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MANAGEMENT CONTROL: THE ROLES OF RULES, MARKETS AND CULTURE [1]
Author(s) -
Lebas Michel,
Weigenstein Jane
Publication year - 1986
Publication title -
journal of management studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.398
H-Index - 184
eISSN - 1467-6486
pISSN - 0022-2380
DOI - 10.1111/j.1467-6486.1986.tb00953.x
Subject(s) - control (management) , organizational culture , work (physics) , balance (ability) , management control system , order (exchange) , knowledge management , business , control system , process management , industrial organization , computer science , management , economics , psychology , engineering , mechanical engineering , electrical engineering , finance , neuroscience
This paper addresses the question of efficacy of Management Control Systems in organizations. It shows that control systems are based on a combination of three underlying approaches — markets, rules and culture — in order to obtain desired behaviours from organizations’ members. These three approaches are then discussed in terms of Hofstede's work‐related values characterization. It is shown that each firm or organization defines its own balance among the three bases of control identified above. This balancing is dynamic and organizations must continuously adapt their Management Control Systems to changes in the overall culture(s), in technology and in the competitive forces. The general evolution of Management Control Systems is seen to be towards a lessening of the importance of rules‐based controls and towards an increased reliance on controls imbedded in the organizational culture. [2]