Management Control Mechanisms and Organizational Performance Alignme

Abstract

This research introduces a novel, multi-dimensional framework for conceptualizing the alignment
between management control mechanisms (MCMs) and organizational performance, moving beyond traditional linear and contingency models. We argue that prevailing literature, which often
treats MCMs as discrete tools to be applied for predictable outcomes, fails to capture the complex,
emergent, and co-evolutionary nature of control-performance dynamics. Our study posits that alignment is not a static state to be achieved but a continuous process of dynamic fit, characterized by
reciprocal influence and adaptive learning between control systems and performance trajectories.
We develop and apply a ’Cybernetic-Interpretive’ methodology, an original hybrid approach that
integrates principles from organizational cybernetics with interpretive phenomenological analysis.
This allows for the simultaneous examination of the structural, procedural aspects of control (the
’hard’ cybernetic loop) and the lived, subjective experiences of organizational actors enacting and
being shaped by these controls (the ’soft’ interpretive loop). Through a longitudinal, multi-case
study of three organizations undergoing strategic transformation, we collected rich qualitative data
via iterative interviews, participatory observation, and archival analysis over an 18-month period.
Our findings reveal a previously under-theorized phenomenon: ’Performative Resonance.’ This occurs when the symbolic and ritualistic aspects of MCMs (e.g., the narrative around a new budgeting
system) generate shared meaning and emotional energy among employees, which in turn amplifies
the technical efficacy of the controls and directly influences performance outcomes in non-linear
ways. We demonstrate that high alignment is less about selecting the ’right’ control mix and more
about fostering an organizational milieu where controls and performance metrics are in a state of
constructive dialogue, capable of mutual adaptation. The paper concludes by outlining the implications of this dynamic alignment model for theory, challenging the instrumentality of control, and for
practice, suggesting managers should focus on cultivating ’alignment capacities’ rather than implementing optimal designs.