Diagnostic Control System Research Articles

DELAY RED FLAG CONSTRUCTION COMPANY: CONTROL ANALYSIS WITH FOUR LEVER OF CONTROL

Despite extensive research on construction delays, this persistent issue continues to challenge the global construction industry. This case study aims to enhance the theoretical and practical understanding of management control systems (MCS) in construction firms by identifying the primary causes of project delays and examining the MCS components involved. A qualitative case study was conducted at a national private construction company (Jakons) to identify delay factors and propose solutions by linking them to MCS. The study focused on two Jakons projects that experienced delays, with primary data collected through interviews with five key informants directly engaged in MCS for the projects. Analysis of the interviews revealed common delay causes related to the project owner, consultants, labor, and materials. These causes were then connected to MCS practices and assessed using the four Levers of Control (LoC) framework, including Belief, Boundary, Diagnostic, and Interactive control systems. The study identified areas for improvement in MCS related to communication management, coordination, competence, and risk management that impact schedule delays. These findings provide valuable guidance for construction practitioners in planning and managing projects and offer insights to reassess MCS strategies to mitigate delays and achieve timely project completion.

Adapting To The New Normal: Assessing Levers Of Control Implementation In Indonesian Organizations Post-COVID

This systematic literature review investigates the application of the Four Levers of Control (4LOC) framework in Indonesian organizations post-COVID-19. The research method involved a systematic search of electronic databases and analysis of relevant literature. Major findings indicate that effective implementation of the 4LOC framework contributes to organizational resilience, performance improvement, and competitive advantage across various sectors. Cultural factors, leadership styles, and strategic alignment emerge as critical determinants of success. The study underscores the versatility and effectiveness of the 4LOC framework in navigating challenges posed by dynamic environments. Conclusions highlight the importance of adaptive strategies, cultural sensitivity, and integrated control systems in driving sustainable growth and organizational success in Indonesia. Results indicate that LoC implementation has positively impacted organizational performance across sectors such as hospitality, start-ups, state-owned enterprises, government organizations, manufacturing, and the service industry. Notably, effective utilization of belief systems, boundary systems, diagnostic control systems, and interactive control systems has been instrumental in fostering innovation, resilience, and strategic alignment. These findings underscore the importance of robust management control systems in achieving organizational objectives and navigating uncertainties. The review concludes by recommending further research to explore longitudinal effects, contextual influences, and the role of emerging technologies in enhancing LoC implementation.

The Effects of Management Control Systems and Leadership Style on Company Performance

A management control system (MCS) is one of the tools used to evaluate performance at different organisational levels. This study employs the Levers of Control (LoC) dimension introduced by Simons in 1995, consisting of the belief system, boundary system, diagnostic control system, and interactive control system. Besides, leadership styles (transformational style and transactional style) are also believed to influence company performance. This study aims to investigate the role of MCS and leadership styles on company performance. The result finds that MCS and leadership styles have a significant positive impact on company performance. The findings also suggest that the transactional leadership style and the diagnostic control system could improve company performance.

Design Thinking Framework Toward Management Control System in Environmental Dynamism: An Innovation Perspective

Design thinking has been largely acknowledged as a technical advancement in business circles in terms of technology, innovation, creativity, and flexibility. Design techniques are becoming more and more popular among organizational executives as a cure-all for uncertainty and upheaval, so it is important to take environmental dynamism into account. However, with few exceptions, design thinking studies are most entrenched in considering various organization factors rather than environmental and control systems. The purpose of the present article is to shed insights into the relationship between design thinking and management control systems under the condition of a dynamic setting. Moreover, the article also presents design thinking as a strategic innovation concept that links to and works to achieve sustainable competitive advantage. Further, we develop the framework that hypothesized design thinking relationship to diagnostic and interactive control systems (ICSs) in the domain of environmental dynamism and competitive advantage. A survey was conducted on research and development intensive firms varying from manufacturing to service. The results of this article revealed that design thinking is strongly linked with ICSs and sustainable competitive advantage. The present article suggests an imperative way toward integration of the concept of design thinking in businesses while considering environmental factors, given the growing scholarly interest in both design thinking and management control systems. The article also offers fruitful research directions and analyzes the ramifications of such directions for theory and practice.

