Technocracy and management control systems

Abstract

There is a pervasive, and persuasive, call for “new” management control systems commensurate with the applications of advanced technologies within modern organizations. Unfortunately, there is little consideration given to the possible consequences and alternative trajectories of the changes. Our purpose is to initiate a discourse directed toward better understanding the changes occurring in organizational structure and management control systems fostered by advanced technology applications. We propose that advanced technology coupled with the dynamic market environment is precipitating a new organizational form, technocracy, that is replacing the traditional bureaucratic form. Technocracy is the organizational manifestation of the technocratic restructuring taking place as technical remedies are administered to the current economic and management crises. This new organizational form is related to a technocratic ideology that alleges objectivity, meritocracy, and an apolitical perspective. We argue that the proposals for revitalizing management accounting and control systems are unquestioningly grounded in technocratic ideology, embodying, and perpetuating, the characteristics of technocracy.