Authors: Mahfud Sholihin, Richard Pike
Page: 29
Previous management accounting and control system studies have examined the impact of perceived procedural fairness on managers’ attitudes and behaviour. However, relatively little research has been conducted on the factors which affect perceived procedural fairness; and their results are inconclusive. The objective of this paper is to investigate the main determinants of perceived procedural fairness.
Using a sample of managers from three major organisations with headquarters in Europe, this study finds that perceived procedural fairness is affected by goal-related variables in the form of participation in setting performance targets, the goal-attainment-reward link, and the specificity of goals to be achieved by managers; but is not affected by whether the performance measures used to evaluate performance are primarily financial or non-financial.
