The impact of management control tools on company performance

Abstract

Management control tools play a pivotal role in guiding, evaluating, and optimizing organizational performance. This abstract explores their impact on company success, delving into theoretical perspectives, critical analysis of tools, behavioral implications, technological advancements, and future implications. The multifaceted nature of these tools is examined through theoretical lenses like agency, contingency, institutional, system, and behavioral theories. Their effectiveness and limitations are dissected through critical assessments of tools like budgeting, Key Performance Indicators (KPIs), variance analysis, Balanced Scorecards, and Quality Management Systems. Conceptual frameworks and models, such as the Balanced Scorecard and Economic Value Added, offer structured methodologies to measure performance. The behavioral implications of these tools on employee motivation, autonomy, and decision-making processes are elucidated, underscoring their influence on organizational culture. Moreover, the role of information technology in reshaping management control tools is highlighted, discussing both the evolution of tools with technology and a critique of technology's role. Finally, future implications and conclusions emphasize the need for adaptive systems, integration of qualitative and quantitative measures, data governance, and ethical considerations, paving the way for more responsive and sustainable practices in management control.

Keywords: KPIs, Economic Value Added, data governance.

JEL Classification: L25, G32.

Paper type: Theoretical research.