Effects of the Management Control System on Empowerment and Organizational Resilience

Abstract

The aim of this study is to examine the effects of the enabling perception of the Managerial Control System (MCS) on psychological empowerment and organizational resilience. A survey was conducted with 161 managers of Brazilian companies that had undergone the process of acquiring another company and a structural model was developed to answer the hypotheses of the research. The results show that the enabling perception of MCS is associated with psychological empowerment and capacity for organizational resilience, which indicates that the characteristics of the MCS affect managers' motivation regarding their work environment and contribute to companies dealing effectively with adversities and contingencies. MCSs help organizations in the process of absorbing changes and regaining balance after some temporary disruption, as in the case of acquiring other companies. It is concluded that enabling MCSs favors the empowerment of managers and supports companies in dealing more effectively with the turbulence to which they are exposed.

Organizational resilience, job satisfaction and business performance

“…Organizational resilience allows people to better cope with a variety of situations, improving optimism and making them more engaged and satisfied in their workplace (Hallak et al , 2018). Interaction with people contributes to a pleasant organizational climate, with reflections in the relationships between colleagues and perhaps with satisfaction in terms of financial benefits, as their skills can be improved during an occasional turbulence (Beuren et al , 2020). Lampel et al (2014) warn that building interpersonal bonds between employees and the organization is a must to deal with crises.…”

Effects of using the management control system on individual performance with the intervenience of feedforward and organizational learning

“…Whereas in comprehensive MCS use there is greater harmony between favoring prescribed (task-based) and discretionary (contextual) behaviors. These results suggest that MCS use may or may not favor collaborative and organizational citizenship behaviors among organization members (Beuren et al , 2020) or emphasize technical aspects.…”

“…The relationship between the management control system (MCS) and performance has been a subject of growing interest in a part of the literature. In contrast to the traditional view of a direct relationship, many studies (Henri, 2006; Widener, 2007; Oyadomari et al , 2011; Mahama and Cheng, 2013; Appuhami, 2019; Beuren et al , 2020) have found that using the MCS contributes to performance through contextual, motivational and psychological variables. Kloot (1997), Chenhall (2005), Widener (2007), Oyadomari et al (2011), Jiménez-Jiménez and Sanz-Valle (2011) and Wee et al (2014) have observed the relevance of organizational learning in this relationship.…”

Job autonomy, unscripted agility and ambidextrous innovation: analysis of Brazilian startups in times of the Covid-19 pandemic

“…Resilience, in the organizational setting, can represent a meta-capability, consisting of stages of anticipating, enduring and adapting to a given situation (Duchek, 2020). One of the dimensions of organizational resilience concerns original/unscripted agility (Beuren, Santos & Bernd, 2020), henceforth referred to as unscripted agility. In turbulent contexts, this dimension plays a key role in organizations (Akg€ un & Keskin, 2014).…”