Fairness of performance evaluation procedures and job satisfaction: the role of outcome-based and non-outcome based effects

Prior management accounting studies on fairness perceptions have overlooked two important issues. First, no prior management accounting studies have investigated how procedural fairness, by itself, affects managers' job satisfaction. Second, management accounting researchers have not demonstrated how conflicting theories on procedural fairness can be integrated and explained in a coherent manner. Our model proposes that fairness of procedures for performance evaluation affects job satisfaction through two distinct processes. The first is out-come-based through fairness of outcomes (distributive fairness). The second is non-outcome-based through trust in superior and organisational commitment. Based on a sample of 110 managers, the results indicate that while procedural fairness perceptions affect job satisfaction through both processes, the non-outcome-based process is much stronger than the outcome-based process. These results may be used to develop a unified theory on procedural fairness effects

Audit committees and internal auditors: Using LMX for relationship analysis

The purpose of this paper is to provide a theoretically-informed meaning for the ‘quality of the audit committee-internal auditor relationship’ construct and to provide a new instrument for its measure. Leader-Member Exchange Theory (LMX theory) is widely accepted in the management communication and management literature as one which can be used to explain the development of a leader-member relationship and the quality of such a relationship. The analysis will be grounded in the LMX literature, and in understanding of the relationship between the audit committee and internal auditors. This paper is a contribution to the literature as such application of LMX is a newly theorised initiative to enable researchers to improve our understandings of this important corporate relationship. The output of this analysis can be used for research which evaluates the quality of the audit committee-internal auditor relationship (AC-IA relationship)

Using quality of life to evaluate outcomes and measure effectiveness

Evaluating the outcomes achieved by service providers who assist people with intellectual disabilities is extremely important in terms of ascertaining whether service providers achieve their goals. Furthermore, knowledge of the outcomes achieved by service providers better equips those charged with managing them to make strategic decisions to fulfill their accountability obligations for the best use of limited resources. The authors provide support for the emerging view that quality of life is an outcome measure that can be utilized to assess service providers' performance. To do this they modified a performance measurement framework to illustrate how quality of life can be incorporated in a comprehensive analysis of the outcomes achieved by various stakeholders of the service provider. They then used three examples drawn from the literature (relating to employment services, the U.S. state of Nebraska, and family quality of life), to highlight how this framework could be applied. Ideas are also presented on other areas where a comprehensive stakeholder analysis, incorporating quality of life measures, could form part of a service provider's performance evaluation. The authors review some issues that should be considered in relation to the implementation of a comprehensive performance measurement system that incorporates quality of life as one of the outcome measures

Using quality of life to assess performance in the disability services sector

Measurement of performance is extremely important for not-for-profit agencies in terms of measuring the efficiency and effectiveness of agencies in achieving their goals. Performance indicators assist managers of agencies in strategic decision making and in fulfilling their accountability obligations for the best use of limited resources. This paper argues that not-for-profit agencies that serve people with intellectual disabilities can use quality of life as one measure of agency and/or program performance. This is demonstrated with reference to research conducted on the effect of different methods of employment on the quality of life for people with intellectual disabilities. Effectiveness of agencies and/or programs can be assessed based on comparisons of quality of life outcomes under different methods of employment or by reference to absolute percentage of scale maximum scores and whether homeostasis is defeated

The multiple roles of participative budgeting on job performance

This paper examines the multiple roles (i.e., cognitive, motivational and value attainment) of participative budgeting and the combined effects of these three roles on subordinates’ job performance. Specifically, this paper proposes that participative budgeting affects job performance via three intervening variables, namely role ambiguity, organizational commitment and job satisfaction. The responses of 74 senior-level managers, drawn from a cross-section of the Australian financial services sector, to a questionnaire survey were analyzed by using a path analytic technique. The results support the multiple roles of participative budgeting and the indirect effect of participative budgeting on subordinates’ job performance through role ambiguity, organizational commitment and job satisfaction