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The present research examines the effect of incentivizing both outcome and driver measures of SPMS on middle managers' proactivity in influencing the strategy formulation process. A case-based experiment was conducted among 74 full-time employees. The results suggest that when incentives are linked to both outcome and driver measures of SPMS, compared with when they are outcome-based and not linked to the SPMS, managers are more proactive in communicating strategy-related issues to top management. In addition, this effect of SPMS-based incentives on middle managers' proactivity is mediated by their autonomous extrinsic motivation to achieve strategic goals. The results are in general consistent with postulates of the self-determination theory of motivation. This chapter also has practical implication. Specifically, recent evidence suggests that most SPMS adopters fail to validate causal business models underlying their formulated strategies (Ittner, 2008; Ittner & Larcker, 2003, 2005). Middle managers' proactive strategic behavior may be one means to prompt top management to inspect formulated strategies and their underlying business models.

We examine how input- (vs. output-) based performance evaluation and incentive intensity impact employees’ autonomous motivation, thereby influence their proactive work behaviors.

We collected survey responses from 309 employees of different firms. Multi-group Structural Equation Modeling analyses were used to analyze the data.

Input-based evaluation had a positive effect on autonomous motivation and proactive work behaviors when task uncertainty was high, but a negative effect when it was low. Autonomous motivation had a positive effect on proactive work behaviors.

Our results on the moderating effect of task uncertainty provide insights into inconsistencies in earlier studies. Moreover, applying self-determination theory of motivation to incentive research can provide some insights into why sometimes, incentives can negatively affect performance.

The study of proactive work behaviors is important because despite their necessity in the fast-changing business environment, they are relatively unexplored in the incentive literature. Proactivity is especially important for tasks that are high in uncertainty because the exact tasks to achieve those goals are hard to specify.

We investigate the effect of performance management system on proactive work behaviors, mediated by autonomous motivation and moderated by task uncertainty.

Scholars have argued that different forms of proactive behaviors (e.g., career initiative, feedback seeking, and taking charge) all involve employees’ self-initiated and future-focused efforts to bring about change in a situation (Parker et al., 2006). There are at least three important elements that define proactivity: future-focus, change-orientation, and self-initiation (Frese & Fay, 2001; Parker et al., 2006). First, proactive behavior is future-focused, which means that this action is targeted at anticipated problems or at opportunities with a long-term focus. Second, proactive behavior is change-oriented, involving not just reacting to a situation but being prepared to change that situation in order to bring about a different future. Third, and underpinning the prior two elements, proactive behavior is self-initiated, which means that employees initiate a proactive goal without being told to, or without requiring explicit instructions from supervisors. Accordingly, proactivity has also been conceived of as a process in which employees generate and implement, under their own direction, a proactive goal to bring about a different future (Bindl, Parker, Totterdell, & Hagger-Johnson, 2012; Frese & Fay, 2001; Grant & Ashford, 2008).

This paper argues that creative compliance tactics are an innovative union renewal strategy. Creative compliance involves the observance of the letter of the law while undermining its spirit. This regulatory inconsistency stems from indeterminate legal outcomes and discretion in legal interpretation and application. Drawing on interviews with senior union officials in four case studies in Australia, this paper reveals that two particular types of creative compliance tactics have been used by the unions to achieve positive outcomes: work-to-rule and the exploitation of loopholes. These opportunistic and proactive approaches to ‘anti-union’ legislation at the national level since 1997 represent a sea change in union tactics and a viable union renewal strategy, because they augment the individual ability of unions to shape and advance an agenda and therefore, adapt and transform at an organisational level. Consistent with adaptation theories on organisational-environment relations and strategic choice theory, the findings reinforce that unions ‘own’ strategic choices and that they can, in response to environmental scanning, adjust their tactics accordingly.

The goal of this chapter is to explore the requirements modern companies expect of HR professionals’ competences.

Departing from the widely acknowledged HR competence studies of Ulrich and associates, we extended them with the continuous learning competence profile and HR professionals’ individual job performance. The empirical study is built on open interviews with HR leaders of ten large Dutch companies.

The study offers a new set of HRM competences. This set includes six HRM profiles: Business Focus, Learning Focus, Strategic Focus, HR Technology, HR Delivery, and Personal Credibility. Several contingency factors are thought to play a role in supporting these HRM competences: company culture, strategy, size, sector, scope, and position of HR professionals.

Based on these contributions, we recommended conducting a quantitative study to gain understanding of the relevance of the individual HRM job performance and to find associations between the HRM competences and the individual HRM job performance.

The focus of this chapter is a combination of HRM competences and the individual job performance of HR professionals.

Purpose – To show the properties of performance measurement and management systems (PMMS) used dialogically and the association between the dialogic use of PMMS and the characteristics of the organizational relationships between parent companies and foreign subsidiaries.

Design/Methodology/Approach – Data were collected through a questionnaire e-mailed to large foreign subsidiaries of multinational firms operating in various industries. Hypotheses regarding factors associated with the extent to which PMMS are used dialogically between parent companies and foreign subsidiaries were tested based on responses to 136 usable questionnaires (45% response rate).

Findings – PMMS are used more dialogically within relationships between parent companies and subsidiaries characterized by subsidiary strategic role and organizational interdependence. Measurement diversity and perceived comprehensiveness of PMMS are higher if PMMS are used more dialogically. Finally, the dialogic use of PMMS is positively associated with subsidiary size and the emphasis on collaboration in the parent company’s national culture.

Originality/Value – In contrast to prior management accounting research that is focused on the outcomes of different styles of use of PMMS, this study shows organizational characteristics and PMMS properties associated with the dialogic use of PMMS. Moreover, this study advances the traditional view of the international business literature that conceives PMMS as bureaucratic systems employed by parent companies to coercively control foreign subsidiaries.