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JAMAR Vol. 11 · No. 1 2013goals to be achieved by managers.Additionally, the study finds that the type ofperformance measures (whether financial ornonfinancial) used to evaluate managers is notassociated with perceived procedural fairness.It would seem that much of the prioraccounting literature has overemphasised theimportance that performance measure typesmay have on procedural fairness, whetherbudget constrained, profit conscious or nonaccounting,to the neglect of more criticalvariables.This study contributes to the literature ofprocedural fairness in the context of PMERSby providing empirical evidence on factorswhich influenced perceived proceduralfairness. Looking at the practical implicationsof the study, the results suggest that superiorsshould focus on goal-related variables, i.e.participation in setting performance targets,the goal-attainment-reward link, and thespecificity of goals to be achieved bysubordinates in designing PMERS rather thanon the types of performance measures.The study, however, should be interpretedcautiously for the following reasons. The firstone is the inherent limitations associated withsurvey method. Future study should examinethe issue using other approaches, such asexperimental design. Secondly, this studydraws on managers from just threeorganisations. Future study could examine themodel using samples derived from moreorganisations. Thirdly, some variables weremeasured using a single item. However, tocompensate this we have conductedinterviews. Future study could use the bettermeasure to study the same topic..Notwithstanding these limitations, we believethat this study provides clarity on factorsaffecting perceived procedural fairness.ReferencesAnthony, R. and Govindarajan, V. (1998),Management Control Systems, Irwin, Chicago.Bies, R. J. and Shapiro, D. L. (1998), “Voiceand justification: Their influence onprocedural fairness judgments”, Academy ofManagement Journal, September, 3: pp. 676-685.Cohen, J. and Cohen, P. (1983), AppliedMultiple Regression: Correlation Analysis forthe Behavioral Sciences, L. ErlbaumAssociates, New Jersey, USA.Earley, P. C. and Kanfer, R. (1985), “Theinfluence of component participation and rolemodels on goal acceptance, goal satisfaction,and performance”, Organizational Behaviorand Human Decision Processes, 36 (3): pp.378-390.Ehlen, C. R. and Welker, R. B. (1996),“Procedural fairness in the peer and qualityreview programs”, Auditing: A Journal ofPractice & Theory, 15 (1): pp. 38-52.Emmanuel, C. R., Otley, D. T., Merchant, K.A. (1990), Accounting for ManagementControl, Chapman and Hall, London, UK.Fang, E., Evans, K. R., Zou, S. (2005), “Themoderating effect of goal-settingcharacteristics on the sales control systems-jobperformance relationship”, Journal of BusinessResearch, 58 (9): pp. 1214-1222.Folger, R. (1977), “Distributive andprocedural justice: combined impact of"voice" and improvement on experiencedinequity”, Journal of Personality and SocialPsychology, 35 (2): pp. 108 - 119.Folger, R. and Konovsky, M. A. (1989),“Effects of procedural and distributive justiceon reactions to pay raise decisions”, Academyof Management Journal, 32 (1): pp. 115-130.Greenberg, J. (1986), “Determinants ofperceived fairness of performanceevaluations”, Journal of Applied Psychology,71 (2): pp. 340-342.Greenberg, J. and Folger, R. (1983),“Procedural justice, participation and the fairprocess effect in groups and organizations”,In: PAULUS, P. (Ed.) Basic Group Process,Springer-Verlag, New York, USA.Hair, J. R., Anderson, R. L., Tatham, R.E.W.C. B. (1998), Multivariate Data Analysis:With Readings, Pearson, New Jersey, USA.Hall, M. (2008), “The effect of comprehensiveperformance measurement systems on roleclarity, psychological empowerment andmanagerial performance”, Accounting,40
JAMAR Vol. 11 · No. 1 2013Organizations and Society, 33 (2-3): pp. 141-163.Hartmann, F. And Slapnicar, S. (2009), “Howformal performance evaluation affects trustbetween superior and subordinate managers”,Accounting, Organizations and Society, 34 (6-7): pp. 722-737.Hartmann, F., Naranjo-Gil, D., and Perego, P.(2009), “The effects of leadership styles anduse of performance measures on managerialwork-related attitudes”, European AccountingReview, 19 (2): pp. 275-310.Hopwood, A. G. (1972), “An empirical studyof role of accounting data in performanceevaluation”, Journal of Accounting Research,Supplement (10): pp. 156-182.Ittner, C. D., Larcker, D. F., Randall, T.(2003), “Performance implications of strategicperformance measurement in financialservices firms”, Accounting, Organizationsand Society, 28 (7-8): pp. 715-741.Kaplan, R. S. and Atkinson, A. A. (1998),Advanced Management Accounting, PrenticeHall, New York, USA.Kline, R. (1998), Principles and Practice ofStructural Equation Modelling, The GuilfordPress, New York.Kominis, G. and Emmanuel, C. R. (2007),“The expectancy-valence theory revisited:Developing an extended model of managerialmotivation”, Management AccountingResearch, 18 (1): pp. 49-75.Lau, C. M. and Moser, A. (2008),“Behavioural effects of nonfinancialperformance measures: The role of proceduralfairness”, Behavioral Research in Accounting,20 (2): pp. 55 - 71.Lau, C. M. and Sholihin, M. (2005),“Financial and nonfinancial performancemeasures: How do they affect jobsatisfaction?”, The British Accounting Review,37 (4): pp. 389-413.Lau, C. M. and Tan, S. L. C. (2006), “Theeffects of procedural fairness and interpersonaltrust on job tension in budgeting”,Management Accounting Research, 17 (2): pp.171-186.Leventhal, G. S. (1980), “What should be donewith equity theory? New approaches to thestudy of fairness in social relationships”, In:Gergen, K., et al. (Eds.) Social Exchange:Advances in Theory and Research, PlenumPress, New York.Libby, T. (1999), “The influence of voice andexplanation on performance in a participativebudgeting setting”, Accounting, Organizationsand Society, 24 (2): pp. 125-137.Libby, T. (2001), “Referent cognitions andbudgetary fairness: A research note”, Journalof Management Accounting Research, 13 (1):pp. 91-105.Lindquist, T. M. (1995), “Fairness asantecedent to participative budgeting:Examining the effects of distributive justice,procedural justice and referent cognitions onsatisfaction and performance”, Journal ofManagement Accounting Research, 7 (1): pp.122-147.Lind, E. A. and Tyler, T. R. (1988), The SocialPsychology of Procedural Justice, PlenumPress, New York, USA.Locke, E. A. and Latham, G. P. (1984), GoalSetting: A Motivational Techniques that WorksPrentice-Hall, New Jersey, USA.Locke, E. A. and Latham, G. P. (1990), ATheory of Goal Setting and Task Performance,Prentice-Hall, New Jersey, USA.Locke, E. A. and Latham, G. P. (2002),“Building a practically useful theory of goalsetting and task motivation: A 35-yearodyssey”, American Psychologist, 57 (9): pp.705-717.Magner, N. R., Welker, R. B., Johnson, G. G.(1992), “Testing a model of voice, control,procedural justice, and organizationalcommitment with latent variable structuralequation analysis”, The International Joumalof Conflict Management, 3 (3): pp. 223-236.McFarlin, D. B. and Sweeney, P. D. (1992),“Distributive and procedural justice aspredictors of satisfaction with personal andorganizational outcomes”, Academy ofManagement Journal, 35 (3): pp. 626-637.41
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