Management control systems (MCS) are formal, information-based routines and procedures (Simon,1995) applied in strategic management practice. They are developed to help management balance thetension between organisational strategy and human behaviour. However, recent studies (Galabova, 2011;2014) have shown that along with tangible, intangible assets impact on organisational performance. Theaim of the paper is to propose a theoretical framework on how intangibles, and more specifically intellectualcapital elements: human, structural and relational capital can be embedded as a part of a contemporary managementcontrol system. To examine these, we present a literature review together with data from formerempirical studies. The paper will present a conceptual model on how human, structural and organisationalcapital could be monitored and controlled as an important part of MCSs.
Increasing productivity and sustainability of corporate performance by using management control systems and intellectual capital accounting approach
