Effects of trust and distrust on effort and budgetary slack: an experiment

2016 ◽  
Vol 54 (8) ◽  
pp. 1908-1928 ◽  
Author(s):  
Susana Gago-Rodríguez ◽  
David Naranjo-Gil
Keyword(s):  
Interpersonal Relationships ◽  
Extrinsic Motivation ◽  
Middle Managers ◽  
Management Control ◽  
Business Managers ◽  
Budgetary Slack ◽  
Content Type ◽  
Informal Controls ◽  
Wide Range ◽  
Upper Level

Purpose The purpose of this paper is to evaluate whether trust and distrust in upper-level managers exert different influences on the budgetary proposals of middle managers. Such proposals involve different levels of managerial effort that impact overall budgetary slack. Design/methodology/approach This paper is based on a laboratory experiment with 160 business managers. Findings The results show that the more (less) middle managers trust (distrust) their upper-level managers, the more (the less) effort they commit to budgetary proposals. The authors also find that middle managers with low trust are prone to invest more effort and thus create less budgetary slack than managers with high distrust. The results also show that the introduction of suspicion does not vary this initial choice of effort and budgetary slack. Research limitations/implications This paper shows the importance of trust and distrust as informal control systems in organizations. The findings support the importance of extrinsic motivation for enhancing effort and reducing budgetary slack. There are a wide range of exogenous variables that have an effect on the development of trust and distrust. Practical implications Practitioners may improve their management control by facilitating trust and preventing distrust in interpersonal relationships because both are informal controls that can reduce and increase, respectively, dysfunctional behaviors in organizations, such as budgetary slack. Originality/value This paper is among the first to show the distinct effects of trust and distrust (high and low) in the efforts of middle managers. This study provides a dynamic viewpoint of trust through the introduction of suspicion in a budget negotiation.

scholarly journals Supplier-initiating risk management behaviour and supply-side resilience: the effects of interpersonal relationships and dependence asymmetry in buyer-supplier relationships

2020 ◽  
Vol 40 (7/8) ◽  
pp. 971-995
Author(s):  
Yiyi Fan ◽  
Mark Stevenson ◽  
Fang Li
Keyword(s):  
Risk Management ◽  
Interpersonal Relationships ◽  
Supply Side ◽  
Large Set ◽  
Supplier Relationships ◽  
Content Type ◽  
Management Behaviour ◽  
Wide Range ◽  
Dependence Asymmetry ◽  
The Relationship

PurposeThe aim of the study is to explore how two dimensions of interpersonal relationships (i.e. size and range of relationships) affect supplier-initiating risk management behaviours (SIRMB) and supply-side resilience. Further, the study aims to explore the moderating role of dependence asymmetry.Design/methodology/approachNine hypotheses are tested based on a moderated mediation analysis of survey data from 247 manufacturing firms in China. The data are validated using a subset of 57 attentive secondary respondents and archival data.FindingsSIRMB positively relates to supply-side resilience. Further, SIRMB mediates the positive relationship between range and supply-side resilience, and this relationship is stronger at lower levels of dependence asymmetry. Yet, although dependence asymmetry positively moderates the relationship between range and SIRMB, it negatively moderates the relationship between size and SIRMB. We did not, however, find evidence that size has a conditional indirect effect on supply-side resilience through SIRMB.Practical implicationsManagers in buying firms can incentivise SIRMB to enhance supply-side resilience by developing a diverse rather than a large set of interpersonal relationships with a supplier. This might include allocating particular employees with a wide range of contacts within a supplier to that relationship, while it may be necessary to adopt different networking strategies for different supplier relationships. Firms in a highly asymmetrical relationship may seek to raise supplier expectations about the necessity to initiate risk management behaviour or look to change the dynamic of the relationship by managing contracts for fairness.Originality/valueNew knowledge on SIRMB as a mediating variable underpinning the relationship between interpersonal relationships and supply-side resilience is provided; and empirical evidence on the opposing moderation effect of dependence asymmetry is presented.

