SlideShare a Scribd company logo
Evaluating management control: the impact of performance
appraisal on intrinsic employee motivation
Marc Haakma
S 2184869
A Master's Thesis submitted to the University of Groningen - Faculty of Economics and Business, in partial fulfilment of
the requirements for the degree of MSc Business Administration: Organizational and Management Control.
Thesis supervisor: B. van der Kolk, MSc.
Second assessor: A. R. Abbassi, MSc.
Abstract
Firm performance is the general focus of a manager. However, this requires getting the most out of
employees, as they are at the core of the organisation. Motivation plays a significant role in this process.
This paper examines the effect of performance appraisal as a management control mechanism on intrinsic
employee motivation. Applying stewardship theory, it was found that informality and positive or negative
feedback in performance appraisals increase intrinsic motivation; this effect is strengthened by frequency.
Use of data collected for this study is regulated by a strict nondisclosure agreement, which requires the
researcher to protect the company's identity and its proprietary information.
Keywords: intrinsic motivation, management control mechanisms, performance appraisal, public sector, stewardship theory
1. Introduction
Employees are at the core of an organisation;
after all, employees physically represent an
organisation and carry out its mission, and thus,
give an organisation the essential opportunity to
exist. It is therefore of importance to managers,
that employees feel appreciated and are driven to
perform their job. In other words, employee
motivation should be regarded as a key factor in
determining long-term employer success levels
(Kovach, 1995). The field of employee
motivation, however, is complex. In its general
sense, motivation is already a difficult concept to
define, as demonstrated by Kleinginna and
Kleinginna (1981) in a laborious attempt to reach
a consensual definition. Furthermore, much
research has been conducted on what drives
employee motivation specifically, which again
reflects the complexity of the term.
2
Rather than investigating which specific
factors drive employee motivation, this study will
focus on the prevailing organisational relation
between managers and employees, by
emphasising the role management control.
Managers are in charge of making decisions for
coping with change, and even though firm
performance is the general focus of a manager,
they must also consider how employees will be
affected (Turner Parish et al., 2008). This is where
the field of management control will be included
in the research, by focusing on a particular
management control mechanism that has a
potential influence on employee motivation:
performance appraisal. However, for the
particular relation described above, the field of
management control misses the concrete grips
that give managers insight into what the impact
of performance appraisal is on employee
motivation. It is however a case that entails a
large degree of managerial relevance and
importance for organisations, as performance
appraisals can be considered as one of the most
important human resource practices (Cardinal,
2001; Boswell and Boudreau, 2002).
The field of employee motivation has
provided many different views over the years,
resulting in numerous theories that all adopt a
specific perspective in addressing employee
motivation. The stewardship theory will be used
in this research, which can be regarded as a
relatively novel theory of motivation that focuses
on the self-development desires and intrinsic
motivation of employees (Donaldson and Davis,
1991). Little empirical research has been
conducted regarding stewardship theory; it will
therefore benefit from this research, as it will test
the views of this theory in a practical setting.
Furthermore, the research will be conducted in a
public sector organisation; it is believed that
public sector employees are more intrinsically
motivated than private sector employees, and
show a high level of commitment to their
organisation (Dilulio, 1994). Therefore, this
research fits well with stewardship theory.
The main theoretical objective of this
research is to contribute to the field of
management control by examining the relation
between performance appraisal and intrinsic
motivation in an organisation. The research does
not focus on identifying key tasks that are
associated with management control, but rather,
focuses on the effects of performance
appraisal— a significant management control
mechanism— on employee motivation. This
mechanism is widely recognised and has been
studied in considerable detail in management
control literature, but nevertheless is still believed
to provide a fruitful opportunity for studying the
relationship between management control and
intrinsic motivation in an organisational
environment, and therefore, maintaining the
relevance between management control and its
context (Chenhall, 2003; Hage and Aiken, 1967;
Otley, 1994; Pugh et al., 1969). The stewardship
theory of motivation will be used to maintain a
close connection with this literature field. This
theory is believed to further solidify the basis for
this research, and the legitimacy of this theory in
practical situations will be tested further.
Subsequently, the following research question is
formulated in the present research:
What is the relation between performance
appraisal and intrinsic employee motivation
in a public sector organisation?
3
Prior literature will be used to discuss the
stewardship theory, and its role in the present
study. Based on this, hypotheses will be
formulated on the effect that performance
appraisal has on employee motivation.
Consequently, research will be conducted to
verify these hypotheses in a practical setting. It is
then analysed whether the examined case
demonstrates a confirmation to the formulated
hypotheses. Potential observed deviations from
the stewardship theory perspective will
subsequently attempted to be explained.
The remainder of this paper is structured
as follows. Section 2 comprises a literature
review, which discusses the background of the
research problem by reviewing relevant prior
literature to provide a legitimate basis on which
the present research is built and hypotheses are
formulated. Consequently, this section will
address the gap in the literature that this research
will attempt to fill. Section 3 elucidates the data-
gathering process and the research method used
in this paper. Section 4 introduces the research
setting and presents the findings of the research,
which section 5 critically reflects upon by
analysing and relating these findings to prior
research. Section 6 then reflects on this research
in its entirety, by readdressing the research
question, the research implications and the
limitations of this research.
2. Literature review
2.1. Employee motivation
Motivation can be defined as “the willingness to
exert high levels of effort toward organisational
goals, conditioned by the effort's ability to satisfy
some individual need” (Robbins, 1991). Based on
this, it can be argued that an unsatisfied need
creates a tension for employees, which can be
acted upon and consequently relieved by an
employee through the exertion of effort (Rainlall,
2004). The research on employee motivation is
abundant; a large amount of research has been
conducted on employee motivation in an attempt
to indicate its effects. It is assumed that employee
motivation is a crucial factor in organisational
performance through this characteristic exertion
of effort (Griffin, 1990; Robbins, 1991; Kovach,
1995), which in turn makes employee motivation
a valuable and sought after concept for managers.
In addition to the effects, it is believed
that the drivers of employee motivation are also
of great practical importance to managers. These
drivers will lead to the effects that will impact the
organisation in a manner for which the manager
is responsible, which consequently seems to offer
an opportunity for management to influence
employee motivation levels. Moreover, the
primary objective of employee motivation
research has not been to learn about how certain
employee behaviour occurs, but rather to learn
how to motivate employees so that they will
perform the responsibilities and tasks assigned by
the organisation (Wright, 2001). Wiley (1997) for
instance, examined what motivates employees by
conducting a multi-industry survey and found
that good wages, full appreciation for work done,
job security, promotion and growth in the
organisation, and interesting work were the top
five factors that motivated employees in their
jobs. A similar list can be extracted from Kovach
(1995), in which he discusses a survey that
presented interesting work, full appreciation of
work done, feeling of being in on things, job
4
security and good wages as the five most desired
factors that contribute to employee motivation.
