Impact of Continuous Restructuring and Rapidly Changing Social -Economic Environment on Management Control Systems:Illutrations from South East Asia
Kami Rwegasira
Download Article | Published On 01/07/1997

Abstract

This paper focuses on MCS in a contemporary turbulent environment. The purpose of the paper is to argue out and Illustrate with field case facts, th(40for a MCS to. be effective, specifically in a contemporary rapidly changing socio-economic environment, the information sub-system therein and attendant information technologies tend to take centre­ stage in the MCS. Information system will tend to take centre stage largely because most of the changes and turbulence in the social-economic environment are' possibly driven by information technology (Toftler, 1990). And drawing on the same case data it will also be possible to illustrate the proposition that in a rapidly changing socio­ economic environment the completeness of the MCS components is important and necessary; but, by itself not enough h and sufficient to guarantee continued effectiveness and efficiency of the system. The question of “fit” and “congruence” (i.e the match) of system components is equally important. The ever-changing surrounding environment demands an endless search of the suitable match of the MCS components or elements which in turn find themselves have to adjust and change continuously. It is a dynamic world out there demanding the continuous balancing act on the part of senior management. And if this is generally true then there are obvious implications for organizations which are incessantly changing to adjust to rapidly and continuously changing global socio-economic set-ups induced by political and socio-economic restructuring which, of late, have invariably involved, among other things, global radical shifts in societal values as well as generalized marketization, liberalization and privatization of economic activities.

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