Management Controls, Expectations, Common Knowledge and Culture

35 Pages Posted: 13 May 2002

See all articles by Shyam Sunder

Shyam Sunder

Yale University - School of Management; Yale University - Cowles Foundation

Multiple version iconThere are 2 versions of this paper

Date Written: April 2002

Abstract

Control in organizations can be defined as expectational equilibrium, or correspondence between how the members of an organization behave, and how they are expected to behave by others. Using contract model of organizations as the base, we build a theory of control with the help of human expectations, common knowledge, and culture. Changes in factor and product market conditions tend to disrupt control in organizations. Strategic management consists of continual monitoring of the market conditions, and redesign of contracts, to restore and maintain the expectational equilibrium.

Keywords: Management Control, Expectations, Common Knowledge, Culture, Organization

JEL Classification: D84, L20, M14, M41, M46

Suggested Citation

Sunder, Shyam, Management Controls, Expectations, Common Knowledge and Culture (April 2002). Available at SSRN: https://ssrn.com/abstract=309741 or http://dx.doi.org/10.2139/ssrn.309741

Shyam Sunder (Contact Author)

Yale University - School of Management ( email )

165 Whitney Avenue
P.O. Box 208200
New Haven, CT 06520-8200
United States
203-432-6160 (Phone)

HOME PAGE: http://www.som.yale.edu/faculty/sunder/

Yale University - Cowles Foundation

Box 208281
New Haven, CT 06520-8281
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
1,449
Abstract Views
6,535
rank
12,254
PlumX Metrics