The effects of uncertainty on the roles of controllers and budgets: an exploratory study

Abstract

This paper explores how contextual uncertainty and the use of the budgetary system explain cross-sectional variation in the organisational role of business unit controllers. We argue that there are complementarities between the role of the budgetary control system (i.e. coercive vs. enabling) and the role of the controller (i.e. corporate policeman vs. business partner). Thus, we explore both the direct effect of uncertainty on the role of the controller and the indirect effect through the role of the budgetary control system. Using survey data from 134 business unit controllers, we find that uncertainty provides a partial explanation of the variation in the role of budgetary control systems and in the role of controllers. In particular, our data suggest alignment between the coercive (enabling) use of the budgetary control system and the role of controllers acting as corporate policemen (business partners). These findings add to our understanding of the functioning of business unit controllers within their organisational context.

The role of the controller in strategic capital investment projects: bridging the gap of multiple topoi

“…The role of the controller has been separated into different archetypes based mainly on controllers' work tasks. Mainstream research within management accounting commonly portrays the bean-counter as an objective, emotionally detached person (Baldvinsdottir et al 2009;Hartmann and Maas 2011;Weber 2011) charged with the managerial task of providing the top-level managers and other actors with financial information (Hopper 1980;Friedman and Lyne 1997;Granlund and Lukka 1998;Weber 2011). From this point of view, the controller is seen as an internally oriented support function providing financial information to peers and superiors or handling accounting tasks (Coad 1996;Byrne and Pierce 2007;De Loo et al 2011).…”

“…The service role is more concerned with communicating information, analyzing problems, and supporting subordinates, peers, or superiors to make informed decisions. The service role of the controller is an early notion of what later has been referred to as a business partner role (Hartmann and Maas 2011;Weber 2011). The notion of a business partner implies a controller role operating as a cooperative and critical counterpart to top-level managers and other actors throughout organizations (Hartmann and Maas 2011;Weber 2011;Linsley and Linsley 2014).…”

“…Again, this suggests that the controller role in SCIPs is broader than reporting and communicating financial facts to top management in accordance with the traditional controller role (Hartmann and Maas 2011). We suggest that, in combination with the pragmatic constructivist framework (Nørreklit et al 2006), these results reveal how the controller can be understood as an important actor for undertaking successful action, contributing to the creation of a functioning construct causality by acknowledging factual possibilities, aligning them with organizational values and communicating them to managers and other actors in the SCIP.…”

“…We believe that this perspective can contribute to provide an alternative understanding of the controller role and explain why controllers act the way they 1 3 do, thereby providing new insights pertinent to the existing debate on the controller role (e.g. Hartmann and Maas 2011;Burns and Baldvinsdottir 2007). Moreover, we suggest that our data set allows us to explore how controllers contribute to the creation of a functioning construct causality in the organizational planning and decision-making of SCIPs.…”

Menedzsmentkontroll rendszerek és a controller szervezeti szerepe

“…A hagyományosabb, funkcióorientált (számvitelorientált) szerepet nevezték könyvelőnek (Hopper, 1980), babszámlálónak (Friedman & Lyne, 2001), házőrző kutyának (Granlund & Lukka, 1998b), számrögzítőnek (Loo et al, 2011) vagy szervezeti csendőrnek (Frank G.H. Hartmann & Maas, 2011). A vezetés-illetve üzletorientált szerep azonosítására használt megnevezések a szolgáltató-segéd (Hopper, 1980), az üzleti támogató (Jablonsky, Keating, & Heian, 1993) és a leggyakoribb az üzleti partner megnevezés (Granlund & Lukka, 1998b;Frank G.H.…”