The Effects of Perceptions of Performance Measurement Characteristics on the Workforce

52 Pages Posted: 7 Aug 2009 Last revised: 11 Dec 2009

See all articles by Laurie L. Burney

Laurie L. Burney

Mississippi State University - School of Accountancy

Sally K. Widener

Clemson University

Date Written: August 7, 2009

Abstract

The strategic performance measurement system (SPMS) is a useful tool for communicating valuable information to an organization’s most important resource, its human capital (Taylor 2007). This study merges SPMS literature with an important lever of organizational success—its human capital, and investigates how self-efficacy, psychological contracts, and exchange ideology can explain when and why characteristics of SPMSs matter. Using survey data collected in the field, we analyze data on 306 employees of a financial services firm. Our results provide support that self-efficacy and psychological contracts mediate the relation between perceptions of SPMS characteristics and organizational justice. Furthermore, we find that the relation between both SPMS characteristics and procedural justice depend on exchange ideology. These results have both theoretical implications in terms of integrating psychological literature with organizational theory and practical implications in terms of extracting benefits from a costly managerial tool.

Keywords: Strategic performance measurement systems, organizational justice, behavioral theory, structural equation models, field research

JEL Classification: M41

Suggested Citation

Burney, Laurie and Widener, Sally K., The Effects of Perceptions of Performance Measurement Characteristics on the Workforce (August 7, 2009). AAA 2010 Management Accounting Section (MAS) Meeting Paper, Available at SSRN: https://ssrn.com/abstract=1445571 or http://dx.doi.org/10.2139/ssrn.1445571

Laurie Burney

Mississippi State University - School of Accountancy ( email )

Mississippi State, MS 39762
United States

Sally K. Widener (Contact Author)

Clemson University ( email )

Clemson, SC 29634
United States

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