Influence of the performance measurement system on job satisfaction and organizational commitment

Abstract

Abstract Purpose: This study analyzes the influence of diagnostic and interactive use of the performance measurement system (PMS) on job satisfaction and affective organizational commitment. Originality/value: The study provides empirical evidence that contributes to highlighting the contrasting findings in the literature on how the use of PMS influences job satisfaction and the affective organizational commitment of individuals. Design/methodology/approach: A survey was carried out with middlelevel managers of companies featured in the Best Companies to Work For ranking by the Você S/A magazine, where a sample of 167 valid responses was obtained. We applied the structural equation modeling to test the hypotheses. Findings: The results show a direct relationship between the interactive use of PMS and job satisfaction. They also indicate a direct connection between job satisfaction and affective organizational commitment. Furthermore, they show that diagnostic use directly impacts affective organizational commitment, while interactive use indirectly impacts affective organizational commitment by mediating job satisfaction. These results contribute to the literature by revealing that PMS’s diagnostic and interactive uses result in different psychological consequences, such as job satisfaction and affective organizational commitment. They also contribute by reinforcing the previous literature regarding the complementarity and interdependence of the dual role of the PMS in the organizational context since the interactive use provides a flexible basis for the performance of activities, and the diagnostic use requires alignment of individual behaviors with organizational standards.