Mandy M Cheng
The University of New South Wales
Peter F. Luckett
The University of New South Wales
Abstract: Recently there has been great interest in the use of multiple performance management systems, such as the Balanced Scorecard approach, at all organizational levels, including the "personal scorecard" for individual employees. But while multiple-measures approach have much appeal, some have raised questions about the ability of individuals to integrate scorecard measures effectively when formulating task strategies and evaluating overall performance (e.g. Ittner and Larcker 1998).
In this paper, we examine impact of varying the number of goal-related performance measures in an individual personal scorecard on task performance. Subjects were given one of three alternative personal scorecards (one, two or four goal-related performance measures). We found that when overall performance is decomposed into two more-specific measures relating to two important sub-gaols of the task, performance improved. When, however, two further, redundant measures were added to the scorecard, performance declined. In addition, the group with the highest level of task performance experienced the lowest level of perceived goal conflict.
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