Control and empowerment as an organising paradox: implications for management control systems

Abstract

Purpose The purpose of this paper is to reframe the debate about the tension between management control and employee empowerment by drawing on a theory of paradox. Reframing the problem in this way draws attention to the variety of ways in which organisations can attend to both control and empowerment simultaneously. Design/methodology/approach The authors undertake a conceptual examination of the relationship between empowerment and control using a paradox theory lens. First, the authors bring together two dimensions of empowerment – structural empowerment and psychological empowerment – and combine them to produce three new empowerment “scenarios”: illusory empowerment, obstructed empowerment and authentic empowerment. For each of these three scenarios, the central tenets of paradox theory are applied in order to explain the nature of the paradoxical tension, anticipated behavioural responses and the resulting challenges for ongoing management control. Findings The authors find that neither structural nor psychological empowerment alone can account for variation in behavioural responses to management control. The conceptual analysis highlights the interplay of socio-ideological control and systems of accountability in generating psychological empowerment and demonstrates that this does not come at a cost to management control but instead results in a reduction in the scale and scope of ongoing challenges. Originality/value This paper contributes a new theoretical perspective on the classic problem of tension between management control and employee empowerment. Rather than positioning control and empowerment either as a managerial choice or dialectic, the authors identify three different ways in which organisations can engage with both paradoxical elements simultaneously.

How managers use culture and controls to impose a ‘996’ work regime in China that constitutes modern slavery

“…Management controls are comprised of mechanisms used by an organisation to control its managers and other employees (Abernethy and Brownell, 1997;Ward and Lowe, 2017;Lewis et al, 2019). Such mechanisms are used to motivate, monitor, measure, and sanction the actions of employees, so that an organisation achieves its business goals.…”

“…Such control involves imposing values, norms, and beliefs to establish behavioural regularities. However, culture can have negative consequences when managers are arrogant, demanding or exploitative (Abernethy and Brownell, 1997;Parker and Chung, 2018;Lewis et al, 2019).…”

Conceptualising management control systems Illustrative evidence from literature on the Australian business sector

“…Therefore, management control systems are directly related with employees of the organisation concerned. Lewis et al (2019) identified the tension between management control and employee empowerment. Lewis et al (2019) explored that neither structural nor psychological empowerment is the only factor for behavioural response to management control.…”

“…Lewis et al (2019) identified the tension between management control and employee empowerment. Lewis et al (2019) explored that neither structural nor psychological empowerment is the only factor for behavioural response to management control. Lewis et al (2019) concluded that socio-ideological control and systems of accountability is also important element for empowerment.…”

Tildelingsmodeller og effektbaserede principper i den offentlige sektor

“…Der kan imidlertid også vaere tale om positive eksternaliteter, somPoulsen et al (2020) viser i et studie af den såkaldte Pulje til Elevløft.Graden af den hierarkiske kobling påvirkes af incitamenternes styrke, men da tildelingsmodeller i deres natur vil indebaere en ufuldstaendig oversaettelse af formål til mål, vil en løsere kobling(Hengel et al 2014) mellem mål og budgettildeling måske vaere at foretraekke for betaleren, hvis udføreren i forvejen er motiveret til at forfølge betalerens målsaetninger. Anvendelsen af tildelingsmodeller indebaerer derfor, at det centrale behov for styring gennem mål skal afbalanceres med opnåelsen af formålet gennem decentrale frihedsgrader(Lewis et al 2019).…”