Analisis penerapan model four levers of control dalam meningkatkan kinerja karyawan divisi keuangan PT Pelabuhan Indonesia (Persero) Regional 4 Bitung

Four Levers of Control is a concept that focuses on achieving strategies in the management control system using four frameworks consisting of belief systems, boundary systems, diagnostic control systems, and interactive control systems. In facing the changes that occurred at PT Pelabuhan Indonesia (Persero) Regional 4 Bitung after the merger, an adequate control system is needed to control the performance of employees. This study aims to determine how the application of the four levers of control in improving the performance of employees of the finance division of PT Pelabuhan Indonesia (Persero) Regional 4 Bitung. The research method used in this research is a qualitative method with a descriptive approach and the data obtained comes from interviews and documentation. The results showed that the application of the four levers of control has been running quite well because it has fulfilled the four frameworks.

Penerapan Pengendalian Manajemen Pada Penyaluran Pinjaman Koperasi Simpan Pinjam (Kospin) BN

The distribution of loans to the construction sector is sometimes hampered by the capital they have. To improve the capital structure, Kospin will receive a loan from Cooperative Bank X. An increase in Kospin's capital must be followed by an adequate management control system. Therefore, the procedures for loan disbursement and performance measurement must be adequate. This research was conducted at Kospin BN to measure management control based on distribution procedures and performance measurement. The purpose of this study was to obtain an adequate loan operational procedure design, obtain a formal loan performance planning and measurement system as a key success factor to ensure and monitor the achievement of the strategy. The research method used is a case study, using qualitative analysis based on Boundary Systems and Diagnostic Control Systems. The results of the study, based on the SWOT analysis, there are weaknesses in management and pricing strategies as well as competitors' threats that hinder the business loan focus strategy. Therefore, Kospin should determine the right pricing strategy to win the competition. In addition, Kospin has not yet implemented the Business Loan SOP in accordance with the Decree of the Deputy for Financing of the Ministry of Cooperatives and SMEs No.06/Kep/Dep.2/II/2017. So it is necessary to adjust the linkages of procedures, personnel qualifications, division of tasks, business process flow, as well as documentation and records. Kospin also has not set performance targets, monitoring and measuring and evaluating performance formally. Kospin should set targets, monitor and measure performance and evaluate its performance.

The effect of management control system with four lever's of control model and remuneration on employees’ performance: A study at Brawijaya University

Purpose—This study applies contingency theory to examine the effect of the management control system (MCS) and remuneration scheme on Brawijaya University's employees' performance. The MCS in this study is understood following the Four Levers of Control (LOC), which includes belief systems, boundary systems, diagnostic control systems, and interactive control systems. Design/methodology/approach—For this analysis, the data collection method employed in this study was cluster random sampling of all employees except structural officials of Brawijaya University (UB). 355 respondents from Headquarters and 7 Faculties participated in this study. The data were collected, and the technique analysis used was SEM—PLS programs. Findings—Based on the analysis and discussion, the results of this study showed that employees’ performance was positively impacted by the boundary system, diagnostic control system, and remuneration. Employees’ performance could be improved by implementing an effective boundary system and diagnostic control system and providing fair and adequate remuneration. Employees’ performance was unaffected by the belief or interactive control systems. Practical implications—This study's Empirical evidence also showed that beliefs systems and interactive control systems do not affect the performance of UB employees. Originality/value — A management Control System with the LOC model (Simons, 1995) is implemented in private organizations. The researchers want to adopt the LOC model (Simons, 1995) in public organizations at Brawijaya University. This research is able to provide benefits for related officials in Universitas Brawijaya to implement a Management Control System with the LOC model as a means of controlling employee performance. Employees can be motivated to improve their performance with the management control system and the LOC model. Paper type — Case study

