The aim of the this essay introduces the management control system as a package in the different typologies which is proposed by Merchant, K. Van der Stede, W. and Malmi, T. & Brown D with examples of Barclays Bank PLC firstly. Subsequently, discuss the way of collaboration between packages. Lastly, analyses critically the challenges of implementing MCS as a package.

Management control system is an integrated technique which concentrates and processing information to evaluate, effect and conduct the performance of organizational resources. Management controls systems play a pivotal role in dominating the organization’s strategies to enhance the competitive advantage and make the influence of the goal achievement. Management control system (MCS) as a package is a collection or set of controls and controls systems (Malmi 2007). The idea is proposed over 30 years by Otley (1980). The inevitability of development confirms MCS should work together not in isolation. There are more reasons prove it. Firstly, use MCS as a package, the role of MCS will be transformed or advanced to be more essential. Secondly, MCS as a package is a good way to achieve increased organizational performance. Moreover, Fisher (1998) supported that without linkage between MCS, the contingency variables of isolation of MCS using may lead to erroneous conclusions. In other words, the function of an existing MCS package may make an influence on a new MCS’s using. Therefore, studying and utilizing the new system individually can affect the accuracy of results. Besides, if the elements do not conflict between management control systems, MCS cannot only complement or substitute each other, but also perfect function, such as personal controls and cultural controls.

Barclays Bank PLC is established in 1965. It is one of the biggest business bank with the perfect management control systems. It is suited example to illustrate two typologies of MCS as packages in the contemporary literature. The typologies of Malmit., & Brown., 2008 afforts a sufficiently broad. It involves five packages which are planning, cybernetic controls, reward and compensation controls, administrative controls and cultural controls. Planning is an ex-ante form of control (Flamholtz et al., 1985). To control the behavior and effort, it formulates the standards and goals in functional area. Additionally, planning makes sure the operation in an orderly manner on the basis of the expected goals. Action planning and long range planning are two aspects of planning. Action planning means the action and goals can be implementing and achieved during 12 months or less. Obviously, Long range planning needs long time to implement the action and realize the goals. For instance, in 2012 Barclays set a 2015 Citizenship Plan. It set out how we will play our part in overcoming the challenges facing the global economy and in restoring confidence in the financial services sector during the 3 years. Green and Welsh (1988) defined cybernetic control as “a process in which a feedback loop is presented by using standards of performance, measuring system performance, comparing that performance to standards, feeding back information about unwanted variance in the systems, and modifying the system’s comportment”. Four systems are included in, which identified by other research: Budgets (Bunce et al., 1995; Hansen et al., 2003); financial measures (Ittner and Larcker, 1998); non-financial measures; and Hybrids which include financial and non-financial. To motivate the employees working hard, the reward and compensation control is a useful means. Barclays provides the reward for performance incentives, private healthcare, tax-free share schemes, child care vouchers and up to 30 days holiday a year. Cultural control is a system to limit member’s behavior through the belief, sometimes beyond the managers’ control. It involves three parts: value-based controls (Simons, 1995), symbol-based controls (Schein, 1997), and clan controls (Ouchi, 1979). There are three levels of value-based controls, the first level is that if your value is particular and met the value of organizations, you are the person they are finding. The second level is your value is socialized and you can transform it to fit the organization value. Lastly, you do not insist personally. Symbol-based control is that the organization will establish particular fixed and current assets, such as building work and relax space. Clan control creates value and employable skills in the socialization process. The professional training may come from organization division or training center. “Core of Barclays” is five organizational values, Barclays put forward, which is Keep smile, Own it, Work together, Think smart and 100% energy. Training, support and development are provided to help employees fit the value by the human resource department. Administrative controls control staff by individuals or group. It is a process to oversee whether a task or activities operates. Organization design and structure, policies and procedure and governance structure are the three aspects.

The another typology was proposed by Merchant K., & Van der Stede W., (2007), they support that MCS system contains 4 packages which are results controls, action controls, personnel controls and cultural controls respectively. Result controls transfer the employees’ attention from process to result. On the one hand, it makes an influence to action, to achieve expected goal, the system selects the most suitable process for them. On the other hand, organization creates meritocracies. Organization rewards the talent and hard working employees instead of the long tenure. It causes the employees concentrate on the proper working area selecting and performance. The final performance determines whether they can obtain the reward. The application of result control is limited. Only in this circumstance, which is employees’ action can affect the results and the results can be measured effectively, can the control be suited for. Planning and budget belong to financial result control system, however, Malmit T., & Brown, D., proposed planning is an in