Interrelation of Controls for Autonomous Motivation: A Field Study of Productivity Gains Through Pressure-Induced Process Innovation

Abstract

This field study investigates an empirical setting where the introduction of new formal results controls—stretch targets for productivity that are seemingly unachievable with current process efficiencies—is associated with high productivity gains over extended periods of time. Contrary to findings from the prior management accounting research, employees meet the targets by being creative and risk-taking in continuously innovating processes, despite the pressure induced by high target-level difficulty. Mobilizing self-determination theory, we argue that a specific interrelation of personnel and cultural control with results control supports internalization of the latter by employees. In this situation, employees perceive the high performance required by the results control assimilated into their own values, which facilitates the autonomous motivation necessary for their creativity. Our findings contribute to the literature by identifying the conditions, and discovering the mechanisms, that enhance the efficacy of stretch targets.

The effect of enabling versus coercive performance measurement systems on procedural fairness and red tape

“…Insights from motivational psychology, and in particular from self-determination theory, suggest that a management control system which is perceived as controlling-as an extrinsic motivator-may have a negative effect on employees' autonomous motivation (Van der Kolk et al, 2019;Wong-on-Wing et al, 2010). Depending on the extent to which such an extrinsic motivator is internalized, it may also have a role in fostering autonomous motivation and positive outcomes (Deci & Ryan, 2000;Pfister & Lukka, 2019). Given that an enabling development process leads to an increased understanding of the underlying purpose of the performance measurement system as a result of the involvement of the employees (Wouters & Wilderom, 2008), employees may also internalize the value of the performance measurement system.…”

The Effects of Job Autonomy, Organizational Learning, and Work Environment on Organizational Commitment of Public Sector Employees in the Ashanti Region of Ghana

“…A study by Lu, Brockner, Vardi, and Weitz (2017) suggests autonomy as a critical focus of work design (Smith, 2003), a kind of independence or state of being independent, free and self-directed. Self-Determination Theory is based on the concept of autonomy that was implemented in the 1970s when the emphasis was on intrinsic and extrinsic rewards (Pfister & Lukka, 2019) and by applying these rewards to the three essential needs of that theory, thus, autonomy, competence, and interdependence (Deci & Ryan, 2010). A study on self-determination theory indicates that the more autonomous the individual's excitement is, the greater their determination and performance for the company, resulting in a more self-motivation and self-determination towards work (Niemiec & Ryan, 2009).…”

Psychology in management accounting and control research: an overview of the recent literature

“…Our analysis shows that social psychological theories and concepts (e.g., Coletti et al 2005;Anderson et al 2017) are predominantly employed by these studies. Additionally, formal and informal controls are studied in terms of their potential effects on motivation and creativity (Christ et al 2012;Grabner and Speckbacher 2016;Pfister and Lukka 2019). Regarding the use of social psychology, some researchers rely on social norms to provide evidence that formal controls influence people's perceptions of appropriate behavior (Tayler and Bloomfield 2011).…”