Enabling employees through co-development of performance measures

Various studies have demonstrated that involving employees in the development of performance measures can lead to improved employee performance. Yet to date it is unclear how such performance improvement comes about. In order to enable companies to improve the performance of their employees, this dissertation examines how employee participation in developing performance measures can lead to better employee job performance. Two explanatory models are developed and tested in three different studies: one action study in a beverage manufacturing company and two survey studies among employees and their managers in various jobs, organizations and industries. These models demonstrate that both the participating employees and their managers perceive the co-developed performance measures to be of better quality. Based on the theory of planned behavior, the first two studies suggest that high-quality performance measures enable employees to perform better, mainly because they increase employees’ own sense of control to perform well. In addition—taking both the agency and self-determination theory into account—the third study suggests that employee job performance can be increased if managers use high-quality performance measures for evaluation purposes, rather than for explicit, monetary or nonmonetary type of rewards. Implications of the studies for management research and practice are discussed and a research agenda is given. Relevance for organizations This dissertation illustrates the dos and don’ts for improving employee job performance through co-developing performance measures together with employees. It includes a detailed description of how to design such a co-development project.