Strategy implementation through hierarchical couplings in a management control package: an explorative case study

Abstract

We examine how couplings of management control (MC) elements help to implement an organization's strategy. Despite prior research stating that couplings between MC elements form a fruitful soil for further research, empirical studies in this area are still scarce. We draw on coupling theory to explore three hierarchical relations between MC elements, and examine how these couplings help to implement the organization's strategy. We conducted a single case study in a medium-sized Dutch municipality, using interviews, observations and desk research. We identified three different types of couplings which yielded different effects, but were all distinctively helpful in implementing particular parts of the organization's strategy. This study contributes to the MC literature by demonstrating how coupling theory can be operationalized to examine relations between MC elements in an MC package, and by showing how various hierarchical couplings can help to implement an organization's strategy.

Personnel- and action control in gazelle companies in Sweden

“…We know that action control is less applicable to uncertainty and change, as well as requiring strong management skills (Haustein et al 2014). Earlier research has also indicated that personnel control may work differently for different organizations (Kolk and Schokker 2016) and that the more complex an organization is, the more different and specific controls are needed (Haustein et al 2014;Otley 1994). Gazelle companies in the early stages of becoming a larger organization with a complex structure may still be more strongly oriented by personnel control tied to operations and aligned with the corporate strategy, future mission, and goals.…”

“…They viewed behavioral controls as those systems and mechanisms that include processes and techniques embedded in a formal organizational context and are designed to increase the probability that individuals will attain the organizational goals accordingly (Chenhall 2003;Flamholtz et al 1985). Management (Malmi and Brown 2008) and organizational control (Flamholtz et al 1985) is thus a theory of performance goals and, specifically, how performance goals can be reached (Ghalayini and Noble 1996;Guenther 2013;Kolk and Schokker 2016). While an organizational goal is more tuned towards accomplishment of organizational goals, management control seems conceptually to veer more towards the achievement of overall strategic goals.…”

Conceptual Framework for the Strategic Management: A Literature Review—Descriptive

“…For Van der Kolk and Schokker [127], the control of management are all the guarantees that directors must give to ensure that the behavior of the employees is consistent with the objectives and strategies of the organization; this definition is built based on what is said in [128,129]. In FSP, the different manager hierarchy and the management control system (MCS) have a considerable influence.…”

Tildelingsmodeller og effektbaserede principper i den offentlige sektor

“…vii Undtagelser er dog van der Hengel et al (2014), der studerer 12 hollandske kommuner og finder, at økonomistyringssystemer ofte er løst koblet mellem de hierarkiske niveauer. Van der Kolk and Schokker (2016) finder i et studie af en enkelt hollandsk kommune, at kommuneplaner og afdelingsplaner er taet koblet. Endvidere viser , hvordan den hierarkiske kobling af budgetprocesser ogteknikker forstaerkes, når budgetlaegningen er et centralt planlaegningsredskab.…”