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- W326817963 abstract "This study examines the question: What factors determine whether supervisors subjectively adjust the objective performance measures of managers? I use survey and proprietary secondary data of 434 objective performance measures for 111 audit managers from 12 divisions of one of the world's largest internal audit organizations to study this question. The organization introduced a pay-for-performance incentive plan that allowed supervisors to adjust (up or down) the objective performance measures of audit managers. Empirical evidence documents both benefits and costs of subjectivity. Specifically, supervisors subjectively adjusted objective performance measures they perceived to be incomplete, unverifiable, and noisy, suggesting incentive contracting benefits. However, supervisors also subjectively adjusted objective performance measures based on influence activities of managers, personal preferences of supervisors, and adjustment tendencies of division managers, suggesting incentive contracting costs." @default.
- W326817963 created "2016-06-24" @default.
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- W326817963 date "2008-01-01" @default.
- W326817963 modified "2023-09-25" @default.
- W326817963 title "Subjective Adjustments to Objective Performance Measures: An Empirical Examination in Complex Work Settings" @default.
- W326817963 doi "https://doi.org/10.2139/ssrn.1186249" @default.
- W326817963 hasPublicationYear "2008" @default.
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