The influence of an interactive use of management control on individual performance: mediating roles of psychological empowerment and proactive behavior

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Makoto Matsuo ◽  
Takami Matsuo ◽  
Kohei Arai
Keyword(s):  
Middle Managers ◽  
Psychological Empowerment ◽  
Middle Management ◽  
Behavioral Outcomes ◽  
Individual Performance ◽  
Positive Influence ◽  
Management Control ◽  
Proactive Behavior ◽  
Content Type ◽  
Management Level

Purpose Although middle managers play important roles in forming strategies and generating innovation, few studies have explored the influence of management control systems (MCS) on employees’ behaviors or performance at the middle-management level. The purpose of this study is to examine the effect an interactive use of MCS has on individual performance at the unit level. Design/methodology/approach A longitudinal, multisource and multilevel survey was conducted among 373 nurses in 20 units at a Japanese public hospital. Findings The multi-level analyzes indicate that middle managers’ interactive use of MCS has a direct and indirect positive influence on individual performance, through proactive behavior, as well as through psychological empowerment and, subsequently, through proactive behavior. Research limitations/implications As the present study collected data from nurses at a Japanese hospital, it is necessary to conduct research in other countries using different occupations to verify the findings. Practical implications Organizations need to be aware that the interactive use of MCS can be an effective tool for empowering and motivating employees. Originality/value The present study contributes to the literature by clarifying the mechanisms of how the interactive use of MCS influences employees’ psychological and behavioral outcomes at the middle-management level.

scholarly journals New wine in old bottles: governing logics for applying sustainability management control systems in Austrian electric utilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Johannes Slacik ◽  
Birgit Grüb ◽  
Dorothea Greiling
Keyword(s):  
Control Systems ◽  
Qualitative Content Analysis ◽  
Methodological Approach ◽  
Electric Utility ◽  
Management Control ◽  
Management Control Systems ◽  
Control Mechanisms ◽  
Sustainability Management ◽  
Content Type ◽  
Informal Controls

Purpose Literature shows that a strong link between sustainability control systems and sustainability management (SM) fosters sustainability development (SD) and compliance with regulatory requirements and stakeholder expectations. Research on the integration of SM and its control mechanisms in corporate business remains scarce. This study aims to focus on Sustainability Management Control Systems (S)MCS applied in Electric Utility Companies (EUC), which experience close scrutiny by its stakeholders in as much as they play an important role in climate change agendas. Design/methodology/approach The methodological approach includes in-depth expert interviews within seven Austrian EUC followed by qualitative content analysis. This study builds on “MCS as a package” by Malmi and Brown (2008). Institutional logics (IL) are used for the theoretical approach. Findings Results show that several IL are involved in implementing strategic SMCS in EUC. Managers cope by integrating emerging hybrid logics, selectively coupled SMCS and making sense by building a communication bridge between the strategic and operative levels to create awareness. Research limitations/implications Results show that managers in EUC have to acquire a new hybrid logic for SD. This implies the use of informal controls and a strong focus on administrative and cultural controls as the main control mechanisms for SM. Originality/value The paper contributes to MCS research by using the scarcely applied theoretical framework of IL. Findings facilitate a better understanding of the control mechanisms behind SM and the coping strategies of managers in applying SMCS.

Top managers’ formal and informal control practices in product innovation processes

2020 ◽  
Vol 17 (4) ◽  
pp. 497-524
Author(s):  
Wen Pan Fagerlin ◽  
Eva Lövstål
Keyword(s):  
Product Innovation ◽  
Management Control ◽  
Control Mechanisms ◽  
Structured Interviews ◽  
Holistic View ◽  
Content Type ◽  
Informal Controls ◽  
Top Managers ◽  
Innovation Projects ◽  
Innovation Processes

