Dynamics of organizational control: The case of Berol Kemi AB

The paper analyzes changes in organizational control related to changes in an organization's economic situation. The thesis of tightening managerial control as a typical managerial reaction to decline is illustrated by developments in a Swedish company chosen as a case example. The interpretation challenges explanations indicating objective, causative relationships between organizational economy and organizational control. Instead, the focus is placed on social mechanisms, such as the social attribution of causes and the increased need for legitimation on the part of managers. Control and production subsystems are also seen to be loosely coupled.