Issues in changing management control regime of a privatised entity: Japanese management in Sri Lankan context

This paper examines management control issues related to the change of control regime from rigid, state bureaucratic system to flexible, market responsive system. Based on a longitudinal case study, the paper illustrates as to how conflicts emerge during the transition period from state venture to a privatised entity. The study highlights the operation of diverse forces such as power bargaining with political party-based trade unions, malicious competitive forces in the industry, political interference through telecommunication regulatory body, indulging work habits of employees and feudal and imperial mentality of Sri Lankan mangers. Expectations of privatisation based on neo-liberal economic assumptions are often challenged by feudalistic, traditional management controls that prevail in large enterprises in post-colonial Sri Lanka.