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The use of technology-structured management controls: changes in senior management’s decision-making behaviours

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  • Liew, Angela

Abstract

This paper looks at the perceived behavioural changes in senior management as a result of embracing information technology to enact and enforce management controls. A case study approach was used to explain the association between individuals and technology-structured management controls. Data were collected through observations, interviews and document analysis. The information technology helped senior management learn more about the inner operations and issues faced by other divisions in producing potential new products. Senior management had intended to use the information technology to control their subordinates and influence the new product development work being performed. However, they received more than that. Not only did the information technology allow senior management to monitor their subordinates, but the chief executive officer, who was removed from the formal decision process, was inadvertently able to quietly watch them. They were also opened up to more scrutiny by their peers and subordinates. Interestingly, the open transparency did not create fears steering senior management to make pretentious claims when assessing ideas, or use destructive language when critiquing each other. It actually created peer pressure among them and made them more circumspect. An objective, fair, respectful, collaborative, and harmonious decision-making environment was thus formed. As an electronic colleague, the information technology coached them towards what aspects to consider, facilitated fair participation from them, reminded them of the financial returns, spoke for those who would otherwise shy away, publicised to all involved what was being said and by whom, and tracked the completion progress of all designated tasks.

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  • Liew, Angela, 2015. "The use of technology-structured management controls: changes in senior management’s decision-making behaviours," International Journal of Accounting Information Systems, Elsevier, vol. 17(C), pages 37-64.
    • Handle: RePEc:eee:ijoais:v:17:y:2015:i:c:p:37-64
    DOI: 10.1016/j.accinf.2014.05.001
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    Cited by:

    1. Liew, Angela, 2019. "Enhancing and enabling management control systems through information technology: The essential roles of internal transparency and global transparency," International Journal of Accounting Information Systems, Elsevier, vol. 33(C), pages 16-31.
    2. Jochen Fähndrich, 2023. "A literature review on the impact of digitalisation on management control," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 34(1), pages 9-65, March.

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