Skip to main content

Combining Learning with Management Controls in Performance Dialogues to Shape the Behavior of Public Servants

  • Living reference work entry
  • First Online:
The Palgrave Handbook of the Public Servant
  • 213 Accesses

Abstract

The practice of dialogue is a key learning mechanism used by public organizations. While several authors have emphasized the learning potential embedded in dialogues, there is a clear gap in current knowledge regarding how management controls are used to influence learning in performance dialogues and, through them, organizational behavior. To provide new theoretical ideas and practical illustrations of the topic, this chapter examines learning and management controls in the context of performance dialogues. Performance dialogue refers to the performance management process in which public servants use dialogue methods to discuss and share their interpretations of performance information with each other while identifying actions required to improve performance. During this dialogue, knowledge about organizational performance and future actions is stored in the minds of the public servants.

The analysis in the chapter showed that by using controls to steer learning in performance dialogues, one could control the organizational behavior. Thus, learning can be used as a control tool to enforce managerial control in performance dialogues. It is important to understand how management controls affect learning in performance dialogues and how this learning controls the organizational behavior because controlled learning may or may not serve organizational goals and the well-being of societies. For academics and practitioners, the study demonstrates the complex relationship between management controls and learning during performance dialogues while arguing that one cannot ignore these relationships as they affect learning. In addition, the results provide practical tools for developing management control systems and organizational learning.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions

References 

  • Aguinis, H. (2009). Performance management. Upper Saddle River: Pearson Prentice Hall.

    Google Scholar 

  • Alba, R., and G. Moore. 1978. Elite social circles. Sociological Methods & Research 7: 167–188.

    Article  Google Scholar 

  • Aleksandrov, E., A. Bourmistrov, and G. Grossi. 2018. Participatory budgeting as a form of dialogic accounting in Russia: Actors’ institutional work and reflexivity trap. Accounting, Auditing & Accountability Journal 31 (4): 1098–1123.

    Article  Google Scholar 

  • Argyris, C., and D. Schon. 1996. Organizational learning: A theory of action perspective. 2nd ed. Reading: Addison-Wesley.

    Google Scholar 

  • Barnard, C. I. 1968. The Functions of the Executive. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Barr, P., J. Stimpert, and A. Huff. 1992. Cognitive change, strategic action, and organizational renewal. Strategic Management Journal 13: 15–36.

    Article  Google Scholar 

  • Bebbington, J., Brown, J., Frame, B.,Thomson, I. (2007) Theorizing engagement: the potential of a critical dialogic approach. Accounting, Auditing & Accountability Journal 20 (3):356-381

    Google Scholar 

  • Brown, J., and J. Dillard. 2015. Opening accounting to critical scrutiny: Towards dialogic accounting for policy analysis and democracy. Journal of Comparative Policy Analysis 17 (3): 247–268.

    Article  Google Scholar 

  • Brown, J., and P. Duguid. 2001. Knowledge and organization: A social-practice perspective. Organization Science 12: 198–213.

    Article  Google Scholar 

  • Burns, T. and Stalker G. (1961) The management of innovation. London. Tavistock.

    Google Scholar 

  • Cangelosi, V., and W. Dill. 1965. Organizational learning: Observations toward a theory. Administrative Science Quarterly 10:175–203.

    Article  Google Scholar 

  • Child, J. 1997. Strategic choice and analysis of action, structure, organizations and environment: Retrospect and prospect. Organization Studies 18 (1): 43–76.

    Article  Google Scholar 

  • Cohen, W., and D. Levinthal. 1990. Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly 35: 128–152.

    Article  Google Scholar 

  • Cyert, R., and J. March. 1963. A behavioural theory of the firm. Englewood Cliffs/London: Prentice-Hall.

    Google Scholar 

  • DeFillippi, R., and S. Ornstein. 2005. Psychological perspectives underlying theories of organizational learning. In Handbook of organizational learning and knowledge management, ed. M. Easterby-Smith and M.A. Lyles, 19–37. Oxford: Blackwell.

