Integrating Justice and Trust in Management Control Systems: How to Generate Goal Congruence and Long Term Fairness Coherent with the Firm's Mission

2016 ◽  
Author(s):  
Nattlia Cuguerr-Escofet ◽  
M Angels Fito ◽  
Josep M. Rosanas
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Management Control Systems ◽  
Goal Congruence ◽  
Trust In Management

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.

scholarly journals MANAGEMENT CONTROL SYSTEMS AND LODGING BUSINESS MODEL IN JAPANESE RYOKANS

2021 ◽  
Author(s):  
Tomohiro Kaminaka ◽  
◽  
Zubir Azhar ◽  
Dayana Jalaludin ◽  
◽  
...  
Keyword(s):  
Control Systems ◽  
Business Model ◽  
Business Models ◽  
Management Accounting ◽  
Accounting Information ◽  
Business Model Innovation ◽  
Management Control ◽  
Management Control Systems ◽  
Tourism Policy

The lodging sector in Japan has experienced a shrinking market size of traditional lodging providers (known as ryokans). Ryokans, which account for about 40% of Japanese lodging market, have operated their lodging businesses based on a unique business model that has been in existence for over 1,000 years. About 30% of ryokans are in a declining stage, where they are unable to break away from the traditional business models and are in a negative spiral of continuing deficits. The intent of this paper is to understand how ryokans innovate their business model while maintaining some of their traditional fundamental elements. This paper adopts a multiple-case study approach based on the two high-performing ryokans with long histories. Our findings add the ryokans’ commercial-cultural context to existing literature that describes the role of management control systems (MCS) in supporting business model innovation. Understanding the achievement of their business model innovation from a long-term perspective of about thirty years provides our paper with theoretical originality. We conclude that the weights of formal and informal controls in MCS are equal in the long term regardless of the direction of their business model innovation. In recent years, tourism policy has encouraged ryokans to use management accounting information to overcome their low-profit businesses. Our practical suggestions complement the tourism policy that presupposes the use of management accounting information alone, and support ryokan managers to use it as a part of MCS.

scholarly journals TRUST AND MANAGEMENT CONTROL SYSTEM: A STUDY ON META-SINTHETIC INTERACTIONS

2017 ◽  
Vol 23 (1) ◽  
pp. 156-178
Author(s):  
Patricia Villa Costa Vaz ◽  
Márcia Maria dos Santos Bortolocci Espejo
Keyword(s):  
Control System ◽  
Control Systems ◽  
Case Studies ◽  
Management Control ◽  
Management Control Systems ◽  
Primary Case ◽  
Management Control System ◽  
Trust In Management ◽  
And Performance ◽  
Organizational Objectives

ABSTRACT Management accounting has been associated to the institutionalization of trust inside organizations. Trust allows the implementation of systems which grant freedom to choose without trying to process more information about the world than it ought to be done. (TOMKINS, 2001). Regarding such aspects, this paper questions: how have previous studies been relating trust and Management Control Systems (MCS) towards reaching organizational objectives? To achieve this, we object to examine the role of trust in Management Control System, and its relation with organizational objectives, according to Hoon’s (2014) methodology, which allow the construction of a theory based on primary case studies. On developing the methodology four causal networks have been examined on selected studies: institutions, Management Control Systems, trust and organizational objectives. The institutions represent the effective background of the case studies, specially as a series of habits, rules, routines and procedures; the approaches regarding management control systems include budget and performance evaluation; in relation to trust, previous studies have primarily discussed it through contract, communication and competence approaches; and, as to organizational objectives, changes on current systems, focus on performance and business risk reduction are tackled. Feedback, however, was dealt with after achieving objectives, when management incorporates trust on personnel relationships – the primary step towards goals and objectives.

scholarly journals Designing Management Control Systems: Systemic vs Sectoral Approach

2019 ◽  
Vol 14 (6) ◽  
pp. 130
Author(s):  
Paolo Popoli
Keyword(s):  
Control System ◽  
Control Systems ◽  
Empirical Studies ◽  
Management Control ◽  
Management Control Systems ◽  
Management Control System ◽  
Efficiency And Effectiveness ◽  
Short And Long Term ◽  
Tools And Techniques

Management control systems are increasingly called upon to find an appropriate balance between efficiency and flexibility, between short- and long-term orientation, between formal and informal tools and techniques. However, management control has been studied and treated, in the prevailing literature, by adopting a “sectoral” approach. In this respect, economic-financial control, organizational control, and strategic control are deeply analyzed and clearly qualified in their respective aims, methodology and tools, but at the same time are the results of a specialized and fragmented perspective. Starting from these premises, this paper aims to provide a conceptual framework for designing a management control system from a “systemic perspective”, in order to capture all economic, financial, strategic and operational dimensions of business within a unitary management control system. Methodologically, this paper is conceptual in nature, based on a qualitative analysis of the prevailing literature, aimed at providing advanced insights on this field and bases for further theoretical and empirical studies. In particular, after discussing the most significant stages in the evolution of management control systems over the last decades, this paper highlights the importance and advantages of adopting a systemic approach that facilitates a unitary management control system wherein the numerous and different dimensions of management are considered interdependent, in order to achieve an integrated equilibrium between efficiency and effectiveness, between short- and long-term performances, and to unify strategic and operational management.

The economic benefit of goal congruence and implications for management control systems

2006 ◽  
Vol 25 (3) ◽  
pp. 265-298 ◽  
Author(s):  
Marvin L. Bouillon ◽  
Gary D. Ferrier ◽  
Martin T. Stuebs ◽  
Timothy D. West
Keyword(s):  
Control Systems ◽  
Economic Benefit ◽  
Management Control ◽  
Management Control Systems ◽  
Goal Congruence
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