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Book part
Publication date: 23 September 2014

Chong M. Lau and Vimala Amirthalingam

Research on how performance measurement systems affect employees’ perceptions of workplace fairness is important. As organizations often rely on their performance measurement…

Abstract

Research on how performance measurement systems affect employees’ perceptions of workplace fairness is important. As organizations often rely on their performance measurement systems to communicate information to their employees, it is useful to ascertain if and how the developments of performance measurement systems that are far more comprehensive than traditional financial systems affect employees’ perceptions of informational fairness through the information communicated to employees. Informational fairness refers to employees’ perceptions of workplace fairness that is based on the amount and the truthfulness of information that organizations provide to their employees. Based on a sample of managers from manufacturing organizations, the Partial Least Square results indicate that comprehensive performance measurement systems (comprehensive PMS) have a significant direct effect on job-relevant information. They also indicate that comprehensive PMS have an indirect effect on informational fairness via job-relevant information. In contrast, systems that are based on financial measures have no significant effects on job-relevant information and informational fairness. These results demonstrate how comprehensive PMS (through the communication of a greater amount of job-relevant information) can be used to engender employees’ perceptions of high workplace fairness.

Book part
Publication date: 27 December 2016

Chyi Jaw, James Po-Hsun Hsiao, Tzung-Cheng (T. C.) Huan and Arch G. Woodside

This chapter describes and tests the principles of configural theory in the context of hospitality frontline service employees’ happiness-at-work and managers’ assessments of…

Abstract

ABSTRACT

This chapter describes and tests the principles of configural theory in the context of hospitality frontline service employees’ happiness-at-work and managers’ assessments of these employees’ quality of work performances. The study proposes and tests empirically a configural asymmetric theory of the antecedents to hospitality employee happiness-at-work and managers’ assessments of employees’ quality of work performance. The findings confirm and go beyond prior statistical findings of small-to-medium effect sizes of happiness-performance relationships. The method includes matching cases of data from surveys of employees (n = 247) and surveys completed by their managers (n = 43) and uses qualitative comparative analysis via the software program fsQCA.com. The findings support the four principles of configural analysis and theory construction: recognize equifinality of different solutions for the same outcome; test for asymmetric solutions; test for causal asymmetric outcomes for very high versus very low happiness and work performance; and embrace complexity. The theory and findings confirm that configural theory and research resolves perplexing happiness–performance conundrums. The study provides algorithms involving employees’ demographic characteristics and their assessments of work facet-specifics which are useful for explaining very high happiness-at-work and high quality-of-work performance (as assessed by managers) – as well as algorithms explaining very low happiness and very low quality-of-work performance.

Book part
Publication date: 19 June 2012

Jane Q. He and Chong M. Lau

Purpose – The adoption of performance measurement and evaluation systems comprising nonfinancial measures has rendered the investigation of behavioral consequences of such…

Abstract

Purpose – The adoption of performance measurement and evaluation systems comprising nonfinancial measures has rendered the investigation of behavioral consequences of such measures an increasingly important research issue. The purpose of this study is to investigate the process by which the use of nonfinancial measures affects employees’ perceptions of procedural fairness. It proposes that the effects of nonfinancial measures on procedural fairness are indirect through the mediating variables of (1) job relevant information and (2) role clarity.

Methodology – Data collected from a survey of 276 managers in different functional areas are used to test the models. The data are analyzed using structural equation modeling (Partial Least Square).

Findings – Results from structural models indicate that the use of nonfinancial measures has a positive impact on job relevant information, role clarity, and procedural fairness. In addition, the findings suggest that the use of nonfinancial measures is indirectly related to procedural fairness through job relevant information and role clarity. Specifically, the results indicate that the use of nonfinancial measures affects job relevant information. Job relevant information then influences role clarity. Role clarity, in turn, is positively related to procedural fairness.

