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Examining a positive psychological role for performance measures
Affiliation:1. Warwick Business School, Aberconway Building, Colum Drive, Cardiff CF10 3EU, UK;2. Business School, Loughborough University, Ashby Road, Loughborough LE11 3TU, UK;3. College of Business, Pittsburgh State University, 1701 South Broadway Street, Pittsburgh, KS 66762, USA;4. School of Accounting and Commercial Law, Victoria University of Wellington, P.O. Box 600, Wellington, New Zealand;1. HEC Lausanne, Faculty of Business and Economics, University of Lausanne, 1015 Lausanne, Switzerland;2. IESE Business School, University of Navarra, Avenida Pearson, 21, 08034 Barcelona, Spain;1. Department of Business and Management, Aalborg University, Fibigerstraede 11, DK-9220 Aalborg, Denmark;2. Center for Industrial Production, Department of Business and Management, Aalborg University, Fibigerstraede 10, DK-9220 Aalborg Oest, Denmark;1. University of Illinois at Urbana-Champaign, United States;2. University of South Carolina, United States;3. Georgia State University, United States;1. Vaasan ammattikorkeakoulu, University of Applied Sciences, Raastuvankatu 31-33, FI-65100 Vaasa, Finland;2. Hanken School of Economics, Handelsesplanaden 2, FI-65100 Vaasa, Finland
Abstract:Emerging evidence suggests that performance measurement systems may generate positive psychological effects, leading to higher levels of managerial performance. We extend this literature by examining the extent to which diagnostic vis-à-vis interactive utilisation of performance measures may be associated with decreasing role ambiguity and increasing psychological empowerment with positive consequences for performance. We find that the interactive utilisation of non-financial performance measures can be particularly important for generating a positive psychological experience and (indirectly) increasing performance. Our study contributes further evidence of the psychologically beneficial role played by management control systems.
Keywords:Performance measures  Diagnostic control  Interactive control  Role ambiguity  Psychological empowerment
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