Management control systems during early life cycle phases - a case study in the social and healthcare services sector

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dc.contributor Aalto University en
dc.contributor Aalto-yliopisto fi
dc.contributor.advisor Silvola, Hanna
dc.contributor.author Kantola, Tuomas
dc.date.accessioned 2017-03-15T14:34:12Z
dc.date.available 2017-03-15T14:34:12Z
dc.date.issued 2017
dc.identifier.uri https://aaltodoc.aalto.fi/handle/123456789/24809
dc.description.abstract Objectives of the study The objective of this study is to investigate how and why an organization’s management control systems (MCS) package evolves during the birth and growth life cycle phases. As an organization grows, its administrative task becomes greater, and thus its control needs are expected to increase. This thesis will provide a holistic view of the changes in each element of the MCS package while also examining their interdependence. It will employ a life cycle perspective to capture the dynamic nature of organizational life. Data and methodology The research was conducted as a case study using a single case company in the Finnish social and healthcare services sector. A qualitative approach was selected because of the high level of depth required to satisfactorily meet the objectives of the study. While some aspects of the MCS package can easily be identified, others can be more difficult to uncover. The main sources of data were 12 interviews supplemented with participant observation. Results During the birth phase, the MCS package was found to be centered on clan and value-based controls, which benefited from the CEO’s regular interaction with all levels of the organization. Administrative controls served as the foundation for the use of these controls by providing a low organizational structure and a personal style of governance. Rudimentary financial measures were present to ensure the newly founded company’s financial viability. As the company entered the growth phase, the CEO’s interaction with the grassroots level slowly diminished, and clan control became less effective. With the introduction of venture capital, cybernetic controls were heavily upgraded to become the new mainstay of the MCS package. Planning controls were also developed as financial goals had to be translated into strategic and operating plans. Changes in administrative controls, including the formalization of the company’s governance structure and a more vertical organizational structure, were pivotal to the changes identified in the other MCS elements. en
dc.format.extent 73
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.title Management control systems during early life cycle phases - a case study in the social and healthcare services sector en
dc.type G2 Pro gradu, diplomityö fi
dc.contributor.school Kauppakorkeakoulu fi
dc.contributor.school School of Business en
dc.contributor.department Laskentatoimen laitos fi
dc.subject.keyword management control systems en
dc.subject.keyword social services en
dc.subject.keyword healthcare services en
dc.subject.keyword organizational life cycle en
dc.identifier.urn URN:NBN:fi:aalto-201703152936
dc.type.ontasot Master's thesis en
dc.type.ontasot Maisterin opinnäyte fi
dc.programme Accounting en
dc.subject.helecon laskentatoimi fi
dc.subject.helecon johtaminen fi
dc.subject.helecon ohjausjärjestelmät fi
dc.subject.helecon MIS fi
dc.subject.helecon terveystalous fi
dc.subject.helecon sosiaalitoimi fi
dc.subject.helecon palvelut fi
dc.subject.helecon elinkaari fi
dc.subject.helecon yritykset fi
dc.ethesisid 14926
dc.location P1 I fi


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