MANAGEMENT CONTROL SYSTEMS IN FAMILY FIRMS: A REVIEW OF THE LITERATURE AND DIRECTIONS FOR THE FUTURE

Family firms play a significant role in the global economy. Although family firm literature has devoted much time and effort to investigating topics concerning corporate governance, leadership, ownership and succession, accounting issues have received relatively scant attention. In this paper, we assemble and critically review extant literature on the choice of management controls. This is an essential topic for firms as management control systems (MCS) are used to make sure subordinates behave in function of the goals of the firm. Family firms, however, have distinct features, such as differences in governance structures and goals, which can have a significant impact on whether and how MCS are used. We conclude this review paper by providing avenues for future research that can advance our understanding of both the determinants and the outcomes of the choice of MCS.     

SELF REGULATION, CRISIS MANAGEMENT AND PREVENTIVE MEDICINE: THE EVOLUTION OF U.K. BANK SUPERVISION

This article examines the transition in bank supervision from an ideology of self-regulation to a more open-ended, preventive-medicine approach. It explores the processes by which the supervisors are developing a realistic and relevant appreciation of the banking system as a network of organizations [1].     

COMPSTAT, COMMUNITY POLICING AND THE SCIENCE OF SUCCESS: A MARKET-BASED APPROACH TO POLICE MANAGEMENT

Police departments in the USA have begun to embrace recommendations from two police management philosophies. However, it is often unclear whether these recommendations conflict with or complement each other. This article suggests that viewing these philosophies from a market-based perspective will enable police forces in the UK to better apply their recommendations.     

KNOWLEDGE AND THE THEORY OF ORGANIZATIONS: ORGANIZATIONS AS ACTIVITY SYSTEMS AND THE REFRAMING OF MANAGEMENT*

Recent developments in the theory of knowing and doing contrast with conventional rational-cognitive assumptions about management and organization. This, and the emphasis that is currently being placed on the importance of esoteric knowledge for business success, suggests that a review of the relationship between knowledge, organization and management is timely. Activity theory offers a way of synthesizing and developing relevant notions. the approach has its origins in Russian psychology which endeavoured to avoid the dichotomies between thought and action and between individuals and society which have characterized Western theory. Activity theory examines the nature of practical activities, their social origins, and the nature of the ‘activity systems’ within which people collaborate. Modifications to Engestrom's contemporary presentation of the approach are suggested, and a theory of organizations as activity systems is offered. the theory reframes management by modelling the recurrent and embedded nature of human activities, by revealing the tentative nature of knowledge and its action orientation, and by highlighting the opportunities for individual and collective development that engagement and dilemma can provide. the article concludes by reviewing implications for the management of knowledge work, organizational capabilities and organizational learning.     

PROPRIETORIAL CONTROL IN FAMILY FIRMS: SOME FUNCTIONS OF 'QUASI-ORGANIC' MANAGEMENT SYSTEMS

The purpose of this paper is to investigate the strategies of managerial control which are used by the proprietors of family-owned business enterprises. Interviews with the proprietors and senior managers of businesses in the building industry illustrate the ‘quasi-organic’ nature of management structures. These grant some autonomy to senior managers without threatening proprietorial decision-making prerogatives. Although the family firm has certain distinctive features, similar control strategies designed to ensure that delegated decisions are ‘reliable’ and ‘responsible’ are evident in various types of business enterprise. There is, then, scope for further comparative research within a conceptual framework which does not entirely divorce the family firm from other business organizations.     

MANAGEMENT CONTROL: THE ROLES OF RULES,MARKETS AND CULTURE[1]

This paper addresses the question of efficacy of Management Control Systems in organizations. It shows that control systems are based on a combination of three underlying approaches — markets, rules and culture — in order to obtain desired behaviours from organizations’ members. These three approaches are then discussed in terms of Hofstede's work-related values characterization. It is shown that each firm or organization defines its own balance among the three bases of control identified above. This balancing is dynamic and organizations must continuously adapt their Management Control Systems to changes in the overall culture(s), in technology and in the competitive forces. The general evolution of Management Control Systems is seen to be towards a lessening of the importance of rules-based controls and towards an increased reliance on controls imbedded in the organizational culture. ^{[2] [2]} We are grateful to Kavasseri V. Ramanathan, Richard B. Peterson, Jeremy Dent, to the participants of the EIASM ‘Accounting and Culture’ Workshop, and to Geert Hofstede for their advice, encouragement and cogent criticism. Financial Support of the Accounting Development Fund at the University of Washington is gratefully acknowledged.
     

PROBLEM-SOLUTIONS IN THE MANAGEMENT OF INFORMATION SYSTEMS EXPERTISE

This article uses evidence on the management of Information Systems (IS) expertise to critique conventional understandings of the management of expert groups. These tend to focus on problems of ‘integration’ or ‘control’ at the point of production. But this neglects the interplay between organizations and the wider structure of IS expertise; the latter being shaped by the evolving computer technology regime and the IS occupation's ability to colonize technological knowledge. In this context, the management of expertise is better viewed as an evolving series of ‘problem-solutions’. ‘Hybrid managers’ and ‘strategic information systems’ are cited as instances of such problem-solutions.     

THE MANAGEMENT OF NEW OFFICE TECHNOLOGY: CHOICE, CONTROL AND SOCIAL STRUCTURE IN THE INSURANCE INDUSTRY

Amongst the growing literature on the technical and social aspects of microelectronics in work organizations, a considerable portion has direct or indirect pertinence to the question of managerial practice. That segment of the literature relating to new office technology is perhaps especially conscious of this angle — not least because this sphere of innovation has a clear bearing on the managerial role itself. Drawing both on theoretical issues extracted from this literature, and on empirical studies in three insurance companies, it is argued that while control is of crucial long-term importance in shaping the general direction of organizational change using new technology, there are sound sociological reasons why the path which is beaten out in that direction remains a far from straight one. Moreover, while differences in organizational practice between these organizations are found to exist, these appear to be associated only indirectly with the diverse levels of technological sophistication.