| dc.description.abstract | The bank market has in recent years undergone several structural changes, and will most
likely develop further in future years. Traditionally savings banks have been reluctant to carry
out necessary actions to adapt their businesses to the new challenges. With this in mind, we
have performed a comprehensive analysis of the Management control process in Sparebank 1
Ringerike.
We have investigated how their current process is suited to face the challenges of a changing
market from an interactive and diagnostic view. The thesis thus starts with a presentation of
management control theory with an emphasis on interactive and diagnostic control as well as
two control systems; the budget and the Balanced Scorecard. It goes on to describe the current
Management control process in the bank. The analytical part is concerned with relating this
process to the normative theory, and proposes a solution to the gaps found.
During this work we discovered that both the Diagnostic and especially the Interactive
process in the bank have considerable shortcomings when compared to the normative
processes as presented in the theory. In the Interactive process these are especially related to
the lack of involvement of the employees for various reasons. In the Diagnostic process we
mainly criticize the use of the budget as a control system. In total the Management control
process do not function optimally, a problem on which we have strived to find a solution. | en |
