Management Control Systems in Not-for-Profit Organizations: A Case Study

摘要

Management control has been defined as 'the process by which management assures that an organization carries out its strategies effectively and efficiently'. Rapidly rising costs evidenced over the past decade have resulted in increased emphasis on these qualities in all organizations, particularly those in the public sector or similar nonprofit, service-oriented organizations where management controls have historically been lacking. This thesis investigates the requirement for and feasibility of developing a formal management control system in these organizations. The key traits, characteristics and standards important to management control are developed from a literature survey and contrasted against procedures identified in a field study as existing in a nonprofit organization. The authors conclude that a requirement for a formal management control system exists and make recommendations for implementing such a system utilizing tailored output measures and a program budget structure.