It is possible for performance evaluation systems and/or management control systems to contribute to unethical or fraudulent behavior.

Question

Quizplus · Accepted Answer

Performance evaluation systems and management control systems can create pressure on individuals to meet targets, leading them to engage in unethical or fraudulent behavior in order to achieve those targets. These systems can also reward unethical behavior or punish those who do not engage in such behavior, leading to a culture of wrongdoing in the organization. Thus, it is possible for these systems to contribute to unethical or fraudulent behavior despite being designed to improve performance and control.

It Is Possible for Performance Evaluation Systems And/or Management Control