Participation in the design of performance management systems: a quasi‐experimental field study

Abstract

AbstractIn the literature on the relationship between participation in decision making and performance, a tell‐and‐sell strategy is considered a viable alternative to participation. In contrast, we argue that in organizational settings, when a sensitive and important issue is at stake, participation of a form to be characterized as formal, long term, direct, and with a high degree of participant influence is more effective than a tell‐and‐sell strategy. Using a quasi‐experimental design with a participation, a tell‐and‐sell, and a control condition, a ProMES performance management system was implemented in the field service department of a Dutch supplier of photocopiers. Outcome feedback to individual technicians resulted in an average performance increase in the participation condition that was significantly higher than the increase found in the tell‐and‐sell condition. Satisfaction with the program, and the perceived usefulness of the feedback, were significantly higher in the participation condition. In both experimental conditions, the performance increase was significant compared to the control condition. An explanation for these findings is discussed, as are implications for theory and practice. Copyright © 2004 John Wiley & Sons, Ltd.