The Effect of Contextual Factors on the Design of Management Control Systems

Introduction This paper determines the effects contextual factors have on the fig of commission Control Systems. The paper firstly discusses what is meant by circumspection Control Systems and what is expected of Management Control Systems. Contingency-based research is outline and fiver key contextual variables are identify for discussion. The five factors ( foreign environment, technology, structure and size, strategy and national culture) are assessed to determine their rival on design and implementation of management control systems. Management Control Systems and Contingency-Based Research Management Control Systems are systems that are frame in into place within compositions to help ensure that managers within institutions act in the best interest of the organisation and not self interest. Contingency guess is a theory that states that the design and use of control systems is point upon the context of the organisational aspect in which these controls operate (Fisher, 1998). The idea of contingency theory is that the weft and use of a management control system is contingent on a variety of internal and external factors. Chenhall has identified five factors which impact Management Control Systems.

They are external environment, technology, structure and size, strategy and national culture. A further yield a line from Cadez and Guilding (2008) has identified a revised list of four factors (some of which are already considered in Chenhalls previous work). They are employment strategy, degree to which adopted strategy is deliberately formulated, market taste and firm size. Other authors have identified different harm of contingency factors such as; uncertainty, technology and interdependence, industry, firm and social unit variables, competitive strategy and mission and observability factors (Fisher 1998). There are many more variations provided by further works from a ramble on of researchers, however from the above group the following categories of... If you want to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .