Effects Of Management Control System On Goal Congruence Of Selected Banks In Nigeria

Files

Vol. 1 Dec, 2016.pdf (376.01 KB)

Date

2016-12-01

Authors

Journal Title

Journal ISSN

Volume Title

Publisher

Department Of Accounting, Faculty Of Administration, Nasarawa State University, Keffi.

Abstract

Non-alignment of employee's goal with that of an organisation could seriously affect the performance level of the organisation. While previous studies focused on the effects of management control on performance, it is argued that there are many factors that influence the performance of an organization; thus, an organization that performs well does not necessarily imply that there is goal congruence. This study used data collected from five deposit money Banks to examine the effects of management control measures on goal congruence. The result of the analysis using ordinary least square regression shows that, the management control measures of the Banks, adopting the behavioural approach, have significant effects on the level of goal congmence. The study therefore recommends that the Banks should continue to place high premium on behavioural approach to management control system, while the use of punishments should be discouraged.

Description

Keywords

Citation

Anthony, R. N., & Govindarajan, V. (2007). Management control systems. McGraw-Hill: New York, NY. Baiman, S. & Rajan, M. (1995). The informational advantages of discretionary bonus schemes. The Accounting Review 70,557-579. Bazcman, M. (2002). Judgement in managerial decision making. John Willy and Sons, New Jersey Burney, L. L., I lenle, C. A. & Widcner, S. K. (2009). A path model examining the relations among strategic performance measurement system characteristics, organizational justice, and extra- and in-role performance, Accounting, Organizations and Society, pp. 305-321. Chcnhall, R. H. (2007). Theorizing contingencies in management control systems research. In C. S. Chapman Colquitt, J. A. (2001). On the Dimensionality of Organizational Justice: A Construct Validation of a Measure," Journal of Applied Psychology, 86, pp. 386-400.Cuguero, N & Rosanas, J.M (2011). Fairness, justice, subjectivity, objectivity and goal congruence in management control systems. IESE business school working paper WP-891 Flamholtz, E. G., Das, T. K. & Tsui, A. S. (1985). Towards an integrative framework of organizational control. Accounting, Organizations and Society, 10, 35-50. Giraud, F., Langevin, R & Mendoza, C. (2008). Justice as a rationale for the controllability principle: A study of managers' opinions, Management Accounting Research, 19, pp. 32-44. Hiroyuki, 1.(1975). Evaluation measures and Goal congruence under uncertainty. Journal of Accounting Research, Vol. 13(1) Holmstrom, B (1979). Moral hazard and observability. The Bell Journal of Economics, Vol 10(1) Hopwood, A. G. (1974). Accounting and Human behaviour, Haymarket Publishing, London. Kennedy, F.A., & Widener, S.K. (2013). Socialization Mechanisms and Goal Congruence. AAA 2014 Management Accounting Section (MAS) Meeting Paper Lawrence, R. J., Richard, N. O., & Willbann, D. T. (1980). Goal congruence and employee orientations: The substitution effect. The Academy ofManagement Journal, Vol 23(3) Libby, T. (1999). The influence of voice and explanation on performance in a participative budgeting setting. Accounting, Organizations and Society, 24, pp. 125- 137. March, J. G. & Simon, H. A. (1993). Organizations, John Wiley & Sons, Inc. Marginson, D. & McAulay, L. (2008). Exploring the debate on short-termism: a theoretical and empirical analysis. Strategic Management Journal, 29(3): 273-292. Mavin, L.B., Gary, D.F., Martin, T.S & Timothy, D. W (2006). The economic benefit of goal congruence and its implications for management control. Journal of accounting and public policy Merchant, Kenneth A & Wim A Van der Stede (2012), Management Control Systems: Performance Measurement, Evaluation, and Incentives (London: Prentice Hall), Third Edition Musa, A. A (2015). Principal-agent control model of managerial performance evaluation. Journal of accounting, 4(1)

URI

https://keffi.nsuk.edu.ng/handle/20.500.14448/734

Collections

Articles