Pengaruh Sistem Pengendalian Manajemen Dengan Four Lever’s Of Control Model Terhadap Kinerja Karyawan Di Perusahaan Manufaktur Kota Semarang Dengan Tingkat Kreativitas Sebagai Variabel Mediasi

This study attempts to ascertain the impact of the management control system with the levers of control model, which comprises belief systems, boundary systems, diagnostic systems, and interactive systems on employee performance with a mediating variable, namely the degree of employee creativity. This form of research, which is quantitative, makes use of primary data collected by sending questionnaires to industrial businesses in Semarang, Central Java, through Google Form. 84 firm managers, including top and intermediate managers, participated in the survey as respondents. Based on the probability sampling approach, sampling was computed. Three different multiple linear regression techniques were used in this study to test three different hypotheses: (1) the effects of management control systems on worker productivity; (2) the effects of management control systems on worker creativity; and (3) the effects of management control systems and creativity as mediating factors on worker productivity. The results of this study show that the management control system, which consists of components of the belief system and interaction system, has a substantial impact on improving employee performance and creativity. Employee productivity and creativity are unaffected by this, and neither are the boundary system and diagnostic system characteristics. The creative variable also has the power to limit the management control system's effect on employee performance. 
 Keywords : Belief Systems, Boundary Systems, Interactive Control Systems, Diagnostic Control Systems, and Creativity

Research on Adaptive Fault Diagnosis Control System of Audio Management Component Environment of Airborne Electronic Equipment

The system adopts adaptive control, and the controller of audio management component is directly applied to the controlled object. Through online calculation, the model is identified online by using the dynamic characteristics of the object, and the relationship between input and output variables is expressed. It can be corrected by entering and leaving data, which is actually to correct the controller. The initial rules of the controller are composed of default models. Through continuous self-reasoning learning, the controller is optimized to achieve data tracking, fast convergence, strong anti-interference ability and excellent performance. Combining intelligent control with adaptive technology not only expands the scope of adaptive system, but also provides an effective way for intelligent control. The environmental adaptive diagnostic control system uses adaptive technology to adjust the parameters, data and knowledge base of the controller. The system detects IO signal, AD signal and the status data sent by the sub-unit through the internal CAN bus according to the power-on self-check of the unit, and at the same time, it monitors all the status data in real time during the operation, judges the operation of each sub-component, gives an alarm in time and carries out protection control. Through the design of integrated detection module, the overall installation space of detection sensors is reduced, signal interfaces and connecting cables are reduced, and the overall adaptive diagnosis effect can be improved. Through the data recording and storage function, the system stores the operation information of each subunit, compares it with the built-in health data table, and prompts the maintenance information in time.

Diagnostic posture control system for seated-style echocardiography robot

PurposeConventional robotic ultrasound systems were utilized with patients in supine positions. Meanwhile, the limitation of the systems is that it is difficult to evacuate the patients in case of emergency (e.g., patient discomfort and system failure) because the patients are restricted between the robot system and bed. Therefore, we validated a feasibility study of seated-style echocardiography using a robot.MethodPreliminary experiments were conducted to verify the following two points: (1) diagnostic image quality due to the sitting posture angle and (2) physical load due to the sitting posture angle. For reducing the physical burden, two unique mechanisms were incorporated into the system: (1) a leg pendulum base mechanism to reduce the load on the legs when the lateral bending angle increases, and (2) a roll angle division by a lumbar lateral bending and thoracic rotation mechanisms.ResultsPreliminary results demonstrated that adjusting the diagnostic posture angle allowed to obtain the views, including cardiac disease features, as in the conventional examination. The results also demonstrated that the body load reduction mechanism incorporated in the results could reduce the physical load in the seated echocardiography. Furthermore, this system was shown to provide greater safety and shorter evacuation times than conventional systems.ConclusionThese results indicate that diagnostic echocardiographic images can be obtained by seated-style echocardiography. It was also suggested that the proposed system can reduce the physical load and guarantee a sense of safety and emergency evacuation. These results demonstrated the possibility of the usage of the seated-style echocardiography robot.

