Impact of management of control system and leadership - Essay Example

Impact of Management Control System and Leadership al Affiliation Impact of Management Control System and Leadership The objective of this treatise is to explore the impacts of management control systems and leadership in an organization. This is done by investigating how these systems affect leadership styles, decision makings and the overall productivity of the enterprise. Literature ReviewNoeverman (2007) defines management control systems to be tools that are used in steering a business towards attaining its strategic goals and objectives.

This is done by collecting information that can be used to establish whether the resources of the organization are being used productively to ensure that it attains a competitive advantage over its rivals. Hutzschenreuter (2009) points out that such tools can be formal procedures used to maintain or change the activities of the organization. Spider Diagram: Management Control SystemThe notion of management control has been discussed intensively in the fields of management research (Horch, 2009).

The existing literature on leadership points out that the leadership styles adopted by the top management of an organization affect not only the performance of the business, but also the level of commitment among the middle and low level managers. Scholars in the accounting and control field also argue that the style of leadership adopted by the managers is directly influenced by the level of management control structures that exist in a particular company.Different organizations invest differently in their management control systems with the aim of improving decision making (Simons, 2000).

Some scholars argue that such systems enhance the performance of the managers thus increasing the overall productivity of the business. Cogliser & Shriesheim (2000) indicate that when managers are able to rely on the information collected through these systems, they can model their leadership styles to enhance the achievement of the objectives of the organization. Boedker et al. (2011) further states that such systems boost productivity as they ensure that the mission and vision are at the core of the decisions made at the management level.

According to Horngren et al. (2009), without strict control, workers will never bring good results as they will have the freedom to be involved in practices that end up limiting their value and productivity. Bass et al. (2008) adds that tight management control systems ensure that a company performs efficiently by reducing the number of violation cases .This is heavily contested by another group of scholars who argue that such systems result in fear among junior employees. According to Sinha (2008), fear and stress are among the major barriers to attaining full productivity among employees.

This is due to the fact that the two create a huge wall between the management and other employees. When this happens, managers and the rest of the employees will not be working in synchrony thus reduced overall efficiency and throughput (Miles & Snow 2005).ConclusionDespite the varying conclusions made by the scholars on the use of management control systems in organizations, it is quite evident that existing literature shows that the practice has some kind of influence on the leadership styles adopted by managers and the performance of the business.

When the systems are used, the operations of the organization are streamlined, more revenues generated and in the long –run, growth is realized (Armesh et al. 2010).Reference ListArmesh H., Kord B, & Salarzehi H 2010, Management Control Systems.Interdisciplinary Journal of Contemporary Research in Business, vol2, no. 6, pp. 45.Bass, B., Waldman, D., Avolio, B., & Bebb, M. 2008, “Transformational leadership and the falling dominoes effect”, Group and Organization Studies, vol. 12, pp. 75-87.Boedker C.,CoginJ.

,Meagher K.,Mouristen J.,Runnalls.,Sheldon P.,Simons S. &VidgenR.2011, .Leadership, Culture and Management Practices of High Performing Workplaces in Australia. Society for Knowledge Economics, Sydney.Cogliser, C., & Shriesheim, C. 2000, “Exploring work unit context and leader-member exchange: A multilevel perspective”, J of Organizational Behavior, vol. 21, no. 5, pp. 487-511.Horngren C., Sundem G., Straton W., Teall H. Gekas G. 2009, Management accounting: Management Control Systems, the Balanced Scorecard, and Responsibility Accounting.

Pearson Edutzschenreuterucation.Horch, N 2009, Management Control of Global supply Chains. Lohmar: Eul.Hutzschenreuter, J (2009). Management Control in Small and Medium-Sized Enterprises Indirect Control Forms, Control Combinations and their Effect on Company Performance. Wiesbaden, Gabler.Miles, R. E., & Snow, C. C. 2005, Organizational Strategy, Structure, and Process,McGraw-Hill, New York.Noeverman J. 2007, Management Control Systems, Evaluative Style, and Behavior: Exploring the Concept and Behavioral Consequences of Evaluative Style.

Erasmus University Rotterdam.Simons R, 2000, The Role of Management Control Systems in Creating a Competitive Advantage: New Perspectives. Pergamon Press, London. Sinha, P. K. 2008, Management Control Systems: A Managerial Emphasis. Excel Books, New Delhi.