Transcending autonomy and control through management accounting: A neoliberal perspective on MCS in the knowledge-intensive firm

Abstract: The purpose of this study is to examine how Management Control Systems (MCSs) can balance the tension between autonomy and control in knowledge-intensive firms (KIFs). The study was carried out by conducting an in-depth single-case study at the Swedish branch of an international management consulting firm. Using the concepts of technocratic and socio-ideological control, recognized in Alvesson and Kärreman (2004), we present evidence suggesting that management control is primarily achieved though technocratic controls, forming a coherent career model based on personal development of employees, as well as being reinforced by formal and informal socio-ideological controls. Through the use of Foucault's notions of humans as human capital and entrepreneurs of themselves (Cooper, 2015), we conclude that management control in the case company appears to exploit a neo-liberal rationality among employees, as the MCS allows consultants to define themselves in human capital terms. The personal development traits of the MCS thus create a strong alignment between employee behavior and the strategic objectives of the firm. The study further highlights how technocratic forms of control can simultaneously balance the tension between autonomy and control in KIFs, as well as the importance of considering underlying rationalities of behavior in the design of MCSs.