- مبلغ: ۸۶,۰۰۰ تومان
- مبلغ: ۹۱,۰۰۰ تومان
Suitable and valid operational performance metrics are important means to translate an organization’s strategy into action. However, developing high-quality operational metrics is challenging because such metrics need the right degree of context specificity to be meaningfulto the managers and employees who will use them. We investigated whether managers consider metrics that have been co-developed with operational employees to be of higher quality and, in turn, whether they use these metrics more—and whether this use is linked to greater employee job performance. On the basis of self-determination theory, we investigated if different uses of performance metrics have different effects. We surveyed 86 pairs of operational employees and their immediate managers in various jobs and industries and tested our hypotheses with structural equation modeling. Results showed that when employees were involved in the development of performance metrics, managers perceived the metrics to be of better quality and employed those metrics more for evaluating and rewarding employees. Moreover, we found employees’ performance was only higher when the metrics were used for evaluation purposes. We found no effect for using the metrics for monetary compensation or nonmonetary rewards. In sum, this study demonstrates that employee participation in the development of performance metrics has beneficial effects on the metrics’ quality, and shows that the subsequent effect on job performance depends on how these metrics are used. We discuss implications for managers who want to ensure that the effect on employee job performance is positive when they involve employees in the development of operational performance metrics.
The development of suitable and valid operational performance metrics is challenging because the metrics need to include enough context-specific idiosyncrasies to be meaningful to the employees and managers who use the metrics. The main goal of this research is to find out how managers can ensure that PM participation will have positive effects on employee job performance. We investigate the mediating mechanism between PM participation and employee job performance, and specifically look at variables from a management point of view—that is, PM quality as rated by the manager and use of PIs for different incentive purposes. The analyses show a statistically significant positive indirect effect from PM participation to employee job performance if the performance metrics are used for evaluation purposes. Use of PMs for monetary compensation or nonmonetary rewards do not seem to mediate the relationship between PM participation and employee job performance. As the overall contribution,these findings on the indirect effects indicate that organizations might benefit from including operational employees in the development of performance metrics. In practical terms, the results advise managers to improve the quality of the performance metrics by involving employees in their development. Another piece of advice that emerges from the overall results is that managers should use these co-developed performance metrics for evaluative discussions about performance with their employees. With the help of such a set of performance measures, the manager and the employee could discuss the employee’s performance, any problems the employee needs to address, favorable unexpected events, actions taken, improvement ideas for the next period, and so forth. The results did not show an effect on employee job performance of using the co-developed performance metrics for monetary compensation or nonmonetary rewards. Given the diverse findings of earlier research on the use of extrinsic rewards, managers are advised to first investigate what type of incentives work best for their operational employees within their organization, before using the performance measures as a basis for monetary compensation or nonmonetary rewards.