Management control systems design: a metaphorical integration of national cultural implications

Abstract

As firms diversify geographically and demographically, top management must also increase its reliance on properly designed management control systems to facilitate the implementation of the organizations’ strategies, and align managers’ personal goals with those of the organizations they manage. As a firm’s management group diversifies, its management control systems may lose effectiveness if they are not reengineered to reflect the cultural diversity of the target management population. Gannon summarizes and embellishes on three influential studies comparing cultures across dimensions, and employs all of the dimensions, in addition to several others, to craft metaphors that illustrate cultural differences among 17 countries. Utilizes Gannon’s metaphors to explore the cultural dimensions and contrast the related management control system design implications for the USA, Japan, China, Germany, Italy, and India. First, provides a framework and purpose for management control systems. Next, explores the elements of management control systems that might be particularly sensitive to cultural diversity. Then, compares and contrasts potential MCS design issues related to these elements across cultures. Finally, proposes directions for research addressing management control systems and cultural differences.

Citation

Picard, R.R. and Reis, P. (2002), "Management control systems design: a metaphorical integration of national cultural implications", Managerial Auditing Journal, Vol. 17 No. 5, pp. 222-233. https://doi.org/10.1108/02686900210429632