Coercive, enabling, diagnostic, and interactive control: Untangling the threads of their connections

Bisbe, Josep; Kruis, Anne Marie; Madini, P.

doi:10.1016/j.acclit.2019.10.001

Cited by 30 publications

(33 citation statements)

References 69 publications

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“…Of the four levers, the focus of the present study is on the role of interactive control in enhancing employee’s psychological empowerment and proactive behaviors for two reasons. First, there has been a greater emphasis in the literature on the relationship between the interactive and diagnostic use of MCS than on the interactive use alone (Bisbe et al , 2019; Grafton et al , 2010; Müller-Stewens et al , 2020). Second, prior studies indicate that the interactive use of MCS promotes searching and learning for strategy formation and innovation by facilitating dialogue between managers and subordinates (Bisbe and Otley, 2004; Ferreira and Otley, 2009; Gond et al , 2012; Simons, 1994b; Tessier and Otley, 2012), especially in uncertain environments (Simons, 1995) such as hospitals.…”

Section: Literature Review and Hypothesesmentioning

confidence: 99%

The influence of an interactive use of management control on individual performance: mediating roles of psychological empowerment and proactive behavior

Matsuo

Arai

2021

JAOC

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Purpose Although middle managers play important roles in forming strategies and generating innovation, few studies have explored the influence of management control systems (MCS) on employees’ behaviors or performance at the middle-management level. The purpose of this study is to examine the effect an interactive use of MCS has on individual performance at the unit level. Design/methodology/approach A longitudinal, multisource and multilevel survey was conducted among 373 nurses in 20 units at a Japanese public hospital. Findings The multi-level analyzes indicate that middle managers’ interactive use of MCS has a direct and indirect positive influence on individual performance, through proactive behavior, as well as through psychological empowerment and, subsequently, through proactive behavior. Research limitations/implications As the present study collected data from nurses at a Japanese hospital, it is necessary to conduct research in other countries using different occupations to verify the findings. Practical implications Organizations need to be aware that the interactive use of MCS can be an effective tool for empowering and motivating employees. Originality/value The present study contributes to the literature by clarifying the mechanisms of how the interactive use of MCS influences employees’ psychological and behavioral outcomes at the middle-management level.

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Section: Literature Review and Hypothesesmentioning

confidence: 99%

The influence of an interactive use of management control on individual performance: mediating roles of psychological empowerment and proactive behavior

Matsuo

Arai

2021

JAOC

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“…This study adds to an emerging stream of literature on enabling versus coercive systems while taking the perspective of the employees who are subject to such a system (Bisbe et al, 2019) and investigates the consequences of enabling versus coercive systems on employees' perceptions of the procedural quality of these systems. Drawing on research from the management control and organization studies literature streams, we take the first step in understanding the effects of enabling versus coercive performance measurement system design characteristics and of enabling versus coercive development processes on perceptions of procedural quality, captured by procedural fairness and red tape.…”

Section: Discussionmentioning

confidence: 99%

“…These studies consider management control and performance measurement to be a form of formalization. While this emerging line of research on enabling and coercive systems tends to adopt the perspective of those in lower organizational positions that are subject to the system (Bisbe et al, 2019), the effect of an enabling, versus a coercive, system on employees' attitudes toward the system has been left largely unexplored.…”

Section: Enabling and Coercive Performance Measurementmentioning

confidence: 99%

The effect of enabling versus coercive performance measurement systems on procedural fairness and red tape

2021

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In this study, we investigate the effects of an enabling versus a coercive performance measurement system on how employees perceive the procedural quality of such systems. In particular, we examine the design characteristics and the development process of performance measurement systems. We hypothesize that an enabling design and an enabling development process, as compared to a coercive design and a coercive development process, lead to perceptions of greater procedural fairness and less red tape. To test our hypotheses, we conduct an experiment with two different samples (a student laboratory sample and an online sample). In general, our results indicate that an enabling performance measurement system design and an enabling system development process both independently increase procedural fairness and decrease red tape. These findings imply that organizations interested in improving the procedural quality of their performance measurement system should focus on designing and developing a system that is enabling rather than coercive.

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“…Such research on PM design and use is part of a growing trend in the area of PM. Bisbe et al (2019) found that PM use is often studied within the categories of (1) coercive and enabling controls (Adler and Borys, 1996) and (2) diagnostic and interactive controls (Simons, 1995, 2000), and these have also been linked to PM design choices (see Ahrens and Chapman, 2004; Bisbe et al , 2019). PM design and use in LG institutions have been explored to varying degrees.…”

Section: Literature Reviewmentioning

confidence: 99%

Do external benchmarking mechanisms facilitate performance management in Malaysian local authorities?

Khalid

George

2021

JAAR

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PurposeThis paper investigates the extent to which externally led benchmarking may have facilitated performance management design and use in Malaysian local authorities.Design/methodology/approachA longitudinal qualitative study of local authorities in Malaysia was undertaken, comprising interviews with key officers during the introduction of process-based key performance indicators (KPIs), and following the imposition of benchmarking (i.e. relative performance evaluation) on local authorities. Complexity theory was used in the analysing and theorising of data.FindingsExternal benchmarking mechanisms facilitated only operational performance management, with strategic performance management merely ceremonially adopted. As the focus was on mainly operational KPIs, strategic goals were not translated into detailed action plans and outputs at departmental level. In addition, operational and strategic performance management packages were decoupled. Thus, the efforts of external actors resulted in operational controls suppressing rather than facilitating strategic processes.Research limitations/implicationsThere is a need to transition from purely externally led benchmarking to internally driven benchmarking in local government, whereby benchmarking forms part of the interactive performance management mechanisms that lead to institutional learning and improvement.Practical implicationsBenchmarking activities should be based on comprehensive analyses of performance management design and use. A reflective approach to continuously identify gaps or weaknesses in performance management systems will enable local government administrators to improve systems and processes in a timely manner to meet stakeholder needs.Originality/valueThis paper explains the impact of central government policy and benchmarking initiatives on other levels of government. We have built on previous literature by examining the connection between external benchmarking and internal performance management design and use in local government. In relation to this, and following calls for research on holistic performance management, the integration between operational and strategic performance management packages was also examined.

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Coercive, enabling, diagnostic, and interactive control: Untangling the threads of their connections

Abstract: The version in the Kent Academic Repository may differ from the final published version. Users are advised to check http://kar.kent.ac.uk for the status of the paper. Users should always cite the published version of record.

Cited by 30 publications

References 69 publications

The influence of an interactive use of management control on individual performance: mediating roles of psychological empowerment and proactive behavior

The influence of an interactive use of management control on individual performance: mediating roles of psychological empowerment and proactive behavior

The effect of enabling versus coercive performance measurement systems on procedural fairness and red tape

Do external benchmarking mechanisms facilitate performance management in Malaysian local authorities?

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