Often, research on employee motivation
is conducted on the basis of an underlying
motivation theory. Along with the amount of
research conducted on employee motivation, the
number of theories that are used in this field can
also be characterised as abundant. To provide a
theoretical foundation for this discussion, this
section will draw from this extensive range of
employee motivation theories. Although a
synthesis of employee motivation theories lies
beyond the scope of the present research, a brief
overview of a number of dominant theories is
presented below to provide a foundation that
theoretically solidifies the way employee
motivation is to be perceived, and, consequently,
to obtain a rudimentary understanding of
employee motivation.
The two-factor theory on motivation
states that factors leading to job satisfaction are
separate and distinct from the factors that lead to
job dissatisfaction, and assumes a neutral ground
between satisfaction and dissatisfaction.
Moreover, the theory distinguishes between
motivators, which arise from intrinsic job
conditions and lead to job satisfaction, and
hygiene factors, which are of an extrinsic nature
and lead to job dissatisfaction when they are
absent. Thus, hygiene factors are necessary to
maintain job satisfaction, but do not lead to
increases in job satisfaction (Hackman and
Oldham, 1976; Herzberg et al., 1959; Herzberg,
1966). It is stated that, in order to increase job
satisfaction and consequently motivation, the
intrinsic aspect of the job should be emphasised
through job enrichment (Herzberg, 1986).
Another well-known employee motivation theory
is the expectancy theory developed by Vroom
(1964). The expectancy theory takes a different
approach in that it does not provide specific
employee motivation suggestions. Rather, it
suggests that employees believe there are
relationships between work effort, achieved
performance and the rewards they receive from
their effort and performance (Vroom, 1964). It
follows that this theory focuses on selfish
individuals that want to maximise satisfaction,
referring to extrinsic and intrinsic values which
management must discover. While the preceding
two theories provide unprejudiced support for
extrinsic influences, self-determination theory
seems to focus primarily on intrinsic sources of
motivation. It suggests that self-determination
and intrinsic motivation are triggered through the
presence of competence, relatedness and
autonomy (Deci and Ryan, 2002).
To summarise, regardless of which
theory is followed, it seems that there are specific
factors that should be considered by management
when focusing on employee motivation. In short,
it can be stated that these theories focus on either
an intrinsic, extrinsic or mixed approach, much in
the same way as the drivers of motivation
described above can be characterised by either an
intrinsic or extrinsic nature. However, it can be
argued that using such a theory in this research
may result in an inaccurate, ambiguous
perspective on motivation, when the selected
theory does not suit the scope and setting of the
research. Therefore, an employee motivation
theory that provides a good fit with the present
research setting must be identified.
5
2.2. Employee motivation in the public sector
It can be stated that research regarding specific
characteristics of employee motivation in the
public sector plays a subordinate role in the field
of employee motivation; in spite of the fact that
the motivation of employees is of great
importance to public sector organisations, less
attention is paid to this sector by public sector
scholars (Frey et al., 2013; Wright, 2001).
However, the observation that motivation
literature tends to concentrate too much on
industrial and business organisation employees in
the private sector is not new, but rather stems
from several decades ago (Perry and Porter,
1982). As this study focuses on the public sector,
progress will be made regarding this issue.
Prior literature provides evidence that
differences exist between public and private
sector employees, in particular with respect to
their motivation (Buelens and Van den Broeck,
2007; Frey et al.,2013). Specifically, there is a
broad consensus that intrinsic motivation
provides the main drive for public sector
employees, through motivation by aspects such
as self-development opportunities, recognition,
autonomy and learning opportunities. This
notions contrasts extrinsic motivation focus of
private sector employees through financial
rewards, prestige and status (Buelens and Van
den Broeck, 2007; Houston, 2000). Consequently,
it can be argued that self-interest theories are not
sufficient for analysing motivation in the public
sector, as this does not fit well with the public
sector research setting. This generates a notable
point of consideration, as a deviation from the
dominant agency theory in the management
control literature must be made; the agency
theory assumes that managers are self-interested
actors that rationally maximise their own personal
economic gain (Donaldson and Davis, 1991), and
therefore suits the description of a self-interest
theory. Alternately, a different theory must be
adopted, to avoid compromising the values that
prevail in public sector motivation.
2.3. Stewardship theory
An alternative theory is stewardship theory,
which provides a different model of human
behaviour, which assumes these managers are not
agents motivated by individual goals and personal
gain, but rather stewards whose motives are
aligned with the principals' objectives (Davis et
al., 1997). In other words, it states that managers'
goals are in line with the organisational goals,
thus, it assumes goal congruence. Even in cases
that are characterised by goal incongruence,
managers will prefer to pursue organisational
goals instead of individual goals (Corbey, 2010).
This more altruistic perspective further
assumes that an employee's motivation is of an
intrinsic nature, which counterbalances the
agency theory focus on extrinsic motivation. This
perspective is regarded as appropriate for this
study, as it acknowledges the importance of
intrinsic motivation in the public sector and
accordingly suits the present research setting.
Therefore, this study will adopt the stewardship
theory.
Although stewardship theory focuses on
intrinsic motivation, it is important to recognise
the approach this research takes regarding the
interplay between extrinsic and intrinsic
motivation. While this research places a clear
focus on intrinsic motivation, it is believed that
intrinsic motivation does not yield an absence of
extrinsic factors (Covington and Müeller, 2001;
6
Kauffman et al., 2011). Thus, this research
deviates from a potentially problematic
continuum-view of intrinsic and extrinsic
motivation, and assumes that a balance of
intrinsic and extrinsic motivation is attainable,
with the proportions of intrinsic and extrinsic
motivation varying across employees and
organisations. Therefore, a dichotomous nature
of intrinsic and extrinsic motivation is not
supported in this research, as the two types of
motivation are not believed to be jointly
exhaustive nor mutually exclusive (Covington and
Müeller, 2001). Nevertheless, this research
focuses on intrinsic motivation, in accordance
with the abovementioned fit with the public
sector research setting.
