The Effect of Management Control Systemon Unethical Behaviors

Subject Areas : Ethics and accounting

Seyed Hossein Ahmadi Langari ¹ , Mansour Garkaz ²

1 - Ph.D. student of accounting, Gorgan Branch, Islamic Azad University, Gorgan, Iran
2 - Associate Professor, Gorgan Branch, Islamic Azad University, Gorgan, Iran

Received: 2021-10-18 Accepted : 2021-12-31 Published : 2021-12-22

Keywords: Organizational Justice, Managers, Procedural Justice, Distributive Justice, unethical behaviors, Management control system,

Abstract :

The purpose of the present research is to review the effect of management control system (MCS) on unethical behaviors. The current study aims to validate the theoretical model of the study of Langevin and Mendoza (2012) and also theoretically test the hypothesis formulated by the authors, although not experimentally tested yet. Therefore, the following research question is explored in the present study: Which aspects of MCS presented by Langevin and Mendoza (20102) increase organizational justice and decrease unethical behaviors of managers? In this regard, a questionnaire was distributed among the senior and middle managers of active corporations in the stock exchange from April 2021 to May 2021. According to a survey research plan including a questionnaire from Louisiana Klein et al., completed by 114 participants, the relationship between research variables and the hypothesis presented by Langevin and Mendoza (2012) was reviewed and the data was analyzed using PLS Smart software/version 3. The results obtained from modeling the structural equations show that participation in setting the goals can increase perception of procedural justice; it means that participation in setting fair purposes is taken into account but this issue does not have a close relation to the managers’ reward. Thus, ignoring uncontrolled aspects by the managers in performance assessment does not lead to the perception of procedural and distributive justice.

References:

الفت، لعیا؛ اعرابی، سید محمد؛ امیری، مقصود؛ قاضی نوری، سید سروش (1390). بررسی تجربی ارتباط استراتژی فناوری با استراتژی و عملکرد کسب و کار در صنایع الکترونیک ایران. سیاست علم و فناوری، 3(3)، ص1-18.

امیران، حیدر؛ غفاری، میثم؛ شیخ، علیرضا (1392). مدیریت و اندازه‌گیری عملکرد سازمان از ایده تا اجرا. تهران: انتشارات امیران.

حسینی، زهرا؛ مرتضوی، سعید؛ رحیم‌نیا، فریبرز؛ ناظم، شمس‌الدین (1397). شناسایی دلایل وقوع رفتارهای غیراخلاقی سازمان‌یار در سازمان‌های دولتی. مدیریت سازمان‌های دولتی، 6(4)، ص57-70.

سلیمانی امیری، غلامرضا؛ معصومی بیلندی، زهرا (1398). پیش‌نیازهای رفتارهای غیر اخلاقی در شرکت‌ها: ویژگی‌های پیروان همدست. مطالعات حسابداری و حسابرسی، 30، ص21-38.

عباس‌پور و همکاران (1398). تدوین مدل تبیین رفتار غیراخلاقی سازمان‌یار در شرکت‌های دولتی. مطالعات رفتار سازمانی، 9(34).

گودرزی، لیلا؛ ریاحی، لیلا؛ نظری منش، لیلا (1397). رابطه سیستم کنترل مدیریت با مدیریت عملکرد بیمارستان منتخب تأمین اجتماعی تهران. مدیریت بهداشت و درمان، 9(2).

مرادی، مرتضی؛ زندی پاک، رابعه؛ قزوینیه، سمیرا ( 1399). تأثیر سبک رهبری تحول‌گرا و سیستم کنترل مدیریت در عملکرد مدیریتی شرکت‌های تعاونی و خصوصی فعال در شهرستان ملایر. تعاون و کشاورزی، 9(33).

نعامی، عبدالزهرا؛ شکرکن، حسین (1385). بررسی رابطه ساده و چندگانه عدالت سازمانی با رفتار مدنی در کارکنان یک سازمان صنعتی در شهر اهواز. علوم تربیتی و روانشناسی، 1(13)، ص92-79.

Ackroyd, S. & Thompson, P. (1999). Organizational Misbehaviour. London: Sage.

Auzair (2011). The effect of business strategy and external environment on management control system: A study of Malaysian hotels. International Journal of Business and Social Science, 2(13).

Bastain, E. & Muchlish, M. (2012). Perceived Environment Uncertainty, Business Strategy, Performance Measurement Systems and Organizational Performance. Social and Behavioral Sciences, 65, P.787-792.

Beuren, I.M., Klein, L., Lara, F.L. & Almeida, L.B. (2016b). Percepção de justiça nos sistemas de controle gerencial aumenta comprometimento e confiança dos gestores? Revista de Administração Contemporânea, 20(2), P.216-237.

Burkert, M., Fischer, F.M. & Schäffer, U. (2011). Application of the controllability principle and managerial performance: the role of role perceptions. Management Accounting Research, 22(3), P.143-159.

Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences, (2^nd ed.). New York, NY.: Psychology Press.

Cohen-Charash, Y. & Spector, P.E. (2001). The role of justice in organizations: a meta-analysis. Organizational Behavior and Human Decision Processes, 86(2), P.278-321.

Colquitt, J.A. & Jackson, C.L. (2006). Justice in teams: the context sensitivity of justice rules across individual and team contexts. Journal of Applied Social Psychology, 36(4), P. 868-899.

