Control systems are a fundamental tool in the management process. Management control systems have been judged using the criterion of goal congruence - that is, to what extent the possible rewards given to people when they take specific actions benefit at the same time individuals and the...

Accounting systems are an essential tool for providing information for decision-making intended for the survival of the firm in the long run, which will benefit the different stakeholders of the firm (if managed properly) and society in general. Of course, the financial function and the...

While for quite a long time the budget was considered a crucial management tool, it has always been subject to criticism. The criticism has become stronger in the past couple of decades, with an alternative system going by the trade name Beyond Budgeting. In this paper, we review the history and...

It is not unusual for management researchers to take the stand that value judgements and, thus, virtues, are an unrealistic approach to management, because what is considered to be realistic is achieving specific results, which may be easier to obtain in the short-run if managers follow some...

This paper intends to analyze the foundations of trust in a context of bounded rationality. Building on previous work, we show how bounded rationality provides a rationale for the concept of trust that goes beyond the common calculative notion. We show that there are four types of trust and that...

Based on the model and the concepts presented in Cugueró-Escofet and Rosanas (2013), that links justice in the MCS design and use to several states of goal congruence, we also incorporate the role of trust in managers as a crucial aspect of the informal organization. We are going to show that...

In 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...

Economics-based models typically overlook management decisions and firms' capabilities. We develop a model that puts firms at center stage by simulating the aggregate behavior of a population of firms resulting from specific management decisions. The model features a learning process that...

This paper attempts to take steps towards the formulation of a more human approach to the theory of the firm than the conventional economics-based models. Unbounded rationality, self-interest and the absence of learning are shown to be crucial assumptions of conventional economic theory. Then,...

Management control systems are intended to motivate managers to ensure that organizational goals are accomplished. They do this by rewarding and promoting people according to certain criteria. Usually, they are designed to achieve the greatest possible goal congruence, where people pursue...