Impact of management of control system and leadership Essay

Impact of management of control system and leadership - Essay Example Hutzschenreuter (2009) points out that such tools can be formal procedures used to maintain or change the activities of the organization. The notion of management control has been discussed intensively in the fields of management research (Horch, 2009). The existing literature on leadership points out that the leadership styles adopted by the top management of an organization affect not only the performance of the business, but also the level of commitment among the middle and low level managers. Scholars in the accounting and control field also argue that the style of leadership adopted by the managers is directly influenced by the level of management control structures that exist in a particular company. Different organizations invest differently in their management control systems with the aim of improving decision making (Simons, 2000). Some scholars argue that such systems enhance the performance of the managers thus increasing the overall productivity of the business. Cogliser & Shriesheim (2000) indicate that when managers are able to rely on the information collected through these systems, they can model their leadership styles to enhance the achievement of the objectives of the organization. Boedker et al. (2011) further states that such systems boost productivity as they ensure that the mission and vision are at the core of the decisions made at the management level. According to Horngren et al. (2009), without strict control, workers will never bring good results as they will have the freedom to be involved in practices that end up limiting their value and productivity. Bass et al. (2008) adds that tight management control systems ensure that a company performs efficiently by reducing the number of violation cases .This is heavily contested by another group of scholars who argue that such systems result in fear among junior employees. According to Sinha (2008), fear and stress are among