Purpose This study aims to understand the formal and informal practices of top managers as they seek to control product innovation processes and how the style of control used differs during development stages and gates. Design/methodology/approach A qualitative in-depth case study was conducted at a multinational corporation (pseudonym: MEC). The authors examined 12 product innovation projects and carried out semi-structured interviews to understand the experiences, perceptions and challenges of the people involved in product development projects with a focus on the interactions between top managers and the project teams. Findings The authors found that MEC uses formal control mechanisms such as a stage-gate model and a project management and reporting system to keep track of the progress of innovation projects. In addition, top managers use informal controls through involvement in innovation activities and interaction with the team members during the stages and gates of the development process. To carry out their control practices top managers use four distinct styles of control as follows: participative, facilitative, empowering and authoritative. Practical implications Suggestions are provided for managers on how formal and informal management control tools can be used in innovation processes. The authors show how top managers can broaden their range of interventions by involving themselves in product innovation projects in different ways. Originality/value This paper shows how the combination of formal and informal controls can generate a more holistic view of management control in innovation. It also adds to previous conceptualizations of control use by suggesting four distinct styles, which top managers can use to involve themselves in product innovation processes.

Empowering middle managers in social services using management control systems

2020 ◽  
Vol 32 (2) ◽  
pp. 267-289 ◽  
Author(s):  
Per Nikolaj Bukh ◽  
Anne Kirstine Svanholt
Keyword(s):  
Control Systems ◽  
Social Services ◽  
Middle Managers ◽  
Quality Care ◽  
Management Control ◽  
Management Control Systems ◽  
Top Management ◽  
Content Type ◽  
Conflicting Objectives

PurposeThis paper examines how a public sector organization combined management control systems (MCS) to comply with increased uncertainty and conflicting objectives of tight budget control, flexibility, and quality care simultaneously. It also analyzes how middle managers interpret management control intentions and manage conflicting objectives, and how locally developed MCS are coupled with top management goals.Design/methodology/approachThis paper uses a case-study approach, based on interviews with top and middle managements, as well as document studies conducted at a medium-sized Danish municipality.FindingsBoth constraining and enabling control systems empower middle managers and facilitate tight budget controls. Furthermore, middle managers play a crucial role in the use of MCS, develop local control systems, adjust existing control systems and influence the decisions and strategies of top management.Research limitations/implicationsThis paper is context-specific, and the role of accounting in professional work varies due to the specific techniques involved.Practical implicationsThis paper shows how MCS, including budgeting and planning systems, can be applied in social services to help middle managements obtain tight budget controls while also improving service quality.Originality/valueThis paper adds to the limited extant research on the role of middle management in a control framework and demonstrates how MCS can balance conflicting goals in social services when uncertainty increases. Furthermore, this paper shows how the vertical coupling of MCS is tight when budgeting is employed for planning purposes.

Institutional logics perspective in management control research

2017 ◽  
Vol 13 (4) ◽  
pp. 520-547 ◽  
Author(s):  
Sujeewa Damayanthi ◽  
Tharusha Gooneratne
Keyword(s):  
Institutional Theory ◽  
Performance Management ◽  
Structuration Theory ◽  
Institutional Logics ◽  
Management Control ◽  
Future Research ◽  
Content Type ◽  
Wide Range ◽  
Control Research ◽  
Management Controls

Purpose This paper reviews management control literature which draws on the institutional logics perspective as the theoretical lens to understand the current grounding of this perspective on management control research. It identifies gaps in the current literature and offers possible future research directions. Design/methodology/approach For the purpose of this paper, five search engines (ABI INFORM, EBSCO, Emerald insight, JSTOR and Science Direct) were consulted, and 35 papers across 16 journals, which specifically fall within the area of management controls and institutional logics, were reviewed. Findings The review revealed that the institutional logics perspective has provided theoretical anchoring to management control-related areas such as budgeting, performance management and control tools in organizations. The extant studies have either used institutional logics as a single theoretical perspective or have integrated it with other theories such as neo-institutional theory, agency theory and structuration theory. The research settings of the papers span across firm level, industry level and government organizations and non-profit organizations. Most of the studies have used the qualitative case study approach, whereas a few have taken the mixed method research design. Originality/value Although there are a number of review papers in the area of management controls as well as on institutional theory in general, such reviews have not specifically been focused on the institutional logics perspective, which is a significant development within institutional theory, having provided theoretical backing to a wide range of management control studies over the years. Addressing this omission, this paper provides important insights for future researchers on what research has been done using the lens of institutional logics and what else is worth doing. In that sense, this paper contributes to the domain of management control research, as well as to the development of institutional theory in general and the institutional logics perspective in particular.

