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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.

This paper examines the effect of job‐relevant information on the relationship between management accounting systems (MAS) and task uncertainty affecting managerial performance. Data are obtained via survey questionnaire of a sample of 131 senior managers from manufacturing firms in Australia. The study finds a statistically significant three‐way interaction between the extent of use of broad scope MAS information, job‐relevant information and task uncertainty affecting managerial performance. More specifically, the results suggest that under low task uncertainty situations, the use of more broad scope MAS information, regardless of job‐relevant information, would potentially result in information overload, which is detrimental to managerial performance. On the other hand, the results suggest that under high task uncertainty situations, the use of more broad scope MAS information and high use of job‐relevant information for decision‐making leads to improved managerial performance.

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.

This chapter examines the effects of the value attainment and cognitive roles of budgetary participation on job performance. A structural model consisting of variables such as budgetary participation, job-relevant information, job satisfaction, and job performance is proposed and tested using a survey questionnaire on 70 senior managers, drawn from a cross-section of the financial services sector. Their responses are analyzed using a structural equation modeling (SEM) technique. The results reveal that budgetary participation is positively associated with job-relevant information. These results lend support to the cognitive effect of budgetary participation, which suggests that subordinates participate in the budget setting process to share information. In addition, the results suggest that budgetary participation is positively associated with job satisfaction. These results support the value attainment role of budgetary participation, which increases subordinates’ levels of job satisfaction. Furthermore, the results reveal that there are positive relationships between job-relevant information and job satisfaction, job-relevant information and job performance, and job satisfaction and job performance.

The purpose of this paper is to demonstrate that the decision facilitation and decision influencing roles for management information are concomitant in organizations, and therefore must be analysed concurrently.

A two‐stage regression procedure for testing the moderating and intervening relationships among the variables of interest was adopted. First, the interaction of individual level controls (administrative and professional) on broad scope management accounting system (MAS) was tested, then the intervening relationship between broad scope MAS, job‐relevant information (JRI), and performance was analysed.

Tests of the moderating relationship between the control environment, broad scope MAS, JRI, and performance revealed a significant interaction term for JRI, but not for performance.

The usual measurement and implementation errors associated with survey methodology attach to this study.  Furthermore, the sample was not randomly selected, which undermines the external validity of the findings.  External validity will be further compromised by the relatively small sample size.  Hence, caution is recommended in generalising the results to a wider population.

The study provides evidence on the relationship between broad scope MAS, individual level control mechanisms and the outcome variable of JRI.

The paper seeks to use a controlled setting, established measures, and methods of analysis to suggest that when existing theory explains the empirical relationship among the variables of interest in more than one way, it may be necessary to comprehensively examine the relationships theoretically and empirically at more than one level to enable a better explanation of the linkage between theory and the empirical tests.

This study extends the budgetary participation–performance/cultural effects literature by isolating and examining the moderating effect of one cultural dimension, power distance, on the budgetary participation–performance relationship. Isolating the impact of power distance is important to this literature because of the fact that participative budgeting remains a possibly underutilized management tool in high power distance countries.

We regroup our multinational sample of managers by power distance level, and employ multigroup structural equation modeling (SEM) and a set of nonparametric bootstrap tests to triangulate our findings.

We find that the majority of our managers from three high power distance countries (Mexico, Korea, and China) score in the lower half of the power distance scale, that there is significant correlation between participation and performance in both the high and low power distance subsamples, but that the mechanisms connecting participation to performance are quite different. While job satisfaction plays a role in connecting budgetary participation and performance among low power distance managers, job relevant information alone connects budgetary participation and performance among their high power distance counterparts.

The primary contribution of our work is that we not only demonstrate that budget participation can improve the performance of subordinate managers in high power distance cultures, but also provide evidence of how and why this is plausible. First managers may not share the same high power distance tendencies of their countrymen, and second, the communication aspect of budget participation appears to be more important for increased performance among those with high power distance tendencies.

The purpose of this study is to analyse the connection between managerial job and importance of job‐relevant performance information.

Two hypotheses on the relationship of the nature of job to the job‐relevant information are tested by survey data gathered in spring 2008. The data include responses from 76 Finnish CEOs in manufacturing industry. Managerial job, information, and information gap types are extracted by the factor analysis. The hypotheses are tested by the regression analysis.

Evidence shows that the type of job strongly influences the importance of different information types in managerial work. However, information gap does not depend on the type of work but on contextual variables.

The results limited by the small sample size and industry. Larger data, advanced statistical methods, and different constructs to measure managerial job and contextual variables should be used in further studies.

Contingency factors are important in affecting the nature of managerial job. Managerial job largely determines the importance of information but the gap of information depends on contextual environment. It is important to take account of the nature of managerial job in designing information systems.

This study shows that managerial job mediates the effect of contingency factors on the importance of information. However, these factors have a direct effect on the gap of information.

In the few years since the appearance of Affective Events Theory (AET), organizational research on emotions has continued its accelerating pace and incorporated many elements of the macrostructure suggested by AET. In this chapter we reflect upon the original intentions of AET, review the literature that has spoken most directly to these intentions, and discuss where we should go from here. Throughout, we emphasize that AET represented not a testable theory, but rather a different paradigm for studying affect at work. Our review reveals an obvious shift toward AET in the way organizational researchers study affect at work, but also that some elements have been neglected. Ultimately, we see the most fruitful research coming from further delineation of the underlying processes implicated by the macrostructure of AET.

This study aims to examine the impact of job-related knowledge sharing on information availability and job satisfaction for information-receiving employees in the public sector. Following self-determination theory, the study suggests that job satisfaction is only partly affected by knowledge sharing itself, but particularly through the availability of job-related information enabling the information receiver to work effectively.

The hypotheses are tested with data from the US Federal Employee Viewpoint Survey from 2018. Additionally, results are replicated with earlier waves of the survey.

Results show the positive impact of job-related knowledge sharing on job satisfaction, whereby the availability of job-relevant information mediates this relationship partially.

This study confirms that managers should provide room for social interactions when introducing knowledge management practices.

The results emphasize that knowledge sharing is a highly social process in which support and relatedness play a significant role in success in addition to the diffusion of information itself.

The purpose of this paper is to extend the participative budgeting literature, and specifically the budgetary participation literature that has examined the casual mechanisms linking participation to satisfaction/performance and the literature that has examined culture as an explanatory factor in the budgetary participation/performance relationship.

This paper employs the path model to examine and compare the budget participation–performance relationship for South Korean managers working for either US controlled or Asian controlled companies in South Korea. The path model allows the examination of the direct effects of budget participation on performance and the indirect effects between budget participation and performance that run through job satisfaction and job relevant information.

The primary findings of this study are that while there are strong associations between budget participation and performance for both samples of managers, the causal mechanisms connecting budget participation to performance are different between these two groups. The information–communication connection between budget participation and performance is stronger among the South Korean managers working for US controlled companies.

Our study suffers from three common limitations found in all survey research: lack of temporal precedence between the independent and dependent variables; any limitations imbedded in the scales used to measure our variables; and generalizability of our samples.

The findings presented in this paper should have important implications for US companies employing US management techniques in their foreign operations.