The Just Design and Use of Management Control Systems as Requirements for Goal Congruence

Posted: 1 Dec 2012

See all articles by Natàlia Cugueró-Escofet

Natàlia Cugueró-Escofet

University of Navarra, IESE Business School

Josep M. Rosanas

University of Navarra - IESE Business School

Date Written: November 30, 2012

Abstract

Management control systems (MCS) are designed to achieve the greatest possible goal congruence, where people pursue personal goals that conduce to the organizational goal. Use and design of MCS are crucial aspects for achieving goal congruence, but they are thought to be contingent to specific external situations. We attempt to analyse that justice in the design and fairness in the use of MCS are required to achieve specific levels of goal congruence independently of the situation.

We derive that there are two stable types of goal congruence, labeled maximum goal congruence (where the MCS design is just and the user is just) and minimum goal congruence (where the MCS design is unjust and the user is unjust); and two unstable types of goal congruence, in which goal congruence is occasional (unjust MCS design used justly) or perverse (just MCS design used unjustly).

Keywords: justice, fairness, goal congruence, management control systems

JEL Classification: M4

Suggested Citation

Cugueró-Escofet, Natàlia and Rosanas, Josep M., The Just Design and Use of Management Control Systems as Requirements for Goal Congruence (November 30, 2012). Management Accounting Research, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2183072

Natàlia Cugueró-Escofet

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

Josep M. Rosanas (Contact Author)

University of Navarra - IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain
34 932534200 (Phone)
34 932534343 (Fax)

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