Management Control Systems for Culture- myassignmenthelp.com

Question: Discuss about theManagement Control Systems for OrganizationalCulture. Answer: Introduction An organization with a flexible culture is in a position to perform other innovations, have a wide-range of decision-making, and is in a place to change its strategic direction to develop its businesses (Heinicke, Guenther, Widener, 2016). Flexibility in an organization has influenced the use of the four levers of control as below; Belief system reflects the vision, mission, and the ethics of a commercial enterprise to understand the goals of a firm (Alvesson, Sveningsson, 2015). Flexibility in the climate and culture of a firm leads to change in the values and beliefs of employees, which focuses on what workers worship may it be innovation or risk-taking. Thus, flexibility leads to a great future culture that motivates employees to behave differently. Interactive control creates a significant conversation across the organization and enhances exchange at all levels, and focuses on a single issue but not turning a blind eye to other problems. With flexibility, management layers are reduced, making the employees self-reliant. This distributes the power of decision making to the workers. Thus, the responsiveness of a firm is enhanced. Boundary systems give a clear view of what the organization is not supposed to do. It helps reduce the time spent in researching in new opportunities that will never be pursued by the firm. However, with a flexible organizational culture, the team contribute their expertise to the achievement of a given goal or process of an organization. The employees are called upon to innovate, thus meet the market demand and improve their morale by becoming more invested in the job they perform. Diagnostic control focuses on the power of feedback to identify if a system is in control or not and is steadily reviewed in formal meetings. A flexible organization structure enables employer and employees to obtain feedback about their performance in a manner that is constructive and helpful. Where the system is out of control, an action is put in place to resolve it. References Alvesson, M., Sveningsson, S. (2015).Changing organizational culture: Cultural change work in progress. Routledge. Heinicke, A., Guenther, T. W., Widener, S. K. (2016). An examination of the relationship between the extent of a flexible culture and the levers of control system: The key role of beliefs control.Management Accounting Research,33, 25-41.