CUSTOMER CONTROL: EXPANDING THE FRAMEWORK OF MANAGEMENT CONTROL SYSTEMS

Abstract

Management control refers to a broad range of formal and informal strategies and methods that try to influence how people behave inside an organization. Management Control Systems (MCSs) are used to keep personnel focused on company goals. Previously, MCSs were primarily concerned with the internal environment; however, the importance of the external environment, such as the market and the customer, has been acknowledged.

 The focus of management control was largely on the firm's internal functions, but certain research studies looked at the potential influence of external forces on the organization. The research conducted in the control domain has pointed out the possible impact of external forces on the organization, particularly the market and customers. Based on latest research, customers can influence the actions and behaviors of company. The value of customer control in modern times cannot be emphasized, but it is still a poorly understood concept.

Customer control is defined in this study as the power given to the customer to assess the workforce. This development has been expedited by technological advancements that facilitate interaction with customers. The aim of this short theoretical paper is to provide an overview to the importance to the customer control and how it is different from traditional MCSs.