The Effect of Management Control Systems on Employee Performance: Communication Skill as a Moderating Variable

Abstract

This study examines the effect of management control systems (MCS) on performance, communication skill as a moderating variable. We had distributed questionnaire to collect data of 42 institution of public services, that are population were draw in West Java, Indonesia period of June – November, 2019. The names of 140 middle-level managers random was used their perception what cause and effect strategic use of management control systems implementation to subordinate level and their employees working departmental and that gained of 71 usable responses for final data. The analysis indicated that MCS namely are diagnostic control and interactive control has a direct and positively effect on employee performance, and that communication skill has a moderate effect on the relationship between diagnostic control system and performance. Interactive control did not as a moderating variable, still on that interacting have been extent to which of intensively communicate in the organizational context, but diagnostic control namely periodically to communicate between top management and subordinate level. We also find that use of MCS package, while employees themselves participate in their own departmental performance measures will improve performance were put to use. The West Java Institution is join approach of strategic use between DCS and ICS for subordinate level, that are encourages for employee motivations and performance.