This study aims to elucidate the relationship between managers’ perceived controllability and performance in an organizational context that promotes structural empowerment.
A mixed method is used with a Japanese cram school as the research site. The qualitative study analyzes role expectations for the manager and their link to the controllability principle. The quantitative study examines the relationship between managers’ perceptions of controllability, role perceptions (role clarity and role flexibility) and performance using path analysis.
First, the qualitative study results showed that controllability is moderated by the balance between control and empowerment. Increased controllability of the budget clarifies the role of achieving target budgets while at the same time encouraging management interest and flexibility in carrying out their role by allocating costs that are only partially determinable, such as advertising costs. Second, the quantitative study found that role clarity and role flexibility are balanced and perform better when managers perceive moderate levels of controllability. These findings consistently demonstrate the importance of balancing control and empowerment in a context that emphasizes structural empowerment.
This study identifies congruent levels of controllability in promoting structural empowerment within promoting contemporary organizational contexts. Using a mixed method approach, it examines the localized application of the controllability principle and its implications for selected features of the management accounting system.
