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AC310 - Topic 2 - Reading - "Social capital and management control systems: A study of a non-government organization" (Chenhall, Hall and Smith, 2010)
Reading- "Social capital and management control systems: A study of a non-government organization" (Chenhall, Hall and Smith, 2010)
Introduction Social capital
The concept of social capital provides a good framework for analyzing the nature of social connections through its focus on both structural networks (bridging) and interpersonal relationships (Chenall, Hall and Smith, 2010) NGOs rely on developing social connections to draw together those in need with service providers and suppliers of welfare funding "A growing number of sociologists, political scientists, and economists have invoked the concept of social capital in the search for answers to a broadening range of questions being confronted in their own fields" (Adler and Kwon, 2002) o Idea of social capital being used to answer questions in many fields
Providing welfare requires that the NGO develops an identity to delivery humanitarian services and to attract economic capital to fund operations o These often conflict with one another
? Inherent tension (Bourdieu, 1986) o MCS are used to assist with both these goals Civil society = real or space where there are a set of organizational actors who are not part of the household, the market, or the state (Lewis, 2007)
Structural bridging and bonding
The concept of structural bridging to analyze networks of social ties, and relational bonding to examine how individuals are predisposed towards mutually beneficial collective action helps to isolate the different advantages and disadvantages that can be derived from social capital (Gittell & Vidal, 1998) o Particularly related to information, power and solidarity (Adler and Kwon, 2002) o Bonding and bridging can play a role in attracting economic capital while preserving culture capital (Adler and Kwon, 2002)
? But no guaranteed o MCS have potential positive and negative effects on bonding and bridging (Chenhall, Hall and Smith, 2010)
Formal controls are an important part of MCS o Help to maintain financial viability o Help to develop efficient and effective work processes 2 main frameworks: o 1) Levers of control (LOC) framework (Simons, 1995)
? Identified belief and boundary systems and diagnostic and interactive control systems o 2) Enabling and coercive controls (Ahrens & Chapman, 2004)
? Help show how effect controls must have sufficient information and means of engagement to enable employees to address their areas of operation
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