Curtin University Homepage
  • Library
  • Help
    • Admin

    espace - Curtin’s institutional repository

    JavaScript is disabled for your browser. Some features of this site may not work without it.
    View Item 
    • espace Home
    • espace
    • Curtin Research Publications
    • View Item
    • espace Home
    • espace
    • Curtin Research Publications
    • View Item

    The effects of nonfinancial and financial measures on employee motivation to participate in target setting

    Access Status
    Fulltext not available
    Authors
    Lau, James (Chong M.)
    Roopnarain, K.
    Date
    2014
    Type
    Journal Article
    
    Metadata
    Show full item record
    Citation
    Lau, C.M. and Roopnarain, K. 2014. The effects of nonfinancial and financial measures on employee motivation to participate in target setting. The British Accounting Review. [In Press].
    Source Title
    The British Accounting Review
    DOI
    10.1016/j.bar.2014.02.006
    ISSN
    0890-8389
    URI
    http://hdl.handle.net/20.500.11937/21374
    Collection
    • Curtin Research Publications
    Abstract

    Recent interest in nonfinancial performance measures has raised questions on how such measures influence employee reactions and behaviour. Surprisingly, the question of whether and how nonfinancial measures motivate employees to participate in target setting has remained largely unexplored. Employees can be motivated intrinsically or extrinsically to participate in target setting. Intrinsic motivation to participate in target setting initiates from within the employee and is perceived as an end in itself with the employee as the main beneficiary. In contrast, controlled extrinsic motivation to participate in target setting is controlled by the organization and is perceived as a means to an end with the organization as the main beneficiary. This study investigates the relative importance of nonfinancial measures vis-à-vis financial measures in engendering employee intrinsic and controlled extrinsic motivation to participate and how these two forms of motivation to participate in target setting translate into improved employee job performance. Based on a sample of 149 employees, the Partial Least Squares results indicate that both financial measures and nonfinancial measures are associated with employee intrinsic motivation to participate in target setting. However, only nonfinancial measures are associated with controlled extrinsic motivation to participate in target setting and because this form of motivation to participate is controlled by the organization as a means to achieve better performance, it is only this form of motivation which has a significant impact on employee job performance. These results provide important insights into the intricacies by which performance measures influence employee motivation to participate in target setting and job performance.

    Related items

    Showing items related by title, author, creator and subject.

    • Does the reliance on nonfinancial measures for performance evaluation enhance managers’ perceptions of procedural fairness?
      He, J.; Lau, Chong (2012)
      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. ...
    • Budget Targets as Performance Measures: The Mediating Role of Participation and Procedural Fairness
      Lau, James (Chong M.); Tan, S. (2012)
      This study revisits the area of reliance on budget to evaluate employee performance. It contributes in several ways. First, it updates this traditional research area making it more relevant to the current debate on the ...
    • Performance measurement link between the balanced scorecard dimensions: an empirical study of the manufacturing sector in Malaysia
      Krishnan, Anbalagan (2014)
      In today’s competitive business environment, firms are emphasising the use of an integrated performance system consisting of both financial and non-financial measures. The emphasis on non-financial measures that drives ...
    Advanced search

    Browse

    Communities & CollectionsIssue DateAuthorTitleSubjectDocument TypeThis CollectionIssue DateAuthorTitleSubjectDocument Type

    My Account

    Admin

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    Follow Curtin

    • 
    • 
    • 
    • 
    • 

    CRICOS Provider Code: 00301JABN: 99 143 842 569TEQSA: PRV12158

    Copyright | Disclaimer | Privacy statement | Accessibility

    Curtin would like to pay respect to the Aboriginal and Torres Strait Islander members of our community by acknowledging the traditional owners of the land on which the Perth campus is located, the Whadjuk people of the Nyungar Nation; and on our Kalgoorlie campus, the Wongutha people of the North-Eastern Goldfields.