The Effect of Management Control Systems on Employee Performance: Communication Skill as a Moderating Variable

This research aims to test whether if employees are monitored continuously and/or periodically, their performance can improve or, conversely, their performance can decrease. The analysis focuses on interactive control and diagnostic control as management control system models commonly used in various organizations, especially in local government organizations. 140 questionnaires were distributed to heads of budget, accounting, finance and planning divisions at West Java Provincial Government departments, agencies and offices, resulting in 71 pieces that were ready to be processed. The research results show that diagnostic and interactive supervision has a direct positive effect on performance and there is a positive relationship between the management control system and performance which is moderated by the communication variable. Then excessive supervision cannot improve performance and on the contrary adequate supervision by top management and/or higher level managers is deemed necessary to improve performance. Planning for supervision of subordinates is still needed to encourage participation and motivation in an effort to improve performance in an organization.