Academic literature on the topic '3507 Strategy, management and organisational behaviour'

Abstract Background and Purpose: Organisational politics can have a substantial negative effect on employees’ performance, however many organisations still do not pay attention to this organisational behaviour. In our study, we aim to examine the relationship between organisational culture and organisational citizenship behaviour through how employees perceive political behaviour within organisations. Methods: Convenience sampling technique has been employed, quantitative data were collected from 532 employees in the Jordan banking industry via online surveys. Structural equation modelling (SEM) was employed to test the hypotheses of the study. Results: Analyses showed that organisational culture within the banking industry has an effect on how employees perceive political behaviour. A negative perception of political behaviour by employees, in turn, has a negative influence on employees’ citizenship behaviour. These findings answer previous calls to investigate the destructive effect of organisational politics on employee outcomes. Conclusion: Organisations should pay more attention to the destructive effect of organisational politics and try to minimise such behaviour. Organisational citizenship behaviour, in contrast, benefits organisational performance, and the enhancement of this is recommended through the implementation of more effective policies and strategies.

Purpose The purpose of this paper is to study the effect of organisational integrity and leadership behaviour on organisational excellence by considering the mediating role of work engagement in the banking sector. Design/methodology/approach The quantitative (questionnaire survey) design was used to gather data from 285 employees of the banking sector in Southern and Central Iraq. Findings The findings revealed a partial mediation role of work engagement in the relation between organisational integrity and organisational excellence and a full mediation role between leadership behaviour and organisational excellence. Research limitations/implications Managers need to understand that the impact of their leadership behaviour on organisational outcomes; they also have to understand how people think and what motivates them positively. Therefore, managers must deal with employees as internal customers and realise that their satisfaction and performance is the satisfaction of external customers. Originality/value Few studies have dealt with this topic in the in developing countries such as Iraq. The increases the strength of competition in the Iraqi banking sector pays more attention to the search for excellence. Therefore, more research efforts are needed for achieving organisational excellence in this sector.

This paper evaluates a management development program, which was piloted at Albury Base Hospital during 2001 for nurse managers. The program uses quantitative assessments of participants using a lifestyle inventory tool and enables managers to identify opportunities and strategies to assist them to become more effective managers. The program also helps identify management 'blind spots" and increased awareness of the effect of management's behaviour on team efficiency. The program was evaluated as being relevant to managers from any health discipline and was a means by which workplace culture and behaviour could be improved.

Strategy tools are an important part of strategy work. However, there is considerable debate in the management literature about their actual role, deployment, and conceptualization. Scholars claim that there is a lack of fine-grained analyses to explain strategizers’ activities with regard to their interactions with strategy, their supporting knowledge base, and associated artefacts or tools, despite growing contributions towards the understanding of strategy work dynamics. This study aims to contribute to this gap by discussing research undertaken through ethnographic methods on the day to day work of in-house strategy consultants. By interacting with in-house consultants through active participation and observation, this study observes and analyses the enactment of strategy tools in action. The study focuses on the use of strategy tools, the process they are placed in, and the ultimate purposes they serve. A “strategy-as-practice” lens is adopted, theoretically accessing the use of strategy tools through “reflection in action” and sensemaking. By working with and for consultants, this dissertation obtains insights related to both frontstage and backstage aspects of strategy work, obtaining results that contribute to the skewed existing evaluations on the use of strategy tools. This study proposes a reflexive account on the roles of strategy tools in everyday work by laying out a variety of data items and rhetorical devices. Analysing data, obtained from observations, interviews, written material, and focus groups, takes the findings into first and second order analysis. Based on hundreds of pages of observations, 47 interviews, two focus groups, numerous data files, and other follow up talks, the continuous engagement with data is conveyed to the reader through data outputs, including narratives, vignettes, and visual representations, which give space to a vivid display of what was encountered in the field through this ethnographic study. The findings show that strategy tools are used more than we think, especially in the backstage work of strategy teams. In addition, the use of strategy tools tends to be sequential (some strategy tools are used more in specific phases of strategy projects). In addition, their presence in strategy projects is not always evident at first sight – tools tend to be disassembled and reassembled by their users to create new tools, which are thereafter addressed explicitly or implicitly by strategizers and their audiences. Hence, the thesis proposes an “invisible presence of strategy tools”, especially as observed in the work of experienced strategy workers. By embarking on a journey of Cheshire cats and continuous reconfigurations of sensemaking cues, the reader is invited into what makes the adventurous work of strategy practitioners, and the lege artis their work encompasses.

