Outcome effect, controllability and performance evaluation of managers: Some field evidence from multi-outlet businesses

Dipankar Ghosh, Robert F. Lusch

Research output: Contribution to journalArticle

40 Scopus citations

Abstract

This field study provides evidence of the outcome effect in performance evaluations of managers in an organization. Specifically, in a retail chain, subjective evaluations of store managers by their supervisors were negatively impacted by unfavorable outcome knowledge. As expected, outcome determinants over which the managers have control influence their performance evaluations and environmental determinants of outcome over which they have no control do not influence their evaluations. However, unexpectedly, central management determinants of outcome over which the managers have no control also influence their evaluations. After these outcome determinants are considered, we find evidence of an outcome effect since failure of the store to meet its target outcome results in a more negative performance evaluation of the managers. Also, the extent to which store managers' evaluations are prone to the outcome effect is not contingent on the measure of the outcome used.

Original languageEnglish (US)
Pages (from-to)411-425
Number of pages15
JournalAccounting, Organizations and Society
Volume25
Issue number4-5
DOIs
StatePublished - May 2000

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ASJC Scopus subject areas

  • Accounting
  • Sociology and Political Science
  • Organizational Behavior and Human Resource Management
  • Information Systems and Management

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