Advertisement

Truly rational decisions

The next challenge for controlling
  • Utz SchäfferEmail author
  • Jürgen Weber
Chapter

Abstract

Controllers have always been focused on data and methods; they represent a number-based approach and analytical thinking. For this reason, ensuring the rationality of management is the objective of controlling (cf. Weber & Schäffer 2014; Gänßlen et al. 2013). In business practice, however, there are numerous barriers to achieving this goal that all stem from human factors: insufficient expertise, opportunistic behavior, emotions, and cognitive biases. In the following, we will examine each of these four barriers in detail.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Ariely, D. (2010). Predictably irrational, revised: The hidden forces that shape our decisions. New York.Google Scholar
  2. Gänßlen, S., Losbichler, H., Niedermayr, R., Rieder, L., Schäffer, U., & Weber, J. (2013). Die Kernelemente des Controllings: Das Verständnis von ICV und IGC. Controlling & Management Review, 57(3), 56–61.Google Scholar
  3. Kahneman, D. (2011). Thinking, fast and slow. London.Google Scholar
  4. Kahneman, D., Lovallo, D., & Sibony, O. (2011). Before you make that big decision … Harvard Business Review, 89(6), 50–60.Google Scholar
  5. Kaplan, R.S., & Norton, D.P. (1992). The Balanced Scorecard – Measures that drive performance. Harvard Business Review, (January/February), 71–79.Google Scholar
  6. Kaplan, R.S., & Norton, D.P. (1996). Balanced Scorecard – translating strategy into action. Harvard Business School Press.Google Scholar
  7. Kaufmann, L., Carter, C. R., & Buhrmann, C. (2010). Debiasing the supplier selection decision: A taxonomy and conceptualization. International Journal of Physical Distribution & Logistics Management, 40(10), 792–821.Google Scholar
  8. Lovallo, D., & Sibony, O. (2010). Taking the bias out of meetings. McKinsey Quarterly.Google Scholar
  9. Mandis, S.G. (2013). What happened to Goldman Sachs – An insider’s story of organizational drift and its unintended consequences. Boston.Google Scholar
  10. Muhr, M. im Dialog mit Jürgen Weber (2015). Es kommt auch auf das Verhalten der Manager an. Controlling & Management Review, 59 (special issue 2), 40–45.Google Scholar
  11. Schäffer, U., Bechtoldt, C., Grunwald-Delitz, S., & Reimer, T. (2014). Controlling-Kultur als Schlüssel im Umgang mit Volatilität. Controlling & Management Review, 58(5), 62–68.Google Scholar
  12. Scherpereel, P., Gaul, J., & Muhr, M. (2015). Entscheidungsverhalten bei Investitionen steuern. Controlling & Management Review, 59 (special issue 2), 59, 32–39.Google Scholar
  13. Weber, J., & Schäffer, U. (2014). Einführung in das Controlling (14th ed.). Stuttgart.Google Scholar

Copyright information

© Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2019

Authors and Affiliations

  1. 1.WHU – Otto Beisheim School of ManagementVallendarGermany

Personalised recommendations