Conceptualising management control systems

Illustrative evidence from literature on the Australian business sector

Authors

DOI:

https://doi.org/10.14267/VEZTUD.2020.11.05

Keywords:

management control systems, business sector, Australia

Abstract

This study is an attempt to conceptualise management control systems. Management control systems can be viewed as a broader concept which includes different components and used for varying purposes. In an organisation, control is applied at different levels and is directly related with employees of the organisation concerned. To comprehend the basics of management control systems the present study will explore the typography of the control mechanisms. Management control systems can be viewed as technical activity which is implemented in different ways in different countries. In the Australian business sector these control tools have been widely used. This study will review the experiences of implementing management control systems in the Australian business sector. Though the present study is based on Australian business sector it has policy implications to other countries and is expected to indicate potential usefulness to management control practices.

Downloads

Download data is not yet available.

Author Biographies

Anup Chowdhury, East West University

Full Professor

Nikhil Chandra Shil, East West University

Associate Professor

References

Abernethy, M. A., & Guthrie, C. H. (1994). An empirical assessment of the “fit” between strategy and management information system design. Accounting and Finance, 34(2), 49-66. https://doi.org/10.1111/j.1467-629X.1994.tb00269.x

Abernethy, M. A., & Lillis, A. M. (1995). The impact of manufacturing flexibility on management control system design. Accounting, Organizations and Society, 20(4), 241-258. https://doi.org/10.1016/0361-3682(94)E0014-L

Abernethy, M. A., & Stoelwinder, J. U. (1995). The role of professional control in the management of complex organizations. Accounting, Organizations and Society, 20(1), 1-17. https://doi.org/10.1016/0361-3682(94)E0017-O

Abernethy, M. A., & Brownell, P. (1997). Management Control Systems in Research and Development Organisations: The Role of Accounting, Behavior and Personnel Controls. Accounting, Organizations and Society, 22(3/4), 233-248. https://doi.org/10.1016/S0361-3682(96)00038-4

Alam, M., & Nandan, R. (2010). Organisational change and innovation in small accounting practices: evidence from field. Journal of Accounting and Organizational Change, 6(4), 460-476. https://doi.org/10.1108/18325911011091828

Anthony, R. N., Dearden, J., & Vangil, R. F. (1972). Management Control Systems: Cases and Readings. Boston: Richard D. Irwin, Inc.

Anthony, R. N. (1988). The Management Control Function. Cambridge, Mass.: Harvard Business School Press.

Anthony, R. N., & Govindarajan, V. (2004). Management Control Systems. Boston, Mass.: McGraw Hill Irwin.

Baines, A., & Langfield-Smith, K. (2003). Antecedents to management accounting change: a structural equation approach. Accounting, Organizations and Society, 28(7-8), 675-698. https://doi.org/10.1016/S0361-3682(02)00102-2

Baird, K., & Schoch, H. (2013). The adoption and success of private sector outsourcing in Australia. International Journal of Accounting, Auditing and Performance Evaluation, 9(3), 199-223. https://doi.org/10.1504/IJAAPE.2013.055894

Berry, A. J., Coad, A. F., Harris, E. P., Otley, D. T., & Stringer, C. (2009). Emerging themes in management control: A review of recent literature. The British Accounting Review, 41, 2-20. https://doi.org/10.1016/j.bar.2008.09.001

Chenhall, R. H., & Langfield-Smith, K. (2003). Performance Measurement and Reward Systems, Trust, and Strategic Change. Journal of Management Accounting Research, 15(1), 117-143. https://doi.org/10.2308/jmar.2003.15.1.117

Czarniawska-Joerges, B. (1988). Dynamics of Organizational Control: The Case of Berol Kemi AB. Accounting, Organizations and Society, 13(4), 415-430. https://doi.org/10.1016/0361-3682(88)90014-1

Emmanuel, C. R., & Otley, D. T. (1985). Accounting for Management Control. New York: Van Nostrand Reinhold.

Ferreira, A., & Otley, D. (2009). The design and use of performance management systems: An extended framework for analysis. Management Accounting Research, 20(4), 263-282. https://doi.org/10.1016/j.mar.2009.07.003

Foster, G., & Gupta, M. (1994). Marketing, cost management and management accounting. Journal of Management Accounting Research, 6, 43- 77.

Groot, T., & Merchant, K. A. (2000). Control of international joint ventures. Accounting, Organizations and Society, 25(6), 579-607. https://doi.org/10.1016/S0361-3682(99)00057-4

Hofstede, G. (1981). Management Control of Public and Not - For – Profit Activities. Accounting, Organizations and Society, 6(3), 193-211. https://doi.org/10.1016/0361-3682(81)90026-X

Hoque, Z. (2014). Drivers of Management Control Systems Change: Additional Evidence from Australia. Advances in Management Accounting, 23, 65-92. https://doi.org/10.1108/S1474-787120140000023002

Laing. G. K., & Perrin, R. W. (2018). Management Accounting in the Australian Printing Industry: A Survey. Journal of New Business Ideas and Trends, 16(3), 13-19.

