Complexity of performance measures and decision quality

International Journal of Applied Decision Sciences

Volumn 3, Issue 4, 2010, Pages 311-337

  Kunz, Jennifer ^a  

^a GOETHE UNIVERSITY   (Germany)

Author keywords

Cognitive restrictions; Cognitively restricted decision makers; Complexity; Decision quality; Experience based learning; Goal reflection; Incentives; Performance measurement; Performance measures; Simulation based research

Indexed keywords

EID: 78349298706     PISSN: 17558077     EISSN: 17558085     Source Type: Journal    
DOI: 10.1504/IJADS.2010.036850     Document Type: Article

References (45)

1. Arya, A., Fellingham, J.C. and Schroeder, D.A. (2004) 'Aggregation and measurement errors in performance evaluation', Journal of Management Accounting Research, Vol. 16, pp.93-105.
2. Baimann, S. and Demski, J. (1980) 'Economically optimal performance evaluation and control systems', Journal of Accounting Research, Vol. 18, pp.184-220, Supplement.
3. Baker, G. (2002) 'Distortion and risk in optimal incentive contracts', in Journal of Human Resources, Vol. 37, pp.728-751.
4. Bessire, D. and Baker, C.R. (2005) 'The French Tableau de Bord and the American balanced scorecard: A critical analysis', Critical Perspectives on Accounting, Vol. 16, pp.645-664.
5. Bouwens, J. and van Lent, L. (2006) 'Performance measure properties and the effect of incentive contracts', Journal of Management Accounting Research, Vol. 18, pp.55-75.
6. Bower, G.H. and Hilgard, E.R. (1998) Theories of Learning, 5th ed., Prentice-Hall, New Jersey.
7. Carley, K. (1992) 'Organizational learning and personnel turnover', Organization Science, Vol. 3, pp.20-46.
8. Cyert, R.M. and March, J.G. (1963) A Behavioral Theory of the Firm, Blackwell, Englewood Cliffs.
9. Eccles, R.G. (1991) 'The performance measurement manifesto', Harvard Business Review, Vol. 69, pp.131-137.
10. Eppler, M.J. and Mengis, J. (2004) 'The concept of information overload: A review of literature from organization science, accounting, marketing, MIS, and related disciplines', The Information Society, Vol. 20, pp.325-344.
11. Feltham, G.A. and Xie, J. (1994) 'Performance measure congruity and diversity in multi-task principal/agent relations', The Accounting Review, Vol. 69, pp.429-453.
12. Franco, M. and Bourne, M. (2003) 'Factors that play a role in 'management through measures'', Management Decision, Vol. 41, pp.698-710.
13. George, J.M. and Jones, G. (2005) Understanding and Managing Organizational Behavior, 4th ed., Prentice Hall, Upper Saddle River.
14. Herriott, S.R., Levinthal, D. and March, J.G. (1985) 'Learning from experience in organizations', American Economic Review, Vol. 75, pp.298-302.
15. Hirst, M.K. (1981) 'Accounting information and the evaluation of subordinate performance: A situational', The Accounting Review, Vol. 56, pp.771-784.
16. Holmqvist, M. (2004) 'Experimental learning processes of exploitation and exploration within and between organizations: An empirical study of product development', Organization Science, Vol. 15, pp.70-81.
17. Hopwood, A.G. (1972) 'An empirical study of the role of accounting data in performance evaluation, Journal of Accounting Research, Vol. 10, pp.156-182, Supplement.
18. Hopwood, A.G. (1974) Accounting and Human Behavior, Prentice Hall, Englewood Cliffs.
19. Hoque, Z. (2003) 'Total quality management and the balanced scorecard approach: A critical analysis of their potential relationships and directions for research', Critical Perspectives on Accounting, Vol. 14, pp.553-556.
20. Ittner, C.D. and Larcker, D.F. (1998) 'Innovations in performance measurement: trends and research implications', Journal of Management Accounting Research, Vol. 10, pp.205-238.
21. Kaplan, R.S. and Norton, D.P. (1992) 'The balanced scorecard - measures that drive performance', Harvard Business Review, Vol. 70, pp.71-79.