Value of paper – This study provides systematic empirical evidence on how the use of nonfinancial measures for performance measurement and evaluation can affect employee perceptions of procedural fairness. It helps organizations to understand how this process occurs and provides them with some assurance that the adoption of nonfinancial measures may be beneficial particularly through the higher information content of such measures and the consequential enhancement of employee role clarity and perception of fairness. By studying the effects of nonfinancial measures, in isolation, this study also helps to demonstrate to organizations that some of the beneficial effects on employee outcomes found by prior management accounting studies involving a combination of financial and nonfinancial measures may be achievable from the use of nonfinancial measures alone without the need of financial measures. This may assist organizations in designing simpler performance measurement systems.

Details

Performance Measurement and Management Control: Global Issues
Type: Book
ISBN: 978-1-78052-910-3

Book part
Publication date: 9 May 2014

Debbie P. S. Chia, Chong M. Lau and Sharon L. C. Tan

The widespread adoption of the Balanced Scorecard has led to a need to understand how performance measures affect employees’ attitudes and behaviors. Despite the growing trend in…

Abstract

Purpose

The widespread adoption of the Balanced Scorecard has led to a need to understand how performance measures affect employees’ attitudes and behaviors. Despite the growing trend in the implementation of the Balanced Scorecard, there is little research evidence available on the behavioral outcomes resulting from the use of nonfinancial performance measures. This study seeks to address this gap by examining several behavioral outcomes, including job satisfaction, organizational commitment and managerial performance, resulting from the use of financial and nonfinancial performance measures.

Methodology

Data were collected using a mailed questionnaire survey to manufacturing organizations in Singapore. Path analysis technique was employed in this study to investigate the relationships.

Findings

The results of the study show that behavioral outcomes are indifferent regardless of the nature and type of performance measures used. However, the relationships between performance measures and behavioral outcomes are indirect through procedural fairness and trust in supervisor.

Research limitations

Survey questionnaire method was used in this study and there are limitations associated with survey questionnaire method. As our sample was selected from large organizations, it is unclear if our results are generalizable to small organizations. Also, as our sample was selected from the manufacturing sector, generalizing our results to the nonmanufacturing sectors should be made with caution.

Practical implications

This study highlights the need for organizations to pay attention to issues pertaining to procedural fairness and interpersonal trust in the design and implementation of performance measurement systems.

Details

Performance Measurement and Management Control: Behavioral Implications and Human Actions
Type: Book
ISBN: 978-1-78350-378-0

Keywords

Book part
Publication date: 28 August 2007

Thomas A. Wright and Russell Cropanzano

For decades, since at least the famous Hawthorne studies, the happy/productive worker thesis has forcefully captured the imagination of management scholars and human resource…

Abstract

For decades, since at least the famous Hawthorne studies, the happy/productive worker thesis has forcefully captured the imagination of management scholars and human resource professionals alike. According to this “Holy Grail” of management research, workers who are happy on the job will have higher job performance, and possibly higher job retention, than those who are less happy. But what is happiness? Most typically, happiness has been measured in the management sciences as jobsatisfaction. This viewpoint is unnecessarily limiting. Building upon alittle remembered body of research from the 1920s, we suggest a twofold, expanded view of this thesis. First, we suggest the consideration of worker happiness as psychological well-being (PWB). Second, incorporating Fredrickson's (1998, 2001) broaden-and-build model ofpositive emotions as the theoretical base, we suggest that the job satisfaction to job performance and job satisfaction to employee retentionrelationships may be better explained by controlling for the moderating effect of PWB. Future research directions for human resource professionals are introduced.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-0-7623-1432-4

Book part
Publication date: 29 May 2023

R. Dhanalakshmi, Dwaraka Mai Cherukuri, Akash Ambashankar, Arunkumar Sivaraman and Kiran Sood

Purpose: This chapter aims to analyse and highlight the current landscape of performance management (PM) systems, and the benefits of integrating modern technology such as smart…

Abstract

Purpose: This chapter aims to analyse and highlight the current landscape of performance management (PM) systems, and the benefits of integrating modern technology such as smart analytics (SA) and artificial intelligence (AI) into PM systems. The chapter discusses the application of AI in PM tasks which successively simplify many offline PM tasks.

