Implications for Management Control in the Transition towards Hybrid Work - A Case Study of a Professional Service Firm

Abstract: Purpose: The aim of this thesis is to explore the transition towards a hybrid work model and the implications it may have on the use and adaptation of management control within PSFs. The purpose is further to highlight the reasons behind the adaptations of MCS. Methodology: A qualitative single case study of a professional service firm, with empirical data collected through semi-structured interviews. Theoretical perspectives: The theoretical framework combines relevant literature from management control (Simons, 1994; Merchant & Van der Stede, 2007; Norris & O’Dwyer, 2004; Alvesson & Kärreman, 2004), professional service firms (Empson & Alvehus. 2020; Greenwood & Empson, 2003; Morris & Empson 1998; Von Nordenflycht, 2010) and remote and hybrid work (Da Silva, Castelló-Sirvent & Canós-Darós, 2022; Halford, 2005; Hopkins & Bardoel, 2023). Empirical Foundation: The empirical foundation is structured according to the themes found in the interviews, starting with 1) an introduction to the case company, and continuing with key themes: 2) Balancing flexibility and control, 3) Feedback and career development, 4) A learning organisation and 5) Professional culture. Conclusions: The findings from this study highlight the change of specific management control systems to influence organisational culture and promote interaction, trust and knowledge sharing between professionals. Interfaces of control have been found in relation to the adaptation of formal controls to influence informal controls in the case company. Informal controls have also been affected by the transition towards hybrid work in terms of professional values, commitment and social pressure.