Directing Effort

Employees’ pursuit of self-interest creates more than just motivational problems. Self-serving behavior can lead employees to take actions, either intentionally or unintentionally, that diminish or destroy organizational value. In other words, employee control problems derive from a lack of motivation as well as a lack of direction. Organizations rely on management controls to mitigate both of these risks. Effective management control systems encourage employees to work hard and smart. In this chapter, we focus on the second role management control systems play in employee management: directing employee effort toward the achievement of organizational objectives.

Directing Role

If management motivates employees to work ...

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