Sales managers often make adjustments for factors such as territory difficulty or representative experience when doing performance evaluations. These adjustments may be subjective, they may be simple ratio calculations (e.g., sales divided by territory size), or they may involve complicated regression analyses. This research attempts an explanation of how and why these adjustments influence perceptions of the performance evaluation process, particularly its fairness and usefulness. Data from two surveys are presented. The first is an exploratory survey of sales managers; the second is a fuller survey of salespeople. Results show that making adjustments for territory difficulty increases perceptions of fairness and usefulness of the evaluation system among both sales managers and salespeople. Feedback quality is a key mediator of these effects for both groups. A different pattern exists with regard to accounting for representative experience. For sales managers, there are no effects on feedback quality or fairness or usefulness. Salespeople, however, rate systems that account for representative differences as providing better feedback quality, as more fair, and as more useful. © 2000 John Wiley & Sons, Inc.
Adjustments for task difficulty occur regularly in performance evaluations, but their effects on satisfaction with the evaluation process has not been studied. This article reports an experiment examining the procedural and distributive justice effects of making adjustments for task difficulty in performance evaluation. Participants examined territory difficulty and sales-volume data for a set of salespeople and rated a focal salesperson's performance. Subjects also rated their satisfaction with their performance rating and the fairness of the process. Results show that adjusting for territory (task) difficulty influences satisfaction through an intrapersonal referent effect and through procedural fairness judgments. Results also show that an intrapersonal referent effect occurs even when socialcomparison information is available; the two referents appear to have additive rather than interactive effects. Consistent with the work of van den Bos, Lind, Vermunt, and Wilkie (1997), the procedural justice effect of adjusting for territory difficulty occurs only in the absence of social-comparison information. ᭧
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