It must also be noted that this research
will apply the stewardship theory on a different
hierarchical relationship within an organisation
than is described above, namely the manager and
the manager's subordinates. Not only does this
provide a fruitful opportunity to expand on
current stewardship theory knowledge and thus
place it in a wider perspective, it also paves the
way for analysing the relationship between
management control and employee motivation
from a different theoretical perspective, therefore
fitting well with the current research setting.
2.4. Management control
Management control is concerned with
coordination, resource allocation, motivation, and
performance measurement (Maciariello and
Kirby, 1994). Anthony and Govindarajan (2007)
defined management control as the “process by
which managers influence other members of the
organisation to implement the organisation’s
strategies”. Guided by these definitions, it
becomes clear that employee motivation plays a
key role in management control practices;
exploring the attitudes that employees hold
concerning motivational factors allows the
creation of an environment that fosters employee
motivation (Wiley, 1997). However, it can be
stated that further classification of such practices
is needed, so that the selection of specific
management control mechanisms is theoretically
solidified.
The field of management control
provides a classical trichotomy of control classes:
input, output and behaviour controls (Ouchi,
1979; Rockness and Shields, 1984). Input
controls regulate the antecedent conditions of
performance, and assess whether individuals suit
the organization, regarding internalised norms
and professional standards (Cardinal, 2001; Frey
et al., 2013). Although input control increases the
variety of ideas produced and exposure to
scientific knowledge, it is also more demanding as
it is not observable (Cardinal, 2001; Frey et al.,
2013). Therefore, concerning the present research
setting, a focus on input control is regarded as a
suboptimal decision. As output control
concentrates on assigning a value to the realised
output, these control mechanisms are not
deemed to fit well with the public sector, which is
central to this research, as public service could be
characterised by output ambiguity (Burgess and
Ratto, 2003). Moreover, a high degree of
interdependence exists among tasks, which
impedes the attribution of outputs to individuals
(Frey et al., 2013). Due to the fact that output
ambiguity prevents the existence of a reliable and
valid measure of the desired outputs, a focus is
placed on behaviour control, following the
framework of Ouchi (1979). Behaviour control
7
focuses on the monitoring of employee
behaviour in the process that leads to output, and
regulates how the work should be done through
the use of rules and procedures (Cardinal, 2001;
Ouchi, 1979; Rockness and Shields, 1984).
However, behaviour control has been
predominantly viewed as a mechanism that
hampers creativity and fosters employee
dissatisfaction, and could lead to rigidity and a
decrease in flexibility (Adler and Borys, 1996;
Cardinal, 2001). Therefore, a focus on adaptation
to changing environments seems to be necessary
(Frey, 2013). However, as control is necessary in
an organisation, it is prudent to make an effort to
understand what sorts of behaviour control
mechanisms are effective, particularly in settings
that are affected by significant changes. Guided
by this reasoning, the present research will focus
on behaviour control, as it is believed that this
type of control provides a relevant and important
point of focus regarding management control.
Close attention will be paid to the way
performance appraisal affects the level of
employee motivation within the organisation.
2.5. Hypothesis development
Performance appraisals are a means to carry out
the monitoring function of behaviour control,
and can be considered one of the most important
human resource practices (Cardinal, 2001;
Boswell and Boudreau, 2002). The effect of
performance appraisal on motivation, however, is
not straightforward. Employees could perceive
frequent performance appraisal as threatening,
which could consequently cause their behaviour
to become safer and more routine-based
(Burgelman and Sayles, 1988; Cardinal, 2001).
However, it could also be argued that
performance appraisal is necessary for employees,
as this feedback provides the information that is
needed to make a judgement on the employee's
competence, which is indicated as a focal point
by intrinsic motivation (Deci, 1975; Hackman
and Oldham, 1976; Ilgen et al., 1979 ). Guided by
the latter line of reasoning and in line with
stewardship theory, it is expected that employees
will interpret the performance appraisals as
contributing to their self-development and thus
intrinsic motivation (Buelens and Van den
Broeck, 2007; Davis et al., 1997; Houston, 2000).
To enhance the tangibility of the
performance appraisal control mechanism, the
measure will be investigated on the basis of the
construct of feedback richness, to represent
several performance appraisal characteristics.
More importantly, this procedure allows for
variance to be measured, which consequently
enhances the transparency of the conclusions of
this research. A feedback-rich environment can
be defined as a performance appraisal
environment where employees receive specific,
frequent and positive feedback (Kinicki et al.,
2004). Kinicki et al. (2004) find that a feedback-
rich environment is positively related to the
perceived accuracy of performance appraisals.
This accuracy notion can subsequently be
connected to employee motivation in terms of
implications, as prior research found that rich
feedback enhances performance through an
increase in motivation (Roberson and Stewart,
2006; Taylor et al., 1995). The present study will
elaborate on the frequency and positive nature
characteristics of a feedback-rich environment by
placing a nuance on the positive motivation effect
of performance appraisal through a focus on
intrinsic motivation. Moreover, it will include
8
negative feedback, arguing that negative feedback
in performance appraisals also yields a positive
effect on intrinsic motivation. In line with
stewardship theory, it can argued that employees
value negative feedback, in a sense that they can
reflect on it and use it as a self-development
opportunity. To further develop the variance
measurement process, the effect of performance
appraisal on intrinsic motivation will also be
judged on the basis of a distinction between
formal and informal performance appraisal. Prior
literature states that generally, employees perceive
a more informal, more reciprocal nature of
performance appraisal as preferable (Pearce and
Porter, 1986). This notion seems to reserve a
central role for employee perception, on which
this study will focus. Moreover, in line with
Kinicki et al.'s (2004) feedback-rich environment
notion, it can be stated that informal
performance appraisals are desired more for
intrinsic motivation, due to a higher degree of
feedback specificity, through spontaneity and
greater relevance and recency of the feedback.
However, in line with stewardship theory, it
assumed that formal performance appraisals also
yield a positive effect, given that they also provide
learning and self-development opportunities
(Buelens and Van den Broeck, 2007; Davis et al.,
1997; Houston, 2000). Notwithstanding this, it is
still expected that informal performance
appraisals have a stronger positive effect on
intrinsic motivation than formal performance
appraisals.
Based on this literature review, the
following hypotheses are formulated:
H1: A high frequency of performance
appraisals has a positive impact on intrinsic
employee motivation.
H2a: Positive feedback in performance
appraisals has a positive impact on intrinsic
employee motivation.
H2b: Negative feedback in performance
appraisals has a positive impact on intrinsic
employee motivation.
H3a: Formal performance appraisals have a
positive impact on intrinsic employee
motivation.