The use of performance measurement information in the work of middle managers

2017 ◽  
Vol 66 (4) ◽  
pp. 479-499 ◽  
Author(s):  
Aki Jääskeläinen ◽  
Niklas Luukkanen
Keyword(s):  
Decision Making ◽  
Performance Measurement ◽  
Middle Managers ◽  
Structured Interview ◽  
Strategy Implementation ◽  
Measurement Information ◽  
Performance Information ◽  
Content Type ◽  
Informal Controls ◽  
The Impact

Purpose The purpose of this paper is to investigate how middle managers utilize performance measurement information in their work. More specifically, the study gives understanding on the impact of performance measurement, policies and procedures (formal controls), and individual intuition and experiential knowledge (informal controls) on strategy implementation and decision making. The study also identifies hindrances to the use of measurement information. Design/methodology/approach The study is carried out as a semi-structured interview study in Finnish companies representing five industries and 29 interviewees. Empirical data were analyzed deductively according to the research framework combining informal and formal management controls with two managerial processes. Findings The work of middle managers is clearly affected by informal controls. Much of the managerial work relies on individual intuition and judgment based on experience instead of performance information or formal instructions. The study also unveiled that top management sees the status of utilizing performance measurement information in a more positive light than do middle managers. This is the case especially in strategy implementation. Deficiency of measurement information was found to be a key factor hindering the use of measurement information but improper analysis of results is also a challenge. Research limitations/implications This study examined the work of middle managers widely in different positions and industries which means that the findings are rather explorative. Simplification was required in order to operationalize the complex tasks of strategy implementation and decision making. Further, more contextually focused research is required in order to understand better the contextual causes of the findings and to provide more understanding on the appropriate ways of improving the utilization of performance measurement information. Practical implications The practical contribution of this study lies in the detailed description of strategy implementation and decision-making processes based on observations in several large companies representing different industries. The study also suggests areas to which development efforts should be concentrated on in order to improve the use of performance information among middle managers. Originality/value This study contributes to the earlier literature by highlighting the usage of performance measurement information as opposed to developing new measures. In addition, the novelty value of the paper relates to the focus in the work of middle managers which has gained less attention in the previous research.

Balanced scorecard and controllability at the level of middle managers – the case of unintended breaches

2014 ◽  
Vol 10 (4) ◽  
pp. 516-539 ◽  
Author(s):  
Morten Jakobsen ◽  
Rainer Lueg
Keyword(s):  
Balanced Scorecard ◽  
Design Methodology ◽  
Middle Managers ◽  
Management Control ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Intuitive Appeal ◽  
Ex Post ◽  
Constructivist Position ◽  
Practical Implications

Purpose – This paper aims to analyse how the inherent design of the Balanced Scorecard (BSC) violates the controllability principle. The management control literature provides convincing examples of actors who breach controllability without intention. This discussion was extended by the example of the BSC. This paper focusses on the breaches that occur when actors lack the awareness or the skills to re-enforce controllability. Design/methodology/approach – Taking a pragmatic-constructivist position, analytical and empirical evidence was included on controllability to analyse the normative literature on the BSC. Findings – It was found that the BSC causes several unintended breaches of the controllability principle at the level of middle managers, both ex ante (control rationale) and ex post (fairness rationale). These breaches are not only situational or induced by how managers in the field design a BSC. They appear to be inherent in the BSC due to the way Kaplan and Norton have conceptualised it. Practical implications – Practitioners are alerted that the intuitive appeal of popular management fashions such as the BSC covers their conceptual flaws. It was also proposed that failed implementations and dysfunctional applications can be due to the inherent characteristics of the concepts themselves. Originality/value – This paper contributes by uncovering the unintended violations of the controllability principle by the inherent characteristics. The authors suggest using our conceptual contribution to conduct empirical research on the issues of controllability and management control systems in general. Thereby, the theory-based discussion on the BSC is advanced (Nørreklit, 2000, 2003; Nørreklit et al., 2012a).