Acknowledging the difficulties of achieving effective strategic management in practice, this thesis investigates how formal strategies quite often succeed in conditioning organisational actions even in firms such as professional service firms, which may lack effective measures for coercing action and which often depend on distributed decision-making. The fundamental question posed in this investigation is: what are the social processes that make strategies work? This thesis addresses that question by contributing to our understanding of strategy realisation as a continuing process of translating formal strategies into ‘strategies-in-practice’, i.e. the situated performance of strategies through choices, actions, and practices pertaining to the selection and accomplishment of concrete assignments. The thesis investigates this translation process in three small professional service firms, in which the responsibility for enacting the strategies lies with autonomous practitioners, making centralised strategy realisation difficult. Searching for integration rather than further fragmentation of different strands of strategy research, the thesis make use of Porterian activity systems theory, Giddens’ structuration theory, Wittgensteinian theory of rule-following, Searlean theory of intentionality, and the strategy-as-practice approach, in order to understand the translation process as the intentional structuration of practice. The thesis reports two main contributions, the first addressing a gap in strategy re-search, the second contradicting prevailing theories. The first contribution is an outline of a theory of strategy translation: how formal strategies are translated into strategies-in-practice, coping with insoluble strategic dilemmas, and achieving maintenance of strategic position and strategies-in-practice under pressure for unwanted change. Good strategies-in-practice are as much about managing dilemmas as about eliminating them. Second, in contrast to prevailing strategic positioning theory and generic strategies, this study documents the potential benefits of straddling strategically distinct services within a single activity system, in terms of: learning opportunities; work variation; better opportunities for attracting, developing, and retaining talented people; the possibilities of capitalising on client relationships; and the dynamics of routinisation of once-novel services.

The poor state and failure of the basic education system in South Africa gave rise to this research. The wave of knowledge loss experienced in the last two decades is expected to carry on and will continue to deplete the basic education system’s knowledge base, severely affecting the already poor quality of education as well as the future economic growth and sustainability in South Africa. The main research objective was to establish whether future growth and sustainability in the basic education system in South Africa is achievable; which factors it is influenced by; and how knowledge continuity could impact on future growth and sustainability. A multidisciplinary approach focusing on organisational performance, knowledge management, individual and organisational behaviour and organisational development was followed. The nature of growth and sustainability and knowledge continuity in organisations was explored by following a contextualisation theory-building process. The main objective of the empirical research study was to determine by means of quantitative research the degree to which the influencing factors would enhance or impede growth and sustainability in an organisation. A quantitative survey method was followed. A questionnaire was developed and the survey was performed in 6 primary and secondary schools of the basic education system in South Africa. The questionnaire was found to be reliable with a Cronbach’s alpha of .8060. In the descriptive factor analysis process, principal component factor analysis was conducted, which described the five constructs that would influence growth and sustainability. These constructs’ dimensions produced significant intercorrelations which indicate that the dimensions are for the most part intercorrelated with each other in contributing to growth and sustainability. The multiple regression analysis indicated that knowledge loss would have an exceptionally strong impact on knowledge; and that knowledge, information and performance would significantly predict growth and sustainability. Organisations should change the focus for growth from physical assets to the development of intellectual capital, and knowledge continuity should form part of an organisations’ business strategy and mission. Knowledge continuity will only be successful if a culture conducive of trust and knowledge sharing and transfer exist, and are supported by effective and appropriate human resource practices and incentives. A structural equation model development strategy produced a knowledge continuity model aimed at enabling future growth and sustainability, based on the constructs confirmed in the factor analysis. The model indicated that there is a direct causal relationship between knowledge, information and performance with growth and sustainability. The regression analysis showed that most of the intercorrelations are significant, thus confirming the theory. The newly developed questionnaire and structural equation model should enable organisations to measure the degree to which the enhancing individual and organisational behavioural factors of growth and sustainability are in place and provide the measurement outcomes that would identify the factors that need to be focused on to improve and enable future growth and sustainability in an organisation.
Thesis (MBA)--North-West University, Potchefstroom Campus, 2013.

