The Effect of Disaggregated Performance Measures on Misreporting and the Influence of Performance Goals and Narcissism

• In Event: 5.04 Personality Trait

Abstract

The level of granularity in measurement is an important consideration in the design of performance measures. Whether to use a single measure or multiple measures to capture the entire process gives rise to a number of considerations include number of misreporting opportunities presented to subordinates undertaking the process (activities). Our study focuses on the magnitude of misreporting resulting from more or less aggregation of the performance measure with regards to the length of the time period covered by a single measurement (a single versus three multiple observations covering the entire process). Associated with the decision as to granularity is whether to provide or not to provide a priori targets for the period. Our study examines whether a priori targets moderate the relationship between aggregation and subsequent misreporting. We conduct an experiment to address these questions. Our results find support for a direct effect of aggregation on misreporting as well as the moderating role of targets. We also explore the potential role that narcissism plays in this relationship and find support for an interaction between narcissism and the moderating relationship between targets and aggregation.

Authors

• Alexander Bruggen, Maastricht University

• Marc de Baat Doelman, Maastricht University

• Axel Klaus-Dieter Schulz, La Trobe University