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Efficiency of Managerial Control Systems: The Optimal Model

Author

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  • M. Chuvashlova
  • V. Nikolaev

Abstract

The relevance of this research is associated with the difficulty of substantiating and selecting a certain managerial control model for a particular organization which would ensure the greatest efficiency of the entire system of its tools. When tailoring their control systems, organizations select from a number of various control tools. Meanwhile, not every one of the possible tool combinations will be efficient. The paper is aimed at giving grounds for a model that allows identifying the optimum managerial control system for a particular organization proceeding from parameters based on the theory of transaction costs. The leading method for researching this problem is mathematical modeling under partial uncertainty that allows getting an integrated view of the relationship of the basic control type and the criteria determining it. As a result of the research conducted, the authors have proven the use of result-oriented machine control type and action-oriented machine control type with the appropriate toolkit is justified for a number of aircraft engineering corporation divisions. The materials of the paper are of practical value for both the top management and various level managers of enterprises and organizations not only in aircraft engineering but in other industries too.

Suggested Citation

  • M. Chuvashlova & V. Nikolaev, 2018. "Efficiency of Managerial Control Systems: The Optimal Model," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 675-689.
    • Handle: RePEc:ers:journl:v:xxi:y:2018:i:3:p:675-689
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    References listed on IDEAS

    as
    1. David Otley & Kim Soin, 2014. "Management Control and Uncertainty," Palgrave Macmillan Books, in: David Otley & Kim Soin (ed.), Management Control and Uncertainty, chapter 1, pages 1-13, Palgrave Macmillan.
    2. Roland Speklé & Anne-Marie Kruis, 2014. "Management Control Research: A Review of Current Developments," Palgrave Macmillan Books, in: David Otley & Kim Soin (ed.), Management Control and Uncertainty, chapter 3, pages 30-46, Palgrave Macmillan.
    3. Thomas Guenther, 2013. "Conceptualisations of ‘controlling’ in German-speaking countries: analysis and comparison with Anglo-American management control frameworks," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 23(4), pages 269-290, February.
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    More about this item

    Keywords

    Managerial control; control tools; management; efficiency; aircraft engineering.;
    All these keywords.

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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