Abstract
AbstractWe examine whether the quality of performance metrics affects informal peer monitoring and, in turn, goal commitment. By fostering performance‐oriented behaviours, performance metrics drive managers to involve themselves in learning and improvement efforts, building a fertile atmosphere for informal peer monitoring. We argue that the quality of performance metrics is positively associated with direct peer monitoring and negatively linked to indirect peer monitoring. Subsequently, we postulate that direct (indirect) peer monitoring is positively (negatively) associated with goal commitment. We use partial least squares (PLS) to analyse survey data from store managers in a large retail firm. Results provide overall support for our hypotheses.
Highlights
In this paper we provide a comprehensive analysis of the relation between the quality of performance metrics, peer monitoring, and goal commitment
We show that the use of performance metrics can create a feedback-rich environment, bringing stimulus to encourage employees to directly discuss how peers do their job, praise peers whose performance is above expectations, and to note those who make mistakes
The aim of this study was to examine the impact of the quality of performance metrics on peer monitoring and its consequences on goal commitment
Summary
In this paper we provide a comprehensive analysis of the relation between the quality of performance metrics, peer monitoring, and goal commitment. Performance metrics quality includes properties such as evaluation and rewards, clarity, attainability, controllability, precision, prioritized objectives, and cooperation. Prior work provides broad support for the determinant effect of the employee’s perception of performance metrics quality on the importance attributed to goal attainment (Webb, 2004; Locke and Latham, 2006; Merchant and Van der Stede, 2012; Aranda et al, 2014). Organizations attempt to integrate formal controls, such as performance metrics, with other informal controls in order to improve employees’ motivation toward the achievement of strategic objectives (e.g., Jørgensen and Messner, 2009; Frow et al, 2010; Kennedy and Widener, 2019). Since informal control can influence performance, acting as effective control tools, management (principals) can purposefully shape it (De Jong et al, 2014; Cardinal et al, 2017; Gackstatter et al, 2019)
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
