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Management Accounting Section Midyear Meeting

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Advice Seeking under Objective versus Subjective Performance Evaluation: The Role of Advice Type

Sat, January 8, 8:30 to 10:00am, TBA

Abstract

This paper investigates how the design of the performance evaluation system (objective versus subjective) influences organizational members’ advice-seeking behavior. While prior research indicates a negative influence of subjective rather than objective performance evaluation systems on organizational members’ advice-seeking behavior, we challenge this finding by recognizing the existence of autonomous and dependent types of advice seeking. In contrast to the literature, the results of our computer-based experiment show that subjectivity in performance evaluation does not discourage advice seeking when individuals feel free to pursue either type of advice seeking. Further, we identify conditions under which subjective rather than objective performance evaluation fosters individuals’ likelihood to solicit advice.

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