Can a Beyond Budgeting based Management Control System improve organizational justice perceptions and trust? Indications from German cooperative banks.
StatisticsView Usage Statistics
MetadataShow full item record
Author/sSchmitz, Sven Olaf
Discipline/sAdministración y Dirección de Empresas
Management control systems (MCS) are commonly applied in organizations to align employees’ behaviors with organizational objectives. They comprise all tools and mechanisms which help an organization “to ensure that behaviors and decisions of their employees are consistent with the organization’s objectives and strategies” (Merchant and Van der Stede, 2012, p. 6). Conventionally, the design of MCS contains monitoring mechanisms that connect employees’ goals with rewards (e.g. bonus payments) and punishments (e.g. denial of promotions) to secure the required alignment between top-down distributed goals and employees’ behaviors and decisions (Hopwood, 1974, p. 24; Otley, 1999, p. 364). This alignment of MCS is referred to as “command and control” and was widely considered as functioning well for decades until organizational environments became more dynamic. Researchers began to criticize this approach for being too slow, rigid and time-consuming and therefore not able to adapt quickly eno...