Harmony in Financial Institutions: A Human-Centric Management Control System
Traditional financial institutions can achieve greater goal congruence and sustainability by integrating a human-centric management control system that prioritizes family-like relationships, open communication, and a sense of harmony with God, people, and the environment.
International Journal of Professional Business Review · 2023
Key Findings
- 01Traditional financial institutions require a more comprehensive Management Control System (MCS).
- 02A culture-based control system, emphasizing family, open management, and communication, is suitable for traditional banking.
- 03Harmonious relationships with God, humans, and the environment contribute to organizational sustainability.
- 04Creative accounting can arise from flawed control systems seeking legitimacy.
Application
Design takeaway
When designing management control systems for traditional or culturally specific organizations, prioritize humanistic values, open communication, and a sense of collective well-being to achieve sustainable success and genuine goal congruence.
How to apply
When developing or evaluating management control systems, consider the existing cultural norms and social structures of the organization, and explore how to embed principles of family, openness, and harmony into the system's design and implementation.
Project actions
- 01Consider the cultural context of your design project.
- 02Explore how human relationships and values can influence system design.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a novel perspective on MCS by incorporating cultural and humanistic elements.
- +Addresses a gap in research concerning MCS in traditional financial institutions.
Limitations
This study is a single case study in a specific cultural context, limiting its broad applicability.
Reliability & validity
The qualitative nature and single case study limit generalizability, but the in-depth exploration provides rich, context-specific insights. Reliability could be enhanced through triangulation of data sources.
Think critically
To what extent can the principles of 'harmony' and 'family' be objectively measured and integrated into a formal management control system, and what are the potential drawbacks of such an approach?
Design Principles
"Integrate humanistic and cultural values into organizational control systems to foster harmony and achieve authentic goal congruence."
This research challenges conventional, often rigid, management control systems by proposing a more holistic and culturally sensitive approach. By focusing on intrinsic human values and relationships, organizations can foster a stronger sense of purpose and alignment, leading to more ethical practices and long-term stability.
What This Means for Your Design
Instead of just rules, think about how people feel and interact in a company. Making a company feel like a family, with open talking, can make everyone work better together and be more honest.
How to use in your project
- 1.Use this research to justify a design approach that prioritizes human factors and cultural relevance in your management or organizational system design.
Add to My Project
Quick Cite
(2023). The Construction of a Management Control System in Traditional Financial Institution. International Journal of Professional Business Review. https://doi.org/10.26668/businessreview/2023.v8i8.2129 Retrieved from https://designdex.org/study/411e733d-1267-4524-8b13-8f1097b08220/harmony-in-financial-institutions-a-human-centric-management-control-system
Paragraph starter
This research highlights the importance of a human-centric approach to management control systems, particularly within traditional financial institutions. By integrating cultural values such as a sense of family, open communication, and harmony with the environment, organizations can achieve greater goal congruence and sustainability, moving beyond purely mechanistic control mechanisms.
Source
International Journal of Professional Business Review
The Construction of a Management Control System in Traditional Financial Institution
journal · 2023
View sourceQuestions about this research
- What does the research say about harmony in financial institutions: a human-centric management control system?
- When designing management control systems for traditional or culturally specific organizations, prioritize humanistic values, open communication, and a sense of collective well-being to achieve sustainable success and genuine goal congruence. Evidence: International Journal of Professional Business Review (2023).
- Why does "Harmony in Financial Institutions: A Human-Centric Management Control System" matter for design?
- This research challenges conventional, often rigid, management control systems by proposing a more holistic and culturally sensitive approach. By focusing on intrinsic human values and relationships, organizations can foster a stronger sense of purpose and alignment, leading to more ethical practices and long-term stability.
- How can designers apply this research?
- When designing management control systems for traditional or culturally specific organizations, prioritize humanistic values, open communication, and a sense of collective well-being to achieve sustainable success and genuine goal congruence.
- What were the main findings?
- Traditional financial institutions require a more comprehensive Management Control System (MCS).. A culture-based control system, emphasizing family, open management, and communication, is suitable for traditional banking.. Harmonious relationships with God, humans, and the environment contribute to organizational sustainability.. Creative accounting can arise from flawed control systems seeking legitimacy.
- What research method was used?
- Qualitative Case Study.
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2023 journal from International Journal of Professional Business Review.
- What should I do differently in my next project?
- When developing or evaluating management control systems, consider the existing cultural norms and social structures of the organization, and explore how to embed principles of family, openness, and harmony into the system's design and implementation.
- What are the limitations?
- The findings are specific to traditional financial institutions in Bali and may not be directly generalizable to all organizational types or cultural contexts.
- Is there evidence that management control affects design outcomes?
- The study found that traditional financial institutions benefit from a management control system that is deeply rooted in cultural values, fostering a sense of family, open communication, and overall harmony, which in turn leads to greater organizational sustainability and goal congruence. This research challenges conv Source: International Journal of Professional Business Review (2023).
- Where does this control system research apply?
- Traditional financial institutions, specifically Village Credit Institutions (LPDs) in Bali. It sits within classic design research on designdex.org.
Related research topics
management control design research · evidence on management control · does management control improve design outcomes · control system studies for designers · management control and control system findings · classic design research evidence