The relative importance of comprehensive performance measurement systems and financial performance measures on employees’ perceptions of informational fairness.
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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 jobrelevant 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
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The relative importance of comprehensive performance measurement systems and financial performance measures on employees' perceptions of informational fairnessLau, James (Chong M.); Amirthalingam, V. (2014)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 ...
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. ...
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 ...