H3b: Informal performance appraisals have
a larger positive impact on intrinsic employee
motivation than formal performance appraisals
have.
A critical note regarding these hypotheses must
be made. Although the hypotheses are in line
with the stewardship theory perspective, an
implicit requirement must be met. Management
controls should be used in a behavioural way that
satisfies employees' intrinsic desires; an intrinsic
approach should be adopted rather than an
extrinsic approach (Van der Kolk, 2013). If the
latter approach is adopted, this may have
counterproductive effects on intrinsic motivation,
as employees are assumed to desire an intrinsic
approach. This statement also clarifies the role of
perception in this research; employees form
opinions on the basis of which these hypotheses
will be verified.
In summary, this section has
demonstrated that a fruitful contribution can be
made to prior literature, regarding the relation
between performance appraisal and intrinsic
motivation. This has resulted in the formulation
of five hypotheses. Specifically, it is argued that
performance appraisals have a positive impact on
motivation of employees, as employees will
perceive them as contributing to their
9
development, consequently increasing their
intrinsic motivation. This positive relation is
included in five hypotheses, covering positive
feedback and negative feedback in performance
appraisals, formal and informal performance
appraisals and the frequency of performance
appraisal. It follows that this distinction should
be clearly maintained in the execution of this
research, to provide optimal results. This matter
will be discussed in depth in the following
section.
3. Methodology
3.1. Research design
In this research, a theory testing approach will be
adopted; stewardship theory will serve as a
foundation to identify the effect of performance
appraisal on intrinsic motivation. Theory testing
is an appropriate approach in view of the present
theoretical gap that is to be filled, guided by the
formulated hypotheses that is derived from
relevant prior literature. In order to verify these
hypotheses, a case study is conducted.
Furthermore, an interpretive approach
predominates this qualitative research, as the
present research is based on a wide array of
perceptions of individuals (Hopper and Powell,
1985). Therefore, the subjective nature of the
social world is emphasised in this research, as it
attempts to understand it primarily from the
frame of reference of those being studied, rather
than assuming an independent reality that might
exist external to them (Hopper and Powell, 1985;
Laing, 1967).
3.2. Data collection
To examine the nature of the relationship
between performance appraisal as a management
control mechanism and intrinsic motivation in
this particular case, thirteen semi-structured
interviews will be conducted among employees,
serving as the primary data collection method.
The interviews will be conducted at Omrop
Fryslân, the regional radio and television
broadcasting organisation of Friesland, a
province of the Netherlands. The research setting
will be further elaborated upon in the findings
chapter that follows this chapter. As the unit of
analysis in this research is the individual, the
research focuses on the perception of
respondents, in collecting data concerning the
formulated hypotheses. Therefore, the semi-
structured interview is believed to be a suitable
instrument, as it possesses qualities that
emphasise this aspect of the research, through the
facilitation of probing respondents for more
information and the exploration of new themes
(Louise Barriball and While, 1994). Moreover,
interviews are regarded as an important
instrument in a case study approach (Yin, 2013).
The employee satisfaction survey, which
has recently been conducted at Omrop Fryslân by
an external consultancy bureau, will serve as the
secondary data collection method of this study.
This report provides an insight into the
organisation-wide views and opinions of
employees, which are relevant to the management
control and employee motivation concepts
studied in this research. Of the 205 distributed
questionnaires that were sent out to Omrop
Fryslân's employees, 142 were returned. These
questionnaires were all virtually complete and
thus usable, which equates to a response rate of
10
69,3%. Notwithstanding the fact that this survey
could be regarded as an internally initiated
investigation effort, therefore being subjected to
organisational legitimacy and pressure, this
response rate is argued to be favourable given the
length and depth of the survey.
The interview content is included in the
appendix, and is structured as follows. Following
the introductory questions, performance appraisal
will be discussed in relation with intrinsic
motivation, following a two-stage structure. The
first stage focuses on indicating how strong the
mechanism is in terms of presence and influence
on respondents, and is based on the following
data sources. Performance appraisal is assessed as
the extent to which behaviour is measured and
evaluated, and was based on empirical work by
Abbey (1982) and Kinicki et al. (2004). The
second sub-stages of the interview concerns the
link between the given behaviour control
mechanism and employee motivation. Given the
semi-structured nature of the conducted
interviews, the second sub-stage is less structured
than the first stage, consequently providing the
opportunity to provoke discussion about and
exploration of the topics. In these sub-stages, the
focus is placed on critical values of the
stewardship theory.
In addition, two key components of
organisational structure will be briefly discussed,
in an effort to map the structure of the
organisation, following the same two-stage
structure. Centralisation is assessed as the extent
to which decision-making authority is
concentrated in the organisation, and was based
on empirical work by Aiken and Hage (1968),
Dewar et al. (1980) and Khandwalla (1974).
Formalisation is assessed as the extent to which
behavioural procedures and rules are explicitly
formulated, and was based on empirical work by
Aiken and Hage (1968), Desphande and Zaltman
(1982), Dewar and Werbel (1979) and Hall
(1968).
3.3. Data analysis
The primary data gathering instrument will
produce a large amount of textual data, which
implicitly involves a great responsibility for the
researcher, as the researcher must ensure that the
gathered information is collected in a clear and
unbiased manner. To assist and to provide
convenience in this matter, a recording device
will be used in cases in which the given
respondent agrees and the attention of both
parties is not breached (Yin, 2013). Consequently,
the interviews can be transcribed and coded
efficiently and effectively after they have been
conducted.
In addition, a major challenge of the
semi-structured interview based research process
is to attain credibility, which holds that the
research must be reliable and valid (Brink, 1991).
Regarding reliability, this study adopts a
classification of four sources of bias that must be
avoided to ensure that the research results are
independent of particular research characteristics
and can therefore be replicated in other studies
(Swanborn, 1996; Yin, 2013). Firstly, reliability is
enhanced through the usage of multiple research
instruments. The use of a semi-structured
interview instrument and the consultation of the
employee satisfaction report is regarded as such a
triangulation approach, as multiple sources of
evidence are combined (Van Aken et al., 2012;
Yin, 2013). Therefore, instrument bias is reduced
through triangulation, which remedies
11
shortcomings and biases of the used data
collection instruments by complementing and
correcting each other (Van Aken et al., 2012).
