Perceived controllability and fairness in performance evaluation

Eduardo Schiehll*, Suzanne Landry

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

1 Citation (Scopus)
28 Downloads (Pure)

Abstract

We investigated the effects of environmental uncertainty, decentralization of decisions rights, and the use of subjective performance measures on managers’ perceptions of outcome controllability and performance evaluation fairness. Based on a survey of 339 middle- and upper- level managers, our results suggest that environmental uncertainty adversely affects perceptions of outcome controllability and that this effect is not moderated by the decentralization of decision rights. Our results also show a positive association between perceived controllability and performance evaluation fairness. Although we found no direct effect of the use of subjective performance measures on perceived performance evaluation fairness, it appears to moderate the positive effect of perceived controllability on fairness. We also show that the positive effect of the use of subjective measures may depend on contextual and job-related factors. The overall results underscore the need to consider the organizational context (environmental uncertainty and decentralization of decision rights) to investigate how performance measures affect perceived controllability and fairness. Because perceived controllability and fairness affect individual attitudes and behaviors within an organization, our results have important implications for the design and use of performance evaluation systems.

Translated title of the contributionPerceived controllability and fairness in performance evaluation
Original languageSpanish
Pages (from-to)484-503
Number of pages20
JournalRevista Brasileira de Gestao de Negocios
Volume16
Issue number52
DOIs
Publication statusPublished - 1 Jan 2014
MoE publication typeA1 Journal article-refereed

Keywords

  • Controllability
  • Decentralization
  • Environmental uncertainty
  • Performance evaluation fairness
  • Subjective measures

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