Transformations  in
Business & Economics

Transformation of Management Accounting: from Management Control to Performance Management
Bartłomiej Nita

ABSTRACT. The aim of the paper was to explore the changing role of management accounting in the context of corporate performance and strategy execution as well as to provide the discussion of the rationales for transition from traditional management control to performance management.

The methodology includes a comprehensive review of the literature, a critical analysis of work in the field of performance management globally, in particular an analysis of the evolving approaches to performance management, and interpretive research on discovering the meanings and beliefs underlying the changing role of management accounting.

The research results argue that the increased global competition and uncertain business conditions have put a pressure on managers to successfully implement corporate strategies. As a result, management accounting has been evolving very rapidly over the last two decades and a range of management accounting tools and techniques has now emerged. In order for a company to execute its strategy effectively it must be able to make transition from management control to performance management. Thus the article identifies performance measurement as an element of performance management and clearly indicates for the strategic role of contemporary management accounting.

KEYWORDS: management accounting, management control, performance management, corporate strategy.

JEL classification: M10, L25, P2.