Secondly, as interviews leave relatively more
room for biases as a data collection interview,
standardisation is of importance; this yields that
explicit procedures for data collection, analysis
and interpretation should be followed (Van Aken
et al., 2012). As the interviews conducted in this
research are of a semi-structured nature, this
strategy is not fully exploited. Hence, the
software package Atlas.ti is used to reduce
researcher dependence by assisting the researcher
to work in a systematic manner (Van Aken et al.,
2012). Moreover, it can be stated that researcher
bias is combated by the triangulation approach, as
researcher independency is improved through the
use of multiple researchers and working towards
consensus. (Swanborn, 1996). Thirdly, as people
within an organisation can have widely diverging
views and opinions, it is of importance to gather
a mixture of perspectives (Van Aken et al., 2012).
Therefore, this study selects a diverse set of
respondents, on the basis of age, tenure, position
and department, which provides a source of
information about organisational reality. Fourthly,
a potential threat to the reliability of this study
lies in the fact that this study is carried out in a
limited time period, and therefore it does not
consider a multitude of circumstances (Van Aken
et al., 2012). Therefore, this source of situation
bias could potentially have a restricting impact on
the data collection process. However, as this
research also investigates a recently conducted
survey, two different time periods are included,
hence reducing the situation bias.
Validity presupposes reliability, as a
research result is valid when it is justified by the
way it is generated (Audi, 1998; Van Aken et al.,
2012). This research relies on a trichotomy of
validation criteria (Swanborn, 1996; Yin, 2013).
To maintain a high level of construct validity, the
present research pursues a high degree of
adequacy and completeness of the measurement
instruments. This is reached by making an effort
to cover the relevant concepts of management
control and employee motivation completely
during the interviews. Moreover, as the semi-
structured interview instrument is combined with
a survey investigation, construct validity is
enhanced through this triangulation approach
(Yin, 2013). Internal validity is pursued through
the use of a theoretical triangulation approach, as
the multiple perspectives could facilitate the
discovery of all causes, therefore ruling out
alternative explanations regarding the proposed
relationship (Van Aken et al., 2012). Moreover,
by conducting systematic analysis, internal validity
is maintained. Concerning the potential
generalisability implications of this research, it is
important to note that the investigation of the
employee satisfaction report increases the
number of studied objects, which consequently
improves external validity (Van Aken et al., 2012).
4. Findings
The findings are structured as follows. Firstly, the
research setting will be introduced; the notions of
centralisation and formalisations will be used to
provide a more comprehensive view of the
research setting. Secondly, covering the main
objective of this study, performance appraisal will
be discussed, in relation to intrinsic motivation.
In quoting respondents' statements, a numbering
12
system is used to ensure confidentiality, while still
allowing for distinction.
4.1. Research setting
The research will be carried out at Omrop
Fryslân: the regional radio and television
broadcasting organisation of Friesland, a
province of the Netherlands. Omrop Fryslân is
an organisation with a strong brand name and has
held a leading position in the regional society
over the years due to its distinctive and
innovative approach to broadcasting. Being part
of the Dutch regional broadcasting system,
Omrop Fryslân is a public sector organisation,
therefore suiting the formulated description of an
appropriate research setting. The case of Omrop
Fryslân is particularly interesting because of the
turbulent organisational climate it currently
operates in; due to governmental pressures
regarding an announced budget cut in the Dutch
public broadcasting system. Consequently, as
Omrop Fryslân is partially dependent on
government funding, it may have to implement
cost reduction measures. Considering the focus
of the present research, this case provides a
fruitful opportunity to study the relationship
between management control mechanisms and
employee motivation.
In terms of organisational structure,
centralisation and formalisation have proven to
be two valuable notions in the interviews as well
as in the employee satisfaction report, with
regards to the forthcoming discussion regarding
intrinsic motivation. Firstly, centralisation was
shown to be a familiar term to a large number of
employees; it was stated that it is present in the
organisation, although the focus was laid on
quality rather than the degree of centralisation, in
terms of consequences for intrinsic motivation.
Employees stated that decisions should be taken
in a consistent manner, should originate from a
legitimate source in terms of knowledge of facts,
and should be conveyed in a manner that enables
employees to recognise and understand the value
and usefulness of these decisions. Moreover, it
was deemed important that employees should be
involved in decision-making, so that their voice is
heard, and that their initiatives and ideas are
taken into consideration. An excessively high
degree of centralisation, however, was perceived
by employees as obstructive, as it is believed to
limit their actions. It was consequently perceived
as having a negative effect on intrinsic
motivation, as employees stated that it would
limit their level of autonomy and responsibility;
intrinsic motivation increases through an increase
of freedom, and in this case, an increase in
creativity.
Regarding formalisation, employees
stated that formalisation is not perceived to be
present to a high degree, or at least not strikingly
due to automatisms in workflows. They did,
however, provide a clear-cut image of the relation
between formalisation and intrinsic motivation.
Based on observations, it can be argued that a
moderate but steadfast degree of formalisation
leads to an increase in intrinsic motivation, as it
provides a grip for employees in their work
procedures. However, overlapping with the
centralisation notion, an excessively high degree
of formalisation was perceived to lead to a
decrease in autonomy and self-development
opportunities, consequently decreasing intrinsic
motivation. Strikingly, an increase in
formalisation is felt by a number of employees,
and has consequently been linked to the
13
uncertain future of the organisation. The new
work procedures project, which is currently
taking place in the organisation, is a concrete
example of this according to the interviewed
employees and the employee satisfaction report.
This project aims to sharpen the degree of
formalisation by providing a clearer structure for
it. Employees stated that, for intrinsic motivation
to be maintained, formalisation should be
implemented in a way that includes employees in
the process, maintains employee flexibility, yields
consistency, adds value and makes sense to
employees.
4.2. Performance appraisal and intrinsic motivation
Drawing further on the interview and employee
satisfaction report data sources, as well as the
abovementioned statements, it can be argued that
generally many statements can be traced back to
the organisational relation that is central to the
present study: the relation between employee and
manager. Concentrating on this study's main
objective— investigating the impact of
performance appraisal— it is observed that
intrinsic motivation plays a central role in the
organisation, as is clearly illustrated by the
following respondent's statement.
Omrop Fryslân operates on the basis of intrinsic
motivation; things are not always well organised,
but then people think to themselves "I want this
to be a good broadcast, that's what I want."; it's
a passion. We all work together to ensure that it
doesn't go wrong. That is something we recognise
in each other, we want to produce work of
quality. And in that sense, it's a very cosy
organisation, there are many
relationships, people get along well. Sometimes
there are difficulties, but people know each other
well, there are a lot of things that connect us.
