer (a case study of Maral co.) with the use of Merchant’s theory. Furthermore, In this case, a decision-making strategy centered on the FMEA is used to identify and prioritize risk factors financial of the control system in companies. Nevertheless, because this strategy has some significant limitations, this research has presented a decision-making approach depending on Z-number theory. For tackle, some of the RPN score’s drawbacks, the suggested decision-making methodology combines the Z-SWARA and Z-WASPAS techniques with the FMEA method. The findings reveal that in the non-financial management control system element, customer satisfaction, and in the financial component, cost standards are at the largest level of weight. Furthermore, the strategic planning factor with a rate of 2.95 and the deviation analysis factor with a rate of 2.87 is at the lowest level, respectively. In sum, market or industry changes are the primary cause of risk in businesses, according to FMEA methodology and the opinions of three professionals.

scholarly journals Does business strategy and management control system fit determine performance?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tapio Jukka
Keyword(s):  
Control System ◽  
Business Strategy ◽  
Management Control ◽  
Business Strategies ◽  
Top Management ◽  
Scoring Method ◽  
Management Control System ◽  
Content Type ◽  
And Performance ◽  
And Cluster Analysis

PurposeThis study examines the relationship between business strategy, management control system (MCS) type and performance. Does the alignment of organisation business strategy and MCS fresult in better performance?Design/methodology/approachThis study draws on the business strategy and MCS type literature to identify business strategies and MCS types. A scoring method was used to identify business strategy types and cluster analysis to identify MCS types from a sample of 80 firms and 621 firm-years of data. Analysis of variance was used analyse the differences.FindingsFour types of MCS were identified and were labelled clan, adhocracy, market and hierarchy. The sample was split into defender, analyser, prospector and reactor strategies. The results showed defender strategies performed better with hierarchy or market type MCSs while prospector strategies performed better with clan or adhocracy MCS types. Analysers performed acceptably with all MCS types.Practical implicationsThe results of this study suggest that organisations should align their business strategy with a certain MCS type to achieve good performance. Also, alignment of top management and business strategy is supported as the top management properties differ between the MCS types.Originality/valueThis research contributes to the management control and strategy literature by demonstrating how the alignment between organisation business strategy and organisation-level MCS type determines organisational performance. The results suggest that differing business strategies yield better performance when aligned with the appropriate management controls represented by an MCS type.

scholarly journals The Effect of Business Strategy and Management Control Systems Misfit On Hotel Performance

2020 ◽  
Vol 12 (1) ◽  
pp. 14-23
Author(s):  
I Made Pradana Adiputra ◽  
Lindawati Gani ◽  
Hilda Rossieta
Keyword(s):  
Control System ◽  
Financial Performance ◽  
Business Strategy ◽  
Organizational Design ◽  
Empirical Test ◽  
Management Control ◽  
Survey Method ◽  
Bivariate Analysis ◽  
Company Performance ◽  
Management Control System

The purpose of this research is to test the level of misfit business strategy with management control system will negatively associate to company performance. This study contributes to the existence of an empirical test of the existence of the concept of business strategy misfit with the management control system will negatively associate the company performance based on contingency-fit approach. In addition, the results of this study are expected to be a consideration for managers in the service industry to consider contingency factors in organizational design to improve company performance. The research was conducted by survey method (questionnaire) and purposive sampling at 227 star hotels industry type in Bali which sourced from Tourism Office of Bali Province 2018. Research respondents are senior managers with a minimum 1 year working period and have comprehensive information on company policies and operations. Using statistical method of regression with residual approach (bivariate analysis), the result of research indicate that  the result of research show according to hypothesis in research that there is influence of strategic misfit business with MCS negatively affect to financial performance and non- financial performance in hotel industry in Bali.

Sign in / Sign up

Export Citation Format

Share Document