System dynamics modelling has been used for around 40 years to address complex, systemic, dynamic problems, those often described as wicked. But, system dynamics modelling is not an exact science and arguments about the most suitable techniques to use in which circumstances, continues. The nature of these wicked problems is investigated through a series of case studies where poor situational awareness among stakeholders was identified. This was found to be an underlying cause for management failure, suggesting need for better ways of recognising and managing wicked problem situations. Human cognition is considered both as a limitation and enabler to decision-making in wicked problem environments. Naturalistic and deliberate decision-making are reviewed. The thesis identifies the need for integration of qualitative and quantitative techniques. Case study results and a review of the literature led to identification of a set of principles of method to be applied in an integrated framework, the aim being to develop an improved way of addressing wicked problems. These principles were applied to a series of cases in an action research setting. However, organisational and political barriers were encountered. This limited the exploitation and investigation of cases to varying degrees. In response to a need identified in the literature review and the case studies, a tool is designed to facilitate analysis of multi-factorial, non-linear causality. This unique tool and its use to assist in problem conceptualisation, and as an aid to testing alternate strategies, are demonstrated. Further investigation is needed in relation to the veracity of combining causal influences using this tool and system dynamics, broadly. System dynamics modelling was found to have utility needed to support analysis of wicked problems. However, failure in a particular modelling project occurred when it was found necessary to rely on human judgement in estimating values to be input into the models. This was found to be problematic and unacceptably risky for sponsors of the modelling effort. Finally, this work has also identified that further study is required into: the use of human judgement in decision-making and the validity of system dynamics models that rely on the quantification of human judgement.

The view on business strategy has changed significantly over time. In the past, a functional-level strategy prevailed in which IT strategy was subordinate to, and needed to align with a deliberate business strategy. Recently, the rapid development in digital technologies has left no industry untouched, and digital transformation has become an enabler and differentiator for businesses. Therefore, IT strategy transcends the view of alignment and moves towards a fusion of business and IT strategies, which is coined as digital business strategy. But its alignment with organisational design is yet to be realised to achieve sustainable business performance, particularly in the Saudi water industry. In Saudi Arabia, the water industry is undergoing a program of privatisation, large-scale restructuring and tremendous digital transformations to meet the needs of stakeholders (i.e. the government, shareholders, employees, partners, customers and society). This industry is fragmented within the public and private sectors wherein Saudi water companies are responsible for the supply of potable water, collection and treatment of wastewater and have government mandate to reorganise using new digital technologies, which would benefit the industry and be financially, socially and environmentally feasible for all. However, the water industry has had little research in the use of digital business strategy and its alignment process with organisational design that will lead to sustainable business performance. Therefore, the question is what extent the digital strategic alignment between digital business strategy and organisational design factors enhances sustainable business performance? Drawing on information processing view and knowledge-based view, this research aims to explore the impact of digital business strategy on organisational design factors, namely, structure, processes, people and rewards, to identify the success factors needed for digital strategic alignment that improves sustainable business performance in water companies. The research adopted the Star model of organisational design (Kates & Galbraith 2007) that includes these factors and used a qualitative approach with two case studies (Saudi public and private water companies). Qualitative data were collected using interviews, focus groups and document analysis, in addition to reviewing the existing literature. The data were analysed using a content analysis approach with a computer-aided open-access tool (QCAmap) developed by Mayring (2014). Through this study, 24 propositions were developed, 18 critical success factors (CSFs) were explored, and six criteria and nine metrics for sustainable business performance were identified. The 18 CSFs were divided into three groups—strategic, organisational and digital factors. Strategic factors include a shared digital strategic vision, shared digital strategic objectives, top management support, knowledge integration, simultaneous incremental–comprehensive development, digital partnerships management, quality management with key performance indicators (KPI), and change management. Organisational factors include agile structures, shared digital units, task redetermination, unified digital processes, unified digital flows of information, renewed digital skills and knowledge and digital governance in addition to the existing organisational design factors (i.e., people and rewards). Digital factors include integrated digital solutions, digital centralisation, and interoperability and compatibility. Together all help shape the novel digital organisational design to achieve digital strategic alignment. Thus, this study developed a Digital Strategic Alignment Model (DSAM), which includes all CSFs for the digital strategic alignment process that ensures sustainable business performance. Three factors, namely, renewed digital skills and knowledge, change management, and quality management with KPIs, support people and rewards in the existing organisational design literature as they influence organisational design factors to improve performance. The other (additional) 15 CSFs can be considered as novel knowledge contributions to elaborate the organisational design theory in the context of digital business strategy and sustainable business performance. However, there remain other factors to consider. Therefore, this study emphasises on future research in that these CSFs need quantitative investigation using survey to test how these CSFs affect the triple bottom line of sustainability. Practically, it informs managers that achieving digital strategic alignment is key to process improvement that benefits organisations, employees and users.