[12]
Moreover, according to the employee satisfaction
report, employees state that managers serve an
important role regarding this. Employees expect
their manager to motivate them intrinsically; they
desire opportunities for self-development in their
work and want to feel appreciated. On the basis
of this, and in line with the current study's main
objective, a fruitful opportunity ensues, as it can
be argued that performance appraisal is an
excellent opportunity to put this key task in the
relation between manager and employee into
practice.
To enhance the clarity of the results
regarding the main research, the main findings of
this study are divided into three sections,
representing the three different characteristics of
performance appraisal as they were included in
the three sets of formulated hypotheses. The
frequency of performance appraisal and the effect
on intrinsic motivation will be discussed in the
first sub-paragraph, along with a verdict regarding
hypothesis 1. In the second sub-paragraph,
positive and negative performance appraisal
feedback in relation to intrinsic motivation will be
discussed, resulting in a verdict regarding
hypotheses 2a and 2b. The third sub-paragraph
will discuss performance appraisal of a formal
and informal nature, in relation to intrinsic
motivation, resulting in a verdict regarding
hypotheses 3a and 3b.
14
4.2.1. Frequency of performance appraisal and intrinsic
motivation
The findings that concern hypothesis 1— the
effect of performance appraisal frequency on
intrinsic motivation— will be discussed here. In
general, employees view a high frequency of
performance appraisals as positive; this is
especially linked to a desire to know where one
stands. The employee satisfaction report
confirms this relation; communication and
transparency are valued highly on the work floor,
and informal performance appraisal is regarded as
a means to accomplish this. Regarding their
intrinsic motivation, specifically, a positive effect
is experienced by employees, as a high frequency
of performance appraisal yields a high number of
opportunities for self-development.
Having many feedback and evaluation moments
causes you to think deeply about things that
might not be developed properly yet, or that
you're struggling with a little. It gives you the
opportunity to develop, which of course is a big
part of intrinsic motivation. [13]
Focusing on the employee-supervisor
relationship, it can be argued that the supervisors
do not sufficiently meet this desire of employees
at times. Several employees have stated that there
is little time to talk about matters, that they do
not hear enough from their supervisor and that
performance appraisal suffers from these time
constraints as well. Moreover, it seems that
performance appraisal is not high on the list of
priorities, resulting in negligence.
It's always under time pressure, an item has to
be ready for a certain programme. And to
discuss it the next day in peace doesn't work
either. So it becomes quick, or at the coffee
machine; something that comes across badly. [7]
This desire for a higher frequency revealed a clear
enterprising and perhaps venturous character of
some employees, triggered by a sense of
responsibility, and enabled by confidence, trust
and communication.
I am someone who does not always know how
things work, so I walk up to him myself. I
feel like I can always knock on his door, that I
can always ask things. I'm also someone who
appreciates responsibility. I think people can
flourish in that, when you take action yourself. I
believe it should come from both sides. You
should not wait until the action is taken higher
up in the organisation, you have to do something
yourself too. You can complain, but then are you
doing enough yourself? [4]
However, a limit is set for this desire for high
frequency; too many performance appraisals may
convey feelings of restlessness and oppression,
and may consequently hamper their intrinsic
motivation. Notwithstanding this, it can be
concluded that frequency generally has a positive
effect on intrinsic motivation, therefore,
hypothesis 1 is supported.
Employees often linked this frequency
notion to the other two sets of hypotheses; a high
frequency magnifies the effect of positive or
negative feedback in performance appraisals, and
formal and informal performance appraisals on
intrinsic motivation. Hence, it is believed that
interweaving these connections in the
forthcoming discussion, in the two following sub-
15
paragraphs, will result in a more clear cut
structure of findings, as well as providing a more
comprehensive view regarding the relation
between these aspects.
4.2.2. Positive and negative performance appraisal
feedback and intrinsic motivation
This sub-paragraph will discuss the findings
regarding hypothesis 2a and 2b: the effect of
positive and negative performance appraisal
feedback on intrinsic motivation. On the basis of
this distinction, striking findings arise. Positive
feedback in performance appraisals is desired and
is claimed to have a positive effect on intrinsic
motivation; it drives employees and makes them
feel appreciated. Moreover, it allows them to
focus on a satisfactory goal to work towards.
It is true that positivity drives me more, it gives
me a thrill. You then keep doing what you're
doing. If I deliver a performance, and both
supporters and antagonists react overwhelmingly
positive, then it motivates me. [6]
Compliments are nice to hear in our profession.
Positivity has an effect on intrinsic
motivation; it is a form of appreciation that
works well, you are being recognised. [12]
An exception to this relation is found in the
source of this positive performance appraisal
feedback. If employees question the legitimacy of
the information that is provided to them, the
positive effect is reduced. For instance, this is the
case when the manager is believed to have
insufficient knowledge of the facts.
I cannot take the performance appraisals
seriously; they are retrospective, but due to a lack
of knowledge I cannot debate with my supervisor.
[8]
However, this positive relation with intrinsic
motivation does not provide a full picture; in line
with the stewardship theory notion that
employees are intrinsically motivated by self-
development opportunities, negative
performance appraisal feedback contributes to
this positive relation as well by offering such self-
development opportunities. However, conditions
are imposed on the structure of the criticism
expressed by a manager, in order for intrinsic
motivation to indeed increase. For instance, not
only does criticism need to be grounded,
constructive and relevant, it also has to lead to
personal growth opportunities.
I always have to be able to do something with it,
I can't deal with negativity and that's it, I have
problems with that. Then I am only trying to
please people. I am solution- oriented. We have
had discussions with points of criticism, and
afterwards I am glad that the facts are presented,
on the basis of which you can make agreements.
Criticism must yield the opportunity to do
something with it. [12]
If you're doing your best, under difficult
circumstances, but you get a negative response
like “this isn't good, that doesn't work”, so it's
not constructive criticism- because that's always
good- but just something negative, then it has a
demotivating effect. So, give me constructive
feedback, not things that are irrelevant. And
we're dealing with that more and more often. Or
that costs are too high, it takes too long,
16
this or that. You don't have control over that.
The result has then become less important than
the total cost package. [6]
Although negative feedback in performance
appraisals has a positive effect on intrinsic
motivation, it must not gain the upper hand. The
employee satisfaction report reinforces this line
of reasoning; although employees desire
managers to take a critical look at the current
situation, negative performance appraisal
feedback must not suppress positive performance
appraisal feedback to a point where the latter is
absent. Again, this is linked to the subordinate
role that negative performance appraisal feedback
fulfils in relation to intrinsic motivation; positive
performance appraisal feedback is desired more.
