Organisational Design and Management Control
Traditionally the management control literature concentrates its attention on formal systems and takes the view that their creation follows the design of organisations. The view of this chapter, however, is that management control is an interactive and often overlapping process with that of organisation design, which frequently involves the manipulation of social processes. Whilst this approach may be unexceptional from the perspective of organisation theory, this chapter proceeds to a discussion of how management control procedures and organisation design may be related. This is done by tracing the development of organisation design theories and showing how each advance had implications for management control. The final section of this chapter critically examines contingency theory and questions its treatment of effectiveness and its depiction of decision-making within organisations.
KeywordsManagement Control Senior Management Reward System Organisation Design Organisation Theory
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