    Google Scholar 

  • Deming, E. 1998. Improvement of quality and productivity through action by management. In Readings in the management of innovation, ed. M. Tushman and W. Moore. New York: Harper Business.

    Google Scholar 

  • Deschamps, C. (2019) Stages of management control in a large public organization: from top to frontline managers. Journal of Management Control 30 (2):153-184

    Article  Google Scholar 

  • Dyer, J., and K. Nobeoka. 2000. Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal 21: 345–367.

    Article  Google Scholar 

  • Edmondson, A. C. (2016) Learning from Mistakes is Easier Said Than Done: Group and Organizational Influences on the Detection and Correction of Human Error. The Journal of Applied Behavioral Science 32 (1):5–28.

    Google Scholar 

  • Flamholtz, E. 1996. Effective management control: Theory and practice. Boston: Kluwer Academic publishers.

    Google Scholar 

  • Gherardi, S., D. Nicolini, and F. Odella. 1998. Toward a social understanding of how people learn in organizations. Management Learning 29: 273–297.

    Article  Google Scholar 

  • Ghoshal, S. 1987. Global strategy: An organizing framework. Strategic Management Journal 5: 425–440.

    Article  Google Scholar 

  • Groot, T., and F. Selto. 2013. Advanced management accounting. Edinburgh: Pearson Education Limited.

    Google Scholar 

  • Hall, D.J., and M.A. Saias. 1980. Strategy follows structure! Strategic Management Journal 1: 149–163.

    Article  Google Scholar 

  • Hamel, G. 1991. Competition for competence and inter-partner learning within international strategic alliances. Strategic Management Journal 12: 83–104.

    Article  Google Scholar 

  • Harun, H., K. Van-Peursem, and I.R.C. Eggleton. 2015. Indonesian public sector accounting reforms: Dialogic aspirations a step too far? Accounting, Auditing & Accountability Journal 28 (5): 706–738.

    Article  Google Scholar 

  • Herzberg, F., B. Mausner, and B.B. Snyderman. 1959. The motivation to work. 2nd ed. New York: John Wiley.

    Google Scholar 

  • Holmqvist, M. 2004. Experiential learning processes of exploitation and exploration within and between organizations: An empirical study of product development. Organization Science 15: 70–81.

    Article  Google Scholar 

  • Huber, G.P. 1991. Organizational learning: The contributing processes and the literatures. Organization Science 2 (1): 88–115.

    Article  Google Scholar 

  • Jarvie, W., and J. Stewart. 2018. Conceptualizing learning in the public sector: The importance of context. International Journal of Public Sector Management 31 (1): 14–30.

    Article  Google Scholar 

  • Jerez-Gomez, P., J. Cespedes-Lorente, and R. Valle-Cabrera. 2005. Organizational learning capability: A proposal of measurement. Journal of Business Research 58 (6): 715–725.

    Article  Google Scholar 

  • Kuruppu, C., P. Adhikari, V. Gunarathna, D. Ambalangodage, P. Perera, and C. Karunarathna. 2016. Participatory budgeting in a Sri Lankan urban council: A practice of power and domination. Critical Perspectives on Accounting 41: 1–17.

    Article  Google Scholar 

  • Lee, S., J. Courtney, and R. O’Keefe. 1992. A system for organizational learning using cognitive maps. OMEGA International Journal of Management Science 20 (1): 23–36.

    Article  Google Scholar 

  • Levitt, B., and J. March. 1988. Organizational learning. Annual Review of Sociology 14: 319.

    Article  Google Scholar 

  • Lipshitz, R., M. Popper, and S. Oz. 1996. Building learning organizations: The design and implementation of organizational learning mechanisms. The Journal of Applied Behavioral Science 32 (3): 292–305.

