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Article
Publication date: 1 January 2006

Jos van Iwaarden, Ton van der Wiele, Roger Williams and Barrie Dale

In many industries (e.g. cars and clothing) manufacturing complexity and unpredictability have increased over the last couple of years because of an increasing variety of…

Abstract

Purpose

In many industries (e.g. cars and clothing) manufacturing complexity and unpredictability have increased over the last couple of years because of an increasing variety of products and shortening product life cycles. At the same time the manufacturers in these industries appear to have more problems with maintaining high quality levels. This paper aims to develop a methodology to study the effects of these developments on quality management systems.

Design/methodology/approach

At three European automotive manufacturers the two trends have been studied by means of a case study approach. Simons' four levers of control model is utilised to categorise and interpret the results of the case studies.

Findings

The application of a management control model in the field of quality management is found to be useful in explaining what changes are necessary to maintain high quality levels. From the case studies in the automotive sector it is concluded that there is a shift in quality management systems from a diagnostic towards a more interactive approach. This is in line with what can be expected as a result of the increasing uncertainty in the automotive sector, caused by shortening life cycles of car models and smaller batch sizes.

Originality/value

This research presents a novel application of Simons' four levers of control model to the field of quality management. Based on the experience with three case studies at European automotive manufacturers, this approach seems to have potential.

Details

International Journal of Quality & Reliability Management, vol. 23 no. 1
Type: Research Article
ISSN: 0265-671X

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Article
Publication date: 1 November 1994

C. Richard Aldridge and Janet L. Colbert

Internal Control – Integrated Framework (COSO Report, 1992) definesinternal control, suggests a framework for internal control, andpresents criteria to use in evaluating…

Abstract

Internal Control – Integrated Framework (COSO Report, 1992) defines internal control, suggests a framework for internal control, and presents criteria to use in evaluating controls. The document also provides guidance to management developing a report on controls for use by external parties. SSAE 2, “Reporting on an Entity′s Internal Control Structure over Financial Reporting” (1993) offers assistance to the practitioner reporting on management′s assertion regarding internal control over financial reporting. Discusses and provides an example of management′s report on internal control prepared according to COSO. Also discusses the accountant′s examination under SSAE guidance of management′s assertions and subsequent report and provides an example of the accountant′s report. Concludes by discussing the new business opportunities for the accountant which may result from external reporting on internal controls over financial reporting.

Details

Managerial Auditing Journal, vol. 9 no. 7
Type: Research Article
ISSN: 0268-6902

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Article
Publication date: 1 March 2000

Colin Fuller

A theoretical model, which describes continuous improvement and benchmarking processes, was developed. The model was based on the concepts that improvements in management

Abstract

A theoretical model, which describes continuous improvement and benchmarking processes, was developed. The model was based on the concepts that improvements in management inputs should produce organizational benefits and that management inputs are limited by budget constraints. The model was developed using health and safety as an example of operational management issues. In this example, organizational benefits related to reductions in the number and costs of accidents and management inputs referred to the provision and costs of accident prevention control measures. The utility of the model was demonstrated with five health and safety scenarios, which tested the model against the continuous improvement philosophy and benchmarking with respect to reducing costs, improving performance, minimising organizational change and assessing performance within different work environments.

Details

Benchmarking: An International Journal, vol. 7 no. 1
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 2 August 2021

Amr Mohamed Said Abdel-Halim and Mirghani N. Ahmed

This paper aims to evaluate the usefulness of two conceptual frameworks: levers of control (LOC) (Simons, 1995) and performance management systems (PMSs) (Ferreira and…

Abstract

Purpose

This paper aims to evaluate the usefulness of two conceptual frameworks: levers of control (LOC) (Simons, 1995) and performance management systems (PMSs) (Ferreira and Otley, 2009) for studying PM practices using a case study.

Design/methodology/approach

A case study method is used whereby data are collected through semi-structured interviews, examination of the group’s annual reports and internal documents.

Findings

A key finding of this study is the use of a PMS at the case company which is formally structured and with objectives, mechanisms and processes designed beyond a mere “performance measurement system.” While the case analysis indicates that most of the key components of the two frameworks are featured in the company’s PMS design, the uses of Simons’ (1995) LOC, however, are not consistent with the notion of “balance” as advocated by the model.

Research limitations/implications

The evidence presented in this study is based on one large manufacturing company, and hence the findings cannot be generalized.

Practical implications

The findings of this study can be used in enriching the design of current proposed theoretical frameworks and also in encouraging management accounting researchers to continue the efforts of studying performance management (PM) practices.

