Management Control Systems Report: Flexible Culture and Control

This report delves into the intricacies of management control systems, examining the impact of flexible organizational culture and belief control mechanisms. It analyzes the research conducted by Heinicke et al. (2016), which explores the design of control systems and the balance between control and flexibility within business firms. The study highlights how companies with flexible control systems often implement belief control mechanisms, integrating employee beliefs into the overall control system. Furthermore, the report references Henri (2006) to discuss how organizational culture, specifically flexibility, influences the four levers of control, impacting innovation, performance, and strategic implementation. The report also discusses the influence of organizational culture on the design of management control systems and the importance of incorporating belief controls into the organizational framework. It emphasizes the importance of planning activities, productivity, and maintaining clarity within the organization, as well as the responsiveness of employees. The findings reveal the connection between the values of diversity in organizational management and flexibility issues.

Running head: MANAGEMENT CONTROL SYSTEMS
MANAGEMENT CONTROL SYSTEMS
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Table of Contents
Consequences of research by Heinicke et al. (2016)...........................................................2
Influence of flexible culture in organisation........................................................................3
References............................................................................................................................5

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Consequences of research by Heinicke et al. (2016)
The research conducted by Heinicke et al. (2016) attempts a discussion on the designing
of the control systems that are operative within the several business firms. The authors suggest
that the designing of the control systems is observed to have been dealing with the issues of
balancing the control and the flexibility within the given organisation. The study reveals that the
business firms that are known to have implemented the flexible systems of control are also
known to be implementing the systems of the controlling the beliefs of the concerned
organisational workforce. The belief of the concerned employees develops into the integrated
mechanism that is used for the control system within the organisation.
One of the major implications of the research lies in the fact that the addition of the
literature in the field of research. This would help the future researches gain more insight in the
relationship that is shared between the management control as well as the organisational
leadership. In this matters the scholars are advised to look into the matters that are related to the
influential extent of control on the flexibility of the culture that is followed within the given
organisation (Heinicke et al., 2016). The article further discusses the fact that the organisational
factors like the organisational culture is one of the key influencers in the matters that are related
to the designing of the control system of the management.
The other major implication of the research lies in the incorporation of the literature for
the belief controls within the organisation. The article by Heinicke et al. (2016) aims at
developing a proper incorporation within the literature of the belief control through the process
of documentation of the time and the conditions that influence the control of the beliefs within
the given organisation.

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Influence of flexible culture in organisation
Henri (2006) states that the flexibility of the organisational culture within the
organisation is known to have been influencing the all the four different levers of control within
the organisation. The author aims to discuss the various theories that are related to the flexibility
of the organisation. The concerned article suggests that the implementation of the flexibility
within the organisation aims to help in the improvement of the innovation within the company.
This in turn helps to put forth an increment in the matters that are related to the improvement
within the concerned company.
The control values within the organisation generally refer to conformity, formality,
predictability, rigidity and the stability of the organisation. The rational culture of the
organisation aims at the discussion on the matters that are related to the efficiency of the
operations within the organisation as well as the profits that are earned by the concerned
organisation. The major areas of focus that should be maintained within the organisation are the
areas that are related to the planning activities, the productivity of the organisation as well as the
maintenance of the clarity within the organisation. The flexibility within the organisation aims to
help in the discussion on the matters that are related to the responsiveness that is depicted by the
concerned employees of the organisation.
The flexibility within the organisation aims to discuss the various issues that are related
to the issues of the four levers of control within the given organisation. The flexibility within the
organisation attempts to assist the given organisation on the matters related to the decisive
conditions within the organisation. The flexibility of the organisation also helps in the matters
that are related to the implementation of the strategies that are maintained within the organisation
(Henri, 2006). The flexibility within the organisation also help to deal with the various issues

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that are related to both the financial as well as the non-financial performances of the company.
The findings of the given study reveal that there exists a proper connection within the values of
the diversity of the organisational management as well as the flexibility issues.

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References
Heinicke, Guenther and Widener (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, pp.25-41.
Henri (2006), Organisational Culture and Performance Measurement Systems, Accounting,
Organizations and Society, 31, pp.77-103.