Abstract
The target-setting literature has primarily focused on motivation issues in relatively simple single-task settings. I argue that performance targets also play an important role in addressing other issues such as multitasking, information asymmetry, retention, rent extraction, commitment, and coordination in multi-agent settings. Broadening the scope of the literature can help reconcile the theory and empirical evidence on how organizations set and revise performance targets. Moreover, a broader scope can help motivate emerging work on target-setting choices such as the number of targets for each performance dimension, concavity or convexity of target-based contracts, relative target difficulty for different performance dimensions, and coordination and disclosure of targets in multi-agent settings.
Original language | English (US) |
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Pages (from-to) | 13-27 |
Number of pages | 15 |
Journal | Journal of Management Accounting Research |
Volume | 30 |
Issue number | 3 |
DOIs | |
State | Published - Sep 1 2018 |
Keywords
- Budgetary slack
- Incentives
- Performance targets
- Retention
- Target ratcheting
ASJC Scopus subject areas
- Business and International Management
- Accounting