    Article  Google Scholar 

  • Lipshitz, R., M. Popper, and V. Friedman. 2002. Multi-facet model of organizational learning. The Journal of Applied Behavioral Science 38: 78–98.

    Article  Google Scholar 

  • Malmi, T., and D. Brown. 2008. Management control systems as a package – Opportunities, challenges and research directions. Management Accounting Research 19 (4): 287–300.

    Article  Google Scholar 

  • March, J., L.S. Sproull, and M. Tamuz. 1991. Learning from samples of one or fewer. Organization Science 2: 1–12.

    Article  Google Scholar 

  • Marton, F. 1986. Phenomenography – A research approach investigating different understandings of reality. Journal of Thought 21 (2): 28–49.

    Google Scholar 

  • Merchant, K., and D.T. Otley. 2007. A review of the literature on control and accountability. In Handbook of management accounting research, ed. C.S. Chapman, A.G. Hopwood, and M.D.Shields, vol. 2, 785–802. Amsterdam: Elsevier.

    Google Scholar 

  • Merchant, K., and W. Van der Stede. 2007. Management control systems. 2nd ed. Harlow: Prentice Hall/Pearson Education.

    Google Scholar 

  • Miner, A., and S. Mezias. 1996. Ugly duckling no more: Pasts and futures of organizational learning research. Organization Science 7: 88–99.

    Article  Google Scholar 

  • Moynihan, D. 2005. Goal-based learning and the future of performance management. Public Administration Review 65 (2): 203–216.

    Article  Google Scholar 

  • ———. 2008b. Advocacy and learning: An interactive-dialogue approach to performance information use. In Performance information in the public sector: How it is used, ed. W. Van Dooren and S. Van de Walle, 24–41. Basingstoke: Palgrave Macmillan.

    Chapter  Google Scholar 

  • ———. 2008a. The dynamics of performance management: Constructing information and reform. Washington D.C: Georgetown University Press.

    Google Scholar 

  • Nonaka, I., and H. Takeuchi. 1995. The knowledge creating company: How Japanese companies foster creativity and innovation for competitive advantage. New York: Oxford University Press.

    Google Scholar 

  • Ouchi, W. 1979. A conceptual framework for the design of organizational control mechanisms. Management Science 25 (9): 833–848.

    Article  Google Scholar 

  • Pollitt, C., and G. Bouckaert. 2004. Public management reform: A comparative analysis. New York: Oxford University Press.

    Google Scholar 

  • Rajala, T. 2019. Leadership that drives social change with performance measures. Leading change in a complex world: Transdisciplinary perspectives. Tampere: Tampere University Press.

    Google Scholar 

  • Rajala, T., and H. Laihonen. 2019. Managerial choices in orchestrating dialogic performance management. Baltic Journal of Management 14 (1): 141–157.

    Article  Google Scholar 

  • Rajala, T., H. Laihonen, and P. Haapala. 2018. Why is dialogue on performance challenging in the public sector? Measuring Business Excellence 22 (2): 117–129.

    Article  Google Scholar 

  • Rajala, T., H. Laihonen, and J. Vakkuri. 2019. Exploring challenges of boundary-crossing performance dialogues in hybrids. Journal of Management and Governance: 1–22. https://doi.org/10.1007/s10997-019-09485-x

  • Rashman, L., E. Withers, and J. Hartley. 2009. Organizational learning and knowledge in public service organizations: A systematic review of the literature. International Journal of Management Reviews 11 (4): 463–494.

    Article  Google Scholar 

  • Schwandt, D. 1997. Integrating strategy and organisational learning. In Advances in strategic management, (14), Organisational learning and strategic management, P. Shrivastava, A. Huff, and J. Dutton (Series Eds.) and J. Walsh and A. Huff (Volume Eds.), 337–359. Greenwich: JAI Press.

