Anthony G. Hopwood\'s Theory Includes

Anthony G. Hopwood's theory includes three types of control: administrative control, social control, and self control. Other theorists divide the types of control into two distinct categories: internal control and external control. By combining these terms, one can observe that self control is an internal type of control, which contrasts with the concept of external control, like administrative control and social control (Malhotra, 2002). Each of these three types of control belongs to a set of different values. These sets of values are: external values, internal values, and social values. As a consequence, the three types of control described by Hopwood can be linked to these sets of values in the following manner: administrative control can be linked to external values, self control can be linked to internal values, and social control can be linked with social values (Silaen & Williams, 2007). External values include values developed by external organisms, like accounting mechanisms. Each type of control is used by different types of organizations in different ways. For example, external control is usually practiced as a consequent in traditional organizations. The conditions in which traditional organizations activate favor such a use for the administrative control: the environment is more stable, changes are continuous and predictable. However, in emerging organizations, self control is used as an antecedent. In such cases, the external environment is more turbulent, modifications are frequent, discontinuous and unpredictable. Administrative control basically consists of accounting systems or other mechanisms that aim at regulating individual behavior within the organization and directing it towards achieving the goals and objectives established at organizational level. Administrative control is probably the most powerful control type of the three mentioned above. Given the fact that administrative control is based on clear rules, values, and indicators, it is difficult for such a control to fail. In addition to this, such controls are objective, unlike the self control. Social control is considered to derive from administrative control. In other words, in cases where administrated controls are voluntarily designed and implemented so that they influence individuals' preferences and values are changed and replaced with other values, such administrative controls turn into social controls. In theory, the concept of self control is considered to be opposed to the concepts of administrative control and social control. As mentioned above, self control is an internal form of control, while the administrative and social control are considered to be external forms of control. Nowadays, managers must also have characteristics like self leadership and self control. Hopwood also considers that administrative controls and social controls can only be successful if they operate as self controls. In order for the administrative and social controls to be able to modify individuals' behavior within the organization, these controls must operate as controls that individuals exert on their own behavior. Such external controls must be internalized by individuals within the organization, directly or indirectly.