The Unintended Consequences of Providing Weights on Objective Measures in Subjective Performance Evaluation Systems

Purpose The objectives of this study were to verify and group the unintended consequences (UCs) of performance evaluation systems (PESs) reported by empirical studies in the literature; and to determine whether these consequences manifest themselves at the managerial or the operational level of organisations. Design/methodology/approach A systematic review of the literature was undertaken using the intervention instrument Knowledge Development Process-Constructivist. In total, 33 scientifically relevant empirical articles were selected from the Scopus and Web of Science databases, representative of the theme of PESs’ UCs. The treatment of the data was due to critical reflection on the findings, synthesized in a literature map. Findings The study identified 24 UCs, most of which were negative. These were divided into two categories: feelings/emotions and attitudes/implications. Most conscious attitudes manifested themselves at the managerial level, whereas the unconscious ones appeared at the operational level. It was established that employees are more likely to be induced to adopt dysfunctional behaviours. Social aspects that interact with a PES, such as contextual and cultural factors, are fundamental for understanding how PES’s UCs occur. Originality/value The study provides insights for researchers and professionals in the field of performance evaluation who wish to delve deeper into the theme of UCs, based on the proposed structure of a literature map that consists of dividing consequences into feelings and attitudes; checking the occurrence level (managerial or operational); and identifying the nature of the attitude, whether it is conscious or unconscious.

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The Role of Calibration Committees in Subjective Performance Evaluation Systems

SSRN Electronic Journal ◽

10.2139/ssrn.2312467 ◽

2013 ◽

Author(s):

Karen L. Sedatole ◽

Alex Woods

Keyword(s):

Performance Evaluation ◽

Evaluation Systems ◽

Subjective Performance Evaluation

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Consistency and Organizational Justice: The Role of Calibration Committees in Subjective Performance Evaluation Systems

SSRN Electronic Journal ◽

10.2139/ssrn.2360076 ◽

2013 ◽

Author(s):

Karen L. Sedatole ◽

Alex Woods

Keyword(s):

Performance Evaluation ◽

Organizational Justice ◽

Evaluation Systems ◽

Subjective Performance Evaluation

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The Effects of Firm-Provided Measure Weightings on Evaluators' Incorporation of Non-Contractible Information

Journal of Management Accounting Research ◽

10.2308/jmar-50837 ◽

2014 ◽

Vol 27 (1) ◽

pp. 47-62 ◽

Cited By ~ 8

Author(s):

James H. Long ◽

Lasse Mertins ◽

Brian Vansant

Keyword(s):

Performance Evaluation ◽

Relative Weight ◽

Evaluation Systems ◽

Multiple Measures ◽

Subordinate Performance ◽

Subjective Performance Evaluation ◽

Overall Performance

ABSTRACT Subjective performance evaluation systems often prescribe for evaluators to use multiple measures to assess overall subordinate performance. Firms can choose to explicitly provide suggested weights to “balance” the relative weight evaluators place on each measure. However, we theorize that doing so may also affect evaluators' perceptions regarding the extent to which the firm intends for them to exercise subjectivity in their evaluations. We conducted an experiment in which evaluators use four measures to subjectively evaluate a subordinate's overall performance. Evaluators were also provided with relevant non-contractible information, although evaluators were not explicitly required to consider this information. We find that the provision of weights reduces the extent to which evaluators employ subjectivity to incorporate non-contractible information, which is manifested in larger outcome effects. Our results suggest firms should carefully consider what the structure and characteristics of their performance evaluation systems communicate to evaluators regarding the role of subjectivity.

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