Accounting for Managers: Interpreting accounting information for decision-making

Research in Management Control:

An Overview of its Development

David Otley∗, Jane Broadbent†and Anthony Berry‡

∗Lancaster University Management School,†Department of Accounting and Financial

Management, University of Essex and‡Manchester Business School

Summary

This paper builds on a series of earlier reviews of the management control literature

(Giglioni and Bedeian, 1974; Hofstede, 1968; Merchant and Simons, 1986; Parker,

1986) and considers the development of the management control literature in the

context of organizational theories. Early themes which have provided the roots for

the development of the subject area are explored as is more recent work which

has evolved both as a continuation and a reaction against them, with Scott’s

(1981) framework being used to organize this literature. It is argued that one of

the unintended consequences of the influential work of Robert Anthony (1965) has

been a restriction of the subject to an accounting-based framework and that this

focus needs to be broadened. The review points to the potential of the subject as a

integrating theme for the practice and research of management and some themes

for future research are suggested.

Introduction

This paper reviews the development of research in management control, building
upon other reviews both to examine the roots of the subject from the turn of the
century and to demonstrate the depth and breadth of the subject. Four previous
reviews form the foundation for our overview.
Giglioni and Bedeian (1974) review the contribution of the general management
and organizational theory literature for the period 1900 – 1972, drawing out several
different strands to conclude that

‘even though control theory has not achieved the level of sophistication of

some other management functions, it has developed to a point that affords

the executive ample opportunity to maintain the operations of his firm under

check.’

Parker (1986) argues that accounting control developments lagged developments
in the management literature, and criticizes accounting models for offering only