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Abstract

Details

Organisational Roadmap Towards Teal Organisations
Type: Book
ISBN: 978-1-78756-311-7

Book part
Publication date: 6 November 2012

Inya Egbe, Mathew Tsamenyi and Hadiza Sa’id

Purpose – This paper reports on the results of a case study that investigates the operations of formal and informal controls in a multinational-subsidiary in…

Abstract

Purpose – This paper reports on the results of a case study that investigates the operations of formal and informal controls in a multinational-subsidiary in Nigeria.

Design/methodology – Data has been gathered by way of semi-structured interviews, observation, document analyses and a focus group discussion.

Findings – Findings suggest that although issues relating to budgets, performance evaluation and rewards, staff recruitment and other formal aspects of controls were built on the platform of formality, these systems operated alongside informal controls in the organization. We suggest that beliefs systems, values and norms existing within the local community where the subsidiary is located could have a controlling effect and influence the formal organizational controls. Forms of informal controls such as trust were found to be prominent in the organization where superiors in certain instances assigned responsibilities to members of their teams not on the basis of their abilities or skills possessed by the member but because the member could be trusted.

Implications – The findings as reported here have significant implications for understanding the design of management controls in less developed countries (LDCs).

Open Access
Article
Publication date: 16 October 2017

Marco Maatman and Jeroen Meijerink

HR shared service centers (SSCs) have been claimed to innovate human resource management service delivery by centralizing resources and decentralizing control and, in doing so…

5326

Abstract

Purpose

HR shared service centers (SSCs) have been claimed to innovate human resource management service delivery by centralizing resources and decentralizing control and, in doing so, create value for other business units. In response, to explain the value of HR shared services for the business units served, the purpose of this paper is to test hypotheses on the joint influence of HR SSC operational and dynamic capabilities and of control mechanism usage by the business units.

Design/methodology/approach

A survey methodology was applied to collect data among business unit representatives from 91 business units in 19 Dutch organizations. The data were analyzed using structural equation modeling in AMOS.

Findings

This study found that the use of formal control mechanisms (e.g. contracts, service-level agreements) relates negatively with HR shared service value, but that this relationship becomes positive once mediated by informal control mechanisms (e.g. trust and shared language) and operational HR capabilities. Furthermore, it shows that the dynamic capabilities of HR SSCs relate positively to HR shared service value for the business units, but only because of their effect on operational capabilities.

Originality/value

Whereas previous studies into HR SSCs have examined the two antecedents independently, this study shows how organizational control and capabilities interrelate in explaining the value of HR shared services.

Details

Personnel Review, vol. 46 no. 7
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 7 September 2012

Rodney Coyte, Federica Ricceri and James Guthrie

The paper's aim is to examine processes used to control the management of knowledge resources in small and medium enterprises (SMEs) and to compare the findings with the

3584

Abstract

Purpose

The paper's aim is to examine processes used to control the management of knowledge resources in small and medium enterprises (SMEs) and to compare the findings with the underlying assumptions and prescriptions of intellectual capital guidelines designed for SMEs.

Design/methodology/approach

An in‐depth case study of a successful Australian SME is conducted to identify the means used to control strategizing and the management of knowledge resources.

Findings

It was found that informal, intensive dialogue based processes, structured by an overriding management philosophy, governed strategization and the management of knowledge resources. These governance processes were affected by a combination of formal and informal controls and serendipitous outcomes.

Research limitations/implications

The paper examines only one organization and the study can be extended to other SMEs to develop more detailed specific policy recommendations.

Practical implications

Intellectual capital management guidelines developed for SMEs may have little benefit due to assumptions of resource availability and the fundamental importance of formalization of strategy and control, ignoring possible scarcity of resources and the benefits of flexibility and responsiveness afforded by informal controls in SMEs. The research shows that knowledge harvesting is affected through the way knowledge is used rather than what is developed.

Originality/value

The paper empirically examines the management of knowledge resources in an Australian SME and outlines the way formal and informal controls were interwoven in organizational practices to manage knowledge harvesting. It provides a critique of intellectual capital guidelines in SMEs, highlighting a potential mis‐match between practice and key assumptions underlying the guidelines.