Methodology: To carry out this analysis, a systematic literature review was performed. The review covers literature detailing PM components as well as research concerned with the integration of SA and AI into PM systems.

Findings: This study uncovers the merits of using SA and AI in PM. SA technology provides organisations with a clear direction for improvement, rather than simply state failure in performance. AI can be used to automate redundant tasks while retaining the human element of decision-making. AI also helps reduce the time required to take action on feedback.

Significance: The findings of this research provide insights into the use of SA and AI to make PM tasks fast, scalable, and error-free.

Details

Smart Analytics, Artificial Intelligence and Sustainable Performance Management in a Global Digitalised Economy
Type: Book
ISBN: 978-1-83753-416-6

Keywords

Book part
Publication date: 30 November 2020

Edem M. Azila-Gbettor, Robert J. Blomme, Ad Kil and Ben Q. Honyenuga

The study examines organization citizenship behavior (OCB) as a mediating variable between instrumental work values (IWVs) and organizational performance; and group differences…

Abstract

The study examines organization citizenship behavior (OCB) as a mediating variable between instrumental work values (IWVs) and organizational performance; and group differences between family manager and nonfamily manager for integrated models in family hotels. Data were collected from 189 hotels (n = 921) ranging from budget to three-star family hotels in Ghana using questionnaire administered conveniently. Data were analyzed using structural equation modeling. Work value positively influences OCB and organizational performance of family hotels. OCB mediates the relationship between work values and organizational performance. The study also found significant support for group differences between family and nonfamily firms for IWVs and mediating effect of OCB on the relationship between IWVs and performance.

Book part
Publication date: 16 July 2018

Jaron Harvey, Mark C. Bolino and Thomas K. Kelemen

For decades organizational citizenship behavior (OCB) has been of interest to scholars and practitioners alike, generating a significant amount of research exploring the concept…

Abstract

For decades organizational citizenship behavior (OCB) has been of interest to scholars and practitioners alike, generating a significant amount of research exploring the concept of what citizenship behavior is, and its antecedents, correlates, and consequences. While these behaviors have been and will continue to be valuable, there are changes in the workplace that have the potential to alter what types of OCBs will remain important for organizations in the future, as well as what types of opportunities for OCB exist for employees. In this chapter we consider the influence of 10 workplace trends related to human resource management that have the potential to influence both what types of citizenship behaviors employees engage in and how often they may engage in them. We build on these 10 trends that others have identified as having the potential to shape the workplace of the future, which include labor shortages, globalization, immigration, knowledge-based workers, increase use of technology, gig work, diversity, changing work values, the skills gap, and employer brands. Based on these 10 trends, we develop propositions about how each trend may impact OCB. We consider not only how these trends will influence the types of citizenship and opportunities for citizenship that employees can engage in, but also how they may shape the experiences of others related to OCB, including organizations and managers.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-78756-322-3

Keywords

Book part
Publication date: 18 January 2023

Sophia Su and Kevin Baird

This study aims to examine the mediating role of organisational fairness on the association between the emphasis on budgets and budget difficulty with budget value and job stress…

Abstract

This study aims to examine the mediating role of organisational fairness on the association between the emphasis on budgets and budget difficulty with budget value and job stress. Data were collected using an online survey questionnaire with 515 responses from middle and lower-level managers in Australian business organisations. The results indicate that organisational fairness fully mediates the association between budget difficulty with both budget value and job stress. Organisational fairness was not found to mediate the association between the emphasis on budgets with budget value and job stress. Rather, the emphasis on budgets was significantly negatively associated with job stress, implying that a greater emphasis on budgets is desirable in alleviating job stress. The findings have important implications for practice.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-80382-031-6

Keywords

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