Management Control and Remuneration System

Many businesses still adopt pay practices in a sequential manner, without regard to strategic vision and organization values (Tremblay M., 2001). To earn the epithet "strategic" management remuneration must be aligned to the strategies of the business and be in synergy with the other human resource management practices. Thus, firms face more choices in terms of remuneration policies. One of the basic principles of the remuneration policy is that of its periodic review, due to its short life cycle. Earnings management implies the existence of diagnostic tools to monitor developments, to anticipate the drift and track environmental changes. This paper discusses the new issues affecting the purposes and pays the balance of a system of control and management role in seizing and removing them. Thus this paper includes social balance sheet and a number of potential indicators of how to refer matters to ensure compatibility between business strategy and social policy.