The role of management accounting in organizational control systems: preliminary evidence of an organic approach

Abstract

There seems to be recognition in the literature that traditional management accounting and control systems (MAC) have limitations. However, there is limited knowledge about the practices organisations with a strategic focus adopt in relation to the development and operation of MAC systems. The purpose of this paper is to report the findings of a study designed to observe and codify MAC practices and their interface with strategy within the natural setting of an organisation. The research is based on a case study of a New Zealand based food manufacturing company. The findings provide evidence of an organic approach in the development and support of a strategic focus to MAC. This suggests an innovative style of performance management in a contemporary organisation.