Search

The paper examines how rolling forecasting is used in planning and linked to other practices in a management control system. The paper combines a function-based view of budgeting with a more disaggregation-based conceptualisation, considering individual control systems. A multiple-case-study approach was adopted to investigate differences in the design and use of control systems across three industrial firms that had recently sought to improve their planning. The findings reveal two approaches to forecasting. In proactive-type planning, rolling forecasting was employed to promote information oriented toward more realistic forecasts and ideas emerging from interactive discussion were often put into action before quantified monetary deviations between plans and targets emerged. In reactive planning, rolling forecasting supported the supremacy of annual budgeting, and a more stable, joint process for both enabled analysing variances formally in a diagnostically oriented manner and revising plans accordingly. Synergies between budgetary practices were also found—for instance, in the process of setting targets, wherein the forecasts informed managers of the outcome level that was likely to be achievable and hence served as a realistic basis for setting more demanding targets.

The management control systems (MCS) concept has evolved significantly the past decades with extensive studies that explore not only the concept itself but as well its relation to diverse variables such as performance, innovativeness and organisational learning. Nonetheless, inaccuracy is still present according to some researchers. (Tessier & Otley, 2012; Ferreira & Otley, 2009) By means of a systematic review (Tranfield et al., 2003), an interpretive analysis that embodies academic literatures in the area is presented. As a result, this thesis provides a synthesis delineation of the interactive management control systems’ concept. For the purpose of the study, a systematic selection of published and non-published academic literatures was conducted. (Saunders et al.,2009). Simons (Levers of control. Boston, Mass.: Harvard Business School Press,1995) was used as a starting point in order to generate criteria for the subsequent identification of relevant sources and get a grounding understanding of the topic before taking the challenge in form of a literature review in order to establish a distinction of the concept. This paper differs from prior studies in the field because of its attempt to clarify the concept of interactive control systems in a systematic manner which will allow the reader to have a see-through approach on all the procedures undertaken for the study. 111 articles were retrieved and following screening and abstract analysis 17 studies (including Simons, 1995 and Bisbe et al., 2005) were selected for the discussion of this qualitative literature review. In contrast to the existing literatures in the MCS field, I conceptualise the findings in 2 categories order to distinct the concepts of interactive MCS from interactive use of MCS. The main contribution of the study is the finding that there is a difference between interactive control systems and interactive use of control systems. Interactive MCS as such has a functionalist view and are des

The management control systems (MCS) concept has evolved significantly the past decades with extensive studies that explore not only the concept itself but as well its relation to diverse variables such as performance, innovativeness and organisational learning. Nonetheless, inaccuracy is still present according to some researchers. (Tessier & Otley, 2012; Ferreira & Otley, 2009) By means of a systematic review (Tranfield et al., 2003), an interpretive analysis that embodies academic literatures in the area is presented. As a result, this thesis provides a synthesis delineation of the interactive management control systems’ concept. For the purpose of the study, a systematic selection of published and non-published academic literatures was conducted. (Saunders et al.,2009). Simons (Levers of control. Boston, Mass.: Harvard Business School Press,1995) was used as a starting point in order to generate criteria for the subsequent identification of relevant sources and get a grounding understanding of the topic before taking the challenge in form of a literature review in order to establish a distinction of the concept. This paper differs from prior studies in the field because of its attempt to clarify the concept of interactive control systems in a systematic manner which will allow the reader to have a see-through approach on all the procedures undertaken for the study. 111 articles were retrieved and following screening and abstract analysis 17 studies (including Simons, 1995 and Bisbe et al., 2005) were selected for the discussion of this qualitative literature review. In contrast to the existing literatures in the MCS field, I conceptualise the findings in 2 categories order to distinct the concepts of interactive MCS from interactive use of MCS. The main contribution of the study is the finding that there is a difference between interactive control systems and interactive use of control systems. Interactive MCS as such has a functionalist view and are des

This article presents the findings of an empirical study of 209 firms in the Nordic countries. The purpose of the article is to discuss recent advances in performance management, both for the Nordic Region as a whole and in individual countries. The findings show that the performance management systems of the Nordic firms under study are used both diagnostically and interactively. The two principal applications are in decision support at the top management and the operating levels. Furthermore, in the design of the performance management systems, both financial and nonfinancial measures are quite significant. These tendencies are particularly noticeable at the Danish, Finnish, and Swedish companies. At the Norwegian companies, on the other hand, the design and uses of performance management are somewhat more traditional.