DYSFUNCTIONS IN THE APPLICATION OF THE MANAGERIAL CONTROL SYSTEMS IN ROMANIAN PUBLIC INSTITUTIONS: THE REPORTING IMPROPRIETIES, THE INFORMATION AND THE COMMUNICATION STANDARDS

Liviu Crăciun () and Ionut-Cosmin Băloi ()
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Liviu Crăciun: Craiova University, Economics and Business Administration Faculty,
Ionut-Cosmin Băloi: Craiova University, Economics and Business Administration Faculty,

Annals of Faculty of Economics, 2014, vol. 1, issue 1, 1149-1155

Abstract: The development level of managerial control systems in the Romanian public entities is not a remarkable one, on the contrary, some institutions do not understand the real usefulness of the internal control system and the related set of standards; the compliance is determined only by the regulatory norms. The practice of implementing the internal control proves that the perception of executives and middle managers regarding that system is not a favourable and supporting one. The managers face difficulties caused by the ambiguity of some of the standards, poorly understood, and for which the body of laws does not provide advices. Thus, some institutions report the high compliance of standards, although the reality shows numerous inconsistencies. Other public institutions assess their own level of implementation only partially, but do not identify improvement solutions. Because of the lacking of benchmarking initiatives and knowledge transferring between institutions, the picture of this situation indicates dysfunctions that influence the efficiency of the activities and the achievement of the objectives. In this paper, we will analyze the correlation between the observed shortcomings in the implementation of three of the most important standards, namely the Reporting improprieties, the Information and the Communication. The methodology used is an analytical and exploratory one and critically examines the implementation status of these three standards in more than 40 public institutions in Dolj County, Romania. Also, by analyzing the answers to the questionnaire, our study identifies differences in interpretation and implementation of these standards between certain types of organizations (given the heterogeneity of the investigated sample). The results show a high interdependence between this control standards and our proposals focus on the strengthening of the interpersonal skills and the personal relationships. Our study is directed toward the conclusion that the three internal/managerial control standards and their potential impact on the organizational optimization are not optimal exploited.

Keywords: public institutions; internal/managerial control; control standards; reporting improprieties (search for similar items in EconPapers)
JEL-codes: D83 H83 M48 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ora:journl:v:1:y:2014:i:1:p:1149-1155

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