Abstract
Purpose This study investigates which dimensions of the management control system (MCS) increase the perception of organizational justice and reduce unethical behavior in the perception of managers. The purpose of this paper is to validate the theoretical model of the study of Langevin and Mendoza (2012), testing the theoretical hypotheses formulated by the authors. Design/methodology/approach A survey was performed in companies listed among the Best and Largest of Exame Magazine, and the sample is composed of 102 respondents of the research, which consists of 41 assertions. Findings The results of the structural equation modeling show that the definition of objectives increases the perception of procedural justice, but the same was not observed regarding the remuneration of the managers. Likewise, disregarding aspects that are uncontrollable by managers in performance evaluation does not lead to the perception of procedural and distributive justice. However, feedback quality leads to the understanding that the MCS is fair. Perception of procedural and distributive justice was also observed in the use of multiple measures of performance by the company. Research limitations/implications Other factors that have not been investigated may interfere with and contribute to the reduction of unethical behavior (budget slack and data manipulation). Originality/value The only variable that interferes in the reduction of unethical behavior is feedback quality. The non-confirmation of all the hypotheses instigates the replication of the research in other contexts for empirical validation of the theoretical model of Langevin and Mendoza (2012).
Highlights
IntroductionOrganizational justice, referred to as organizational fairness, is understood as the fairness perceived by the employees regarding the work relations within the organization
Langevin and Mendoza (2012) emphasize that, if the management control system (MCS) is considered unfair, it can lead managers to behave in a way that is harmful to the organization
The present study seeks to validate the theoretical model of Langevin and Mendoza’s (2012) study, testing the theoretical hypotheses formulated by the authors, which they didn’t test empirically
Summary
Organizational justice, referred to as organizational fairness, is understood as the fairness perceived by the employees regarding the work relations within the organization. Langevin and Mendoza (2012) emphasize that, if the management control system (MCS) is considered unfair, it can lead managers to behave in a way that is harmful to the organization. It may lead managers to have unethical behaviors (Langevin and Mendoza, 2012), such as propensity to create budgetary slack (Onsi, 1973; Merchant, 1985; Dunk, 1993) and manipulate data (Merchant and Rockness, 1994)
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