Management Control Systems

by Robert Anthony, Vijay Govindarajan, Frank Hartmann, Kalle Kraus, and Göran Nilsson.

Management control system provide firms with the administrative backbone that makes them thrive. This text provides a fully up-to-date overview and analysis of the management control system elements that firms and other types of organizations need to survive. Management control comprises the concept, tools and techniques of financial management that managers use to steer their organizations towards strategic objectives. Traditionally, management control relies on the budgetary control cycle, but increasingly its scope has been extended to include financial and non-financial performance evaluation, stakeholder analysis, and more actual themes such as performance related pay and organizational cooperation. These are all major challenges to contemporary organizations, and this text brings the reader fully up-to-date.

The text is built around learning objectives that guide the reader from understanding the organizations’ need for management control towards employing actual management control tools and techniques. In academic programs, it caters to the need of full courses on management accounting and management control. Outside such programs, the text serves as a compendium on the state-of-the-art in management control theory and practice.