Performance Management for Academic Researchers

Abstract

Using performance management systems that motivate employees to high performance is central for many public leaders. Command systems, which are based on the threat of sanctions, are typically used in public organizations, but we have little knowledge about the effects of such systems. Principal agent theory expects that harder command systems improve performance, and motivation crowding theory agrees that this will be the case, if agents perceive the command system as supportive. However, motivation crowding theory expects that a command system perceived as controlling will be less effective and perhaps even harm the performance due to crowding out effects. The expectation is confirmed in this study, which builds on register and survey panel data from 101 researchers over 10 years (2000-2009) combined with 19 interviews. Although research institutions are not typical public organizations, the results imply that public leaders should take employee perceptions of command systems very seriously.