ABSTRACT

It has been suggested that budgetary control has lost relevance due to changing organisational environments (Johnson and Kaplan, 1991; Rababah and Bataineh, 2016). In response a number of new management control practices, such as the balanced scorecard system, activity-based costing and benchmarking in healthcare settings, have been developed. Considerable research has made important contributions to exploring the link between the operation of these new approaches and behavioural responses of healthcare staff with a view toward drawing lessons for managers. This chapter reviews this research and evaluates the applicability of the contemporary management control practices to healthcare contexts.