Tensões dinâmicas no sistema orçamentário de empresa familiar e a dualidade da estrutura

ABSTRACT This article aimed to understand the dynamic tensions in the budgetary system of a family business based on the duality of structure perspective. The research on dynamic tensions in the budgetary system of family businesses is inconclusive. Dynamic tensions are explored in light of traditional theories, and few studies use Simons’ (1995) four levers of control. Moreover, the management control systems (MCSs) of family businesses have particularities that need to be explored. These particularities of family businesses provide different explanations for the dynamic tensions in the budgetary system. Duality of structure enables an understanding of the interaction between the structure and agents’ actions in the production and reproduction of the social order of a family business, within a context of dynamic tensions in the budgetary system. The research revealed the dynamic tensions in the budgetary system of a family business in one budgetary cycle. The findings are relevant since, based on a duality of structure perspective, they present indications that these dynamic tensions are associated with positive forces (belief and interactive control systems) in interaction with negative forces (boundary and diagnostic control systems). This is a single case study in a medium-sized family business engaged in the production and sale of foods. The data were collected through semi-structured interviews, observations, and documents, and analyzed based on discursive textual analysis. The evidence suggests that the social order of the family business is produced and reproduced with the dynamic tensions that occur in the planning and control stages of the budgetary system. The study contributes to the literature on dynamic tensions in the budgetary system of a family business by addressing what they are and how these tensions occur based on the duality of structure perspective. It contributes to practice, as it enables an understanding and better management of these tensions and the achievement of budgetary goals and objectives.

Implementing strategic changes in universities’ knowledge exchange profiles: The role and nature of managerial interventions

In a context of increasing managerialization of higher education and growing importance of the so-called ‘third mission’, universities increasingly seek to align their knowledge exchange (KE) profiles—i.e., the KE channels they use and the stakeholders with which they interact—to their institutional objectives. Using the lens of management control systems theory, we mapped changes in KE profiles to different management interventions. Building on 12 case studies of UK universities and combining content analysis and qualitative comparative analysis, we found that a) universities that had diversified their KE profiles had implemented belief and interactive control system interventions to encourage all staff members to exploit a wide range of KE opportunities; b) universities that had increased their KE specialization had implemented boundary and diagnostic control system interventions targeted at staff members performing specific KE activities; and c) universities that had reoriented their KE profiles had used a mix of interventions.

Management Control and Business Model Innovation in the Context of a Circular Economy in the Dutch Construction Industry

This study explores how different forms of management control support and enable business model innovation in the context of the principles of the circular economy. Following a qualitative research approach, empirical data is collected from construction companies and governmental organizations in the Netherlands. Building on Simons’ four levers of control. This paper illustrates how to balance the intended and emergent strategies via the organization’s management control system. According to Simons, the four levers encompass the beliefs systems, the interactive control systems, the diagnostic control systems, and the boundary controls. The empirical findings uncover the beliefs systems and the interactive control systems to be the most relevant levers that enable and drive business model innovation striving for the effective use of materials. Rather than measuring the output with predefined performance indicators, business model innovation in this context is better served by diagnostic controls which evaluate how innovative business models contribute to the organization’s mission.

A Fuzzy Inference System for Management Control Tools

Despite the importance of the role of small and medium enterprises (SMEs) in developing and growing economies, little is known regarding the use of management control tools in them. In management control in SMEs, a holistic system needs to be modeled to enable a careful study of how each lever (belief systems, boundary systems, interactive control systems, and diagnostic control systems) affects the organizational performance of SMEs. In this article, a fuzzy logic approach is proposed for the decision-making system in management control in small and medium enterprises. C. Mamdani fuzzy inference system (MFIS) was applied as a decision-making technique to explore the influence of the use of management control tools on the organizational performance of SMEs. Perceptions data analysis is obtained through empirical research.

