ABSTRACT
This chapter begins with a review of contemporary theoretical contributions to management control theory. It aims to show that overall goals and strategy, linked to performance measurement and target-setting, with further linking to rewards and incentives, permeate much of the management control literature. Strategic performance management systems, the best-known being the balanced scorecard, emerged as a response to perceived shortcomings in budget-based control systems. Simons' diagnostic and beliefs systems are readily categorised as technical and social systems, respectively. Both technical, diagnostic systems and social, beliefs systems can be used interactively to foster interaction and communication. Wilson's presentation provided examples of the dysfunctional behaviour encouraged by standards, targets and incentives. The "best" staff (who earned the highest incentive payments) were adept in passing on unpromising calls quickly: they were really "best" at gaming the system. Winder referred to a "consensual" internal management style with responsibility for results devolved throughout the organisation.
