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- The use of non-financial performance measures for managerial compensation: evidence from SMEsPublication . Alves, Iryna; Lourenço, Sofia M.This study explores the relationship between contextual variables—strategy, per ceived environmental uncertainty (PEU), and decentralization—and the use of non fnancial performance measures (NFPM) for managerial compensation in small and medium enterprises (SMEs). Using questionnaire data from SMEs’ managers, we fnd that the use of NFPM is positively associated with PEU hostility and decentrali zation. Furthermore, our study shows that these results are mostly driven by CEO’s compensation (in comparison to non-CEOs compensation) and family frms (in comparison to non-family frms). Finally, our analyses reveal that the use of diferent types of NFPM (customer-oriented, employee-oriented and operations-oriented) is associated with distinct contextual variables. Particularly, customer-oriented NFPM are negatively related to PEU dynamism and positively related to decentralization, while operations-oriented NFPM are positively related to PEU hostility.
- Subjective performance evaluation and managerial work outcomesPublication . Alves, Iryna; Lourenço, Sofia M.Organisations design performance evaluation systems to obtain desired work outcomes. Thisstudy analyses how subjective performance evaluation (SPE), a specific type of performanceevaluation, is related to managerial work outcomes—turnover intention, organisationalidentification, and performance. To this end, we consider two possible mechanisms:feedback quality and trust in the supervisor. Moreover, we also consider whether addingobjective performance measures to SPE alters these relationships. Based on questionnaire responses from 751 top executives and middle managers in small and medium enterprises,wefind that SPE is negatively related to feedback quality, but this effect is mitigated whenSPE is used jointly with objective performance measures. SPE is not directly related totrust in the supervisor when feedback quality is also considered in the analysis because thetwo mechanisms are inter-related—wefind a positive relationship between feedback qualityand trust in the supervisor. Both mechanisms are negatively related to turnover intention,but only trust in the supervisor is positively related to organisational identification. Finally,both turnover intention and organisational identification are positively related toperformance. Ourfindings suggest that companies using SPE can improve work outcomesby adding objective performance measures to their performance evaluation system.