Input-based performance evaluation, incentive intensity, and proactive work behavior

Lan GUO, On Wing, Bernard WONG, Man Ching, Gladie LUI

Research output: Book Chapters | Papers in Conference ProceedingsBook ChapterResearchpeer-review

1 Scopus Citations

Abstract

Purpose - We examine how input- (vs. output-) based performance evaluation and incentive intensity impact employees’ autonomous motivation, thereby influence their proactive work behaviors. Methodology - We collected survey responses from 309 employees of different firms. Multi-group Structural Equation Modeling analyses were used to analyze the data. Findings - Input-based evaluation had a positive effect on autonomous motivation and proactive work behaviors when task uncertainty was high, but a negative effect when it was low. Autonomous motivation had a positive effect on proactive work behaviors. Research implications - Our results on the moderating effect of task uncertainty provide insights into inconsistencies in earlier studies. Moreover, applying self-determination theory of motivation to incentive research can provide some insights into why sometimes, incentives can negatively affect performance. Practical implications - The study of proactive work behaviors is important because despite their necessity in the fast-changing business environment, they are relatively unexplored in the incentive literature. Proactivity is especially important for tasks that are high in uncertainty because the exact tasks to achieve those goals are hard to specify. Originality/value of paper - We investigate the effect of performance management system on proactive work behaviors, mediated by autonomous motivation and moderated by task uncertainty.
Original languageEnglish
Title of host publicationAdvances in management accounting
PublisherEmerald
Pages185-223
Number of pages39
Volume22
ISBN (Print)9781781908426
DOIs
Publication statusPublished - 1 Jun 2013

Fingerprint

Incentives
Performance evaluation
Work behavior
Task uncertainty
Employees
Structural equation modeling
Performance management systems
Evaluation
Inconsistency
Moderating effect
Self-determination theory
Proactivity
Uncertainty
Methodology
Business environment

Keywords

  • Performance evaluation
  • incentive intensity
  • input-based evaluation
  • output-based evaluation
  • proactive behavior
  • self-determination theory

Cite this

GUO, L., WONG, O. W. B., & LUI, M. C. G. (2013). Input-based performance evaluation, incentive intensity, and proactive work behavior. In Advances in management accounting (Vol. 22, pp. 185-223). Emerald. https://doi.org/10.1108/S1474-7871(2013)0000022013
GUO, Lan ; WONG, On Wing, Bernard ; LUI, Man Ching, Gladie. / Input-based performance evaluation, incentive intensity, and proactive work behavior. Advances in management accounting. Vol. 22 Emerald, 2013. pp. 185-223
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GUO, L, WONG, OWB & LUI, MCG 2013, Input-based performance evaluation, incentive intensity, and proactive work behavior. in Advances in management accounting. vol. 22, Emerald, pp. 185-223. https://doi.org/10.1108/S1474-7871(2013)0000022013

Input-based performance evaluation, incentive intensity, and proactive work behavior. / GUO, Lan; WONG, On Wing, Bernard; LUI, Man Ching, Gladie.

Advances in management accounting. Vol. 22 Emerald, 2013. p. 185-223.

Research output: Book Chapters | Papers in Conference ProceedingsBook ChapterResearchpeer-review

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N2 - Purpose - We examine how input- (vs. output-) based performance evaluation and incentive intensity impact employees’ autonomous motivation, thereby influence their proactive work behaviors. Methodology - We collected survey responses from 309 employees of different firms. Multi-group Structural Equation Modeling analyses were used to analyze the data. Findings - Input-based evaluation had a positive effect on autonomous motivation and proactive work behaviors when task uncertainty was high, but a negative effect when it was low. Autonomous motivation had a positive effect on proactive work behaviors. Research implications - Our results on the moderating effect of task uncertainty provide insights into inconsistencies in earlier studies. Moreover, applying self-determination theory of motivation to incentive research can provide some insights into why sometimes, incentives can negatively affect performance. Practical implications - The study of proactive work behaviors is important because despite their necessity in the fast-changing business environment, they are relatively unexplored in the incentive literature. Proactivity is especially important for tasks that are high in uncertainty because the exact tasks to achieve those goals are hard to specify. Originality/value of paper - We investigate the effect of performance management system on proactive work behaviors, mediated by autonomous motivation and moderated by task uncertainty.

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GUO L, WONG OWB, LUI MCG. Input-based performance evaluation, incentive intensity, and proactive work behavior. In Advances in management accounting. Vol. 22. Emerald. 2013. p. 185-223 https://doi.org/10.1108/S1474-7871(2013)0000022013