Mitigating the dark side of agile teams: Peer pressure, leaders’ control, and the innovative output of agile teams

AbstractIncreasingly, organizations have been employing self‐managing teams to circumvent bureaucratic controls and stimulate innovation. However, this goal is not easily achieved; in many situations, informal controls replace formal controls. This study develops a multi‐level perspective of control. We explicitly analyze control mechanisms at different levels of the organization and how they affect innovative team output. We theorize and empirically investigate a potential downside of horizontal social control mechanisms at the team level (i.e., peer pressure) affecting self‐managing teams’ innovative outcomes. We also discuss managerial control mechanisms at the organizational level (i.e., interactive and diagnostic management control systems) that may help to mitigate such negative effects. We theorize how they may influence the innovative output of self‐managing teams, both directly and interactively. We chose a multi‐level, multi‐source setting for our study and ran three parallel surveys with employees in a Fortune 500 firm where 248 team members, 126 internal team leaders, and 97 organizational leaders enabled us to create a unique database of 97 self‐managing software development teams. Our findings confirm that peer pressure is common among established agile teams and that it negatively influences the innovative output of the agile teams. Moreover, our findings show that the magnitude of the effect of peer pressure is contingent on control mechanisms at higher levels within the organization. This enables us to provide new theoretical insights regarding the paradoxical effect of managerial control systems when it comes to flat organizations and autonomous teams. Additionally, we provide practical guidelines for managers who increasingly adopt agile practices but at the same time face issues with regard to innovation.

Antecedentes do Sistema de Controle Gerencial em Cooperativas de Crédito da Região Sul do Brasil

Objetivo: Considerando-se o turbulento ambiente econômico, assim como as especificidades das operações promovidas por entidades cooperativas, este estudo buscou analisar as associações entre os riscos e incertezas estratégicas com o uso Sistema de Controle Gerencial (SCG) nas cooperativas de crédito da região Sul do Brasil.Método: Pesquisa quantitativa, do tipo survey, composta por 57 cooperativas de crédito. Os dados foram analisados mediante Modelagem de Equações Estruturais com estimação por mínimos quadrados parciais, no software SmartPLS 3.0. Os construtos de risco estratégico e incerteza estratégica foram analisados em relação a associação com as Alavancas de Controle de Simons (1995), que contempla os controles de crenças e restrições, e sistemas de controle interativo e diagnóstico. Ademais, faz-se a análise das associações entre as quatro Alavancas de Controle.Originalidade/Relevância: O estudo abarca antecedentes (riscos e incertezas estratégicas) do uso do SCG, contemplando diferentes composições em relação ao tipo e classe das cooperativas de crédito, na comparação aos estudos pregressos, além de abranger uma região singular e pertinente no contexto do cooperativo de crédito brasileiro.Resultados: O risco estratégico não está associado ao uso do Sistema de Controle Gerencial. A incerteza estratégica foi comprovada como o elemento que recebe maior importância por parte dos gestores no processo de uso das quatro Alavancas de Controle. No construto Sistema de Crenças, a importância imposta está positivamente interligada com o Sistema de Controle Interativo, assim como no Sistema de Controle Interativo com o Sistema de Controle Diagnóstico.Contribuições teóricas/metodológicas: O estudo demonstra a pertinência das Alavancas de Controle para o âmbito do cooperativismo de crédito, sob contextos de riscos e incertezas estratégicas.Contribuições sociais/para a gestão: Os achados contribuem ao evidenciar que o uso balanceado das quatro Alavancas de Controle é relevante para promover a renovação estratégica das cooperativas de créditos, especialmente no que diz respeito a incerteza estratégica.

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

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.