However, there seems to be a limit for both
positive and negative performance appraisal
feedback, which can be linked to the frequency
notion. Too much positive or negative
performance appraisal feedback, too often, is
experienced as tiresome, as the credibility of the
performance appraisals decreases.
Notwithstanding this, it was derived from the
employee satisfaction report that the current
frequency of positive and negative performance
appraisal feedback was regarded as unsatisfactory
to barely satisfactory. Frequency is therefore, in
principle, positively related to positive and
negative performance appraisal feedback. It can
be concluded that both positive or negative
performance appraisal feedback generally have a
positive effect on intrinsic motivation, therefore,
hypothesis 2a and 2b are supported.
4.2.3. Formal and informal performance appraisal and
intrinsic motivation
The findings that regard to the effect of formal
performance appraisal, as formulated in
hypothesis 3a, and informal performance
appraisal, as formulated in hypothesis 3b, on
intrinsic motivation, will be discussed here.
Scrutinising the effect of formal performance
evaluations has not resulted in a clear direct
relation with intrinsic motivation. A small group
of respondents has stated that their intrinsic
motivation would increase if formal performance
appraisals had a more informal character.
However, contrasting this notion, one employee
stated that formal performance appraisals should
be more critical for intrinsic motivation to
increase. Therefore, although informality is
desired and appreciated— even in formal
performance appraisals— formality should not
disappear completely; firm guidance is also
desired.
Drawing further on this line of
reasoning, it is argued that informal performance
appraisals prevail in relation to intrinsic
motivation, due to the positive effect of high
frequency. Formal performance appraisals
generally occur twice a year, in the form of a
retrospective performance evaluation interview
and a functional assessment interview that
focuses on the future. In general, formal
performance appraisals are perceived as more
top-down and artificial in nature, compared to
informal performance appraisals, due to the fact
that they are planned in advance, yielding more
time to prepare feedback. Moreover, they are less
frequent than informal performance appraisals
and thus are regarded as a more important event.
In contrast, informal performance appraisals are
17
of a more spontaneous nature. In summary, it can
be argued that formal performance appraisals do
not have a clear-cut effect on intrinsic
motivation, while informal performance
appraisals have a positive effect on intrinsic
motivation.
Formal is twice a year, informal happens on a
daily basis for me, particularly because
I am a professional perfectionist; you want to
know what you have done, you want to
move forward and get better, that is my
motivation to develop. [3]
It can be concluded that, while formal
performance appraisals do not have a
straightforward effect on intrinsic motivation,
informal performance appraisals have a positive
effect on intrinsic motivation; therefore,
hypothesis 3a is rejected and hypothesis 3b is
supported. Table 1 presents an overview of the
hypotheses that were included in this research,
along with their status resulting from the findings
discussed in this chapter. In the forthcoming
discussion, the findings will be compared to the
literature from the literature review. The same
structure as in previous chapters will be adopted
for this discussion.
Hypothesis Status
Hypothesis 1 Supported
Hypothesis 2a Supported
Hypothesis 2b Supported
Hypothesis 3a Rejected
Hypothesis 3b Supported
Table 1. Hypotheses overview.
5. Analysis
5.1. Frequency of performance appraisal and intrinsic
motivation
A perceived high frequency of performance
appraisals has a positive effect on intrinsic
motivation, as employees regard this as a high
number of opportunities for learning and self-
development. This is in line with stewardship
theory, which states that employees are
intrinsically motivated by these opportunities, as
they enable them to reflect on themselves, and to
improve (Buelens and Van den Broeck, 2007;
Donaldson and Davis, 1991; Houston, 2000).
Furthermore, as frequency is part of the
feedback-rich environment description, this
proved to be suiting for the positive relation
between frequency and intrinsic motivation
(Kinicki et al., 2004). This relation has been
proven to be strong, as employees took the
initiative to approach their supervisor, thus
increasing the frequency of performance
appraisals themselves. Based on this critical
evidence, hypothesis 1 is confirmed.
Moreover, this positive relation between
performance appraisal frequency and intrinsic
motivation also affects the other two sets of
hypotheses; a high frequency magnifies the effect
of positive or negative feedback in performance
appraisals, and informal performance appraisals
on intrinsic motivation. This is in line with
Kinicki et al's (2004) feedback-rich environment
description. Frequency does not have a clear
effect on formal performance appraisal, due to
the ambiguous relation between formal
performance appraisal and intrinsic motivation.
Although frequency has a clear effect on three of
the performance appraisal characteristics, it also
sets a limit; the positive effect of positive or
18
negative performance appraisal feedback
diminishes when performance appraisals are
deployed excessively, which attenuates the
strength of the relevant formulated hypotheses.
This line of reasoning also applies to informal
performance appraisal. Formal performance
appraisal is excluded from this line of reasoning,
as employees did not formulate a consistent
relation between formal performance appraisal
and intrinsic motivation.
5.2. Positive and negative performance appraisal feedback
and intrinsic motivation
Positive feedback in performance appraisals is
regarded as positive by employees, in relation
with intrinsic motivation, as it offers employees a
learning opportunity as well as an opportunity for
self-development This conclusion is in line with
stewardship theory and the description of a
feedback-rich environment, which states that
frequent and positive feedback is desired by
employees (Buelens and Van den Broeck, 2007;
Donaldson and Davis, 1991; Houston, 2000;
Kinicki et al., 2004). Moreover, the same line of
reasoning applies for negative feedback in
performance appraisals.
However, these lines of reasoning must
be clarified. It should be noted that a balance
between positive or negative performance
appraisal feedback must be attained, for intrinsic
motivation to increase. This balance includes
more positive than negative performance
appraisal feedback, which is in line with Kinicki
et al.'s (2004) feedback-rich environment
description. This is also where the current
research contributes to literature. By narrowing
the focus from motivation to intrinsic
motivation, and by including the negative aspect
of performance appraisals, it is found that
negative performance appraisal feedback plays an
important role in the positive relation with
intrinsic motivation as well. This is in line with
stewardship theory, which states that self-
development opportunities are valued by
employees; negative feedback is perceived as an
opportunity to critically reflect upon
performance, and consequently as an opportunity
for self-development, thus increasing intrinsic
motivation (Buelens and Van den Broeck, 2007;
Houston, 2000). Sufficient supporting evidence
has been identified, which leads one to confirm
hypothesis 2a and 2b; though it should be noted
that the positive relation in 2a is stronger, as
positive performance appraisal feedback is
desired more than negative performance appraisal
feedback.
