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The effect of fairness perception of performance measurement in the balanced scorecard environment

Aryani, Y Anni (2009) The effect of fairness perception of performance measurement in the balanced scorecard environment. PhD thesis, Victoria University.

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Abstract

Prior studies have identified problems with traditional management control and performance measurement systems to evaluate managerial and business unit performance (Kaplan and Norton, 1996; Olve, Roy, and Wetter, 1999). One response has been the use of the balanced scorecard (BSC) to provide a more causal-linked comprehensive set of financial and non-financial measures of performance. However, recent research suggests the use of the BSC has its own difficulties including one referred to as common-measure bias (Lipe and Salterio, 2000); accordingly the benefits of the BSC cannot be fully exploited. Drawing on organisational justice theories, this study proposes a fairness model to help overcome the problem of common-measure bias found by Lipe and Salterio (2000) in the BSC environment. Using the concepts of fairness perception, divisional/unit manager participation and interpersonal trust between the parties involved in the performance evaluation process, the model investigates issues associated with common-measure bias in the context of a BSC environment. This fairness model provides a review of the relationship between the drivers of fairness perception, which include participation, procedural justice, and distributive justice on the performance measurement in a BSC environment, and the interpersonal trust between parties involved in the performance evaluation process. The effects of those variables on managerial performance also are considered.

Item Type: Thesis (PhD thesis)
Uncontrolled Keywords: fairness perception, performance measurement, business unit performance, balanced scorecard, BSC
Subjects: Faculty/School/Research Centre/Department > School of Accounting
RFCD Classification > 350000 Commerce, Management, Tourism and Services
Depositing User: Ms Lyn Wade
Date Deposited: 14 Oct 2009 04:27
Last Modified: 23 May 2013 16:41
URI: http://vuir.vu.edu.au/id/eprint/15214
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