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Archives of Business Research – Vol. 9, No.2
Publication Date: February 25, 2021
DOI: 10.14738/abr.92.9792.
Mayegle, F., & Lea, I. (2021). Management Control in Cameroon Municipal Areas: A Response to the Urgent Issue of Risk Management.
Archives of Business Research, 9(2). 300-315.
Management Control in Cameroon Municipal Areas: A Response
to the Urgent Issue of Risk Management
François-Xavier Mayegle
Faculty of Economics and Management
University of Ngaoundere, Cameroon
Isaac Lea
Faculty of Economics and Management
University of Ngaoundere, Cameroon
ABSTRACT
Generally, Cameroon municipalities encounter organisational
risks. This research has identified a typology of such risks and
presents management control as a cursor of enlightenment and
governance in controlled risk. This objective is achieved after
using a quantitative method through a hypothetico-deductive
approach aimed at testing three hypotheses; the study was
conducted using a questionnaire administered in 9 out of 10
regions in Cameroon. At the end, this study highlights that
management control in Cameroon municipal areas is void of
proactive tools, and uses only traditional tools. It also highlights
that ways of implementing management control in Cameroon
municipalities are not conducive to reduce risks.
Key words: control management, organisational risks, municipality.
INTRODUCTION
In a more inclusive world where public administrations are in competition with each other,
public administrations should be more and more efficient to keep up with the world.
Productivity in the public sector is a key factor in the development of a nation. It is also the
people desire that their public service has quality services at the best possible cost. To
achieve this objective, the State must limit its intervention in managing decentralised
services and give them free rein. As such, it is compelling that people take into account the
local realities of the community through decentralisation policy. Municipal organisations,
like all public organisations, are undergoing major transformations today, which require
changes in public management. Several authors explain the causes of this change. Lorrain
and Stocker
1. point out that the proliferation of organisational forms requires public-private
partnerships. Le Galès
2. highlights the complete transformation of the State's role with emphasis on
contractual relations with municipalities. Borraz [3] points out the increasing role of
the deputies expected to attend to the complex demands in each sector of public
action.
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Archives of Business Research (ABR) Vol 9, Issue 2, February-2021
In Cameroon, municipal organisations still make ends meet with informal management
methods which are subjected to many risks whose control becomes chaotic. According to
Besson [4], the concept of risk is based on the theory and practice of management control
(MC) in organisations. Thus, there is a need to put MC again as a subject of organisational
sciences whose subject matter is the control of organisational risks [5]. Risk is a concept
from the society that varies according to times and places. The perception of risk is by no
means "an objective assessment of dangers, but rather the result of a projection of meaning
and value on certain events, practices, objects dedicated to the overall expertise of the
community or specialists" [6]. The issue of risk management is compelling in the running of
municipal activities. Each municipality must have a risk management manual for the safety
of its employees and material assets. In this case, municipalities encounter the same
challenges as private companies. Currently, there is no legal rule imposing a risks
management tool to municipalities. However, they must have one if they want to be
efficient and up to date with the expectations of those assessing its results. Therefore, risk
has an atypical definition and a typological polysemy depending on the subject matter.
Assessment of these different criteria is highly subjective. This may explain why in
scientific and technical fields a quantifiable and more rigorous definition of risk has been
given. There is a wide range of risks. Darsa [7] identifies thirteen major classes of risk that
all organisations will be or are potentially exposed. These are geopolitical risks, economic
risks, strategic risks, financial risks, operational risks, industrial risks, legal risks, IT risks,
human resources risks, image and/or reputation risks, knowledge management risks,
integrity risks, and accounting management risks. Four classes of risks, out of those
mentioned, caught interest because they are in line with the purpose of this research.
Strategic, financial and operational risk: Whatever the size of the organisations, they all
conceive and suggest a strategic model that constantly changes and adapts. Consisting of
multiple strategic segments, the strategic model is exposed to several risks such as the risk
of inconsistency between its constituent elements. Like a wheel system, implementing the
strategic model generates complex financial risks that directly impact the sustainability of
the organisation. Liquidity, credit, financing and accounting risks are just a few examples of
the many risks that can affect the organisation. These risks also have an operational impact
according to Jezzini [8] and Darsa [9]. Operational risk is an extremely broad and
important concept, defined by the Basel 2 Committee as "the risk of losses resulting from
the inadequacy or failure of internal processes, people and systems or resulting from
external events". Indeed, Jezzini [8] defines operational risk as the risk of diversion
between the profit related to a service offer and the expectations of managerial planning.
The operational risk therefore corresponds to the positive or negative difference recorded
in relation to the expected profit. Darsa [9] defined operational risk as any risk that may
result in damage, loss or cost created or incurred during the company's day-to-day
business.
Human resources risks: According to Darsa [7], they are made up of two main types of
risk. Social risks (social climate, turnover, competence management, loss of key personnel,
etc.) and psychosocial risks (poor living conditions, stress, sexual and/or moral
harassment, suicides). They are indirectly linked to operational risks so, they will require a
special and delicate treatment given the scope and sensitivity of the field concerned.