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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