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Enabling performance measurement systems and managerial behaviour : the underlying drivers and mechanisms

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Abstract
A few decades ago, several performance measurement systems (PMSs) were developed. These systems have been rapidly adopted by many organizations. The reason for this fast integration was the publication of numerous success stories and a strong belief in the power of these systems to increase organizational profit. Although many success stories were revealed, failures were bound to follow. To improve the effectiveness of the PMSs the concept of enabling formalization has been introduced. An enabling formalization can contribute to the effectiveness of a PMS as it seeks to put employees in a position to deal with the inevitable contingencies in their work. The potential of an enabling PMS, combined with the lack of research on this concept, results in the focus of the first study in this dissertation. A case study research in two Belgian companies made it possible to investigate the conditions under which a PMS is perceived as enabling. This study revealed that the variables detected in previous research to create an enabling PMS are insufficient. More specifically, middle managers’ perception of the PMS as an enabling technology is also contingent on the mode of participation and their experienced participation congruence during the development process. Only when managers have true participation they will perceive the PMS as enabling. After having discovered the possibility of a PMS to be an enabling technology, the second study investigated whether and how managerial performance is affected by PMSs designed as an enabling technology. To build a research model, the study drew on the self-determination theory and described the motivational mechanisms that play a pivotal role in the relationship between a PMS and managerial performance. Structural equation modeling on questionnaire data obtained from 186 managers from different Belgian companies were used to get an indication on the research question. The results indicated the significance of an enabling PMS. An enabling PMS impacted performance indirectly, and this effect occurred through autonomous motivation. Our findings also demonstrated that controlled motivation had no significant explanatory power in the PMS-performance relationship. An enabling PMS can enhance managerial performance, however it are rewards that are seen as the organization’s most important motivational arsenal. Therefore, the third study in this dissertation investigated whether individual monetary rewards can have an effect on autonomous motivation when the organization uses an enabling PMS. This study, which made use of questionnaire data of 314 managers, revealed that organizations benefit from PMSs that are perceived to be highly enabling. The higher the degree of the enabling PMS, the less effective a fair individual monetary bonus was to enhance the level of autonomous motivation. In organizations where the PMS was perceived to be minimally enabling, the results indicated that the higher the level of perceived fairness of the individual monetary reward, the higher the level of autonomous motivation.
Keywords
Performance measurement system, motivation, enabling, autonomous motivation, rewards

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Chicago
Van der Hauwaert, Evelyn. 2014. “Enabling Performance Measurement Systems and Managerial Behaviour : the Underlying Drivers and Mechanisms”. Ghent, Belgium: Ghent University. Faculty of Economics and Business Administration.
APA
Van der Hauwaert, E. (2014). Enabling performance measurement systems and managerial behaviour : the underlying drivers and mechanisms. Ghent University. Faculty of Economics and Business Administration, Ghent, Belgium.
Vancouver
1.
Van der Hauwaert E. Enabling performance measurement systems and managerial behaviour : the underlying drivers and mechanisms. [Ghent, Belgium]: Ghent University. Faculty of Economics and Business Administration; 2014.
MLA
Van der Hauwaert, Evelyn. “Enabling Performance Measurement Systems and Managerial Behaviour : the Underlying Drivers and Mechanisms.” 2014 : n. pag. Print.
@phdthesis{5719000,
  abstract     = {A few decades ago, several performance measurement systems (PMSs) were developed. These systems have been rapidly adopted by many organizations. The reason for this fast integration was the publication of numerous success stories and a strong belief in the power of these systems to increase organizational profit. Although many success stories were revealed, failures were bound to follow. To improve the effectiveness of the PMSs the concept of enabling formalization has been introduced. An enabling formalization can contribute to the effectiveness of a PMS as it seeks to put employees in a position to deal with the inevitable contingencies in their work.
The potential of an enabling PMS, combined with the lack of research on this concept, results in the focus of the first study in this dissertation. A case study research in two Belgian companies made it  possible to investigate the conditions under which a PMS is perceived as enabling. This study revealed that the variables detected in previous research to create an enabling PMS are insufficient. More specifically, middle managers{\textquoteright} perception of the PMS as an enabling technology is also contingent on the mode of participation and their experienced participation congruence during the development process. Only when managers have true participation they will perceive the PMS as enabling. 
After having discovered the possibility of a PMS to be an enabling technology, the second study investigated whether and how managerial performance is affected by PMSs designed as an enabling technology. To build a research model, the study drew on the self-determination theory and described the motivational mechanisms that play a pivotal role in the relationship between a PMS and managerial performance. Structural equation modeling on questionnaire data obtained from 186 managers from different Belgian companies were used to get an indication on the research question. The results indicated the significance of an enabling PMS. An enabling PMS impacted performance indirectly, and this effect occurred through autonomous motivation. Our findings also demonstrated that controlled motivation had no significant explanatory power in the PMS-performance relationship.  
An enabling PMS can enhance managerial performance, however it are rewards that are seen as the organization{\textquoteright}s most important motivational arsenal. Therefore, the third study in this dissertation investigated whether individual monetary rewards can have an effect on autonomous motivation when the organization uses an enabling PMS. This study, which made use of questionnaire data of 314 managers, revealed that organizations benefit from PMSs that are perceived to be highly enabling. The higher the degree of the enabling PMS, the less effective a fair individual monetary bonus was to enhance the level of autonomous motivation. In organizations where the PMS was perceived to be minimally enabling, the results indicated that the higher the level of perceived fairness of the individual monetary reward, the higher the level of autonomous motivation.},
  author       = {Van der Hauwaert, Evelyn},
  keyword      = {Performance measurement system,motivation,enabling,autonomous motivation,rewards},
  language     = {eng},
  pages        = {XVII, 139},
  publisher    = {Ghent University. Faculty of Economics and Business Administration},
  school       = {Ghent University},
  title        = {Enabling performance measurement systems and managerial behaviour : the underlying drivers and mechanisms},
  year         = {2014},
}