As the literature review will indicate, the concepts of
formal and informal feedback are complex and ambiguous,
having diverse interpretations. The research question
we set out to explore is: What kinds of formal and informal
feedback practices are there in management accounting
and how are they related to each other? In order to address
this research question, the concepts around formal and
informal feedback need to be clarified. We will develop
an analytical framework of formal and informal feedback
along three dimensions. The dimensions are developed and
named after first reviewing different definitions for formal
and informal feedback from previous literature and
then combining, analysing, and putting flesh on these
dimensions with the help of empirical findings from an
exploratory and interpretive case study centred on a
business unit called Division Steelco. The interviews and
observations offer a way to both validate and further
develop the evolving analytical framework as they allow
us to hear various interpretations of formal and informal
feedback from managers. Our analysis is entirely based on
the claim that formal and informal feedback should not be
viewed as a dichotomy, but as things that coexist and collaborate.
The paper concludes with an analytical matrix for
understanding and examining formal and informal feedback
in an intertwined manner.
The paper is structured as follows. In Section 2, the
concepts and dimensions of formal and informal feedback
are outlined. Division Steelco, our case organisation, and
the research methods applied are introduced in Section
3. Section 4 provides the analysis of formal and informal
feedback practices through three dimensions in Division
Steelco. Analytical findings are discussed and summed up
in Section 5. Finally, conclusions are provided in Section 6.