Details

Journal of Knowledge Management, vol. 16 no. 5
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 10 December 2019

Kaisa Henttonen, Pia Hurmelinna-Laukkanen and Kirsimarja Blomqvist

Trust and control through contracting have been juxtaposed in many studies addressing interorganizational collaboration and knowledge exchange. In this study, the authors move…

Abstract

Purpose

Trust and control through contracting have been juxtaposed in many studies addressing interorganizational collaboration and knowledge exchange. In this study, the authors move from the opposite ends of a continuum between trust as an attitude and control exercised through formal contracts toward the center of the continuum where trust and contracting start to show similar features. The authors ask how trust in its analytical form and control gained through establishing informal protection for knowledge assets affect the innovation and market performance of firms engaged in research and development (R&D) alliances.

Design/methodology/approach

The authors examine the existing literature and conduct a quantitative empirical study to answer the research question.

Findings

The authors find, first, that controlling an organization’s own knowledge assets in R&D alliances with informal means of protection can be more effective than a strategy of controlling the alliance through formal contracts. Second, the authors find that an analytical audit of partner trustworthiness, and especially partner capabilities and goodwill can be more effective than trust as an attitude.

Research limitations/implications

The findings support softening the sharp distinction between trust and control and provide evidence on the relevance of highlighting the firm point of view in knowledge management in R&D alliance governance.

Originality/value

The study adds to the existing understanding of trust and control in R&D alliance governance. Specifically, the authors turn the focus from interorganizational governance to intra-organizational knowledge management measures, and particularly toward how a focal actor can take an analytical approach to evaluate partner trustworthiness and use informal control in protecting its own knowledge assets. Consequently, this study also provides a plausible explanation for the contradictory findings in studies that examine the relationship between trust and control. The study indicates that depending on the specific nature of trust and control, they can be either a complement or a supplement factors: the extreme forms of trust and control are notably different from those forms that share similar features.

Details

VINE Journal of Information and Knowledge Management Systems, vol. 50 no. 2
Type: Research Article
ISSN: 2059-5891

Keywords

Article
Publication date: 10 April 2017

Aki Jääskeläinen and Niklas Luukkanen

The purpose of this paper is to investigate how middle managers utilize performance measurement information in their work. More specifically, the study gives understanding on the…

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Abstract

Purpose

The purpose of this paper is to investigate how middle managers utilize performance measurement information in their work. More specifically, the study gives understanding on the impact of performance measurement, policies and procedures (formal controls), and individual intuition and experiential knowledge (informal controls) on strategy implementation and decision making. The study also identifies hindrances to the use of measurement information.

Design/methodology/approach

The study is carried out as a semi-structured interview study in Finnish companies representing five industries and 29 interviewees. Empirical data were analyzed deductively according to the research framework combining informal and formal management controls with two managerial processes.

Findings

The work of middle managers is clearly affected by informal controls. Much of the managerial work relies on individual intuition and judgment based on experience instead of performance information or formal instructions. The study also unveiled that top management sees the status of utilizing performance measurement information in a more positive light than do middle managers. This is the case especially in strategy implementation. Deficiency of measurement information was found to be a key factor hindering the use of measurement information but improper analysis of results is also a challenge.

Research limitations/implications

This study examined the work of middle managers widely in different positions and industries which means that the findings are rather explorative. Simplification was required in order to operationalize the complex tasks of strategy implementation and decision making. Further, more contextually focused research is required in order to understand better the contextual causes of the findings and to provide more understanding on the appropriate ways of improving the utilization of performance measurement information.

Practical implications

The practical contribution of this study lies in the detailed description of strategy implementation and decision-making processes based on observations in several large companies representing different industries. The study also suggests areas to which development efforts should be concentrated on in order to improve the use of performance information among middle managers.

Originality/value

This study contributes to the earlier literature by highlighting the usage of performance measurement information as opposed to developing new measures. In addition, the novelty value of the paper relates to the focus in the work of middle managers which has gained less attention in the previous research.

Details

International Journal of Productivity and Performance Management, vol. 66 no. 4
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 13 August 2020

Tobias Alexander Krause and Martyna Daria Swiatczak

This study examines the interplay of formal types of control (input, behavior and outcome) exercised on municipally owned corporations (MOCs). It further investigates whether…

Abstract

Purpose

This study examines the interplay of formal types of control (input, behavior and outcome) exercised on municipally owned corporations (MOCs). It further investigates whether particular informal contingencies (trust and interdependence) predict affiliation to the derived municipal control configurations.

