The Construction of a Management Control System in Traditional Financial Institution

Purpose: The Management Control System (MCS) has a crisis of meaning nowadays. Moreover, banking institutions with the highest risk level with liquid assets require a more comprehensive MCS. This research aims to develop an MCS concept that can be applied in traditional financial institutions as a more humane control system. Theoretical framework: This study provides a critique of the legitimacy theory related to MCS. An institution exists to gain legitimacy, but with a flawed control system, organizations practice creative accounting to gain a trust. Design/Methodology/Approach: This is qualitative research with a case study in one of the traditional banking institutions in Bali called Village Credit Institutions (LPD). The research paradigm uses postmodernism by adopting Lyotard's views using the binary opposition synergy methodology. Findings: The study results found that the construction of MCS was more suitable for use in the traditional banking sector. Organizations must pay attention to a sense of family, open management, and communication to create a sustainable organization. Have a good harmonious relationship with God, humans, and the environment. Research, practical & social implications: The practical implication that can be contributed to this research is implementing a culture-based control system in traditional financial institutions. A control system formed from people's habits can create absolute goal congruence. Originality/Value: This research produces a form of construction of a new model in MCS that has never existed before to create harmony with humans, the environment, and God