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The implementation of performance management is the responsibility of managers; more importantly, a key part of a frontline manager's role is ensuring that frontline employees are performing by meeting organisational goals. Existing research has shown a lack of focus on the role of frontline managers in the implementation of performance management systems despite plenty of research on the separate topics of frontline managers and performance management. This article aims to understand how frontline managers connect the intended performance management system, through components and processes developed by the human resources department and higher levels of management, with their employees' performance.

This study used a qualitative method, conducting semi-structured interviews with 57 participants from two Singapore public sector organisations to understand the interaction between the formal and informal performance management systems.

The authors found that frontline managers used the formal and informal performance management systems in the organisation to manage the demands of their role. Notably, the expectations that superiors and subordinates have heavily influences how the frontline managers choose to implement their performance management responsibilities.

The article uses systems theory to illustrate and explain the complex and dynamic nature of PM in practice through the FLM's implementation of the formal and informal PM systems. The primary contribution of the study is through demonstrating under what situations do frontline managers use the formal and informal performance systems in a complementary manner within the constraints placed on them.

The purpose of this paper is to explore how ethical leadership and formal control systems influence employee opportunistic behavior.

Using survey data collected from Chinese employees (N=430), the authors conducted regression analysis to test hypothesized relationships between ethical leadership and formal control systems and employee opportunistic behavior. Both direct effects and an interaction effect were tested.

The authors found that both ethical leadership and formal control systems individually play significant roles in reducing employee opportunistic behavior. In addition, the results indicate that ethical leadership and formal control systems function as complements to jointly constrain employee opportunistic behaviors.

This study contributes to an understanding of the relationship between supervisors and followers in China by demonstrating the effects of ethical leadership and formal control systems on employee opportunistic behaviors, including an interesting interaction effect.

This paper aims to mainly investigate the role of trust, which is an important informal system, in executive compensation incentives.

Using the data of Chinese A-share private enterprises from 2003 to 2014, the paper estimates the effect that trust has on executive compensation incentives.

Results indicate that trust can significantly enhance the effectiveness of executive compensation incentives. Furthermore, the better the regional trust environment in which companies are located, the more pronounced the effect is. In particular, the effect of trust on executive compensation incentives is only significant when the formal legal system is immature. As companies continue to grow and develop and the formal system becomes perfect, the role of trust weakens. The formal system, including the corporate governance mechanism and perfect legislation, then becomes the key to promoting executive compensation incentives.

This paper provides evidence of the significance of both informal and formal systems. It not only emphasises the important role that the informal system has played in “the mystery of China’s economic growth” but also supports the “ruling the country by law” strategy for the sustainable development of China’s economy.

This paper reveals the relationship between the formal and informal systems, which provides a new perspective on and empirical evidence for the determinants of executive compensation incentives, and it also finds an explanation for the rapid growth of China’s economic development.

When computers were first used in work organizations they were seen principally as devices able to perform simple and limited functions. In consequence they were used to automate routine tasks which had previously been done manually — producing bills, payrolls etc — and they appeared in organizations primarily concerned with large‐scale information processing such as banks, insurance, finance institutions and departments concerned with control. They were also to be found in organizations and departments where large‐scale data processing was a means for achieving desired goals, for example, engineering firms and research and development departments.

Corporate social responsibility (CSR) has become part of daily business for small- and medium-sized enterprises (SMEs) in Japan. The purpose of this study is to explore how management control systems (MCSs) can support the translation of activities into CSR actions using a case study of a SME in Japan.

The case is based on an interview with a CEO of a SME in Japan. The paper contributes to the discussion on CSR and MCSs and investigates the integration of CSR activities in SMEs in Japan through MCSs.

The case company’s formal control systems incorporate environmental and social aspects that are reflected in its top-down, stakeholder-centered approach into CSR through a formal CSR policy. An informal control system is evident and reflected in the CEO’s emphasis on creating shared value by implementing CSR. An interactive control system, a type of formal control system, is useful in the interactions between CEOs and employees and in translating the opinions of stakeholders into CSR actions. Formal control systems can be supported by informal control systems in the implementation of CSR activities.

This research contributes to the management accounting literature by showing that formal and informal control systems can support the motivation of employees and the integration of stakeholders’ opinions on the implementation of SMEs CSR activities in Japan. The MCS approach also contributes to SMEs in Japan that seek to address the demographic and economic challenges.

The purpose of this paper is to take into account Simons’ (1994) formal levers of control framework and more informal processes to examine how organizations implement and manage corporate social responsibility (CSR) activities through management control systems (MCSs).

A multiple-case study was conducted in ten large French organizations. Qualitative data were collected during in-depth semi-structured interviews with the managers who were best informed on CSR practices and MCSs. The authors then performed within-case and cross-case analysis.

The study shows that organizations use different MCSs to manage CSR activities directed toward their salient stakeholders – that is, employees, customers, suppliers and community. Specifically, the authors found that social MCSs are used to communicate CSR values, manage risk, evaluate CSR activities, and identify opportunities and threats. In addition, the use of MCSs to implement CSR activities is mainly driven by the need to satisfy salient stakeholder demands, manage legitimacy and reputation issues, and meet top management expectations and enhance their commitment. Last, the use of social MCSs is hindered by a lack of clear strategic CSR objectives and action plans, a lack of global standards and measurement processes for CSR, and a lack of time and financial resources.

The study addresses recent calls in the literature for research into the ways formal and informal control systems are used to implement CSR activities and provides insight that may stimulate further research.

