An Empirical Study of the Behavioral Consequences of Performance Measures in French Organizations

Chong M. Lau, The University of Western Australia
Brigitte Olger, Universite Paris Sorbonne

ABSTRACT. Recent interest in nonfinancial measures has led to the widespread adoption of such measures which is fast becoming a global phenomenon. However, due to the lack of systematic empirical studies, organizations are relying mainly on anecdotal evidence and normative literature that such measures are indeed beneficial. In order to address this gap, this study investigates systematically the behavioral consequences of such measures. Specifically, it evaluates the process by which such measures affects employee behaviors. Based on a sample of 60 French managers, the results indicate that the use of nonfinancial measures is positively related to employee job satisfaction. In contrast, financial measures are negatively related to job satisfaction.

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