Originality/value

A deeper understanding of PM practices using holistic frameworks has yet to receive more contested efforts from management accounting researchers. This paper attempts to contribute to this endeavor and fill in the gap in this area of research.

Details

Journal of Accounting & Organizational Change, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1832-5912

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Book part
Publication date: 20 October 2017

Winnie O’Grady, Chris Akroyd and Inara Scott

Purpose: The purpose of this study is to analyze the changes organizations can adopt to move beyond budgeting. We show how these changes can be understood as modes of…

Abstract

Purpose: The purpose of this study is to analyze the changes organizations can adopt to move beyond budgeting. We show how these changes can be understood as modes of adaptive performance management that explains the ways in which organizations move beyond budgeting to become more adaptive. The proposed modes are then used to derive propositions for future research.

Methodology/approach: We follow a conceptual approach through an analysis of the beyond budgeting principles using the management and systems literatures on radical decentralization. We theorize how organizations can enhance their adaptability to environmental uncertainty through changes to their management structure and control processes.

Findings: We show that organizations can move beyond budgeting by decentralizing within or beyond their management structure and modifying or removing their budget-based control processes. We propose that beyond budgeting can be conceptualized as four modes of adaptive performance management: better budgeting, advanced budgeting, restricted budgeting, and nonbudgeting.

Research limitations/implications: The four modes of adaptive performance management can be used in future research to consider how changes to management structures and budget-based control processes can enhance the organizational adaptability needed to manage environmental uncertainty.

Practical implications: We show that while the nonbudgeting mode may be most suited to organizations facing high levels of environmental uncertainty, organizations facing low–to-moderate levels of environmental uncertainty can achieve sufficient levels of adaptability with less extensive changes to management structure and budget-based control processes.

Originality/value: The four modes of adaptive performance management reflect different approaches for dealing with environmental uncertainty. Positioning nonbudgeting as one mode and identifying alternate modes of adaptive performance management provides a basis for comparing and understanding the changes organizations make to move beyond budgeting.

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Book part
Publication date: 19 June 2012

Antonio Davila

Purpose – The purpose of this chapter is to present a state of the art of performance measurement and management control systems based on the papers presented in the 6th…

Abstract

Purpose – The purpose of this chapter is to present a state of the art of performance measurement and management control systems based on the papers presented in the 6th Conference on Performance Measurement and Management Control in Nice, France, 2011. The chapter is structured around two main topics: performance measurement and control systems.

Methodology/approach – The chapter is based on a thorough review of all the papers presented at the conference. Each paper was classified according to the topic it dealt with and the methodology used in the paper.

Findings – We structure the papers around the following topics: cost measurement and management, mapping the landscape, financial measures, nonfinancial performance frameworks, performance measurement design, sector-specific measures, and marketing measures within performance measurement. The topics identified in management control systems are compensation, management control systems' design, motivational aspects, strategy, risk management and enterprise software, governance, nonprofit organizations, and innovation.

Research limitations/implications – The chapter provides a comprehensive review of these topics. The review is limited to the selection bias implicit in the papers submitted to the conference. However, with almost 200 papers, the conference includes a large set of papers and topics. The analysis indicates that the field is dynamic with close connections to practice and promising research lines.

Practical implications (if applicable) – This state-of-the-art review reveals relevant research findings for companies and organizations. It also indicates that the research community is tackling important issues to society and the evolution of research promises to offer interesting alternatives to tackle these problems.

Social implications – Performance measurement and management control systems are important topics for management. Recent work is extending the implications of these fields beyond companies to include nonprofit organizations and public sector departments. Advances will definitely shape the way societies are designed.

Originality/value of chapter – The chapter provides a review of the field based on the contributions at the conference. As such it portrays the state of the field and gives researchers as well as practitioners a quick way to update their knowledge of the topics that are dominating the field.

Details

Performance Measurement and Management Control: Global Issues
Type: Book
ISBN: 978-1-78052-910-3

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Book part
Publication date: 13 August 2018

Chaminda Wijethilake and Athula Ekanayake

Purpose – The purpose of this paper is to develop a framework which sheds new light on how sustainability control systems (SCS) can be used in proactive strategic

Abstract

Purpose – The purpose of this paper is to develop a framework which sheds new light on how sustainability control systems (SCS) can be used in proactive strategic responses to corporate sustainability pressures.

Design/Methodology/Approach – Corporate sustainability pressures are identified using insights from institutional theory and the resource-based view of the firm.

