Publication: Three Papers in Management Accounting and Control
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Date
2023-07-02
Authors
Advisor
Court
Gago Rodriguez, Susana Josefa (PRESIDENTE);
Jain, Kriti (SECRETARIO);
Ditillo, Angelo (VOCAL)
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Volume Title
Publisher
IE University
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Abstract
This thesis investigates the impact of various factors on management control (MC) practices, employee motivation and wellbeing, and managerial decision-making in project selection. It comprises three interconnected papers that explore the effects of remote working due to the COVID-19 crisis, the implementation of Performance Management Systems (PMS), and the role of operating risk information in project selection decisions. The first paper examines the sudden shift to remote working in professional service firms (PSFs) and its impact on MC practices. Through interviews with PSF employees in Italy, this study finds that managers increased online meetings and technology-based monitoring, which led to employees engaging in 'voluntary visibilizing practices' to gain recognition from their superiors. This paper contributes to the MC and motivation literature by highlighting the potential risks of over-commitment and self-exploitation in remote work environments. The second paper investigates the psychological impacts of PMS on employees in performance-driven work environments. Drawing on recognition theory, this study analyzes a large consulting firm that implemented a more formal and quantitative PMS. Findings suggest that the new PMS negatively affected employees' perceptions of recognition, wellbeing, and motivation. The paper contributes to the literature by developing ten propositions grounded in recognition theory and positioning recognition theory as a valuable framework for understanding employees' subjective experiences and preferences in response to PMS. The third paper explores the influence of operating risk information, specifically the degree of operating leverage (DOL) and margin of safety (MS), on project selection decisions. Using a multi-decision experiment with MBA students, the study finds that the availability of DOL/MS information significantly impacts project selection. When DOL/MS information is presented alongside accounting information, managers tend to select projects with lower operating risk. This paper contributes to the management accounting literature by emphasizing the importance of considering operating risk from an 'internal' perspective and suggesting that this information should be taken into account when making capital allocation, budgeting, and operating decisions. In summary, this thesis offers valuable insights into the interplay between various factors and their impact on management control practices, employee motivation and wellbeing, and managerial decision-making in project selection. It highlights the importance of recognizing remote working challenges, understanding the effects of Performance Management Systems on employees, and incorporating operating risk information in project selection and risk management. Collectively, the findings from the three papers provide a comprehensive understanding of the dynamics that shape managerial practices and decision-making processes in contemporary organizations.
Unesco subjects
Contabilidad Financiera
Investigación y Desarrollo
Organización de Recursos Humanos
Investigación y Desarrollo
Organización de Recursos Humanos
License
Attribution 4.0 International
School
IE Business School
Center
Keywords
Citation
Delfino, G. F. (2023). Three Papers in Management Accounting and Control.