22. Kaplan, R.S. and Norton, D.P. (1996) The Balanced Scorecard: Translating Strategy into Action, Harvard Business School Press, Boston.
23. Kerr, S. (1975) 'On the folly of rewarding A, while hoping for B', Academy of Management Journal, Vol. 18, pp.769-783.
24. Kolb, D.A. (1984) Experiential Learning: Experience as the Source of Learning and Development, Prentice-Hall, Englewood Cliffs.
25. Lambert, R.A. and Larcker, D.F. (1987) 'An analysis of the use of accounting and market measures of performance in executive compensation contracts', Journal of Accounting Research, Vol. 25, pp.85-125, Supplement.
26. Lant, T.K. and Mezias, S.J. (1992) 'An organizational learning model of convergence and reorientation', Organization Science, Vol. 3, pp.47-71.
27. March, J.G. and Olsen, J.P. (1975) 'The uncertainty of the past: Organizational learning under uncertainty', European Journal of Political Research, Vol. 3, pp.147-171.
28. March, J.G. and Simon, H.A. (1958) Organizations, John Wiley& Sons, New York.
29. March, J.G. (1991) 'Exploration and exploitation in organizational learning', Organization Science, Vol. 2, pp.71-87.
30. Marr, B. and Schiuma, G. (2003) 'Business performance measurement - past, present and future', Management Decision, Vol. 41, pp.680-687.
31. McWhorter, L.B. (2003) 'Does the balanced scorecard reduce information overload', Management Accounting Quarterly, Vol. 4, pp.23-27.
32. Merchant, K.A. (1990) 'The effects of financial control on data manipulation and management Myopia', Accounting, Organizations and Society, Vol. 15, pp.297-313.
33. Neely, A., Richards, H., Mills, J., Platts, K. and Bourne, M. (1997) 'Designing performance measures: A structured approach', International Journal of Operations& Production Management, Vol. 17, pp.1131-1152.
34. Otley, D.T. (1978) 'Budget use and managerial performance', Journal of Accounting Research, Vol. 16, pp.122-149.
35. Otley, D.T. (2003) 'Management control and performance management: Whence and Whither?', The British Accounting Review, Vol. 35, pp.309-326.
36. Prendergast, C. and Topel, R. (1993) 'Discretion and bias in performance evaluation', European Economic Review, Vol. 37, pp.355-365.
37. Purdy, J.E., Markham, M.R., Schwartz, B.L. and Gordon, W.C. (2001) Learning and Memory, 2nd ed., Wadsworth, Belmont et al.
38. Raghu, T.S., Sen, P.K. and Rao, H.R. (2003) 'Relative performance of incentive mechanisms: computational modeling and simulation of delegated investment decisions', Management Science, Vol. 49, pp.160-178.
39. Randolph, R. (1977) 'Indikatoren und Bedürfnisse - Zur Grundlegung einer pragmalogischen Indikatormethode nebst Anwendung auf die Bedürfnisforschung', Stachowiak, H. (Ed.): Werte, Ziele und Methoden der Bildungsplanung - Ein Diskussionsbeitrag jenseits von Utopie und Ad-hoc-Pragmatismus, pp.165-199.
40. Rappaport, A. (1998) Creating Shareholder Value, Free Press, New York.
41. Ridgway, V.F. (1956) 'Dysfunctional consequences of performance measurements', Administrative Science Quarterly, Vol. 1, pp.240-247.
42. Rogerson, W.P. (1997) 'Intertemporal cost allocation and managerial investment incentives: A theory explaining the use of economic value added as a performance measure', Journal of Political Economy, Vol. 105, pp.770-795.
43. Stern, J.M., Stewart, G.B. and Chew, D.H. (1995) 'The EVA financial management system', Journal of Applied Corporate Finance, Vol. 8, pp.32-46.
44. Stewart, G.B. (1991) The Quest for Value: The EVA Management Guide, Harper Business, New York.
45. Stocks, M.H. and Harrell, A. (1995) 'The impact of an increase in accounting information level on the judgement quality of individuals and groups', Accounting, Organizations and Society, Vol. 20, pp.685-700.