Question

The objective of management control system design should be to achieve goal congruence, the harmony between actions mangers take in their perceived self-interest and actions in the best interest of the organization. Describe ethical issues that need to be considered in designing a management control system.

Your initial post should be at 200-300 words, formatted and cited in current APA style with support from at least 2 academic sources.

Answer 1

Management control system is the system put in place by the organisation to ensure the achievement of organisational goals and targets in line with the benchmark set for the same.

Ethics are considered as the standards or code for governing the persons and organisation. its depends upon individuals ethical environment, working culture, customs and external environment factors etc. Ethical issues arises as different individuals approach differently to their problems and the challenges they faces during working or achieving the goals of the organisation. Organisational control system impacts the nature and working of the employees with in the organisations and hence impact the productivity and quality of the products also. these factors includes reward system in place with in the organisation, penalty systems, benchmark setting and inter departmental goals. organisation code of ethics should be there to ensure proper ethical code of conduct between employees and the working environment accordingly. reward system should be well enough to promote ethical values and positivity with the employees, further whistle blowing policy should also be in line to ensure timely curbing and find out the unethical behaviour and acts with in the organisation.

Financial growth and goals should be part of the control system but ethical code of conduct in place also helps a lot for quality aspect of the organisation and helps in long run profitability approach.