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Performance Measures and Employee Behaviors: Role Clarity as an Intervening Variable
Chong M. Lau,
The University of Western Australia
Erin A Berry, The University of Western Australia
Jaron S. Mitchell, The University of Western Australia
ABSTRACT. This study investigates employee behavioral outcomes from the use of nonfinancial measures for employee performance evaluations. Current interest in performance measurement systems (e.g. balanced scorecard) has emphasized the use of nonfinancial measures. This study attempts to ascertain whether the use of nonfinancial measures is beneficial. Based on the survey responses of 121 managers, the results indicate that nonfinancial measures affect employee behaviors indirectly through the enhancement of employee role clarity. They also indicate that while financial measures, per se, have little direct effect on employee behaviors, nonfinancial measures, per se, have significant direct effects on two important employee affects, namely, organizational commitment and job satisfaction.
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