Organizational Change and the Role and Use of Management Controls: Evidence from the 2008 Economic Crisis and the Banking Industry

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

The economic crisis in 2008 had widespread effects on the banking industry including changes in various management control elements. This paper reports on a qualitative field study of management controls and organizational change due to the 2008 economic crisis in 6 financial organizations in two countries. The paper identifies and explains the roles of different management controls in the organizational change processes initiated after an economic crisis. It shows how management control elements were used to change interpretive schemes and control archetypes to reflect a new operating environment. The findings show that use of management controls in organizational change is critical. The type and severity of crisis influences what elements of the management control package are used, how they are coupled together and characteristics of the resulting control archetypes. In one context the organizations moved from result based management controls archetype to an action based management controls archetype. Other management controls like budgeting remained unchanged to provide stability when going through turbulent change.
Original languageEnglish
Publication date2016
Number of pages32
Publication statusPublished - 2016
EventNordic Accounting Conference 2016 - Copenhagen Business School, København, Denmark
Duration: 17 Nov 201618 Nov 2016
http://www.cbs.dk/en/research/departments-and-centres/department-of-accounting-and-auditing/events/nordic-accounting-conference-17-18-november-2016

Conference

ConferenceNordic Accounting Conference 2016
LocationCopenhagen Business School
CountryDenmark
CityKøbenhavn
Period17/11/201618/11/2016
Internet address

Bibliographical note

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Keywords

  • Economic crisis
  • Organizational crisis
  • Management control
  • Organizational change
  • Banking
  • Iceland
  • Denmark

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