Strategic alignment in decentralized organizations — The case of Svenska Handelsbanken

Cäker, Mikael,1972Gothenburg University,Göteborgs universitet,Företagsekonomiska institutionen, Redovisning,Department of Business Administration, Accounting (author)

Recent research emphasizes technocratic controls to support the self-management aspect of empowerment. Strategic alignment is ascribed to socio-ideological controls. However, the indirect nature of socio-ideological controls pose a question regarding monitoring of strategic alignment in organizations with empowerment-oriented controls. We adopt a holistic approach in exploring the role of and interaction between organization structure, socio-ideological control and technocratic control through a qualitative case study. Our study confirms the essential role of socio-ideological controls in ensuring strategic alignment, but highlights the role of trust in experienced-based advice-giving from superiors to subordinates. Technocratic controls contain information that provide visibility of local actions and are used in hierarchical communication. The interrelationship between socio-ideological and technocratic controls is dependent on the organization structure design through time and proximity. A high capacity to communicate is thereby established, enabling monitoring without impairing empowerment.

SAMHÄLLSVETENSKAP Ekonomi och näringsliv Företagsekonomi hsv//swe
SOCIAL SCIENCES Economics and Business Business Administration hsv//eng
Strategic alignment;Empowerment;
Business Administration
Företagsekonomi
Strategic alignment; Empowerment; Management control; Socio-ideological control; Technocratic control; Capacity to communicate

Siverbo, SvenKarlstads universitet,Handelshögskolan (from 2013),Forum För Redovisning(Swepub:gu)xsivsv (author)
Göteborgs universitetFöretagsekonomiska institutionen, Redovisning (creator_code:org_t)

In:Scandinavian Journal of Management: Elsevier BV30:2, s. 149-1620956-52211873-3387

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SOCIAL SCIENCES: SOCIAL SCIENCES; and Economics and Bu ...; and Business Adminis ...

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