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3.3. SAMPLE AND MEASUREMENT 73 Table 3.6: Items for Measurability of Outputs (Q21-23) Item description Component loadings a. Match between performance measures and business unit goals 0.731 b. Objective measurability of goals 0.724 c. Match between performance measures system and results 0.809 d. Goals consistency performance measurement system 0.760 Percentage variance explained 57.3% Cronbach’s alpha 0.744 Emphasis on Disaggregated Performance Measures Similar to the measurement of the emphasis on personal-level performance measures, I measure the emphasis on disaggregated measures as their relative weights within the total set of performance measures (Q38). The importance of the individual disaggregated measures are measured at the business unit and the within-business-unit levels of the organization, and consist of costs, revenues, cash flow and non-financial disaggregated measures including market share, customer satisfaction, and quality measures. The weights of these measures are summated and jointly form the measure emphasis on disaggregated measures. Control Variables This study controls for business unit and firm size, as well as for sector effects. This paragraph presents the measures for these control variables. Size (BU and Firm) Size is often regarded as a potentially important determinant of performance measurement practices (Speklé & Verbeeten 2008). For example, larger organizations might be more effective in the use and implementation of sophisticated performance measures that are less vulnerable to noise. Control variables business unit size (Q31) and firm size (Q32) are both based on the number of FTE and revenues. For both control variables, the natural logs of FTE and revenue were calculated. With business unit size measured as FTE and revenue, the Cronbach’s alpha is rather low. However, the two items correlate positively (r = 0.50, p < 0.01). Additionally, the two factors load onto one component in the factor analysis (component loading = 0.866). Despite the low Cronbach’s alpha, both items are combined into the measure business unit size. Although business unit size and firm size are significantly correlated with one another (Pearson correlation 0.479), they do not yield collinearity-issues in the multivariate analyses. Table 3.7 summarizes the questionnaire items and statistics on the size variables.
74 CHAPTER 3. NOISE REDUCTION EFFECTIVENESS Table 3.7: Items for Business Unit Size & Firm Size (Q31-32) Item description Component loadings a. Business unit FTE (Ln) 0.866 b. Business unit revenue (Ln) 0.866 Percentage variance explained 75.0% Cronbach’s alpha 0.634 c. Firm FTE (Ln) 0.952 d. Firm revenue (Ln) 0.952 Percentage variance explained 90.6% Cronbach’s alpha 0.892 Sector Dummy Variables To control for potential industry effects, dummy variables were included that distinguish between business unit sectors (Q33). The model contains dummies for production, financial services, and not-for-profit business units. The base model consists of service organizations, representing the largest sector in the sample. 3.3.4 Descriptive Statistics Table 3.8 presents the descriptive statistics for all of the metrics variables described in the preceding section. According to the skewness and kurtosis indicators, all of the variables follow a normal distribution. Table 3.8: Descriptive Statistics Mean Min Max Std. Dev. SkewnessKurtosis NOISE 3.24 1.00 6.00 1.16 0.33 -0.31 RPE-Use 3.37 1.00 5.00 1.00 -0.85 0.31 Environmental Uncertainty 3.19 1.57 4.76 0. 60 -0.38 0.07 Goal Ambiguity 2.34 1.00 5.00 0.57 0.43 1.19 Measurability 4.48 2.00 6.00 0.69 -0.45 0.38 Emphasis on Personal-Level Measures 0.30 0.00 1.00 0.22 0.79 0.47 Emphasis on Disaggregated Measures 0.31 0.00 0.90 0.18 0.50 0.13 Business Unit Size 10.27 2.30 14.97 2.26 -1.56 2.70 Firm Size 13.41 3.69 19.41 2.43 -0.44 1.34
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Relative Performance Evaluation in
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NYENRODE BUSINESS UNIVERSITEIT Rela
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Table of Contents Preface 1 General
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Preface Why do people make things h
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2 CHAPTER 1. GENERAL INTRODUCTION I
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4 CHAPTER 1. GENERAL INTRODUCTION o
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6 CHAPTER 1. GENERAL INTRODUCTION T
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8 CHAPTER 1. GENERAL INTRODUCTION F
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10 CHAPTER 1. GENERAL INTRODUCTION
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Chapter 2 The Use of Relative Perfo
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2.1. INTRODUCTION 15 is not a promi
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2.2. THEORETICAL BACKGROUND 17 The
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2.2. THEORETICAL BACKGROUND 19 Sinc
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2.2. THEORETICAL BACKGROUND 21 who
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Page 44 and 45: 2.3. SAMPLE AND MEASUREMENT 35 Emph
Page 46 and 47: 2.4. ANALYSES 37 2.4 Analyses This
Page 48 and 49: 2.4. ANALYSES 39 Table 2.8: RPE use
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Page 54 and 55: 2.4. ANALYSES 45 Table 2.13: Result
Page 56 and 57: 2.4. ANALYSES 47 Table 2.15: Summar
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Page 70 and 71: 3.1. INTRODUCTION 61 Holmstrom’s
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Page 112 and 113: 4.4. ANALYSES 103 Table 4.8: Items
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Page 118 and 119: 4.4. ANALYSES 109 RPE and RFMO. Mor
Page 120 and 121: 4.4. ANALYSES 111 room for manageri
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5.1. SUMMARY, CONCLUSIONS AND DISCU
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5.2. IMPLICATIONS FOR PRACTICE 125
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5.3. LIMITATIONS AND SUGGESTIONS FO
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Appendix Overview of Questionnaire
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Q5 How often do the following thing
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Q14 When serving your clients, how
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Q23 Please indicate whether you agr
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Noise Q34 NOISE (primary measure) P
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References 1. Abernethy, M.A., Bouw
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26. Diamantopoulos, A. & Siguaw, J.
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52. Himmelberg, C.P. & Hubbard R.G.
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83. Towry, K. 2003. ‘Control in a
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148 beïnvloeden, veroorzaken ruis
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Biography Hilco van Elten (1979) ho
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