Management Control System Design and Employees' Autonomous Motivation

Chen, Clara Xiaoling; Lill, Jeremy B.; Vance, Thomas W.

doi:10.2308/jmar-17-068

Cited by 21 publications

(9 citation statements)

References 59 publications

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“…Similarly, other authors have highlighted its role in restricting risktaking, reducing individual-and team-level creativity, and in triggering discussions that lead to corrective action at best (Henri, 2006). Recently, authors have also argued that excessively using PMSs in a diagnostic way could jeopardize an organization's capacity to innovate (Bedford, 2015;Chen et al, 2020). Building on these studies, it is hypothesized that:…”

Section: Performance Management System Uses and Explorationmentioning

confidence: 99%

The effects of performance measurement system uses on organizational ambidexterity and firm performance

Mura

Micheli

Longo

2021

IJOPM

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PurposeThis study aims to investigate how dynamic tensions between performance measurement system (PMS) uses enable organizations to achieve both exploitation and exploration and enhance firm performance.Design/methodology/approachThe authors collected survey data on 153 Italian companies. Scales for each construct were validated through an exploratory factor analysis. Data on firm performance were cross-validated by using lagged accounting data. The authors tested our hypotheses using hierarchical ordinary least squares regressions, together with bootstrapping procedures for the test on mediation.FindingsA diagnostic use of PMS has a positive association with both exploitation – e.g. reductions in total costs and lead times – and exploration, e.g. introduction of new products and extension of product ranges. The dynamic tension created by a joint diagnostic and interactive use has the strongest association with organizational ambidexterity, measured as the multiplicative interaction between exploration and exploitation.Practical implicationsIf an organization or business unit is mainly pursuing exploitative goals, a mainly diagnostic use of PMS would be most suitable. If goals are both exploitative and explorative, a mix of diagnostic and interactive uses would be most effective.Originality/valueThis research helps reconcile conflicting views in the literature. The diagnostic use of PMS, far from acting as a “negative force,” appears to be necessary to guide opportunity search and to establish an appropriate scope for exploration-related activities. The authors’ focus on the uses of PMSs shows that ambidexterity is achieved through managerial capability, rather than just through the introduction of systems and structures.

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Section: Performance Management System Uses and Explorationmentioning

confidence: 99%

The effects of performance measurement system uses on organizational ambidexterity and firm performance

Mura

Micheli

Longo

2021

IJOPM

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“…Online workers have been used in accounting research to study a number of different topics, including management control systems (Chen, Lill, et al 2020), information systems security (Trinkle et al 2014), and nonprofessional investor judgments and decision making (Krische 2019;Rennekamp 2012;Stinson et al 2021). In addition, a vast number of studies in psychology have employed online workers to study various issues, including addiction (Cunningham et al 2017;Strickland and Stoops 2019), personality disorders (Miller et al 2017), and organizational research (Keith et al 2017).…”

Section: Methodsmentioning

confidence: 99%

Revisiting the Impact of Goals on Affect and Effort*

Lane

2021

Accounting Perspectives

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Performance goals are one of the most prevalent management controls used in practice to address motivational concerns. Goals influence employees' affective state by enabling them to evaluate their performance against a standard and determine if their performance is satisfactory. The objective of this paper is to understand and extend the current management accounting literature on goals and their effect on employee effort via affect. I address this objective in three ways. First, I conduct a systematic review of the management accounting literature to determine what we know about goals and determine if the literature acknowledges the important effects that goals have on affect. From the literature review, I note the paucity of research that examines the affective consequences of using performance goals. Second, I discuss some of the prominent theories from psychology that explain the relationship between goals and affect and provide suggestions for research questions. Third, I develop an experimental manipulation using online participants to demonstrate that goal attainment and goal failure lead to significant positive and negative affective reactions, respectively. By sharing my research method, I provide a starting point that accounting researchers can employ to examine how affect can influence effort, which has an important causal linkage with performance outcomes.

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“…Secondly, past research shows that it is important that employees and leaders internalize the organization's goals in order to become autonomously motivated (Chen et al, 2020). This internalization happens when the organization clearly communicates what is important to them via their statement of purpose and their mission statement, and makes sure that their employees and leaders understand how they can contribute to achieving these objectives (Boswell, 2006;Chen et al, 2020). When individuals internalize organizational goals, they will feel less controlled in their work and more self-regulated, which will result in higher levels of autonomous motivation (Ryan, 1995;Chen et al, 2020).…”

Section: Practical Implicationsmentioning

confidence: 99%

“…This internalization happens when the organization clearly communicates what is important to them via their statement of purpose and their mission statement, and makes sure that their employees and leaders understand how they can contribute to achieving these objectives (Boswell, 2006;Chen et al, 2020). When individuals internalize organizational goals, they will feel less controlled in their work and more self-regulated, which will result in higher levels of autonomous motivation (Ryan, 1995;Chen et al, 2020). Moreover, and in line, past research also shows that strategic impact is positively related to autonomous motivation (De Cooman et al, 2013).…”

Section: Practical Implicationsmentioning

confidence: 99%

Reducing Red Tape’s Negative Consequences for Leaders: The Buffering Role of Autonomous Motivation

et al. 2022

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In a context where the amount of red tape in healthcare organizations continues to rise, head nurses’ job satisfaction is constantly under pressure. By building on the Job Demands-Resources model, we developed a theoretical model investigating the relationship between red tape and job satisfaction. By investigating the mediating role of discretionary room and the moderating role of autonomous motivation in this relationship, this study does not only aim to provide additional knowledge regarding the underlying mechanisms in this relationship, but also to increase our understanding of how this suffering at work can be mitigated. Our conditional process analyses (N = 277 head nurses) indicate that red tape undermines head nurses’ job satisfaction and that discretionary room acts as an underlying mechanism in this process. By revealing the mediating role of discretionary room, this study advances our understanding of the risks originating from red tape for leaders. Furthermore, our findings also indicate that autonomous motivation mitigates the negative relation between red tape and discretionary room and between red tape and job satisfaction. As autonomous motivation turns out to be an important protection mechanism against the negative consequences of red tape, organizations should put extra effort into stimulating the autonomous motivation of their leaders. When organizations make sure that their leaders’ job designs and work environments meet the need for autonomy, competence, and relatedness, leaders will become more autonomously motivated, which will buffer the negative impact of red tape.

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Management Control System Design and Employees' Autonomous Motivation

Cited by 21 publications

References 59 publications

The effects of performance measurement system uses on organizational ambidexterity and firm performance

The effects of performance measurement system uses on organizational ambidexterity and firm performance

Revisiting the Impact of Goals on Affect and Effort*

Reducing Red Tape’s Negative Consequences for Leaders: The Buffering Role of Autonomous Motivation

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