Resilience capacities and management control systems in public sector organisations

Abstract

Purpose Inspite of the attention resilience receives in relation to public policy and public management, very few studies have analysed the internal mechanics of public sector organisations to see what is producing their resilience. Considering management control systems (MCSs) as the drivers of organisational change, this paper aims to explore their role as determinants of resilience in the public sector. The paper attempts to open the black box of organisational functioning focusing on one complex component. Design/methodology/approach This paper adopted a qualitative approach for this longitudinal case study. This paper used a mix of primary and secondary sources in terms of direct observation, semi-structured interviews and internal document analysis. This paper used a framework drawing on Barbera et al. (2017) and management control’s constraining and facilitating concepts to explore how anticipatory and coping capacities of resilience are supported and reinforced by MCSs. Findings Findings suggest that MCSs support adaptive behaviour and assist decision-making by providing knowledge and ready-to-use answers to cope with external shocks. However, this is found in case of the adoption of facilitating MCSs, which empower managers and employees and are based on stewardship roles. In such a context, MCSs played an essential role in shaping anticipatory and coping capacities. At the same time, financial shocks fostered the investment in MCSs, cyclically strengthening or developing new anticipatory and coping capacities. Originality/value To the best of the authors’ knowledge, this paper is one of the first attempting to identify how facilitating MCSs, as a driver of organisational change, can make an organisation more resilient. It shows how resilience capacities are generated and strengthened via MCSs.

Mecanismos de controle gerencial, imprevisibilidade ambiental e resiliência organizacional

“…Primeiro, evidências já sugerem que sistemas de controle gerencial (SCG) habilitantes fomentam a criação de resiliência cognitiva, comportamental e contextual (Beuren & Santos, 2019) e resiliência organizacional em sentido amplo (Beuren et al, 2020). Sistemas de controle voltados para planejamento, monitoramento, orçamento flexível e gestão de desempenho também auxiliam no desenvolvimento de capacidades de resiliência organizacional (Bracci & Tallaki, 2021). Contudo, para a discussão de mecanismos de controle formais e informais, os achados são menos conclusivos.…”

Organizational Supports Influencing High Performance Work Behaviour and Organizational Resilience

“…The tendency to withstand shocks without changing structure or function, the ability to make incremental changes to the existing function and structure without changing underlying principles, culture, or beliefs, and the capacity to manage, absorb, and react to shocks are all examples of coping capacities that become visible through coping actions during times of disruption. The interaction of ecological elements and structural supports throughout time results in coping capacities (Bracci and Tallaki, 2021).…”

Management Control Systems and Employee Organisational Commitment in the Malaysian Public Sector

“…Aziah and Scapens (2007) found that the implementation of accounting control systems affects the relationship between low-level management and accountancy executives in the Malaysian public sector, based on trust between the two parties. Bracci and Tallaki (2021) suggested that management control systems can assist in the decision-making process and support adaptive behaviour by providing information to cope with external barriers in the public sector. Moreover, Siddiquee (2010) revealed that public services in Malaysia had followed the global trends to implement result control but mentioned that while the current approach tended to suffer from serious inadequacies and limitations, many of the shortcomings of the traditional method could be resolved through result control and budgeting.…”