This paper is an attempt to set up a more general formulation of the principal-agent model that can accommodate these organizational situations, rather common in the world of business management, for the purpose of deriving useful propositions about both organizational design and the process of...

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...

Management control systems (MCS) are designed to achieve the greatest possible goal congruence, where people pursue personal goals that are conducive to the organizational goal. Use and design of MCS are crucial aspects for achieving goal congruence, but they are thought to be contingent to...

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...