Management Control Systems, Organizational Culture and Village Credit Institution Financial Performance

This study aims to provide empirical evidence about the influence of misfit management control systems (levers of control) with organizational culture will negatively affect the financial performance of LPDs. This study uses a survey method (questionnaire) based on a sample of 149 LPD units in Buleleng Regency with purposive sampling criteria. The research respondents were all three LPD officers (penyarik, pemucuk and petengen) and one staff each from the credit and accounting department.. The research hypothesis suggests that each organizational culture orientation, namely clan, adhocracy, hierarchy and market shows a fit (through misfit values) with levers of control (belief, boundary, diagnostic and interactive control system) has a negative effect on LPD financial performance. The analysis technique uses OLS regression residual approach to testing the research hypothesis. The results showed that the hierarchical culture was able to have a fit (a small misfit value) with a management control system (levers of control) to influence the financial performance of the LPD.

The impact of leanness on supply chain sustainability: examining the role of sustainability control systems

PurposeAn alignment between financial and operational measures is an essential element to capture the lean productivity improvements enabling supply chain sustainability. With the aim of supporting small and medium-sized enterprises (SMEs) in addressing corporate sustainability challenges, this study aims to examine the impact of leanness on supply chain sustainability, and the moderating role of sustainability control systems (SCS) on the relationship between leanness and supply chain sustainability.Design/methodology/approachDrawing on lean manufacturing and the levers of control framework, survey data was collected from 106 manufacturing SMEs in Sri Lanka. Moderated multiple regression analysis was used to test the proposed hypotheses.FindingsThe study finds that lean manufacturing practices, such as just-in-time deliveries, quality management, environmental management and employee involvement show a significant positive impact on supply chain sustainability. As proposed, the interactive use of SCS shows a significant, positive moderating impact on the relationship between employee involvement and social supply chain sustainability. The diagnostic use of SCS negatively moderates the relationships between just-in-time deliveries and economic supply chain sustainability, and environmental management and economic supply chain sustainability. However, both interactive and diagnostic uses of SCS do not show any significant moderating impact between lean manufacturing and environmental supply chain sustainability.Research limitations/implicationsThe following limitations should be taken into account in interpreting the results and implications of this study. Firstly, the study refers to supply chain sustainability as environmental, social and economic sustainability. As these concepts represent broader perspectives of sustainability, and no consensus on how to measure has yet been agreed, future studies may focus on other variables that might capture different perspectives of supply chain sustainability. Secondy, future researchers may further extend the role of SCS (including all four control systems – belief, boundary, interactive and diagnostic) in examining the impact of leanness on supply chain sustainability. Thirdly, this study has considered a sample of manufacturing SMEs in the Western province in Sri Lanka. The results should be carefully generalised to other manufacturing organisations in Sri Lanka and beyond. Finally, future studies may also investigate the impact of leanness on supply chain sustainability by using alternative methodologies, such as multiple case studies.Originality/valueSMEs are more likely to focus on diagnostic control systems with the aim of promoting economic supply chain sustainability. However, the findings reveal that manufacturing SMEs in the developing country context lack strong SCS to enable supply chain sustainability.

Detection of negative sequence components in diagnosing and tolerating open‐gate fault for a voltage‐source inverter in an induction motor drive

Power converter faults represent about 12% of electrical system faults. More than 31% of these converter faults are caused by the transistors in the converters. These transistor failures are classified into open-gate and short-gate faults. A fault diagnostic and tolerant control system is proposed in this study for an open-gate fault of a three-phase voltage-source inverter (VSI). The system under study is an induction motor fed by a VSI. The diagnostic technique uses a detection method of positive and negative sequence components, which requires only the measurement of motor currents. The diagnostic signals are derived from the negative sequence components of the motor currents. These signals are then compared using logic functions to trigger the tolerant control. In the case of an open-gate fault, the tolerant system converts the inverter topology from six switches to four switches where the faulty inverter leg is disconnected. The proposed control method was evaluated under steady-state and transient conditions through simulation and experiments. The results confirm an effective and reliable performance of the motor under an open-gate fault.