Colquitt, J.A. (2001). On the dimensionality of organizational justice: a construct validation of a measure. Journal of Applied Psychology, 86(3), P.386-400.

Colquitt, J.A., Conlon, D.E., Wesson, M.J., Porter, C.O.L.H. & NG, K.Y. (2001). Justice at the millennium: a meta-analytic review of 25 years of organizational justice research. Journal of Applied Psychology, 86(3), P.425-445.

Dunk, A.S. (1993). The effect of budget emphasis and information asymmetry on the relation between budgetary participation and slack. The Accounting Review, 68(2), P. 400-410.

Folger, R.G. & Konovsky, M.A. (1989). Referent cognitions and task decision autonomy: beyond equity theory. Journal of Applied Psychology, 74(2), P.293-299.

Fortin, M. (2008). Perspectives on organizational justice: concept clarification, social context integration time and links with morality. International Journal of Management Reviews, 10(2), P.93-126.

Hair, J.F., Anderson, R.E., Tatham, R.L. & Black, W.C. (2005). Análise Multivariada de Dados. Bookman, Porto Alegre.

Hartmann, F. & Slapnicar, S. (2009). How formal performance evaluation affects trust between superior and subordinate managers. Accounting, Organization and Society, 34(6-7), P. 722-737.

Henri, J.F. (2006). Management control systems and strategy: a resource-based perspective. Accounting, Organizations and Society, 31(6), P. 529-558. Leventhal, G.S. (1980). What should be done with equity theory? New approaches to the study of fairness in social relationships. In: Gergen, K., Greenberg, M. & Willis, R. (Eds), Social Exchange: New Advances in Theory and Research. New York, NY.: Plenum Press, pp. 27-55.

Kalshoven, K. & H. & Dijk & H.V. Boon, C. (2016). Why and when does ethical leadership evoke unethical follower behavior? Journal of Managerial Psychology, 31(2), P.1-31.

Klein, L., Beuren, I.M. & Vesco, D.D. (2018). Effects of the management control system in unethical behaviors. RAUSP Management Journal, 54(1), P. 54-76.

L_opez, M.A.L., Stammerjohan, W.W. & Mcnair, F.M. (2007). Differences in the role of job-relevant information in the budget participation-performance relationship among US and Mexican managers: a question of culture or communication. Journal of Management Accounting Research, 19(1), P.105-136.

Langevin, P. & Mendoza, C. (2012). How can management control system fairness reduce managers’ unethical behaviours? European Management Journal, 31(3), P.209-222.

Lee, A., Schwarz, G., Newman, A. & Legood, A. (2017). Investigating When and Why Psychological Entitlement Predicts Unethical Pro Organizational Behavior. Journal Business Ethics,        
DOI: 10.1007/s10551-017-3456-z.

Little, H.T., Magner, N.R. & Welker, R.B. (2002). The fairness of formal budgetary procedures and their enactment relationships with managers’ behavior. Group and Organization Management, 27(2), P.209-225.

Merchant, K.A. & Rockness, J. (1994). The ethics of managing earnings: an empirical investigation. Journal of Accounting and Public Policy, 13(1), P.79-94.

Merchant, K.A. & Van Der Stede, W.A. (2000). Ethical issues related to ‘results-oriented’ management control systems. Research on Accounting Ethics, 6, P.153-169.

Merchant, K.A. & Van Der Stede, W.A. (2007). Management Control Systems: Performance Measurement, Evaluation and Incentives. Harlow, Essex.

Mikula, G. (1980). Justice and Social Interaction: experimental and Theorical Contributions from Psychological Research. Springer-Verlag, New York.

Omar, A. (2006). Justicia organizacional, individualismo-colectivismo y estrés laboral. Psicologia y Salud, 16(2), P.207-217.

Pasquali, L. (2003). Psicometria: teoria Dos Testes na Psicologia e na Educação. Vozes, Petr_opolis

Rego, A. (2002). Comprometimento afectivo dos membros organizacionais: o papel das percepções de justiça. Revista de Administração Contemporânea, 6(2), P.209-241.

Silva, S.D. & Costa, F.J. (2014). Mensuração e escalas de verificação: uma análise comparative das escalas de likert e phrase completion. PMKT. Revista Brasileira de Pesquisas de Marketing, Opinião e Mídia, 15, P.1-16.

Simons, R. (1995). Levers of Control. Boston: Harvard Business School Publishing.

Sotomayor, A.M.S.B. (2007). Avaliação de desempenho e compromisso organizacional: a perspectiva da justiça organizacional. Revista Universo Contábil, 3(3), P. 87-100.

Staley, A.B. & Magner, N.R. (2007). Budgetary fairness, supervisory trust, and the propensity to create budgetary slack: testing a social exchange model in a government budgeting context. Advances in Accounting Behavioral Research, 10(1), P.159-182.

Wentzel, K. (2004). Do perceptions of fairness mitigate managers use of budgetary slack during asymmetric information conditions? Advances in Management Accounting, 13(1), P. 223-244.

Widener, S.K. (2006). Human Capital, pay structure, and the use of performance measures in bonus compensation. Management Accounting Research, 17(2), P. 198-221.

Winter, R. & Sarros, J. (2002). The Academic Work Environment in Australian Universities: A Motivationg Place to Work? Higher Education Research & Development, 21(3), P.241-243.