The ethics of management control systems
AbstractIn this paper we review the conventional analyses of management control systems, to conclude, first, that the "illusion of control" can mislead managers into believing that everything can be controlled and monitored, and , second, that no incentive system based only on extrinsic rewards can motivate individuals properly. Then, we investigate the philosophical foundations of the basic assumptions that, implicitly or explicitly, are made about the nature of the acting person. Based on personalist phenomenology, we show how the development of technical and moral values is crucial to the long-run survival of organizations. We end by offering some guidelines as to what control systems should be like in order to be compatible with the nature of human persons.
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Bibliographic InfoPaper provided by IESE Business School in its series IESE Research Papers with number D/563.
Length: 20 pages
Date of creation: 21 Jun 2004
Date of revision:
business ethics; ethical foundations organization; incentives; management control systems; values;
This paper has been announced in the following NEP Reports:
- NEP-ACC-2004-09-30 (Accounting & Auditing)
- NEP-ALL-2004-09-30 (All new papers)
- NEP-BEC-2004-09-30 (Business Economics)
- NEP-CBE-2004-09-30 (Cognitive & Behavioural Economics)
- NEP-HPE-2004-09-30 (History & Philosophy of Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James A. Brickley & Clifford W. Smith & Jerold L. Zimmerman, 2003. "Corporate Governance, Ethics, And Organizational Architecture," Journal of Applied Corporate Finance, Morgan Stanley, vol. 15(3), pages 34-45.
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- Hofstede, Geert, 1981. "Management control of public and not-for-profit activities," Accounting, Organizations and Society, Elsevier, vol. 6(3), pages 193-211, July.
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