Discussion of: “Flattening the organization: the effect of organizational reporting structure on budgeting effectiveness”
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- Young, R.A. Rev Account Stud (2010) 15: 537. doi:10.1007/s11142-010-9122-7
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This paper is a discussion of Hannan et al. (Rev Account Stud, 2010), wherein subordinate-participants are endowed with private information, and superior-participants can potentially affect budget requests through their ability to reject them. Their findings are of interest to research on both the design of budgeting systems and span of control. I discuss the relevance of HRT to these literatures and comment on their implementation and experimental design. Also, I offer suggestions for future research, one of which is to explicitly introduce monitoring into experiments on span of control.