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The Effects of Management Control on Employees’ Behavior Performance: A Case in Pharmaceutical Companies

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  • Yucel, Rahmi

    () (Abant Izzet Baysal University)

  • Sait Eren, Selim

    () (Abant Izzet Baysal University)

Abstract

This survey study aims to explore the relations among the formal and informal control, employees’ orientations, and behavior performance. For this purpose, the research uses structured equation modeling to investigate the relationships of the variables. The research was carried out within 121 pharmaceutical companies operating in Marmara Region, and used a questionnaire to determine 560 medical sales representatives’ perceptions. According to the research findings; process control has direct and indirect positive effects on informal controls, control-related orientation of representatives, and their behavior performance. However, output control doesn’t affect directly any research variables except social control. In addition, informal controls are correlated to control-related orientations and behavior performance as formal controls. Particularly, self control has significant direct and indirect effect on behavior performance through control-related orientations. In this respect, the study provides contribution to understand the interaction between formal and informal controls and their effects on behavior performance.

Suggested Citation

  • Yucel, Rahmi & Sait Eren, Selim, 2010. "The Effects of Management Control on Employees’ Behavior Performance: A Case in Pharmaceutical Companies," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 1(4), pages 1-97, October.
  • Handle: RePEc:ris:buecrj:0006
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    Keywords

    Management control; Formal and informal control; Learning orientation; Performance orientation; Behavior performance; Structured equation modeling;

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M39 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Other
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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