Robert H. Chenhall
Monash University
Matthew Hall
London School of Economics
and Political Science
David Smith
Monash University
Social capital
The role of management control
systems in NGOs
Research executive summary series
Volume 6 | Issue 6
, Key findings:
• Non-governmental organisations (NGOs) are being confronted with the
competitive nature of acquiring funds and need to demonstrate that they have
particular competencies to funders, while at the same time continuing to adhere to
their traditional welfare or development values.
• The evidence shows that developing formal management controls can help NGOs
to develop networks with government departments, funding agencies, other service
providers and clients. However, formal management controls also have the potential
to damage the internal bonding between employees.
• Developing belief systems to incorporate financial concerns, along with traditional
welfare goals, would seem a useful starting point in the move towards managing in
a more competitive NGO sector.
Monash University
Matthew Hall
London School of Economics
and Political Science
David Smith
Monash University
Social capital
The role of management control
systems in NGOs
Research executive summary series
Volume 6 | Issue 6
, Key findings:
• Non-governmental organisations (NGOs) are being confronted with the
competitive nature of acquiring funds and need to demonstrate that they have
particular competencies to funders, while at the same time continuing to adhere to
their traditional welfare or development values.
• The evidence shows that developing formal management controls can help NGOs
to develop networks with government departments, funding agencies, other service
providers and clients. However, formal management controls also have the potential
to damage the internal bonding between employees.
• Developing belief systems to incorporate financial concerns, along with traditional
welfare goals, would seem a useful starting point in the move towards managing in
a more competitive NGO sector.
