The Role of Performance Measure Noise in Mediating the Relation between Task Complexity and Outsourcing

2010 ◽  
Vol 22 (1) ◽  
pp. 75-102 ◽  
Author(s):  
Ge Bai ◽  
Freddy Coronado ◽  
Ranjani Krishnan

ABSTRACT: This paper examines the effect of task complexity on a firm’s decision to outsource and the mediating role of performance measure noise. Using insights from agency and transaction cost economics theories, we predict that task complexity reduces the extent of outsourcing of the task. We further predict that one reason for the negative relation between task complexity and outsourcing is that task complexity increases the noise in performance measures. Noisy performance measures introduce problems in incentive contracting with external vendors and, hence, decrease the extent of outsourcing. Data from 305 inpatient and 1,255 ancillary and outpatient departments of for-profit hospitals provide support for our prediction that performance measure noise mediates the relation between task complexity and outsourcing.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kevin Baird ◽  
Sophia Xia Su ◽  
Nuraddeen Nuhu

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.


2021 ◽  
Author(s):  
Anne M Lillis ◽  
Mary A. Malina ◽  
Julia Mundy

We examine how subjectivity in performance measurement and reward systems (PMRS) is used to mitigate incentive contracting risks. Drawing on data from 38 interviews with supervisory and subordinate managers in four firms, we provide a more comprehensive explanation of the role of subjectivity in risk mitigation than is evident in the prior literature. We provide empirical evidence of the importance firms place on the use of subjectivity to mitigate the risk of incentive misalignment and employee sorting errors relative to its welldocumented role in mitigating employee compensation risk. We find that incentive misalignment arising from unanticipated behavioral responses to performance measures is a particularly important risk, managed through subjective performance assessments. The extent of subjectivity we observe poses a significant risk of errors and bias. We observe that both vertical and horizontal information gathering and review by calibration panels are key strategies to mitigate the downside risk of subjectivity.


1988 ◽  
Vol 2 (1) ◽  
pp. 13-27 ◽  
Author(s):  
Vicki Ebbeck ◽  
Maureen R. Weiss

Two issues regarding the arousal-performance relationship in sport were addressed in this study: the relationship between task complexity, optimal arousal, and maximal performance, and the appropriateness of using various measures of performance. Data were collected from high school athletes (n=51) across four track and field meets. State anxiety was obtained prior to each performance and three performance measures were obtained (event results, and quality of performance evaluated by the athlete and by the coach). Results indicated that the three performance measures were not equally related to A-state, suggesting that the relationship between arousal and performance results in a different description depending upon the performance measure that is used. Furthermore, degree of task complexity could not be distinguished across various track and field events. When individual events were used to examine the arousal-performance/task complexity relationship, results revealed that level of A-state needed for maximal performance could not be differentiated for specific events, nor could it be determined for above average, average, or below average performances on any one event.


2010 ◽  
Vol 77 (2) ◽  
pp. 255-265 ◽  
Author(s):  
Abhishek Srivastava ◽  
Edwin A. Locke ◽  
Timothy A. Judge ◽  
John W. Adams

Author(s):  
Prem Bahadur Budhathoki ◽  
Chandra Kumar Rai

This study examined the mediating role of net interest margin (NIM) on the nexus between market structure and banks’ performance. Two ordinary least-squares models with a path analysis model were applied to analyze the data. The first regression model measured the indirect effects of market structure, total assets, geographic expansion, and specialization on ROA through NIM and revealed that the higher market share of loans positively effects on bank’s performance and statistically insignificant. Similarly, the geographic expansion was observed to hurt the bank’s ROA, but statistically insignificant. On the other hand, the indirect effect of total asset size and specialization was negative, but the first one was statistically significant, and the second was statistically insignificant. The result of the second regression model measured the direct effect of antecedent variables on the ROA and revealed that the market structure, geographic expansion, and specialization were negatively related to performance measure ROA. However, the direct effect of total assets size was positively related to ROA and statistically significant. The results of the two regression models based on total effects revealed that a higher bank size appeared favorable to Nepalese CBs and was found to have positive effects on ROA but the geographic expansion was a negative effect on ROA, and statistically significant. The results of the study might be helpful to Nepalese bankers, regularity authorities, and other concerned stakeholders to take an effective decision about the direct, indirect, and total effects of chosen antecedent variables on consequent variables through the mediating role of NIM.


2019 ◽  
Vol 33 (1) ◽  
pp. 16-30 ◽  
Author(s):  
Aswathy Asokan Ajitha ◽  
Piyush Sharma ◽  
Russel P.J. Kingshott ◽  
Upendra Kumar Maurya ◽  
Arshinder Kaur

Purpose The purpose of this paper is to contribute to transformative service research by drawing on self-determination, elicitation of emotions framework and feelings-as-information theories to explore how customer participation, task-related affective well-being, customer knowledge, task complexity and service outcomes relate with each other. Design/methodology/approach A synthesis of relevant literature on customer participation and customer well-being reveals a conceptual model with 11 testable propositions. Findings The conceptual model shows that task-related affective well-being mediates the link between customer participation and service outcomes. Moreover, customer knowledge and task complexity moderate these links. Research limitations/implications An empirically testable conceptual model models the roles of task-related affective well-being, customer knowledge and task complexity in the process by which customer participation influences service outcomes. Practical implications Service managers can use the model to design services based on the effects of different types of customer participation on task-related affective well-being. Originality/value This paper is one of the first to study the mediating role of task-related affective well-being in the relationship between customer participation and service outcomes. It does so by revealing the differential impact various types of participation have on service outcomes and the moderating role of customer knowledge and task complexity.


2013 ◽  
Vol 19 (10) ◽  
pp. 1109-1118 ◽  
Author(s):  
Siddharth Ramanan ◽  
Devvarta Kumar

AbstractProspective memory (PM) refers to the ability to remember to carry out an intended action in the future and it is pervasive in our daily living. A failure to execute an intended action (e.g., take medication) at the appropriate juncture in future (e.g., after dinner) can negatively affect our daily functioning and at times, may have devastating effects (e.g., forgetting to turn off the gas stove before leaving the house). Patients with Parkinson's disease (PD) exhibit widespread cognitive deficits including deficits in PM. The present study provides a meta-analytic review of PM in PD. Results across nine studies indicated time and event-based PM to be similarly impaired in PD, with time-based PM compromised to a slightly larger extent (Hedges’ g = −0.71) as compared to event-based PM (Hedges’ g = −0.55). The impairment in PM is more likely due to failure in self-initiated retrieval of intention to be executed, rather than forgetting the content of the intention itself. Furthermore, factors such as intervening task complexity and the mediating role of other executive functions have also been proposed to be responsible for impaired PM in PD. (JINS, 2013, 19, 1–10)


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