2. A Theoretical Research Framework
This chapter presents a brief overview of the most relevant theoretical concepts of management control, accounting information systems, performance budgets and the roles of budgets. These general accounting concepts, applicable in both the private and public sector, are used to compose a research framework for analyzing the role of budgeted performance measures in Dutch local government.

Organizational and management control
Control, next to strategy formulation and objective setting, is one of the critical management processes (Merchant, 1998; Merchant and Van der Stede, 2003). The term “organizational control” has no single generally accepted definition. Literature presents various definitions, describing organizational control as a process (of setting a standard, observing what is happening, comparison of observation and standard, and if necessary, behavior altering communication), or by its main goal (e.g. assuring implementation of strategies). Anthony (1988) has provided a general accepted structure for organizational control. His traditional framework distinguishes three separate and distinct processes; being strategy formulation, management control, and task control. Within this concept, task control and strategy formulation form the boundaries of the management control process. Strategy formulation is the process of deciding on the goals of the organization and the strategies for attaining these goals. Task control is the process of ensuring that specific tasks are carried out effectively and efficiently. Management control fits between the two concepts, and is defined by Anthony (1988, p.8) as “the process by which managers influence other members of the organization to implement the organization’s strategies”. Anthony considers management control to be a rational and systematic process; as a formal prescribed set of