My professional interest as a business analyst influences this research into understanding the successful adoption of change. Readiness for change is an essential aspect of organisational change, with research consensus showing a positive correlation between readiness for change and the effectiveness of organisational change. However, the inability of many organisations to meet their desired change outcomes suggests we need to know more about readiness for change. Readiness for change describes members’ shared commitment to implement change and their confidence in their capability to make the change. While readiness for change involves social processes, in practice evaluation generally occurs at the individual level. A multi-level understanding of readiness for change, including individual, group and organisational levels, is still unclear. Does readiness for change differ at the individual, group and organisational levels? Can we interpret multi-level readiness for change from the individual’s readiness for change? This thesis addresses these questions through a predominantly qualitative research design combining a questionnaire based on established scales and individual interviews with change practitioners. This research is a phenomenological study as it explores the lived experiences of individuals experiencing readiness for change to develop a greater understanding of multi-level readiness for change. The convenience sampling method chosen incorporates an aspect of multilevel sampling design combining people who have experienced a workplace change and change professionals who have implemented a workplace change. The findings of this research extend the literature on multilevel readiness for change. This research also showed the need for organisations to develop their own readiness for change framework to align with their culture. The high proportion of external change agents interviewed provided the additional finding that external change agents are often subjected to political influences undermining their change efforts and impacting their ability to deliver effective and timely change outcomes.

The ASEAN Banking Integration program aims to enable banks to operate freely and receive equal treatment as local banks operating across ASEAN. However, due to the lack of banking regulations, such as corporate governance guidelines, banking integration is limited to reciprocal bilateral agreements. This research identifies the gap in bank corporate governance rules across ASEAN based on the Basel Committee on Banking Supervision’s (BCBS) Corporate Governance Principles for Banks, and assessed the value of theories of convergence in corporate governance to achieve increased coherency. An original contribution of the study is its development of a single standard indices of bank corporate governance for ASEAN. Academically, this study contributes to knowledge by contributing original research into the corporate governance of ASEAN banks and validating convergence theories in corporate governance in the ASEAN context. Also, the study results provided policy and practical advice for ABIF workgroups, regulators at the national level, and banks in approaching a single standard of bank corporate governance. A single rulebook containing bank regulations applicable to all banks is the key to achieving ASEAN’s goal of an integrated financial and banking system across the region. This research is an exploratory project characterized by a qualitative study and case study methodology. The first section of the study is based on a methodology from previous studies “Law and Finance” (LaPorta, Silanes & Shleifer 1998) and “Corporate Governance in ASEAN Financial Corporations - Illusion or Reality” (Chuanrommanee & Swierczek 2007) which involved content analysis and indices development. The content of documents (laws, regulations, guidelines, and notifications) of each country were scrutinized and interpreted through a systematic classification process according to the content analysis approach, and certain patterns of bank governance rules across ASEAN countries were identified in respect to the developed indices. It is noted that the indices are based on the “BCBS’s Corporate Governance principles for Banks” consisting of 56 criteria that were used to evaluate six attributes of corporate governance. These attributes were derived from the stakeholder theory which is core to the organization of banking institutes. The development of the corporate governance indices was guided by an analytical framework for policy research. The assessment of the indices via scalogram analysis and univariate data indicators involved the measurement of dispersion, percentile analysis, scatterplots, the normal distribution bellshape curve, and a box-chart. These techniques allowed the description of the data from different perspectives. The second section of the study focused on the application of convergence theories in corporate governance to the country profiles (in terms of the data obtained such as aggregate foreign/domestic share ownership, loan portfolios by sector, political stability indicators, etc) and the assessment of the likelihood of bank governance convergence was based on the theories. The type of data used were secondary data. Information on bank corporate governance was drawn from legal documents and each country’s consolidated banking data. The cornerstone data were bank governance principles that were instrumentalized in the form of laws, regulations, guidelines, and notifications by the national banking supervisory authorities of each ASEAN countries and numerical data from the authority’s online database and Orbis database. In terms of the data source, data were accessed electronically via public databases through the official websites of the banking supervisory authority of each country (other sources are cited accordingly) and the Orbis online database. The study results suggested that bank governance rules are diverse across all ASEAN countries. Of the 56 assessed criteria, only two governance rules were common to all the studied countries. These were that cases that the board should approve the selection of the CEO and banks should establish a risk committee. There were also variances in terms of each country’s commitment to strengthening bank corporate governance. One of the contributing factors was the depth and stage of the development of a country’s financial sector. Another was the level of a country’s compliance with the BCBS’s governance principles for banks. For instance, Brunei, Singapore, and the Philippines were most compliant with BCBS’s principles with compliance rates of 88%, 73%, and 64% respectively. Myanmar was the least compliant country and accounted for only 20% of the overall compliance rate. Based on the study of four premises about legal systems, political conditions, cultural traits, and economics, the study suggested that there was a tendency towards convergence of the bank governance rules across ASEAN and that the adoption of a single standard was possible. Nevertheless, in order to approach a single rulebook of bank governance, several factors should be brought to the attention of the regulatory bodies and the ASEAN ABIF working group, such as differences in legal systems and political conditions, while the most important element was commitment and political will toward integration. The study also suggested that the most viable and optimal model for ASEAN is a hybrid model of governance convergence. This model requires benchmarking with the international standard and complements the features and conditions of ASEAN identities in terms of legal systems, financial sector development stages, regulator cooperation at a regional level, etc. Further characteristics of the proposed hybrid model are suggested for future research.