    Google Scholar 

  • Schwartz, D. 2006. Encyclopedia of knowledge management. IGI Global. http://library.books24x7.com/toc.asp?bookid=14700.

  • Senge, P. 1990. The fifth discipline. New York: Doubleday.

    Google Scholar 

  • Simons, R. 1994. Levers of control: How managers use innovative control systems to drive strategic renewal. Boston: Harvard Business Press.

    Google Scholar 

  • Tessier, S., and D. Otley. 2012. A conceptual development of Simons’ levers of control framework. Management Accounting Research 23 (3): 171–185.

    Article  Google Scholar 

  • van Acker, W., and G. Bouckaert. 2018. What makes public sector innovations survive? An exploratory study of the influence of feedback, accountability and learning. International Review of Administrative Sciences 84 (2): 249–268.

    Article  Google Scholar 

  • van der Kolk, B., and T. Schokker. 2016. Hierarchical couplings in a management control package: An explorative case study. Journal of Management Control 27 (2): 129–154.

    Article  Google Scholar 

  • van Dooren, W., G. Bouckaert, and J. Halligan. 2015. Performance management in the public sector. 2nd ed. Abingdon: Routledge.

    Book  Google Scholar 

  • van der Kolk, B. (2019) Management control packages: a literature review and guidelines for public sector research. Public Money & Management 39 (7):512-520

    Google Scholar 

  • Van Maanen, J., and E. Schein. 1979. Towards a theory of organizational socialization. Cambridge: MIT Press.

    Google Scholar 

  • Verbeeten, F., and R. Speklé. 2015. Management control, results-oriented culture and public sector performance: Empirical evidence on new public management. Organization Studies 36 (7): 953–978.

    Article  Google Scholar 

  • Virany, B., M. Tushman, and E. Romanelli. 1992. Executive succession and organization outcomes in turbulent environments: An organizational learning approach. Organization Science 3: 73–91.

    Article  Google Scholar 

  • Visser, M. 2016. Management control, accountability, and learning in public sector organizations: A critical analysis. In Governance and performance in public and non-profit organizations, Studies in public and non-profit governance, ed. L. Gnan, A. Hinna, and F. Monteduro, vol. 5, 75–93. Bingley: Emerald.

    Chapter  Google Scholar 

  • Visser, M., and K. Van der Togt. 2016. Learning in public sector organizations: A theory of action approach. Public Organization Review 16 (2): 235–249.

    Article  Google Scholar 

  • Wang, C., and P. Ahmed. 2003. Organisational learning: A critical review. The Learning Organization 10 (1): 8–17.

    Article  Google Scholar 

  • Weick, K. 1996. Sensemaking in organizations. London: Sage.

    Google Scholar 

  • Williamson, O.E. 1985. The economic institutions of capitalism: Firms, markets, and relational contracting. New York: Free Press.

    Google Scholar 

  • Zhang, W. 1997. Decision rights, residual claim and performance: A theory of how the Chinese state enterprise reform works. China Economic Review 8 (1): 67–82.

    Article  Google Scholar 

  • ZIMMERMAN, J. (2009) Accounting for Decision Making and Control. London: McGraw-Hill.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Tomi Rajala .

Editor information

Editors and Affiliations

Section Editor information

Rights and permissions

Reprints and permissions

Copyright information

© 2019 The Author(s), under exclusive licence to Springer Nature Switzerland AG

About this entry

Check for updates. Verify currency and authenticity via CrossMark

Cite this entry

Rajala, T., Laihonen, H. (2019). Combining Learning with Management Controls in Performance Dialogues to Shape the Behavior of Public Servants. In: Sullivan, H., Dickinson, H., Henderson, H. (eds) The Palgrave Handbook of the Public Servant. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-03008-7_45-1

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-03008-7_45-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-03008-7

  • Online ISBN: 978-3-030-03008-7

  • eBook Packages: Springer Reference Political Science and International StudiesReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

Publish with us

Policies and ethics