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Performance measures, consensus on strategy implementation, and performance: Evidence from the operational-level of organizations

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  • Ho, Joanna L.Y.
  • Wu, Anne
  • Wu, Steve Y.C.

Abstract

In this article, we examine how consensus between operational-level managers and employees on strategy implementation affects the effectiveness of performance measures and employee performance. We use field-based surveys and proprietary archival data from a Taiwanese financial services company to answer our research questions. Consistent with the predictions of person–organization fit theory, we find that consensus on the implementation of the customer-oriented strategy is positively associated with frontline employees’ performance. Our results also indicate that the incentive effect of using performance measures in performance evaluation and promotion is stronger for employees with a higher level of consensus. Our findings suggest that consensus is critical to the success of an organization’s strategy implementation and the effectiveness of performance measures.

Suggested Citation

  • Ho, Joanna L.Y. & Wu, Anne & Wu, Steve Y.C., 2014. "Performance measures, consensus on strategy implementation, and performance: Evidence from the operational-level of organizations," Accounting, Organizations and Society, Elsevier, vol. 39(1), pages 38-58.
    • Handle: RePEc:eee:aosoci:v:39:y:2014:i:1:p:38-58
    DOI: 10.1016/j.aos.2013.11.003
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    8. Lorino, Philippe & Mourey, Damien & Schmidt, Géraldine, 2017. "Goffman's theory of frames and situated meaning-making in performance reviews. The case of a category management approach in the French retail sector," Accounting, Organizations and Society, Elsevier, vol. 58(C), pages 32-49.
    9. Kiehne Jan & Ceausu Ioana & Arp Ann-Katrin & Schüler Timm, 2017. "Middle management’s role in strategy implementation projects: a behavioral analysis," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 11(1), pages 539-549, July.
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    11. Sharul Effendy Janudin & Farahaini Mohd Hanif & Noor Shafeeza Zainuddin, 2016. "Developing Contemporary Performance Measurement System Performance Model for Co-operatives in Malaysia: Is it Necessary?," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(11), pages 436-448, November.
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    14. Fallahnejad Ali & Nazari Reza & Fard Mehdi Moradzadeh, 2023. "Analysis of the Relationship Between the Development of Performance Criteria and Job Performance of Employees with Respect to the Mediating Role of Employee Participation," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 33(2), pages 1-26, June.
    15. Carl Deschamps, 2019. "Stages of management control in a large public organization: from top to frontline managers," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(2), pages 153-184, July.
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