To survive and thrive in today’s business environment requires the ability to implement transformative change to meet market demands. However, the hidden and often mystical nature of implementing transformative change has scholars referring to it as a ‘black box’, with others highlighting the constant and significant failure rate at this stage, often pointing to the inability of linear methods to manage the environmental context. The aim of this study is to explore the process of implementing transformative change in today’s business environment. A conceptual framework guides the study to explore the ‘how’, ‘what’ and ‘why’ aspects, building off the real-world experience of change practitioners based across Australia and New Zealand. A mixed-methods approach is utilised, applying qualitative and quantitative analysis through semi-structured interviews and an online survey. The interviews provide in-depth insight from practitioners leading major transformation programs, whilst the online survey provides the ability to converge and corroborate findings. The findings from this study highlight the need to move to a non-linear process that can manage the dynamic nature of transformative change in the business world today. Firstly, the need for the future state goal to be articulated as a ‘Target Operating Model’ (TOM), the fulcrum of the implementation process. Second, the necessity of the planning design to manage the ‘Delta Effect’, the impacts from the constantly changing environment. Finally, presenting a model that supports a non-linear process, providing a framework for implementing transformative change in today’s business environment. The model and framework from this study provide a practical contribution for those involved with delivering transformative change. For academia, the research builds on and extends further insights and knowledge into this significant process used extensively across our world today.

