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Effective integration of management control systems for competing in global industries

Effective integration of management control systems for competing in global industries Extending Simon’s (1990) work, this paper proposes an effective management control system that allows companies to integrate different management control systems in order to improve operational effectiveness, employee creativity, and company competitiveness. Reviews conventional and modern competitive strategies and discusses both positive and negative effects of management control systems. Argues that to be effective, diagnostic management systems must be supplemented by boundary control systems, interactive control systems, and belief systems. Effective integration of the four different management control systems, it is argued, is dependent on companies applying them in a way that maximises operational effectiveness without limiting employee creativity. The importance of starting the design of a management control system with the specification of a system of beliefs which defines the company’s values and direction is highlighted. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Business Review Emerald Publishing

Effective integration of management control systems for competing in global industries

European Business Review , Volume 12 (1): 5 – Feb 1, 2000

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References (26)

Publisher
Emerald Publishing
Copyright
Copyright © 2000 MCB UP Ltd. All rights reserved.
ISSN
0955-534X
DOI
10.1108/09555340010307558
Publisher site
See Article on Publisher Site

Abstract

Extending Simon’s (1990) work, this paper proposes an effective management control system that allows companies to integrate different management control systems in order to improve operational effectiveness, employee creativity, and company competitiveness. Reviews conventional and modern competitive strategies and discusses both positive and negative effects of management control systems. Argues that to be effective, diagnostic management systems must be supplemented by boundary control systems, interactive control systems, and belief systems. Effective integration of the four different management control systems, it is argued, is dependent on companies applying them in a way that maximises operational effectiveness without limiting employee creativity. The importance of starting the design of a management control system with the specification of a system of beliefs which defines the company’s values and direction is highlighted.

Journal

European Business ReviewEmerald Publishing

Published: Feb 1, 2000

Keywords: Competitive advantage; Participation; Control systems; Entrepreneurship

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