Running Head: MANAGEMENT CONTROL SYSTEMS 1

MANAGEMENT CONTROL SYSTEMS

Name:

Institution
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Introduction

An organization with a flexible culture is in a position to perform other innovations, have

a wide-range of decision-making, and is in a place to change its strategic direction to develop its

businesses (Heinicke, Guenther, & Widener, 2016). Flexibility in an organization has influenced

the use of the four levers of control as below;

Belief system reflects the vision, mission, and the ethics of a commercial enterprise to

understand the goals of a firm (Alvesson, & Sveningsson, 2015). Flexibility in the climate and

culture of a firm leads to change in the values and beliefs of employees, which focuses on what

workers worship may it be innovation or risk-taking. Thus, flexibility leads to a great future

culture that motivates employees to behave differently.

Interactive control creates a significant conversation across the organization and enhances

exchange at all levels, and focuses on a single issue but not turning a blind eye to other problems.

With flexibility, management layers are reduced, making the employees self-reliant. This

distributes the power of decision making to the workers. Thus, the responsiveness of a firm is

enhanced.

Boundary systems give a clear view of what the organization is not supposed to do. It

helps reduce the time spent in researching in new opportunities that will never be pursued by the

firm. However, with a flexible organizational culture, the team contribute their expertise to the
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achievement of a given goal or process of an organization. The employees are called upon to

innovate, thus meet the market demand and improve their morale by becoming more invested in

the job they perform.

Diagnostic control focuses on the power of feedback to identify if a system is in control

or not and is steadily reviewed in formal meetings. A flexible organization structure enables

employer and employees to obtain feedback about their performance in a manner that is

constructive and helpful. Where the system is out of control, an action is put in place to resolve

it.
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References

Alvesson, M., & Sveningsson, S. (2015). Changing organizational culture: Cultural change

work in progress. Routledge.

Heinicke, A., Guenther, T. W., & Widener, S. K. (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, 25-41.