Langfield Smith, K., & Smith, D. (2003). Management control systems and trust in outsourcing Relationships. Management Accounting Research, 14(3), 281-307. https://doi.org/10.1016/S1044-5005(03)00046-5

Lewis, R. L., Brown, D. A., & Sutton, N. C. (2019). Control and empowerment as an organising paradox: implications for management control systems. Accounting, Auditing & Accountability Journal, 32(2), 483-507. https://doi.org/10.1108/AAAJ-11-2017-3223

Lorange, P., & Scott Morton, M. S. (1974). A framework for management control systems. Sloan Management Review, 16(1), 41–56.

Maciariello. J. A. (1984). Management Control Systems. Upper-Saddle River: Prentice-Hall.

Maciariello. J. A., & Kirby, C. J. (1984). Management Control Systems: Using Adaptive Systems to Attain Control. Upper-Saddle River: Prentice-Hall.

Macintosh, N. B. (1994). Management Accounting and Control Systems: An Organisational and Behavioral Approach. New York: John Wiley & Sons Ltd.

Merchant, K. A. (1982). The Control Function of Management. Sloan Management Review, Summer, 43- 55.

Merchant, K. A., & Van der Stede, W. A. (2007). Management Control Systems. Harlow: Pearson Education Limited.

Moores, K., & Yuen, S. (2001). Management accounting systems and organisational configuration: a life-cycle perspective. Accounting Organizations and Society, 26(4-5), 351-389. https://doi.org/10.1016/S0361-3682(00)00040-4

Murthy, V., & Guthrie, J. (2012). Management control of work‐life balance. A narrative study of an Australian financial institution. Journal of Human Resource Costing & Accounting, 16(4), 258-280. https://doi.org/10.1108/14013381211317248

Otley, D., Broadbent, J., & Berry, A. (1995). Research in Management Control: An Overview of its Development. British Journal of Management, 6, S31-S34. https://doi.org/10.1111/j.1467-8551.1995.tb00136.x

Parker, L. D. (1986). Developing Control Concepts in the 20th Century. New York: Garland.

Perera, S., Harrison, G., & Poole, M. (1997). Customerfocused manufacturing strategy and the use of operations-based non-financial performance measures: A research note. Accounting, Organizations and Society, 22(6), 557-572. https://doi.org/10.1016/S0361-3682(96)00048-7

Petroulas, E., Brown, D. A., & Sundin, H. (2010). Generational Characteristics and Their Impact on Preference for Management Control Systems. Australian Accounting Review, 20(3), 221-240. https://doi.org/10.1111/j.1835-2561.2010.00099.x

Picard, R. R., & Reis, P. (2002). Management control systems design: a metaphorical integration of national culture implications. Managerial Auditing Journal, 17(5), 222- 233. https://doi.org/10.1108/02686900210429632

Rockness, H. O., & Shields, M. D. (1988). An empirical analysis of the expenditure budget in research and development. Contemporary Accounting Research, 4(2), 568-581. https://doi.org/10.1111/j.1911-3846.1988.tb00685.x

Simons, R. (1995). Levers of Control: How Managers Use Innovative Control Systems to Drive Strategic Renewal. Boston, Mass.: Harvard Business School Press.

Straub, E., & Zecher, C. (2013). Management control systems: a review. Journal of Management Control, 23(4), 233-268. https://doi.org/10.1007/s00187-012-0158-7

Su, S., Baird, K., & Schoch, H. (2017). Management control systems: The role of interactive and diagnostic approaches to using controls from an organizational life cycle perspective. Journal of Accounting & Organizational Change, 13(1), 2-24. https://doi.org/10.1108/JAOC-03-2015-0032

Su, S., Baird, K., & Schoch, H. (2013). Management control systems from an organisational life cycle perspective: The role of input behavior and output controls. Journal of management & Organization, 19(5), 635-658. https://doi.org/10.1017/jmo.2014.7

Sundin, H., & Brown, D. A. (2017). Greening the black box: integrating the environment and management control systems. Accounting, Auditing & Accountability Journal, 30(3), 620-642. https://doi.org/10.1108/AAAJ-03-2014-1649

Taylor, D., King, R., & Smith, D. (2019). Management controls, heterarchy and innovation: a case study of a start-up company. Accounting, Auditing & Accountability Journal, 32(6), 1636-1661. https://doi.org/10.1108/AAAJ-11-2017-3208

Tricker, R. I., & Boland, R. J. (1982). Management Information and Control Systems. New York: Wiley.

Wang, A., & Dyball, M. C. (2018). Management controls and their links with fairness and performance in interorganisational relationships. Accounting and Finance, 59(3), 1835-1868. https://doi.org/10.1111/acfi.12408

Downloads

Published

2021-07-22

How to Cite

Chowdhury, A., & Chandra Shil, N. . (2021). Conceptualising management control systems: Illustrative evidence from literature on the Australian business sector. Vezetéstudomány / Budapest Management Review, 51(11), 51–63. https://doi.org/10.14267/VEZTUD.2020.11.05

Issue

Section

Articles