HOW DO CHARITIES USE DIFFERENT TYPES OF MANAGEMENT CONTROL SYSTEMS IN THEIR OPERATIONS

Abstract

This dissertation explores how charities in England employ various types of management control systems (MCS) in their operations, addressing a notable gap in the literature which has traditionally focused on the private sector. Drawing on conceptual frameworks such as Simons’ Levers of Control and Tucker’s control formality continuum, the study adopts a holistic view of MCS as integrated ‘packages’ comprising both formal and informal controls. Through qualitative analysis of 11 semi-structured interviews with charity workers and volunteers across 10 organisations, the research reveals that charities use formal diagnostic controls not only to satisfy funder accountability requirements but also to monitor internal performance and identify strategic opportunities. Informal controls, such as interpersonal communication and impact storytelling, play a complementary role, particularly among volunteers who prefer less structured environments. The findings challenge prior assumptions of decoupling between formal controls and daily operations, suggesting instead a dynamic interplay between control types. The study concludes by recommending further research into the differentiated use of MCS by volunteers versus paid staff, and the potential influence of institutional pressures on control adoption.