Search

In this paper, we review the conventional analyses of management control systems, to conclude, first, that the 'illusion of control' can mislead managers into believing that everything can be controlled and monitored, and, second, that no incentive system based only on extrinsic rewards can motivate individuals properly. Then, we investigate the philosophical foundations of the basic assumptions that, implicitly or explicitly, are made about the nature of the acting person. Based on personalist phenomenology, we show how the development of technical and moral values is crucial to the long-run survival of organizations. We end by offering some guidelines as to what control systems should be like in order to be compatible with the nature of human persons. KEY WORDS: Business ethics, ethical foundations of organization, incentives, management control systems, values

Personal values have long been associated with individual decision behavior. The role played by personal values in decision making within an organization is less clear. This study examines the relationship between personal values and the ethical dimension of indicated decisions utilizing discriminant analysis. Past research has found that managers tend to respond to ethical dilemmas situationally. The study examines personal values as they relate to four types of ethical dilemmas.