The Saudi 2030 Vision and the revised corporate governance regulations (CGR) represent significant institutional developments related to corporate social responsibility (CSR) in Saudi Arabia. Such institutional changes are expected to affect CSR disclosure (CSRD) in Saudi Arabia. Therefore, this thesis aims to theoretically and empirically investigate how Saudi’s political, social, and economic factors and firm-specific characteristics influence CSRD in the context of the changing Saudi institutional environment. This thesis develops a comprehensive CSRD instrument containing 33 items that (i) incorporates international and Saudi-specific issues of CSRD, (ii) considers qualitative and quantitative CSRD items, and (iii) is based on the Saudi 2030 Vision’s objectives and the 2017 CGR articles related to CSRD. This instrument is used to measure CSRD in Saudi firms’ websites, standalone CSR reports, and annual reports of 117 listed companies, with a total of 359 observations between 2015 and 2018. This period is significant because 2015 was the year before the introduction of the institutional changes related to CSRD; 2018 was the year after the implementation of these changes (i.e., the release of the 2030 Vision, in 2016, and the implementation of the revised CGR in 2017). This thesis draws on institutional theory to develop the theoretical framework (the extended model), construct the CSRD instrument, and analyze the findings. Institutional theory enables examination of the influence of the country’s social, political, and economic factors (which reflects the country’s specific contexts) and micro firm-level characteristics on CSRD. Informed by institutional theory, this thesis examines the impact of pressures resulting from institutional changes and company characteristics on CSRD. The theoretical framework developed in this thesis is empirically tested by examining the relationships between CSRD (i.e., overall, categories, and individual items of CSRD) and explanatory variables. Logistic and multivariate regressions are used for the analysis. The results show a significant improvement in CSRD (from 2015 to 2018 by 30%) by Saudi companies. Findings support that institutional changes motivated Saudi companies to increase and diversify CSRD. The findings reveal that institutional changes (INST CHGS), board size (BSIZE), female employment (FEMP), government representatives on board (GOVRB), royal family members on board (RFMB), CSR awards (CSR AWD), risk management committee size (RMC SIZE), females on board (FOB), regulatory penalties (PEN), industry sectors (IND), and firm size (FSIZE) are strong drivers for CSRD in Saudi Arabia. These findings remain consistent when using alternative measures for board independent non-executive directors (BIND), FOB, GOVRB, RFMB, international operations (INTL OPS), FSIZE, and profitability (PROF). This thesis makes theoretical, empirical, and practical contributions to CSRD and extends the application of institutional theory to explain country contextual factors and firm- specific factors that influence CSRD. The thesis analyses several CSRD mediums (i.e., firms’ annual reports, standalone CSR reports, and websites) in Saudi Arabia, which offers more current evidence of the change in CSRD over time. It also examines a wider range of industry sectors based on the Global Industry Classification Standard (GICS), which Saudi Arabia implemented in 2017. This thesis introduces new Saudi-specific explanatory variables (i.e., drivers) related to CSRD (e.g., FEMP, GOVRB, PEN, and RMC SIZE). The findings have practical implications for a range of stakeholders (e.g., regulators, investors, accounting professionals, and other institutions) of CSRD in Saudi Arabia.

The concept of sustainability is referred to the basic functions of human resources (HR)— recruitment, motivation, assessment and control. They should embrace sustainability, not just for organisational effectiveness and long-term economic benefits, but also for ethical reasons. Owing to SHRM, the awareness and behaviour of the whole organisation may strongly express SD goals in planning and implementing the whole corporate strategy. Frequently, the term ‘sustainable practices’ in SHRM is congruent with CSR. The main goal of the chapter is to explain how Sustainable Development Goals can be implemented in human resource management (HRM) and translated into sustainable human resource management (SHRM).

Objectives: Finding a connection between organisational learning, learning organisations and interorganisational learning. Presentation of the inter-organisational learning model. I investigated the extent to which the factor of sustainable development is present in the healthcare markets of 4 European countries where procurement takes place through central tenders. With this in mind, I have realised what results effective inter-organisational learning may bring in terms of sustainability. Methodology: Targeted analysis and processing of 3 literature reviews in terms of theoretical background to find common ground between organisational learning, learning organisations and interorganisational learning. Content analysis of the tender documentation of the 4 selected countries with a regard to sustainability criteria. Among companies operating in the healthcare sector. Findings: Definitions of organisational learning most often include statements about the following key concepts: action and behaviour, learning and knowledge. In the definitions of learning organisations, the following 5 broad areas can be identified where researchers perform the definition of the concept: Learning, Organisational Structure, Shared Vision, Knowledge Management, Strategy, which means that learning and knowledge management are common. The elements of behaviour and learning return in the model of sustainable inter-organisational learning, with the addition that effective inter-organisational cooperation is subject to the existence of trust between the cooperating parties. Research/practical implications: I conducted a content analysis in the EU countries where healthcare procurement is carried out through tenders. I searched for the requirements and criteria for sustainability in the invitations to tender and also determined their proportion in the tender as a whole. In each of the countries examined, this constituted no more than 5-6%. Originality/value: The research draws attention to the need for trust in inter-organisational sustainability learning. The research identifies as a further research direction the health sector as one of the most dynamically developing sectors for the implementation of inter-organisational sustainability learning.

Management control systems (MCS) are formal, information-based routines and procedures (Simon,1995) applied in strategic management practice. They are developed to help management balance thetension between organisational strategy and human behaviour. However, recent studies (Galabova, 2011;2014) have shown that along with tangible, intangible assets impact on organisational performance. Theaim of the paper is to propose a theoretical framework on how intangibles, and more specifically intellectualcapital elements: human, structural and relational capital can be embedded as a part of a contemporary managementcontrol system. To examine these, we present a literature review together with data from formerempirical studies. The paper will present a conceptual model on how human, structural and organisationalcapital could be monitored and controlled as an important part of MCSs.