[Continuous Process Of Identifying Measuring And Developing Performance Of Individuals And Teams]

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Abstract

Economic theory suggests that multiple financial and nonfinancial measures (ie, performance of continuous measurement system "CPMS") used in recruitment of adequate compensation to attention of direct and motivate employee behavior in line with organizational goals. By contrast, linking incentives to CPMS can lead to various dysfunctional behaviors, such as game staff, achievement of unbalanced results, and potential compensation based on the performance measurement system incomplete. Prior literature has investigated use of subjectivity in recruitment of compensation as the means to mitigate these potential problems; however, subjectivity may introduce other problems, including allegations of favoritism and partiality. Economic theorists have recently begun to expand traditional agency model to include notion of fairness or justice. In this study, obtain data from an organization using the CPMS as basis for allocation of bonuses and to investigate whether characteristics of CPMS are associated with perceived organizational justice. Specifically, hypothesis and demonstrate that as employees perceive that CPMS reflects strategic causal model and degree to which it is technically valid are positively associated with their perceptions of organizational justice. They also provide evidence that higher levels of organization of judiciary are mechanism through which CPMS perceived characteristics associated with employee performance. This means that companies do not have to introduce subjectivity into system of recruitment incentives, but can improve performance by linking incentive contracts for their CPMS if system contains features that improve employee perceptions of justice.

Continuous Process Of Identifying Measuring And Developing Performance Of Individuals And Teams

Introduction

Recent trends indicate that many organizations to achieve these objectives through implementation of performance measurement system for continuous (CPMS) in which various financial measures, operational and strategic are selected to translate and communicate strategy to employees (Ittner, Larcker , and Randall, 2003). Long-term success of an organization depends on actions of employees in same way, CPMS provides employees with useful information to facilitate behaviors that result in organizational success ([Schiemann and Lingle, 1997]). In this study, we investigated whether perceptions of employees from two characteristics of CPMS used as the basis for incentive compensation affect their perception of organizational justice, or justice. Investigation of employee perceptions of equity in an organizational context is important because it is main antecedent of important work-related outcomes, including employee satisfaction, organizational commitment, organizational citizenship behavior and job performance, which ultimately affect success of organization. Literature of management accounting has begun to study equity in use of financial measures against financial and non-applicability of principle of controllability 0. 1 These studies support claim that consideration of equity issues is relevant. We propose that perceptions of fairness are particularly relevant in complex CPMS.

CPMSs organizations use to facilitate decision-making and influence behavior of employees. theories of agency, hope, goal setting, and reinforcement to predict positive relationship between incentives and performance ([Jenkins et al, 1998.] And yet, some researchers suggest that incentives can cause employees to invest more efforts in an area at expense of other areas. On other hand, poorly designed incentive schemes can produce ...