Abstract
Feedback systems of key performance indicators (KPIs) are crucial for companies to monitor their goals. To stay successful and to improve performance, the employees of a company are a potential resource as they build the link between resources and outcome. A hidden assumption in goal-setting is that the employees feel to have full influence on KPIs. Hence, employees’ self-efficacy about believing in one’s own capabilities and expectations about being able to influence KPIs are needed for organizational performance as well as high job satisfaction and work engagement. The present study examined whether influence expectations on KPIs can predict job satisfaction and work engagement above and beyond professional self-efficacy. Results from 136 bank employees in Austria showed that job satisfaction can be predicted by professional self-efficacy and influence expectations on bank-specific KPIs. Furthermore, professional self-efficacy, influence expectations on economic KPIs, and the influence expectations of the branch manager predicted work engagement. This study contributes to the importance of employees’ belief in their own skills and in their influence on KPIs to be satisfied and engaged at work. Furthermore, it offers innovative and useful insights into the measurement of influence expectations.
Highlights
Are you able to associate your work tasks with the goals of your company? Key performance indicators (KPIs) as one way to get insight into business operations are crucial for companies to monitor their progress toward self-defined goals (Hester et al 2017), are relevant for management decisions (Collins et al 2016), can be used to give positive or negative feedback to employees and to improve in different areas (Behn 2003), and provide an overview of the company’s status (Maté et al 2017)
This study investigates the relationship between professional self-efficacy and influence expectations on KPIs with job satisfaction and work engagement
The smallest rating for all economic KPIs was found for influence expectations of the regional manager
Summary
Are you able to associate your work tasks with the goals of your company? Key performance indicators (KPIs) as one way to get insight into business operations are crucial for companies to monitor their progress toward self-defined goals (Hester et al 2017), are relevant for management decisions (Collins et al 2016), can be used to give positive or negative feedback to employees and to improve in different areas (Behn 2003), and provide an overview of the company’s status (Maté et al 2017). To give adequate feedback to the output of employees, many organizations have implemented feedback systems as monitoring systems that affect business units or branches and single employees (Behn 2003). The rationale behind this is simple, as these business units and branches nearly get the same resources and so should produce the same outcomes (Gelade and Young 2005). These branches can be compared to each other in reaching their goals. The link between the environmental resources and the outcome is the human factor, mostly associated with the assumption that more engaged employees are more eager
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