Title: Management control – centralisation of ratios, decentralisation of work stress?

Authors: Matthias Murugiah; Harald Stummer

Addresses: UMIT – University for Health Sciences, Medical Informatics and Technology, Opernring 5/2, 1010 Vienna, Austria. ' UMIT – University for Health Sciences, Medical Informatics and Technology, Opernring 5/2, 1010 Vienna, Austria

Abstract: Decentralisation takes place to a great extent in many companies, associated with a centralisation of management control. The present article investigates the correlations between the effects of strategic control systems and work stress on employees using a survey from regionalised (German) subsidiaries of a large US MNC. Following a qualitative and a quantitative approach, the correlation between 'profit centre thinking', anxiety and work stress is explored. Employee motivation decreases significantly as the period of employment increases, but contrary to theoretical predictions, the employees reported neither a decrease in solidarity with the company or a pronounced perception of risk with regard to job losses. However, with a high centralised management control in decentralised entities, motivation of employees decreases measurably in profit centres with short-term approaches and horizontal and vertical communications problems. In conclusion, sustainable business approaches will be recommended.

Keywords: management control; multinational enterprises; MNEs; workplace health; employee stress; Germany; subsidiaries; anxiety; work stress; occupational health; employee motivation; profit centres; communication.

DOI: 10.1504/IJBHR.2012.045617

International Journal of Behavioural and Healthcare Research, 2012 Vol.3 No.1, pp.11 - 24

Published online: 24 Feb 2012 *

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