Abstract

The purpose of the research is to analyze the effectiveness of the implementation of upstream downstream control system applied to the research unit, to overcome the problems faced by the delay and the low achievement of expenditure realization that has occurred in previous years. The study used qualitative methodologies, using questionnaire survey data on 121 budget managers from the highest managerial level to the operational manager level. Furthermore, by utilizing triangulation technique is done deepening by conducting interviews, secondary document analysis and literature review. Effectiveness analysis of control system is done by referring to Levers of Control theory framework developed by Robert Simon (1995). Associated with the analysis of managerial accounting information quality used characteristic dimensions developed by Chendall & Moris (1986). Obtained evidence that the implementation of "upstream downstream control system" can change the pattern of performance achievement of budget realization in all work units in the research unit. The applied control system is considered to have included four elements of the system from the Levers of Control. In particular the system of diagnostic and interactive controls, assessed able to effectively improve the performance of budget realization. Perceived by budget managers, the information generated by the diagnostic control system, is considered capable of providing quality information that encourages interactive systems to function better. Interaction between elements of this system can further boost the performance improvement of the organization's performance. This research shows that the implementation of management control system applied to research unit can provide solution to overcome the problem of delay and low achievement of budget realization performance, so it can be used as reference for other government organization in Indonesia in overcoming the same problem.

Type of Paper: Case Study

Keywords: Management Control System, Budget Realization Performance, Levers of Control