Findings – The paper presents an integrated framework showing the corporate sustainability pressures, proactive strategic responses to these pressures, and how organizations might use SCS in their responses to the corporate sustainability pressures they face.

Practical Implications – The proposed framework shows how organizations can use SCS in proactive strategic responses to corporate sustainability pressures.

Originality/Value – The paper suggests that instead of using traditional financial-oriented management control systems, organizations need more focus on emerging SCS as a means of achieving sustainability objectives. In particular, the paper proposes different SCS tools that can be used in proactive strategic responses to sustainability pressures in terms of (i) specifying and communicating sustainability objectives, (ii) monitoring sustainability performance, and (iii) providing motivation by linking sustainability rewards to performance.

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Book part
Publication date: 3 July 2017

Emer Curtis, Anne M. Lillis and Breda Sweeney

Despite extensive adoption of Simons’ Levers of Control (LoC) framework, there is still considerable diversity in its operationalization which impedes the coherent…

Abstract

Purpose

Despite extensive adoption of Simons’ Levers of Control (LoC) framework, there is still considerable diversity in its operationalization which impedes the coherent development of the literature and compromises its value to researchers. The purpose of this paper is to draw researchers back to the conceptual core of the framework as a basis for stable, consistent definitions of the domain of observables.

Methodology/approach

We derive the conceptual core of the framework from Simons’ writings. We highlight instability in existing operational definitions of the LoC, weaknesses in the extent to which these definitions reference this conceptual core, and inconsistencies in the restriction of LoC to formal information-based routines.

Findings

We draw on the inconsistencies identified to build the case for commensuration or a “common standard” for the framework’s use on two levels: the constructs within the framework (through reference to the conceptual core of the framework) and the framework itself (through explicit inclusion of informal controls).

Research implications

We illustrate the benefits of commensuration through the potential to guide the scope of the domain of observables in empirical LoC studies, and to study LoC as complementary or competing with other management control theories.

Originality/value

Our approach to resolving tensions arising from inconsistencies in the empirical definitions of LoC differs from others in that we focus on the strategic variables underlying the framework to define the conceptual core. We believe this approach offers greater potential for commensuration at the level of the constructs within the framework and the framework itself.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78714-530-6

Keywords

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Book part
Publication date: 15 July 2009

Stewart R. Miller, Roger Calantone, Daniel C. Indro and Malika Richards

Many studies of control and international joint venture (IJV) performance have focused on ownership and management control. We develop a conceptual framework to explain…

Abstract

Many studies of control and international joint venture (IJV) performance have focused on ownership and management control. We develop a conceptual framework to explain how strategies affect the relationship between management control and joint venture performance. Specifically, we focus on serving the host-country customer and extending the life cycle of the foreign partner's products. Using a sample of Sino–U.S. and Sino–Japanese joint ventures, we found that serving the host-country customer strengthens the positive relationship between management control by the foreign partner and IJV performance. However, extending the product life cycle of the foreign partner's products weakens the positive relationship between management control by the foreign partner and IJV performance. We discuss the performance implications of dealing with both strategies and reveal a complex relationship between equity ownership, management control, and IJV performance.

Details

Managing, Subsidiary Dynamics: Headquarters Role, Capability Development, and China Strategy
Type: Book
ISBN: 978-1-84855-667-6

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Article
Publication date: 23 September 2020

Marcelo S. Pagliarussi and Michel A. Leme

This study aims to understand how family values, family managers and non-family managers influence the institutionalization of management control systems in family firms.

Abstract

Purpose

This study aims to understand how family values, family managers and non-family managers influence the institutionalization of management control systems in family firms.

Design/methodology/approach

A case study was conducted in a family business group that underwent a process of adoption and transformation of its management control system.

Findings

The results indicate that several non-family managers, besides the controller, played crucial roles in harmonizing the logic of a generalized practice (quality control management) with the existing rationalities of the family firm. The authors also observed that the ISO 9001/quality control management logic together with the family values of professionalism, meritocracy and an emphasis on the business’s identity rather than the family identity have laid the groundwork for the formalization of the business group’s management controls.

Practical implications

This study shows that quality control management is an accessible source of guidance for the formalization of managerial activities within an organization.

Originality/value

This paper contributes to the literature by clarifying the role performed by non-family managers during the formalization of management control in family firms. It also shows how the family values of professionalism, meritocracy and an emphasis on the business’s identity rather than family identity can influence the way control is exercised within family firms.

Details

Qualitative Research in Accounting & Management, vol. 17 no. 4
Type: Research Article
ISSN: 1176-6093

Keywords

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