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Usage of performance measurement and evaluation systems : the impact of evaluator characteristics

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  • Gelderman, Maarten

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

Abstract

This paper discusses the relation between characteristics of the evaluating manager and the way performance measurement and evaluation information is used. First a discussion is provided about the dependent variable. It is recognized that categorization into archetypes (e.g., evaluative styles) is unsatisfactory. Instead the information content/emphasis dimensions financial-non- financial, quantitative-qualitative, process-outcome, past-future and external-internal, along with the dimension flexibility-rigidity of information usage are proposed. An investigation is made of the relation between the scores on those dimensions and char-acteristics of the evaluator. Managers with an external locus of control are supposed to use less information in general, but to use more external information, this latter effect may even be so large that the first effect is obfuscated. Managers with an internal locus of control will particularly em- phasize non-financial, external, process and future-oriented information. Need for achievement will increase the amount of information-in particular quantitative and process information-used and the rigidity with which this information is used. Managers with low tolerance will use more information, as long as this information is not ambiguous and the source is traditional. This implies a preference for quantitative and financial information. Risk aversion will result in the us-age of more information and in particular process oriented information. Managers with previous experience in the function of the evaluatee will place more emphasis on non-financial and process information. Finally, managers will pass on the information preferences of their own superiors .

Suggested Citation

  • Gelderman, Maarten, 1998. "Usage of performance measurement and evaluation systems : the impact of evaluator characteristics," Serie Research Memoranda 0017, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    • Handle: RePEc:vua:wpaper:1998-17
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    References listed on IDEAS

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    1. Hopwood, Ag, 1972. "Empirical Study Of Role Of Accounting Data In Performance Evaluation," Journal of Accounting Research, Wiley Blackwell, vol. 10, pages 156-182.
    2. Fisher, Cathy, 1996. "The impact of perceived environmental uncertainty and individual differences on management information requirements: A research note," Accounting, Organizations and Society, Elsevier, vol. 21(4), pages 361-369, May.
    3. Das, Hari, 1986. "Organizational and decision characteristics and personality as determinants of control actions: A laboratory experiment," Accounting, Organizations and Society, Elsevier, vol. 11(3), pages 215-231, May.
    4. Hopwood, Ag, 1972. "Empirical Study Of Role Of Accounting Data In Performance Evaluation - Reply," Journal of Accounting Research, Wiley Blackwell, vol. 10, pages 189-193.
    5. Otley, Dt, 1978. "Budget Use And Managerial Performance," Journal of Accounting Research, Wiley Blackwell, vol. 16(1), pages 122-149.
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    Cited by:

    1. Bogt, H.J. ter, 2000. "Politicians, output-budgets and performance evaluation : case research in three Dutch municipalities," Research Report 00A11, University of Groningen, Research Institute SOM (Systems, Organisations and Management).

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    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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