Effects of informal controls and psychological empowerment on job satisfaction

ABSTRACT The aim of this article was to investigate the effects of informal controls on psychological empowerment and job satisfaction. Despite previous studies having analyzed the role of certain management control systems in individual results, such as psychological empowerment and job satisfaction, the evidence on informal controls within this context is inconclusive. Credit union systems play a considerable role in economic growth, regional development, and employability. We therefore explore the perception of directors and managers of business units of one of the biggest cooperative systems regarding the informal controls used. Considering that job satisfaction has a series of implications for organizations (for example in employee loyalty and job performance), it is important to understand its determinants. The literature points to the growing concern among contemporary organizations about informal controls. Various studies focus on understanding the role of these controls and their respective effects on organizational and individual behaviors. From the individual perspective, there is a need to analyze the indirect effects of management controls on individual aspects by means of psychological variables. Thus, this study provides new evidence on informal controls in organizations by exploring the intervening role of psychological empowerment and the (beneficial) effects on job satisfaction. In addition, the study provides a methodological contribution to the national research on management control by adding an analysis based on mixed methods. A survey was applied to directors and managers of business units of one of the biggest credit union systems in Brazil. The data were analyzed using a mixed methods approach: partial least squares structural equation modeling and fuzzy-set qualitative comparative analysis. Informal controls are directly and indirectly associated (via empowerment) with job satisfaction. Moreover, the findings indicate more than one solution for high job satisfaction.

Remote Control: Organisational Control and Monitoring in Distributed Teams

<p>Qualitative data from interviews and diaries show that for managers in distributed teams, monitoring their team’s attitudes is vital. Monitoring attitudes is theorised to be a necessary part of enacting informal controls, essential for knowledge work where formal behaviour and output controls are likely to be insufficient. This suggests an extension to Ouchi’s (1977) influential Behaviour-Output framework to incorporate monitoring attitudes. Impression management and lack of physical proximity is shown to be a potential disruptor of attitude-related monitoring for managers. Pastoral control is then introduced to explain how managers utilise relational techniques to solicit information necessary for monitoring attitudes, and the role of context in enacting organisational control is explicated.</p>

Remote Control: Organisational Control and Monitoring in Distributed Teams

<p>Qualitative data from interviews and diaries show that for managers in distributed teams, monitoring their team’s attitudes is vital. Monitoring attitudes is theorised to be a necessary part of enacting informal controls, essential for knowledge work where formal behaviour and output controls are likely to be insufficient. This suggests an extension to Ouchi’s (1977) influential Behaviour-Output framework to incorporate monitoring attitudes. Impression management and lack of physical proximity is shown to be a potential disruptor of attitude-related monitoring for managers. Pastoral control is then introduced to explain how managers utilise relational techniques to solicit information necessary for monitoring attitudes, and the role of context in enacting organisational control is explicated.</p>

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

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.

Management accounting research in family businesses: a review of the status quo and future agenda

Purpose This paper aims to review prior management accounting research founded upon family businesses. It presents the status quo, uncovers gaps in existing literature and postulates avenues for future scholarly inquiry. Design/methodology/approach In carrying out this review, a search was conducted accessing three search engines: Emerald insight, JSTOR and ScienceDirect encompassing journals which have published family business and management accounting research. Accordingly, 50 papers spanning 28 journals were identified as relevant and selected for review. Findings The review suggests that amid heightened research interest, while literature on management accounting in the realm of family firms has accelerated across time, how peculiarities of family businesses get articulated in the management accounting practices they deploy deserve further study. It also became evident that currently little is known on the use of various traditional and contemporary control practices, sustainability accounting and infusion of new management accounting ideas as well as the use of informal controls, which are very real to family businesses. Research limitations/implications This paper contributes to the on-going knowledge debates on management accounting in family businesses and provides directions to potential researchers by illuminating the status quo of research and issues of significance which so far has been neglected. Practical implications This review, being placed at the nexus of management accounting and family businesses, offers lessons and insights to family business owners, managers and policymakers for the smooth functioning of businesses using management accounting insights. Originality/value Although a vast majority of family business studies in management accounting and controls have been published from 2013 onward, existing reviews capture publications up to 2012. Building upon, yet moving beyond reviews to date, and encompassing latest publications, this paper advances our understanding on the state of management accounting research in the field of family business.

How Digital Market Hosts Control Sellers

How do hosts of digital markets exercise control over sellers? Our three-case study, set in India, reveals that seller control portfolios used by large digital market hosts differ from control portfolios in other contexts (reported in prior research). The platform host neither preselects nor hires most sellers; this limits hosts’ control options. The platform supports many shortduration transactions, yet some related processes take place offline – again limiting hosts’ control options. In this context of many-sellers, many-buyers, digital market hosts (similar to other controllers) attempt to balance formal and informal controls. By identifying specific control mechanisms that hosts utilize, our study findings provide a useful foundation to support further research on control challenges in digital markets and other digital platforms.

