MCS - BETWEEN IMPLEMENTATION AND USE:
A CASE STUDY FROM THE VIEW OF SOCIOEMOTIONAL WEALTH THEORY IN A BRAZILIAN
FAMILY COMPANY
Name: THAMIRES CURITIBA GOLTARA
Publication date: 19/05/2022
Advisor:
Name |
Role |
|---|---|
| EMANUEL RODRIGUES JUNQUEIRA DE MATOS | Advisor * |
Examining board:
| Name |
Role |
|---|---|
| EMANUEL RODRIGUES JUNQUEIRA DE MATOS | Advisor * |
| ROSIMEIRE PIMENTEL GONZAGA | Internal Examiner * |
Summary: The Management Control Systems (MCS) can be analyzed by two different dimensions, being
the design dimension, which encompasses the technical configurations of the MCS, and the use
dimension, which is basically the application of the MCS in the organization. The present
dissertation proposes to investigate the dimensions of design and use of the MCS in a Brazilian
family business. Due to the lack of a common sense about the definition of family businesses,
the work was guided by the essence of the family business based on the 4 Cs proposed by Miller
and Le Breton-Miller (2005): Command, Continuity, Community and Connection. That way,
the elements of the familiar essence described in the 4 Cs and the structure of management
control systems present in Simons` LOC (1995) and in the model proposed by Malmi and Brown
(2008), were used to better understand how the design is defined and how the use of
management control artifacts occurs. In order to achieve this objective, the Socioemotional
Wealth Theory (SEW) was used as a basis, since the literature shows how socioemotional
wealth motivates unique decisions and behaviors in a family business. The investigation was
carried out through descriptive research, with a qualitative approach, through a case study in a
family business based in Vila Velha, Espírito Santo, with more than 20 years of foundation and
which has gone through a recent succession process. The analysis demonstrates the existence
of tacit governance mechanisms that contemplate aspects of SEW, and the essence and family
influence intrinsically present in belief systems and borders, although beliefs are not
disseminated to all worker hierarchies. The boundary system (which establishes limits of
conduct) is used exceptionally, while diagnostic (activity monitoring) and interactive
(encouraging new ideas and organizational learning) are constantly used by the organization,
such as training and retention of talents. It was found that the choices of management control
artifacts adopted come from the business family, and that, in the organization, are
institutionalized the strategic planning; the budget; the organization chart; internal procedures
and policies; and control by symbols. A system of remuneration and rewards is partially
institutionalized, being formalized in the design of the SCG only the basic food baskets for
attendance to the employees, however, in the dimension of use, there is also the presence of
specific items, such as bonuses, and the payment of the faculty of one collaborator. It was found
that the company uses the artifacts to monitor the results with an emphasis on the short term,
which differs with one of the premises when dealing with family businesses, which emphasizes
that the organization focuses on the long term with the intention of perpetuating the family
essence. Considering the potential contribution to the management of family businesses, it was
concluded that they would become more competitive if they incorporated aspects of the family
essence together with the theory of socioemotional wealth and the management control
mechanisms, so that they can manage the existing family influences in the design and use of
control artifacts in such companies.
