compared with previous research and be linked to
internal and external factors that emerged as significant.
3 Merchant distinguishes three types of
control: result, action, and personnel. They are
not mutually exclusive; rather MCSs differ according
to emphases on each.
Result control defines outputs expected from
employees. Their achievement is often reinforced
by rewards. It is most useful if what constitutes
effective performance is known, employees can
influence results, outputs are measurable, and
employees perceive managers’ authority as legitimate
(Merchant, 1998). Action control monitors
means (behaviour) rather than ends (results) by
prohibiting undesirable acts (behavioural constraints),
deriving desired employee behaviour
from plans (pre-action review), and monitoring
behaviour by direct observation or formal controls
(action accountability). Personnel/cultural controls
(hereafter called cultural control) focus upon
recruitment, training, job design, and promoting
shared norms and values to induce employee selfcontrol
(Merchant, 1998, p. 121).