Effects of the management control system in unethical behaviors

Purpose This study investigates which dimensions of the management control system (MCS) increase the perception of organizational justice and reduce unethical behavior in the perception of managers. The purpose of this paper is to validate the theoretical model of the study of Langevin and Mendoza (...

Full description

Saved in:
Bibliographic Details
Published in:RAUSP Management Journal 2019-02, Vol.54 (1), p.54-76
Main Authors: Klein, Luciana, Beuren, Ilse Maria, Dal Vesco, Delci
Format: Article
Language:English
Subjects:
Attitudes
Behavior
Budgetary slack
BUSINESS
Data manipulation
Distributive justice
Employees
Feedback
Hypotheses
Management control system
Objectives
Organizational justice
Perceptions
Performance evaluation
Procedural justice
Structural equation modeling
Studies
Unethical behaviors
Work environment
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Purpose This study investigates which dimensions of the management control system (MCS) increase the perception of organizational justice and reduce unethical behavior in the perception of managers. The purpose of this paper is to validate the theoretical model of the study of Langevin and Mendoza (2012), testing the theoretical hypotheses formulated by the authors. Design/methodology/approach A survey was performed in companies listed among the Best and Largest of Exame Magazine, and the sample is composed of 102 respondents of the research, which consists of 41 assertions. Findings The results of the structural equation modeling show that the definition of objectives increases the perception of procedural justice, but the same was not observed regarding the remuneration of the managers. Likewise, disregarding aspects that are uncontrollable by managers in performance evaluation does not lead to the perception of procedural and distributive justice. However, feedback quality leads to the understanding that the MCS is fair. Perception of procedural and distributive justice was also observed in the use of multiple measures of performance by the company. Research limitations/implications Other factors that have not been investigated may interfere with and contribute to the reduction of unethical behavior (budget slack and data manipulation). Originality/value The only variable that interferes in the reduction of unethical behavior is feedback quality. The non-confirmation of all the hypotheses instigates the replication of the research in other contexts for empirical validation of the theoretical model of Langevin and Mendoza (2012).
ISSN:2531-0488
2531-0488
DOI:10.1108/RAUSP-06-2018-0036