scholarly journals Transfer of Plasmid DNA to Clinical Coagulase-Negative Staphylococcal Pathogens by Using a Unique Bacteriophage

2015 ◽  
Vol 81 (7) ◽  
pp. 2481-2488 ◽  
Author(s):  
Volker Winstel ◽  
Petra Kühner ◽  
Bernhard Krismer ◽  
Andreas Peschel ◽  
Holger Rohde
Keyword(s):  
Plasmid Dna ◽  
Genetic Manipulation ◽  
Current Knowledge ◽  
Virulence Determinants ◽  
Coagulase Negative Staphylococci ◽  
Reliable Technique ◽  
Content Type ◽  
Research Activities ◽  
Wide Range ◽  
Genetic Barriers

ABSTRACTGenetic manipulation of emerging bacterial pathogens, such as coagulase-negative staphylococci (CoNS), is a major hurdle in clinical and basic microbiological research. Strong genetic barriers, such as restriction modification systems or clustered regularly interspaced short palindromic repeats (CRISPR), usually interfere with available techniques for DNA transformation and therefore complicate manipulation of CoNS or render it impossible. Thus, current knowledge of pathogenicity and virulence determinants of CoNS is very limited. Here, a rapid, efficient, and highly reliable technique is presented to transfer plasmid DNA essential for genetic engineering to important CoNS pathogens from a uniqueStaphylococcus aureusstrain via a specificS. aureusbacteriophage, Φ187. Even strains refractory to electroporation can be transduced by this technique once donor and recipient strains share similar Φ187 receptor properties. As a proof of principle, this technique was used to delete the alternative transcription factor sigma B (SigB) via allelic replacement in nasal and clinicalStaphylococcus epidermidisisolates at high efficiencies. The described approach will allow the genetic manipulation of a wide range of CoNS pathogens and might inspire research activities to manipulate other important pathogens in a similar fashion.

scholarly journals Use of Proteins Identified through a Functional Genomic Screen To Develop a Protein Subunit Vaccine That Provides Significant Protection against Virulent Streptococcus suis in Pigs

2017 ◽  
Vol 86 (3) ◽  
Author(s):  
Susan L. Brockmeier ◽  
Crystal L. Loving ◽  
Tracy L. Nicholson ◽  
Jinhong Wang ◽  
Sarah E. Peters ◽  
...  
Keyword(s):  
Immune Response ◽  
Vaccine Trial ◽  
Streptococcus Suis ◽  
Protein Subunit ◽  
Content Type ◽  
Degree Of Protection ◽  
Wide Range ◽  
Associated Proteins ◽  
Clinical Protection ◽  
Cellular Immune

ABSTRACT Streptococcus suis is a bacterium that is commonly carried in the respiratory tract and that is also one of the most important invasive pathogens of swine, commonly causing meningitis, arthritis, and septicemia. Due to the existence of many serotypes and a wide range of immune evasion capabilities, efficacious vaccines are not readily available. The selection of S. suis protein candidates for inclusion in a vaccine was accomplished by identifying fitness genes through a functional genomics screen and selecting conserved predicted surface-associated proteins. Five candidate proteins were selected for evaluation in a vaccine trial and administered both intranasally and intramuscularly with one of two different adjuvant formulations. Clinical protection was evaluated by subsequent intranasal challenge with virulent S. suis . While subunit vaccination with the S. suis proteins induced IgG antibodies to each individual protein and a cellular immune response to the pool of proteins and provided substantial protection from challenge with virulent S. suis , the immune response elicited and the degree of protection were dependent on the parenteral adjuvant given. Subunit vaccination induced IgG reactive against different S. suis serotypes, indicating a potential for cross protection.

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