Written by Marc Oliveras

Article 3, Volume 4 Issue 2

Management Control Systems before and after the Transition from a Communist to a Capitalist System: the case of Albania

Josep M. Rosanas Martí

Enkelejda Ymeri

DOI: 10.26595/eamr.2014.4.2.3

Abstract


For quite a while, in the second half of the 20th Century, Albania was considered the possibly most radical communist country, even beyond Mao’s China, and was an isolated country in Europe. Then, after the fall of the Berlin wall, it evolved towards some form of western capitalism, which is where it stands now. About a quarter of a Century has passed since then, and we have examined the change with some perspective.

For this purpose, we did a field study of a number of firms in Albania through in-depth interviews with managers, before and after the change took place.

After some considerations about the communist systems and the Marxian theory underlying them, we present the main results of the interviews realized in Albania with people that were managers during the socialist period, and people that are managers now. We then compare the results and analyze the differences to draw some conclusions about management control systems that can be generalized under the two systems.

Keywords


  • Management Control
  • Economic Systems
  • Mission
  • Indicators
  • Formal Control
  • Informal Control
  • Budgeting

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Written by Marc Oliveras

Article 2, Volume 3 Issue 1:

Budgeting Beyond Budgeting: A Tool for Management, Surprise Avoidance, Trust Creation and Organizational Learning

Josep Maria Rosanas

DOI: 10.26595/eamr.2014.3.1.2

Abstract


While for quite a long time the budget was considered one of the crucial management tools, it has always been subject to criticisms, which have become stronger in the last couple of decades, under the commercial name of “Beyond Budgeting”. In this article, we review the history and foundations of budgeting, to show how typically, the criticisms to budgeting have to be addressed to a bad management style, and not to the technique itself. Then, I use an example to show how budgets can be used to the firm’s advantage in many fields, but mainly in being able to avoid unpleasant surprises, create trust between the different hierarchical levels of the firm, and enhance learning in the positive sense. This allows the firm to avoid vicious circles that are often found in the practice of budgeting because of bad management, not because of the budgets themselves.

Keywords


  • Budgeting
  • Management
  • Trust
  • Command and control
  • Management control process

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Written by Marc Oliveras

Article 4, Volume 2 Issue 1:

Justice: a sufficient condition for goal congruence in management control systems

Natàlia Cugueró-Escofet and Josep M. Rosanas

DOI: 10.26595/eamr.2014.2.1.4

Abstract


Control systems are a fundamental tool in the management process. Management control systems have been judged under the criterion of goal congruence, i.e., on whether the possible rewards given to people when they take specific actions benefit at the same time individuals and the organization as a whole. Often the concept of justice is not included in the analysis. In recent papers, some theoretical developments have shown that the concept of justice is essential to their dynamics, because it has the potential to change the attitudes of people towards the organization and, therefore, their interest in future decisions. But these developments have been essentially conceptual and have not attempted to go beyond theoretical terms. This paper, using a stylized example, tries to show how this framework can be applied in practice. It also attempts to clarify the concept of goal congruence, by distinguishing when it is merely quantitative or qualitative, and when it can be considered ‘ weak ‘ or ‘ strong ‘. Finally, it goes back to the conceptual model of Cugueró-Escofet and Rosanas (2013) and shows how the practical vision of this case adapts to the conceptual analysis offered in their framework, and draws some conclusions.

Keywords


  • Management control systems
  • Goal congruence
  • Formal justice
  • Informal control systems
  • Informal justice

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