Lan Guo, Theresa Libby, Bernard Wong-On-Wing, Dan Yang
{"title":"Limiting the Effect of Attribution and Construal Errors on Strategy Evaluation Using a Strategic Performance Measurement System","authors":"Lan Guo, Theresa Libby, Bernard Wong-On-Wing, Dan Yang","doi":"10.2139/ssrn.1983501","DOIUrl":"https://doi.org/10.2139/ssrn.1983501","url":null,"abstract":"The multiple performance measures included in strategic performance measurement systems (SPMS), including the balanced scorecard, should be selected to represent a set of causally-linked strategic drivers and outcomes (Ittner and Larcker 2001, 2005; Chenhall 2005; Kaplan and Norton 1996). The pattern of results thus can provide useful information concerning the proper execution of the underlying strategy (i.e., the performance evaluation role) and the strength of the cause-and-effect linkages assumed by the strategy (i.e., the strategy evaluation role). Unfortunately, managers’ tendency to re-examine strategy when divisional performance falls short of target is relatively low in practice (Campbell et al. 2008; Ittner and Larcker 2005). Possible explanations include attribution error (i.e., the tendency to attribute poor financial results to poor subordinate performance rather than to strategic factors) and construal error (i.e. the tendency to focus on specific individual performance metrics instead of the overall pattern of results presented in a complicated SPMS) (Koonce et al. 2011). We experimentally examine two decision aids designed to help strategic business unit managers avoid attribution and construal errors. Results of our first experiment indicate that the decision aids, individually as well as interactively, increase managers’ tendency to re-examine strategy. We find consistent results in a second experiment that examines the effects of the two decision aids (when used together) on evaluators’ judgment under a different pattern of driver and outcome performance, and among a sample of more experienced managers.","PeriodicalId":156310,"journal":{"name":"Managerial Compensation/ Performance Measurement","volume":"66 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123492420","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Budgetary Participation: The Effects of Information Asymmetry, Goal Commitment, and Role Ambiguity on Job Satisfaction and Performance","authors":"Johnny Jermias","doi":"10.2139/ssrn.1694667","DOIUrl":"https://doi.org/10.2139/ssrn.1694667","url":null,"abstract":"This study proposes a comprehensive model which empirically investigates the antecedent, mediating and outcome variables of budgetary participation. We propose that the information asymmetry between superiors and subordinates creates the need for budgetary participation. Accordingly, this study hypothesizes that the outcomes (i.e., job satisfaction and performance) of budgetary participation will be mediated by goal commitment and role ambiguity. Based on a questionnaire survey of 194 middle level managers in Turkey, this study found that role ambiguity mediates the budgetary participation-job satisfaction and budgetary participation-performance relationships. The results are consistent with the view that the primary benefit of budgetary participation is to decrease role ambiguity, leading to more job satisfaction and better performance. Furthermore, we found that goal commitment mediates the budgetary participation-performance relationship. This result suggests that participation in the budgeting process increases goal commitment leading to better performance.","PeriodicalId":156310,"journal":{"name":"Managerial Compensation/ Performance Measurement","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-10-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128180091","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}