 Performance measurement and the use of league tables: some experimental evidence of dysfunctional consequencesKevin Keasey, Philip Moon and Darren Duxbury Accounting and Business Research, 2000, vol. 30, issue 4, 275-286 Abstract: The practice of organisations adopting performance measurement systems that utilise a range of key performance indicators linked to various aspects of corporate strategy has become widespread. At the same time, however, many organisations are developing reporting frameworks that summarise these indicators in the form of a league table, ranking sub-units according to their achievements. The use of such league tables has the capacity to create a form of dysfunctional behaviour as managers focus primarily on their league table positions—the notion of measure fixation. This paper describes a new experiment that seeks to explore this possibility. The results suggest that information concerning the change in league table position leads to an increase in risk-seeking behaviour, particularly where a project proposal creates an opportunity for the manager's sub-unit to move to the top of the league table. This is an unintended dysfunctional consequence of using league tables within performance measurement system design. Date: 2000 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:acctbr:v:30:y:2000:i:4:p:275-286 Ordering information: This journal article can be ordered from DOI: 10.1080/00014788.2000.9728945 Access Statistics for this article Accounting and Business Research is currently edited by Vivien Beattie More articles in Accounting and Business Research from Taylor & Francis Journals |
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