Aggregate Performance Measures in Business Unit Manager Compensation: The Role of Intrafirm Interdependencies

1995 ◽  
Vol 33 ◽  
pp. 101 ◽  
Author(s):  
Robert M. Bushman ◽  
Raffi J. Indjejikian ◽  
Abbie Smith
Keyword(s):  
Performance Measures ◽  
Business Unit ◽  
Unit Manager ◽  
Manager Compensation

The Role of Performance Measures in the Intertemporal Decisions of Business Unit Managers

2013 ◽  
Vol 30 (3) ◽  
pp. 925-961 ◽  
Author(s):  
Margaret A. Abernethy ◽  
Jan Bouwens ◽  
Laurence Van Lent
Keyword(s):  
Performance Measures ◽  
Business Unit ◽  
Intertemporal Decisions

The Role of CEO and Investor Horizons in the Contracting Use of Forward-Looking Performance Measures

2003 ◽  
Author(s):  
Karen L Sedatole ◽  
Susan Cohen Kulp ◽  
Shane S. Dikolli
Keyword(s):  
Performance Measures ◽  
Forward Looking

Who Should Select New Employees, Headquarters or the Unit Manager? Consequences of Centralizing Hiring at a Retail Chain

2019 ◽  
Vol 95 (4) ◽  
pp. 173-198 ◽  
Author(s):  
Carolyn Deller ◽  
Tatiana Sandino
Keyword(s):  
Data Availability ◽  
Business Unit ◽  
Difference In Differences ◽  
Decision Rights ◽  
Local Conditions ◽  
New Employees ◽  
Retail Chain ◽  
Unit Manager ◽  
Local Advantage ◽  
Retail Company

ABSTRACT We examine how changing the allocation of hiring decision rights in a multiunit organization affects employee-firm match quality, contingent on a unit's circumstances. Our research site, a U.S. retail chain, switched from a decentralized hiring model (hiring by business unit managers—in our case, store managers) to centralized hiring (in this study, by the head office). While centralized hiring can ensure that enough resources are invested in hiring people aligned with company values, it can also neglect the unit managers' local knowledge. Using difference-in-differences analyses, we find that the switch is associated with relatively higher employee departure rates and, thus, poorer matches if the business unit manager has a local advantage; that is, if the store serves repeat customers, serves a demographically atypical market, or poses higher information-gathering costs for headquarters. In these cases, the unit manager may be more informed than headquarters about which candidates best match local conditions. Data Availability: The analyses presented in this study are based on data shared by a U.S. retail company. The data are confidential, according to a nondisclosure agreement between the company and the authors.

The mediating role of fairness on the effectiveness of strategic performance measurement systems

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kevin Baird ◽  
Sophia Xia Su ◽  
Nuraddeen Nuhu
Keyword(s):  
Performance Appraisal ◽  
Human Resource ◽  
Performance Measures ◽  
Content Type ◽  
Strategic Performance ◽  
Measurement Systems ◽  
Mediating Role ◽  
Performance Measurement Systems ◽  
Insight Into

PurposeThis study examines the mediating role of the fairness of performance appraisal on the association between the extent of use of strategic performance measurement systems (SPMSs) with SPMS effectiveness.Design/methodology/approachData were collected using an online survey distributed to 656 Australian middle and lower level managers.FindingsThe findings reveal that informational fairness mediates the association between SPMSs (link to value drivers and the use of multidimensional performance measures) with performance-related outcomes; procedural fairness mediates the association between SPMSs (link to strategy and the use of multidimensional performance measures) with staff-related outcomes and distributive fairness mediates the association between the use of SPMSs (all three types) with both performance and staff-related outcomes.Originality/valueThe study provides a unique insight into the importance of fairness (the distributive, informational and procedural fairness of the performance appraisal system) in mediating the associations between the extent of use of SPMSs and SPMS effectiveness. The findings contribute to the human resource management (HRM) “black box” literature by providing an insight into the behavioural mechanism through which a specific human resource management practice (i.e. the SPMS) influences organisational performance.

The effectiveness of flexible manufacturing strategies

2009 ◽  
Vol 58 (2) ◽  
pp. 119-135 ◽  
Author(s):  
Therese A. Joiner ◽  
X. Sarah Yang Spencer ◽  
Suzanne Salmon
Keyword(s):  
Financial Performance ◽  
Performance Measures ◽  
Flexible Manufacturing ◽  
Positive Association ◽  
Manufacturing Firms ◽  
Manufacturing Strategy ◽  
Organisational Performance ◽  
Content Type ◽  
Financial Performance Measures

PurposeAgainst a background of a customization imperative embraced by manufacturing firms in industrialised nations and the concomitant call for more balanced performance measurement systems (PMS), this study seeks to examine the mediating role of both non‐financial and financial performance measures in the relationship between a firm's strategic orientation of flexible manufacturing and organisational performance.Design/methodology/approachA path‐analytical model is adopted using questionnaire data from 84 Australian manufacturing firms.FindingsThe results indicate that, first, firms emphasising a flexible manufacturing strategy utilise non‐financial as well as financial performance measures; second, these performance measures are associated with higher organisational performance; and third, there is a positive association between a firm's strategic emphasis on flexible manufacturing and organisation performance via non‐financial and financial performance measures.Practical implicationsWhile there is agreement on the beneficial role of non‐financial performance measures in supporting strategic priorities associated with customization strategies, equivocal research results have emerged on the role of financial performance measures in this context. The study underscores the importance of both non‐financial and financial performance measures in this context.Originality/valueThe paper reinstates the value of financial performance measures for firms pursuing customization type strategies and adds to one's knowledge of PMSs by exploring the intervening role of such systems in linking flexible manufacturing strategy to organisation performance.

Management Accountants’ Empathy and Their Violation of Fiduciary Duties: a Replication and Extension Study Using fMRI

2021 ◽  
Author(s):  
Sergeja Slapničar ◽  
Mina Ličen ◽  
Frank G. H. Hartmann ◽  
Anka Slana Ozimič ◽  
Grega Repovš
Keyword(s):  
Brain Activity ◽  
Cognitive Empathy ◽  
Affective Empathy ◽  
Business Unit ◽  
Personal Interest ◽  
Functional Magnetic Resonance ◽  
Resonance Imaging ◽  
Management Accountants ◽  
Personal Interests

Research shows that management accountants’ role to support business unit managers’ decision-making may cause them to succumb to managers’ pressures to misreport. Using electroencephalographic (EEG) evidence, Eskenazi, Hartmann and Rietdijk (2016) demonstrate the role of automatic emotional mimicry, which drives misreporting when managers’ personal interest is at stake, but not when BU interest is at stake. In this study, we aim to replicate this finding using functional magnetic resonance imaging (fMRI), which enables us to separate affective from cognitive empathy. Thirty accounting professionals completed an emotion observation task during which empathy-related brain activity was recorded. We then explored accountants’ inclination to misreport using empathy-invoking accounting scenarios. We find that the inclination to misreport correlates with activation of cognitive empathy regions, but only for scenarios in which accountants misreport to serve business unit’s interests, rather than managers’ personal interests. We find no evidence for a role of affective empathy.

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