Management control systems are intended to motivate managers to ensure their company’s organizational goals are accomplished.They do this by rewarding and promoting people according to certain criteria. Usually they are designed to create the greatest goal congruence – i.e., where people in the organization are working toward the same personal objectives as the organization’s.
A new working paper by IESE’s Natàlia Cugueró and Josep M. Rosanas breaks new ground in the study of management control systems, by analyzing the role of organizational justice. What they find is that justice is closely and crucially related to management control systems.
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