Design/methodology/approach

The paper applies an exploratory cluster analysis based on survey data from 243 top-level managers of German MOCs. It then investigates the clustered municipal control configurations using binomial logistic regression.

Findings

The exploratory analysis reveals four municipal control configurations: (1) input-dominated control, (2) outcome-dominated control, (3) mixed input/outcome control and (4) “neglect of formal control”. As expected, both of the informal contingencies demonstrate strong predictive power. More precisely, trust increases the likelihood of belonging to the dominant outcome control cluster and interdependence increases the likelihood of belonging to the mixed input/outcome control cluster. Surprisingly, the neglect of formal control cluster is characterized by low trust and low interdependence.

Originality/value

The study sheds light on the widely assumed but understudied interplay of different formal controls in hybrid governance settings. Furthermore, the analysis stresses the importance of trust and interdependence when explaining hybrid control configurations.

Article
Publication date: 8 February 2013

Basil P. Tucker and Lee D. Parker

This aim of this study is to explore the relationship between management control systems (MCSs) and the formulation of strategy in not‐for‐profit (NFP) organisations.

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Abstract

Purpose

This aim of this study is to explore the relationship between management control systems (MCSs) and the formulation of strategy in not‐for‐profit (NFP) organisations.

Design/methodology/approach

The paper views the relationship between MCS and strategy through the contrasting lenses of new‐institutional and contingency theory, using data collected from semi‐structured interviews of CEOs and senior executives in 32 Australian NFPs.

Findings

Strategy is formulated predominantly by intended means, through structured strategic planning processes. Emergent strategy is typically a rare means by which strategy is developed, and is in fact often actively discouraged in the NFPs investigated. Contrary to expectations, control is predominantly exercised through informal means, rather than by formally designed systems.

Originality/value

With strategy and control being central concerns for most NFPs, this sector provides a unique vehicle for exploring the “robustness” of prior MCS strategy empirical findings. Investigating the MCS strategy relationship within a highly complex NFP context is thus an “acid test” of existing understanding of the MCS‐strategy nexus. As one of the few studies to investigate the relationship between control and strategy as it may apply in this context, this study refines and further develops extant management control theory.

Details

Accounting, Auditing & Accountability Journal, vol. 26 no. 2
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 10 May 2019

Rochelle Wimalasinghe and Tharusha N. Gooneratne

The purpose of this paper is to explore the co-existence of multiple logics, resulting complexities and their implications on control practices within a traditional industry…

Abstract

Purpose

The purpose of this paper is to explore the co-existence of multiple logics, resulting complexities and their implications on control practices within a traditional industry (southern cinnamon) in Sri Lanka.

Design/methodology/approach

The paper is premised upon the qualitative methodology and case study approach, while the theoretical backing is provided by the institutional logics perspective.

Findings

The findings reveal that controls are exercised in the southern cinnamon industry to manage competing facets stemming from the co-existence of multiple logics, such as family logic, commercial logic and state logic. Amid the recurring complexity caused by competing logics, the industry remains in a state of control through mediators, such as the exporter trade union (the Spice Council), which although predominantly guided by commercial logic, acts in easing-off tensions between competing logics, while serving the interest of multiple actors. Controls in southern cinnamon nevertheless take a peculiar form, giving way to the continuation of traditional rudimentary practices, which essentially represent the interests of ground level actors.

Originality/value

Moving beyond corporate settings, which are the typical focus of mainstream studies, this paper adds to the existing body of knowledge on control practices in traditional industries, where informal and localized controls prevail. Theoretically, it expands the use of the institutional logics perspective, recognizing multiple logics, tensions and complexities in management control research. In doing so, the authors probe into informal control mechanisms in traditional industries to understand the controls and complexities in practice. Practically, the paper portrays beliefs, issues and incidents in the field (of the southern cinnamon industry in Sri Lanka), which explains why the field operates as it does, thereby offering insights to actors in the field, ranging from practitioners to policymakers.

Details

Qualitative Research in Accounting & Management, vol. 16 no. 1
Type: Research Article
ISSN: 1176-6093

Keywords

21 – 30 of over 53000