Skip to main content
SpringerLink
Log in

Ethical Dilemmas in Performance Measurement

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

In this article we discuss the ethical dilemmas facing performance evaluators and the "evaluatees" whose performances are measured in a business context. The concepts of role morality and common morality are used to develop a framework of behaviors that are normally seen as the moral responsibilities of these actors. This framework is used to analyze, based on four empirical situations, why the implementation of a performance measurement system has not been as effective as expected. It was concluded that, in these four cases, unethical behavior (i.e. deviations from the ethical behaviors identified in the framework) provided, at least to some extent, an explanation for the lower than expected effectiveness of the performance measurement procedures. At the end of the paper we present an agenda for further research through which the framework could be further developed and systematically applied to a broader set of cases.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Anthony, R. N. and V. Govindarajan: 1998, Management Control Systems, 9th edition (Irwin/ McGraw–Hill, Homewood, IL).

    Google Scholar 

  • Argyris, C.: 1998, 'Empowerment: The Emperor's New Clothes', Harvard Business Review 76(3), 98–105.

    Google Scholar 

  • De Sitter, L. U.: 1989, 'Moderne Sociotechniek', Gedrag en Organisatie 4/5, 222–252.

    Google Scholar 

  • Emmanuel, C., D. Otley and K. Merchant: 1990, Accounting for Management Control (Chapman & Hall, London).

    Google Scholar 

  • Fisher, J., J. R. Frederickson and S. A. Pfeffer: 2002, 'The Effect of Information Asymmetry on Negotiated Budgets: An Empirical Investigation', Accounting, Organizations and Society 27, 27–43.

    Google Scholar 

  • Fisscher, O. A. M., A. H. J. Nijhof, A. T. Laan and W. Schreuder: 2001, 'De verantwoordelijke firma, over een nieuwe fase in de ontwikkeling van de industrie', M&O, Tijdschrift voor Management en Organisatie 55(2), 58–75.

    Google Scholar 

  • Fisscher, O. A. M., A. H. J. Nijhof and H. Steensma: 2002, 'Dynamics in Responsible Behavior. In Search of Mechanisms for Coping with Responsibility', Working paper, University of Twente, Enschede.

  • Kaplan, R. S. and D. P. Norton: 1996, The Balanced Scorecard: Translating Strategy into Action (Harvard Business School Press, Boston, MA).

    Google Scholar 

  • Kerssens–van Drongelen, I. C.: 1999, 'Systematic Design of R&D Performance Measurement Systems', Published PhD thesis, University of Twente, Enschede.

  • Kerssens–van Drongelen, I. C. and O. A. M. Fisscher: 2002, 'Ethische aspecten en implicaties van financiële en operationele maatstaven van bedrijfsresultaten', in A. Silljé (ed.), Waarborging van Waarden (Koninklijke van Gorcum, Assen), pp. 104–121.

  • Kohn, A.: 1993, 'Why Incentive Plans Cannot Work', Harvard Business Review 71(5), 54–63.

    Google Scholar 

  • Kunz, A. H. and D. Pfaff: 2002, 'Agency Theory, Performance Evaluation, and the Hypothetical Construct of Intrinsic Motivation', Accounting, Organizations and Society 27, 275–295.

    Google Scholar 

  • Macintosh, N. B.: 1994, Management Accounting and Control Systems (John Wiley & Sons, Chichester).

    Google Scholar 

  • Moerland, P. W.: 1992, 'Economische Theorievorming omtrent de onderneming (deel 2)', Maandblad voor Accountancy en Bedrijfseconomie 66(3), 116–125.

    Google Scholar 

  • Neely, A., H. Richards, K. Mills and M. Bourne: 1997, 'Designing Performance Measures: A Structured Approach', International Journal of Operations and Production Management 17(11), 1131–1152.

    Google Scholar 

  • Pritchard, R. D.: 1990, Measuring and Improving Organizational Productivity: A Practical Guide (Praeger Publishers, New York).

    Google Scholar 

  • Simons, R.: 1995, 'Control in an Age of Empowerment', Harvard Business Review 73(2), 80–88.

    Google Scholar 

  • Simons, R.: 2000, Performance Measurement & Control Systems for Implementing Strategy (Prentice Hall, Upper Saddle River, New Jersey).

    Google Scholar 

  • Van Dijk, M.: 1992, 'Participatie van managers in het budgetproces', Maandblad voor Accountancy en Bedrijfseconomie 66(2), 108–113.

    Google Scholar 

  • Werhane, P. H. and R. E. Freeman: 1999, 'Business Ethics: The State of the Art', International Journal of Management Reviews 1(1), 1–17.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. School of Business, Public Administration and Technology, University of Twente, PO Box 217, 7500 AE, Enschede, The Netherlands

    Inge C. Kerssens-van Drongelen & Olaf A.M. Fisscher

Authors
  1. Inge C. Kerssens-van Drongelen
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Olaf A.M. Fisscher
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Kerssens-van Drongelen, I.C., Fisscher, O.A. Ethical Dilemmas in Performance Measurement. Journal of Business Ethics 45, 51–63 (2003). https://doi.org/10.1023/A:1024120428490

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1024120428490

Search

Navigation