The usefulness of management accounting systems, functional differentiation and managerial effectiveness

Mia, Lokman; Chenhall, Robert H.

doi:10.1016/0361-3682(94)90010-8

“…Consistent with previous CEO and business unit studies, several 0.001 of the informativeness variables are significant predictors of performance measurement choices. Manufacturing operations are negatively associated with the use of nonfinancial measures, supporting claims that nonfinancial measures are relatively more informative in service operations (Hayes 1977;Mia and Chenhall 1994). Plans used to support a continuous improvement strategy (CONTIMP) tend to use a mixture of financial and nonfinancial measures, as seen in the significant, positive relations in the SOME_NF and BUS_UNIT models and the negative relations in the WORKER and PROFIT models.…”

Section: Resultsmentioning

confidence: 75%

“…In service departments, activities are more heterogeneous and less standard, requiring a broader set of measures to evaluate performance. Mia and Chenhall (1994) offer similar arguments, claiming that marketing organizations are less routine and face more exceptions than production organizations, thereby requiring a more diverse set of performance measures.…”

Section: Informativenessmentioning

confidence: 98%

Determinants of Performance Measure Choices in Worker Incentive Plans

Ittner

¹

,

Larcker

²

2002

Journal of Labor Economics

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This study examines the determinants of performance measure choices in worker incentive plans. The results indicate that inform-ativeness issues such as those addressed in economic theories have a significant effect on measurement choices. However, other reasons for adopting the plans, such as upgrading the workforce and linking bonuses to the firm's ability to pay, also influence measurement choices, as do union representation and management participation in plan design. Moreover, the factors influencing the use of specific measures vary, suggesting that the aggregate performance measure classifications commonly used in compensation research provide somewhat misleading inferences regarding performance measurement choices. Disciplines AccountingThis journal article is available at ScholarlyCommons: http://repository.upenn.edu/accounting_papers/79 S58 [ Journal of Labor Economics, 2002, vol. 20 David F. Larcker, University of PennsylvaniaThis study examines the determinants of performance measure choices in worker incentive plans. The results indicate that informativeness issues such as those addressed in economic theories have a significant effect on measurement choices. However, other reasons for adopting the plans, such as upgrading the workforce and linking bonuses to the firm's ability to pay, also influence measurement choices, as do union representation and management participation in plan design. Moreover, the factors influencing the use of specific measures vary, suggesting that the aggregate performance measure classifications commonly used in compensation research provide somewhat misleading inferences regarding performance measurement choices.

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“…of the informativeness variables are significant predictors of performance measurement choices. Manufacturing operations are negatively associated with the use of nonfinancial measures, supporting claims that nonfinancial measures are relatively more informative in service operations (Hayes 1977;Mia and Chenhall 1994). Plans used to support a continuous improvement strategy (CONTIMP) tend to use a mixture of financial and nonfinancial measures, as seen in the significant, positive relations in the SOME_NF and BUS_UNIT models and the negative relations in the WORKER and PROFIT models.…”

Section: Correlations Among Predictor Variablesmentioning

confidence: 75%

Determinants Of Performance Measure Choices In Worker Incentive Plans

Ittner

¹

,

Larcker

²

2001

View full text Add to dashboard Cite

This study examines the determinants of performance measure choices in worker incentive plans. The results indicate that inform-ativeness issues such as those addressed in economic theories have a significant effect on measurement choices. However, other reasons for adopting the plans, such as upgrading the workforce and linking bonuses to the firm's ability to pay, also influence measurement choices, as do union representation and management participation in plan design. Moreover, the factors influencing the use of specific measures vary, suggesting that the aggregate performance measure classifications commonly used in compensation research provide somewhat misleading inferences regarding performance measurement choices. Disciplines AccountingThis journal article is available at ScholarlyCommons: http://repository.upenn.edu/accounting_papers/79 S58 [ Journal of Labor Economics, 2002, vol. 20 David F. Larcker, University of PennsylvaniaThis study examines the determinants of performance measure choices in worker incentive plans. The results indicate that informativeness issues such as those addressed in economic theories have a significant effect on measurement choices. However, other reasons for adopting the plans, such as upgrading the workforce and linking bonuses to the firm's ability to pay, also influence measurement choices, as do union representation and management participation in plan design. Moreover, the factors influencing the use of specific measures vary, suggesting that the aggregate performance measure classifications commonly used in compensation research provide somewhat misleading inferences regarding performance measurement choices.

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“…Penelitian Brownell (1983) menggunakan responden para manajer fungsional yang relatif heterogen dalam mempersepsikan tingkat ketidakpastian lingkungan yang dihadapi. Bukti empiris menunjukkan bahwa ketidakpastian lingkungan yang dihadapi oleh manajer pemasaran lebih tinggi daripada manajer produksi (Brownell, 1982 a ;Brownell dan Hirst, 1986;Mia dan Chenhall, 1994), sedangkan departemen penelitian dan pengembangan memiliki dinamisme lebih tinggi daripada departemen pemasaran (Brownell, 1985).…”

Section: Gaya Evaluasi Anggaranunclassified