Top managers’ formal and informal control practices in product 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.

Participatory governance and responsiveness: Do motivational interventions increase engagement with citizen input?

Participatory mechanisms are now widely used by national and local governments in developed and developing countries. While their purpose and form varies greatly, they all rely on the discretion of a professionalised bureaucracy to manage these processes and prepare their outcomes in a manner that they can feed into policy-making. Bureaucrats thus have a gate-keeping role. They can substantially influence whether and how information from participatory processes feeds into policy-making. Bureaucrats can thereby impact to what extent participatory mechanisms can deliver on their promise of giving citizens greater direct control over the policy-making process. Formal political control over the bureaucracy is limited in this case. Could informal controls make bureaucrats comply more with the demands of participatory mechanisms? This study employs a large field experiment (N=7,532) to test (1) whether citizen input filters through to bureaucrats tasked with policy design and implementation and (2) whether bureaucrats’ engagement with citizen input can be in- creased by using non-monetary rewards and value-based communication. The experiment accounts for heterogeneity by bureaucrat seniority, central versus street-level roles and involvement in the collection of citizen input. It finds no meaningful engagement at the baseline (C=0%) but that motivational interventions can significantly increase engagement (T1= 14%, T2=15%). The findings suggest that currently little input from citizens filters through to bureaucrats, but small tweaks substantially increase the democratic potential of participatory initiatives.

Control of Recreational Cannabis in a New Zealand University Sample: Perceptions of Informal and Formal Controls

An increasing number of countries have, or are moving towards, reforming cannabis policies. New Zealand is also moving in this direction and the government will hold a referendum on the legalization of recreational cannabis in September 2020. To inform imminent public and political discussions it is important to understand how current cannabis use is controlled. Research suggests that cannabis law has been ineffective in NZ. Internationally, informal controls, rather than the law, have been found to shape cannabis use by creating a threshold for normalization, but the attitudes shaping this threshold are unknown. This study aimed to examine drug acceptability attitudes, specifically students’ attitudes towards the illegal use of cannabis and their attitudes towards peers who abstain, sometimes use, or are heavy users of cannabis, to identify the factors that control cannabis use. Using a mixed methods approach, university students recruited their peers (N = 535) to complete a pen and paper survey investigating perceptions towards 3 cannabis user prototypes (abstainers, moderate users, heavy users), concern for legality of cannabis use, and the integration of cannabis into the student culture (perceptions of peers’ use, ease of acquisition, and availability). Perceptions of peers’ lifetime and regular use were 82% and 38.5%, respectively. Participants rated cannabis as easy to acquire and likely to be available at a typical student social occasion. The majority stated that the law does not deter use (92.7%); participants perceived the law to be soft and that they are unlikely to get caught. Participants’ descriptions of the 3 cannabis user prototypes revealed a threshold for normalization. For instance, abstaining was perceived to be associated with positive attributes (such as being studious), linked to being less sociable, and linked to being less likely to be judged. Moderate use of cannabis was perceived to be normal and sociable. Heavy use was perceived to be associated with having negative attributes, such as being addicted, unhealthy, and an underachiever, and negative drug labels. Our findings revealed that cannabis use is not controlled by the law, but by informal thresholds of control. Moderate cannabis use is accepted whereas heavy cannabis use is not. We extended research by identifying the attitudes shaping these thresholds, in particular that negative outcomes associated with heavy use deters the normalization of this behavior. We argue that policy must be informed by, and build on, these informal controls. The negative perceptions associated with heavy use also raise concerns regarding the well-being of heavy users, and coupled with the ineffectiveness of cannabis law, lend support towards a health model for regulating cannabis. Furthermore, insights into the negative perceptions associated with heavy use could inform health interventions on the types of concerns that will resonate with users.

Wording and Saliency Matter: The Impact of Incentive System and Organizational Value Statement on Employees' Performance

ABSTRACT This study extends recent research on the interaction of formal and informal controls that may create divergence between economic self-interest and social norms consistent with organizational belongingness. We use a sequence of two experiments to explore the interactive effects of performance incentives and a contemporary value statement promoting organizational belongingness. Experiment 1 focuses on the moderating effect of a general value statement, showing that a value statement increases (decreases) productivity associated with fixed pay (piece-rate) incentives. Experiment 2 further extends the work on value statements by reinforcing the value statement to increase the statement's saliency with employees. The results of the second experiment confirm that enhancing the saliency of the value statement through active delivery increases its moderating effect on productivity. On an overall basis, the results support our theorized disordinal interaction between formal and informal controls. Most notably, a value statement enhances productivity when incentivizing employees using fixed pay.