Pressure organizational outcomes like decision-making, performance, leadership and conflict

Pressure
is part of the life of any audit partner and this has long been recognized both
professionally (e.g., Mautz and Sharaf 1961) and academically (e.g., Ferris
1977). Pressure is a major dimension of occupational stress (Larson, 2004). These
pressures can lead to dysfunctional audit behavior and put at risk the
credibility of the audit opinion. Pressure can come from either internal or
external sources. This literature will aim to investigate the effect of time
budget pressure and client pressure including the impact of affect and emotions
on essential organizational outcomes like decision-making, performance, leadership
and conflict resolution.

 

A
significant body of evidence highlights the fact that both time budget pressure
(Coram, Ng, & Woodliff, 2003; 2004; McNair, 1991) and client pressure
(Hackenbrack & Nelson, 1996; Moreno & Bhattacharjee, 2003) can lead to
dysfunctional audit behavior. There is a need to improve our understanding of
how to mitigate the ill effects of these pressures, such as dysfunctional
auditor behaviors and decreased audit quality (Hartmann & Maas, 2010)

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

 

On
the other hand, many researchers have examined the importance of affect on
audit judgments, behaviors and decision making. Bhattacharjee and Moreno (2002)
found that less experienced auditors are more likely to elicit a negative
affective reaction when given negative affective client information. However,
this was not the case for more experienced auditors as they were able to ignore
inappropriate and irrelevant affective information when giving their judgments.
Another research, (Bhattacharjee et al., 2012) showed that interpersonal
affective reaction have an influence on auditors’ judgments and work paper
documentation.

 

Knowing
one’s emotions, managing emotions, and managing relationships are critical to
judgment and decision making since emotions can easily create biases when not
managed appropriately (Goleman, 1995). Thus, it is important to find ways to
train auditors so that they can deal with their emotions. Researchers have come
up with different ways to manage or reduce emotional pressure such as emotion
focused coping (e.g., self-awareness)
(DeZoort & Lord, 1997) and emotional competence training (Bhattacharjee et
al., 2012). However, EI shows promise as a potential mitigating factor to
address this issue by managing emotions
(Barsade & Gibson, 2007).

x

Hi!
I'm Joan!

Would you like to get a custom essay? How about receiving a customized one?

Check it out