Stages of management control in a large public organization: from top to frontline managers.

We examine how the preferences of managers in using management control systems change at every hierarchical level and how these changes affect strategic alignment. Based on an extensive case study in a large Belgian public organization where performance management is a core philosophy, we report data from observations and interviews of managers to examine the differences in how managers use controls at each level. We find three principal trends in the use of controls, each representing a challenge in creating hierarchical alignment and consistency using management control systems. First, controls designed as boundaries tend to get progressively stricter down the hierarchy despite the intentions and efforts of top management. Second, while top management favours the design and use of diagnostic controls, frontline managers prefer to use interactive controls and direct information. Therefore, more effort is required at the frontlines in order to activate the control systems. Finally, boundaries create empowerment for managers at lower hierarchical levels, but only when they are able to find both a sense of direction and a sense of security and predictability in organizational control systems. [ABSTRACT FROM AUTHOR]