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Title:	Assessing the relationships among performance measures properties, distributive and procedural justice, and managerial performance
Authors:	Mohammed Sadeq Mahyoub Alsharabi (P76560)
Supervisor:	Rozita Amiruddin, Dr.
Keywords:	Business logistics -- Management
Issue Date:	Jul-2018
Description:	As an integral part of management control system (MCS), performance measurement systems (PMS) used in performance evaluation process can influence the manager's behavior towards enhancing his/her performance through the assessment of the achievement of the indicated performance measures. To be an effective control mechanism, the performance measures of PMS must have the capabilities to influence managers behaviors towards desired organizational goals which in line with the central tenet of MCS. Literature has suggested that (1) controllability, (2) completeness, (3) congruity, and (4) manipulability are the properties of objective performance measures to be qualified to influence managers' behavior towards the desired goals. However, the performance measures used in the process of performance evaluation also must be perceived as fair by managers to achieve the intended managers' behavior. This study examines the effect of properties of objective performance measures on managerial performance, and these properties in relation to perceptions of distributive and procedural justice on managerial performance. Data are obtained through a mailed questionnaire survey distributed to departmental managers in large size companies listed in the directory of Federation of Malaysian Manufacturers (FMM). Besides the importance of manufacturing sector to Malaysia economy, the diversity and complexity of processes and cost structure entail manufacturing companies to place greater concern on their PMS and make this sector an appropriate site for this study. A total of 105 departmental managers participated in this survey. Using Structural Equation Modeling (SEM) with SmartPLS Version 3, the results reveal that controllability and completeness of performance measures are positively associated with managers' perceptions of distributive justice. On the other hand, only completeness of performance measures is positively associated with managers' perceptions of procedural justice. Both distributive and procedural justice are not significantly related to managerial performance. All the properties of objective performance measures also are not significantly related to managerial performance. The results suggest that controllability and completeness are the main performance measures properties that enhance manager's perception of justice in performance evaluation process. Therefore, the company should aware and consider these two properties when designing objective performance measures for evaluating managers' performances for controlling purposes. However, the insignificant result between the perception of justice and managerial performance indicates that perception of justice is not strong enough to motivate manager's behavior which requires other motivational factors or control element to intensify the motivational effect. Future research should be conducted to explain the relationship between distributive and procedural justice and managerial performance so that companies would benefit from the findings in achieving the desired impact on managerial performance.,“Certification of Master's/Doctoral Thesis” is not available,Master of Accounting
Pages:	122
Call Number:	HD39.5.A449 2018 tesis
Publisher:	UKM, Bangi
Appears in Collections:	Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan

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