The Roles of Organizational Politics and Fairness in the Relationship between Performance Management Systems and Trust

2015 ◽  
Vol 27 (1) ◽  
pp. 25-53 ◽  
Author(s):  
Chong M. Lau ◽  
Glennda Scully
Keyword(s):  
Performance Management ◽  
Performance Measures ◽  
Organizational Politics ◽  
Measurement Systems ◽  
Fairness Perceptions ◽  
Mediating Role ◽  
Perceptions Of Fairness ◽  
Performance Measurement Systems ◽  
Financial Performance Measures ◽  
The Relationship

ABSTRACT Organizational politics is ubiquitous in organizations. Yet to date, no prior research has investigated, in a systematic empirical manner, the mediating role of organizational politics in performance measurement systems. The primary purpose of this research is to investigate if perceptions of organizational politics mediate the relationships between performance measures and employees' trust in their superiors. As organizational politics may also affect employees' perceptions of fairness, a model is used to investigate (1) if performance measures affect organizational politics; (2) if organizational politics, in turn, affects procedural and interpersonal fairness; and (3) if fairness perceptions subsequently affect trust in superiors. Based on a sample of 104 responses, the partial least squares results indicate that organizational politics and fairness perceptions significantly mediate the nonfinancial performance measures and trust relationship. In contrast, the results indicate that the mediating effects of organizational politics and fairness on the relationship between financial performance measures and trust are generally insignificant.

The mediating role of fairness on the effectiveness of strategic performance measurement systems

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kevin Baird ◽  
Sophia Xia Su ◽  
Nuraddeen Nuhu
Keyword(s):  
Performance Appraisal ◽  
Human Resource ◽  
Performance Measures ◽  
Content Type ◽  
Strategic Performance ◽  
Measurement Systems ◽  
Mediating Role ◽  
Performance Measurement Systems ◽  
Insight Into

PurposeThis study examines the mediating role of the fairness of performance appraisal on the association between the extent of use of strategic performance measurement systems (SPMSs) with SPMS effectiveness.Design/methodology/approachData were collected using an online survey distributed to 656 Australian middle and lower level managers.FindingsThe findings reveal that informational fairness mediates the association between SPMSs (link to value drivers and the use of multidimensional performance measures) with performance-related outcomes; procedural fairness mediates the association between SPMSs (link to strategy and the use of multidimensional performance measures) with staff-related outcomes and distributive fairness mediates the association between the use of SPMSs (all three types) with both performance and staff-related outcomes.Originality/valueThe study provides a unique insight into the importance of fairness (the distributive, informational and procedural fairness of the performance appraisal system) in mediating the associations between the extent of use of SPMSs and SPMS effectiveness. The findings contribute to the human resource management (HRM) “black box” literature by providing an insight into the behavioural mechanism through which a specific human resource management practice (i.e. the SPMS) influences organisational performance.

Strategy, Choice of Performance Measures, and Performance

2006 ◽  
Vol 18 (1) ◽  
pp. 185-205 ◽  
Author(s):  
Wim A. Van der Stede ◽  
Chee W. Chow ◽  
Thomas W. Lin
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Manufacturing Strategy ◽  
Measurement Systems ◽  
Nonfinancial Measures ◽  
Performance Measurement Systems ◽  
And Performance ◽  
The Relationship ◽  
Positive Effect ◽  
Extensive Performance

We examine the relationship between quality-based manufacturing strategy and the use of different types of performance measures, as well as their separate and joint effects on performance. A key part of our investigation is the distinction between financial and both objective and subjective nonfinancial measures. Our results support the view that performance measurement diversity benefits performance as we find that, regardless of strategy, firms with more extensive performance measurement systems—especially those that include objective and subjective nonfinancial measures—have higher performance. But our findings also partly support the view that the strategy-measurement “fit” affects performance. We find that firms that emphasize quality in manufacturing use more of both objective and subjective nonfinancial measures. However, there is only a positive effect on performance from pairing a qualitybased manufacturing strategy with extensive use of subjective measures, but not with objective nonfinancial measures.

Knowledge assets, capabilities and performance measurement systems: a resource orchestration theory approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kaveh Asiaei ◽  
Zabihollah Rezaee ◽  
Nick Bontis ◽  
Omid Barani ◽  
Noor Sharoja Sapiei
Keyword(s):  
Performance Measurement ◽  
Corporate Performance ◽  
Equation Modeling ◽  
Knowledge Assets ◽  
Content Type ◽  
Knowledge Resources ◽  
Measurement Systems ◽  
Resource Orchestration ◽  
Performance Measurement Systems ◽  
The Relationship

Purpose The pivotal role of knowledge management (KM) and its extensive implications have been debated in the academic literature with insufficient focus on its link to particular organizational control mechanisms such as performance measurement systems (PMS). To bridge this gap and building on resource orchestration theory, this paper aims to investigate the relationships between KM factors, PMS and corporate performance. Design/methodology/approach Based on a survey data set of 92 listed companies in Iran, the framework and hypotheses were tested using structural equation modeling (SEM) based on partial least squares (PLS). Findings The SEM-PLS results indicate that knowledge assets are significantly associated with both PMS and corporate performance while knowledge process capabilities (KPC) are not significantly associated with PMS and corporate performance. This study also shows that PMS mediates the relationship between knowledge assets and corporate performance. Practical implications The results suggest that the use of appropriate management control systems plays an effective role in synchronizing, aligning and orchestrating a company’s various knowledge resources, which, in turn, can lead to superior overall performance. Originality/value Building on a unique synthesis of resource orchestration theory and the knowledge-based view of the firm, the results of this study provide the first empirical evidence on how PMS intervenes in the relationship between knowledge resources (knowledge assets and KPC) and corporate performance.

Bullying and turnover intentions: how creative employees overcome perceptions of dysfunctional organizational politics

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dirk De Clercq ◽  
Tasneem Fatima ◽  
Sadia Jahanzeb
Keyword(s):  
Organizational Climate ◽  
Workplace Bullying ◽  
Turnover Intentions ◽  
Organizational Politics ◽  
Content Type ◽  
Organizational Environments ◽  
Mediating Role ◽  
The Relationship ◽  
Moderating Role

PurposeThis study seeks to unpack the relationship between employees' exposure to workplace bullying and their turnover intentions, with a particular focus on the possible mediating role of perceived organizational politics and moderating role of creativity.Design/methodology/approachThe hypotheses are tested with multi-source, multi-wave data collected from employees and their peers in various organizations.FindingsWorkplace bullying spurs turnover intentions because employees believe they operate in strongly politicized organizational environments. This mediating role of perceived organizational politics is mitigated to the extent that employees can draw from their creative skills though.Practical implicationsFor managers, this study pinpoints a critical reason – employees perceive that they operate in an organizational climate that endorses dysfunctional politics – by which bullying behaviors stimulate desires to leave the organization. It also reveals how this process might be contained by spurring employees' creativity.Originality/valueThis study provides novel insights into the process that underlies the connection between workplace bullying and quitting intentions by revealing the hitherto overlooked roles of employees' beliefs about dysfunctional politics and their own creativity levels.

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