BUSI 4005 Lecture Notes - Lecture 3: Data Management, Gamesmanship, Basis Of Accounting
26 Feb 2018
School
Department
Course
Professor
Document Summary
Direct costs out-of-pocket, monetary costs required to design and implement the mcs: Quantifiable cash bonuses, internal audit staff. Difficult to quantify time spent on planning and budgeting activities, on pre-action reviews, etc. Indirect costs costs caused by a number of harmful side-effects including: Behavioral displacement occurs when the control system encourages behaviors that are not consistent with the org"s objectives. Results controls behavioral displacement occurs when the results measures are incongruent with the org"s true objectives, often due to: Not all of what counts is countable! Means-ends inversion employees pay attention to what they do (the means) while losing sight of what they are to accomplish (the ends) Action controls can be good in stable environments with centralized knowledge about what actions are desired helps to establish a compliant, reliable, and efficient work routine. In changing environments it may hinder the needed change that could required to stay competitive.