Purpose: The aim is to explore how family relations are affected by societal changes in relation to informal and formal caregiving and self-determination of older adults.

Design/methodology/approach: Care managers (CMs)/social workers (SWs) (N = 124) participated in a comparative vignette study including Japan, South Korea, and Sweden. Systems theory was used.

Findings: Japanese CMs/SWs clearly describe their efforts to create networks in a relational way between formal and informal actors in the community. South Korean CMs/SWs balance between suggesting interventions to support daily life at home or a move to a nursing home, often acknowledging the family as the main caregiver. In Sweden, CMs/SWs highlight the juridical element in meeting the older adult and the interventions offered, and families primarily give social support. Regarding self-determination, the Japanese priority is for CMs/SWs to harmonize within the family and the community. South Korean CMs/SWs express ambivalent attitudes to older adults’ capability for self-determination in the intersection between formal and family care. Swedish CMs/SWs adhere to the older adult’s self-determination, while acknowledging the role of the family in persuading the older adult to accept interventions. The results suggest emerging defamilialization in South Korea, while tendencies to refamilialization are noticed in Japan and Sweden, albeit in different ways.

Research limitations/implications: In translation, nuances may be lost. A focus on changing families shows that country-specific details in care services have been reduced. For future research, perspectives of “care” need to be studied on different levels.

Originality/value: Using one vignette in three countries with different welfare regimes, discussing changing views on families’, communities’ and societal caregiving is unique. This captures changes in policy, influencing re- and defamilialization.

The purpose of this paper is to explore whether and how changes in the management control systems (MCS) of post-secondary institutions (PSIs) in Western Canada can be described and explained in terms of formal and informal MCS; and whether and how changes in the MCS of PSIs in Western Canada can be described and explained in terms of an integrative contingency-based framework of MCS based on regulatory accountability systems, competitive markets and organizational culture?

The empirical research was undertaken with an exploratory mixed design. The first phase involved descriptive univariate and bivariate statistics as well as non-parametric statistics computed on data from annual reports and financial statements of 46 PSIs in Western Canada to quantitatively explore MCS. The second phase involved the grounded theory (GT) analysis of annual reports of 46 PSIs in Western Canada to qualitatively explore formal MCS in relation to changes in contingencies. The third phase involved the GT analysis of 20 semi-structured interviews of senior managers from PSIs in Western Canada to qualitatively explore informal MCS in relation to formal MCS and changes in contingencies.

The research showed that emphasis on formal MCS in Western Canadian PSIs resulted in biased compliance within informal MCS. The exploratory research also demonstrated that the distinction between formal and informal MCS was better understood in a wider framing of MCS in terms of regulatory accountability systems, competitive markets and organizational culture.

This research led to the elaboration of an exploratory theoretical framework to subsume the distinction between formal and informal MCS into an integrative contingency-based framework of MCS.

The purpose of this paper is to explore the ways in which both formal and informal control, operating as a package, are implicated in responding to organisational change arising from the introduction of the Australian Federal Government’s Clean Energy Act (2011).

This investigation is based on a review of archival data, and semi-structured interviews conducted with 15 staff at different hierarchical levels within an Australian renewable energy company.

Although formal management control systems and informal control both played important roles in the organisation’s reorientation to organisational change, it was the latter form of control that predominated over the former. The influence of the prevailing organisational culture, however, was pivotal in orchestrating both formal and informal control efforts within this organisation.

This study contributes to management control theory and practice in two ways: first, it provides much needed empirical evidence about the ways in which management controls act as a package; second, it offers insights into the relative importance of the components of a management control package in the context of a particular organisational change. In addition, it responds to Laughlin’s (1991) call for empirical “flesh” to be added to the skeletal framework he advocates to make this conceptualisation of organisational change, “more meaningful”.

This paper aims to explore the relationship between the components of the management control system (MCS) based on the reform process of the management system of China Resources Group and the influence of these components on the implementation effect of MCS.

This study uses an exploratory research method and an open-ended grounded theory approach to conduct six formal investigations and several in-depth interviews with employees and senior management in China Resources Group. This paper supplements these data by performing a documentary analysis of the internal documents of China Resources Group such as the statistical yearbook, business plan and meeting records.

This study puts forward four propositions. The formal strategic planning process creates an application environment for the strategy map and balanced scorecard (BSC), making it easier for an enterprise to adopt these tools. The combination of the strategy map and formal strategic planning helps to build the logical relationship between strategic goals and budget goals and strengthens the correlation between budget and strategy. In diversified organizations applying MCS, the strategy map and BSC facilitate the implementation of the strategy for specialized business units, while the financial measure system facilitates the implementation of the strategy for diversified business units. Strategic boundaries based on financial measures in the MCS help organizations determine the scope of strategic choices before implementing strategies.

Because of the chosen research approach, the research results may lack generalizability and the influence of the strategic planning process on budget participation, budget slack and other budget behaviors has not been fully discussed. Therefore, future studies are expected to provide more evidence regarding strategic planning and budget behaviors.

Before establishing a strategy map and BSC, the enterprise should consider the application environment to ensure their feasibility and legitimacy and construct the BSC system under appropriate conditions. A formal strategic planning process should be formed within the enterprise; that is, a set of detailed management methods should be adopted and clear rules should be used to support the enterprise management control process. The enterprise should add strategic boundaries to the MCS to determine the scope of strategic choices and the budgeting bottom line.

This paper sheds light on the impact of the formal strategic planning process on the organization and contributes new evidence on the key success factors for implementing the strategy map and BSC, enriching the researchers’ understanding of the applicability of the BSC.