Justice as a Crucial Formal and Informal Element of Management Control Systems

Abstract

Management control systems include justice implicitly, as they believe that the market provides what is just or not through the market value. Psychological literature has deemed that people can perceive which procedures and decisions are just or not. In this paper, we argue that management control systems need to include justice criteria explicitly, beyond mere market value, in both their design (formal justice) and use (informal justice). This will increase the probability that organizational members will collaborate to achieve organizational goals.