Management control System(impact on behavior) Although management control systems (MCS) seek to bring commonality of goals and process

coordination within organizations, one research orientation has been to consider whether MCS actually increases or reduces managers extent of dysfunctional behavior. Management control systems (MCS), involving tools such as budgets, variance reports, standard operating procedures, or performance-based remuneration or other techniques (such as the balanced scorecard), seek to bring commonality of goals and process coordination within organizations. The need for goal sharing and coordination of activities and functions has become increasingly important among organizations in view of the increasing pressures on private companies to become more competitive and profitable to satisfy the requirements of their stakeholders. In parallel, government agencies and departments face new challenges from their own stakeholders, who demand more streamlined and efficient operations. MCS also facilitate the monitoring or regulating of the behavior of directors, managers and other supervisory personnel in an organization. Hence, control systems are expected to keep a watchful eye on directors, managers and other supervisory personnel employees. But considering the fact that there is always a day of reckoning or eventually accountability for outputs and outcomes through the feedback mechanism of MCS, there remains a motive for the managers to engage in practices aimed at ensuring the desired picture on their performance, whether or not it represents actual performance. Such practices can have very dysfunctional effects on the decision making and evaluation processes at the various levels of management. For example, top management relies on the reports and data provided by the various levels of management to take decisions and actions. If such reports provide biased information, smoothed out data or if managers have deliberately engaged in gaming practices to ensure a favorable set of numbers, then these could lead to misguided decisions and sub-optimal performance for the organization as a whole. It would be therefore vital critical for directors, senior managers and consultants to develop a more comprehensive understanding of the relationships between particular MCS devices and the dysfunctional behaviors of subordinate managers. Dysfunctional behavior: budgetary slack managerial short term orientation manipulation of performance measure gaming information manipulation