5.3. Formal and informal performance appraisal and
intrinsic motivation
Compared to prior literature on performance
appraisals and intrinsic motivation, it can be
concluded that the distinction between formal
and informal performance appraisal has proven
to be sensible, as clearly distinctive effects have
been found on intrinsic motivation. Formal
performance appraisals are regarded as both
pressuring and desired by some employees,
leading to an ambiguous and therefore
insignificant relation with intrinsic motivation.
Although a weaker positive effect of formal
performance appraisals was formulated, this
relation proved to be weaker and less clear than
expected. Therefore, a nuance should be given to
the unconditional nature of the self-development
stewardship theory notion; not all self-
development opportunities lead to an increase of
19
intrinsic motivation (Buelens and Van den
Broeck, 2007; Donaldson and Davis, 1991;
Houston, 2000). Informal performance
appraisals, on the other hand, do have a
straightforward effect on intrinsic motivation. In
line with stewardship theory and the feedback-
rich environment notion, it can be argued that
informal performance appraisals provide frequent
self-development opportunities of a spontaneous
nature, which results in an increase in intrinsic
motivation (Buelens and Van den Broeck, 2007;
Donaldson and Davis, 1991; Houston, 2000).
Moreover, this line of reasoning also suits the
feedback-rich environment notion, which also
offers an explanation for the difference in effect
compared to formal performance appraisals;
informal performance appraisals are believed to
be more desired for intrinsic motivation, due to a
higher degree of specificity, through spontaneity
and greater relevance and recency of the feedback
(Kinicki et al., 2008).
In summary, regarding the performance
appraisal characteristics that were included in this
research, it can be concluded that the results are
compatible with Van der Kolk's (2013) statement
that management controls should be used in a
behavioural way that satisfies employees' intrinsic
desires. Only formal performance appraisal did
not withstand this test, due to a lack of frequency
and therefore insufficient opportunities for self-
development.
6. Conclusion
This study was conducted to address specific
gaps in the literature regarding the effect of
management control mechanisms and intrinsic
motivation. Specifically, the main theoretical
objective was to reveal the relation between
performance appraisals and intrinsic motivation,
which is in line with the research question. In
summary, it was shown that positive and negative
performance appraisal feedback, and
performance appraisal of an informal nature have
a positive effect on employee motivation; this
effect is mainly explained by the self-
development desire of employees. Moreover, a
similar effect was triggered by a high frequency of
performance appraisals. Formal performance
appraisals, however, did not show a
straightforward relation with intrinsic motivation.
The findings of this study contribute to the field
of management control, representing a clear and
comprehensive picture of the effect of
performance appraisal as a behaviour control
mechanism on intrinsic motivation. Moreover,
focusing on intrinsic motivation, this study
contributed to the stewardship theory, by testing
and consequently confirming its views regarding
intrinsic motivation in a practical setting.
Therefore, this study contributes to the scarce
volume of empirical research on stewardship
theory and bridges a potential relevance gap. In
addition, as this study was conducted in the
public sector, a contribution has been made to
strengthen the current, subordinate role of the
public sector in employee motivation research, in
relation to the private sector.
On the basis of these theoretical
implications, two implications for practice arise.
Firstly, it shows how performance appraisal
affects intrinsic motivation. This presents a
tailored guideline for managers; concrete
requirements have been imposed by employees
that should be met when implementing specific
changes or additions to this specific behaviour
20
control mechanism. Secondly, focusing on the
intrinsic motivation notion, it was shown that
intrinsic motivation can be of utmost importance
in an organisation; it has proven to be a powerful
driver that employees expect to be created and
maintained by managers.
A number of limitations to this research
must be recognised. Firstly, the primary limitation
of this study stems from the specificity of the
research setting; the study covered one
organisation, and the primary data collection
method included only thirteen respondents. In
spite of the fact that the organisation-wide
employee satisfaction report reinforces the
findings in this study, this leads to generalisability
concerns, as generalising the findings to alternate
contexts and organisations may prove to be
difficult. Secondly, this study has focused on one
behaviour control mechanism. Aside from
excluded behaviour control mechanisms, it must
also be noted that input and output control
mechanisms could yield effects on intrinsic
motivation. It has been stated that forms of
control typically do not exist in isolation, but
rather are combined to influence the attainment
of a specific aim (Cardinal 2001; Kirsch 1996).
Due to the focus of this study, this statement has
not fully been taken into account.
The findings of this study, along with its
limitations, suggest interesting avenues for future
research. Firstly, through the research on
performance appraisal characteristics and their
effect on intrinsic motivation, this study has
opened up opportunities to further analyse the
effects of these characteristics, and consequently
increase the generalisability of this study's
findings. Moreover, future research could further
analyse the interconnectedness and interplay of
these performance appraisal characteristics.
Secondly, the performance appraisal notion could
be broken down further, potentially identifying
other characteristics that could conform or
contradict the effects on intrinsic motivation
which have been identified by this study. This
would paint a fuller picture, resulting in more
steadfast conclusions. Thirdly, it would be
interesting to conduct a longitudinal case study in
one or more companies, before, during and after
a turbulent period, change or event. This would
allow for variance to be measured, which stems
from a change in perception potentially triggered
by this change in the organisational environment.
Acknowledgements
I gratefully acknowledge the people that stood by
me during this intensive period, which was
preluded by an accident and required a
considerable time period in recovery. I would like
to thank my mum and dad, and my brother
Sander, for supporting me in this time. I would
also like to thank Emily, my girlfriend, who stood
beside me from start to finish, for taking care of
me and guiding me through this turbulent period-
and also for proofreading my work. Furthermore,
I am grateful for the helpful comments and
suggestions received from my supervisor Berend
van der Kolk, as well as Remi and Remco, my
peers, who provided me with solid grips in
finishing my Master's Thesis. I would also like to
thank Omrop Fryslân, for granting me the
opportunity to interview employees, and thus
conduct my research.
References
Abbey, A. (1982). Technological innovation: the
R & D work environment (No. 49). UMI
Research Press.
Adler, P. S., & Borys, B. (1996). Two types of
bureaucracy: Enabling and coercive.
Administrative science quarterly, 61-89.
Aiken, M., & Hage, J. (1968). Organizational
interdependence and intra-organizational
structure. American sociological review,
912-930.
Aken, J. van, Berends, H., & Van der Bij, H.
(2012). Problem solving in organizations:
A methodological handbook for business
and management students. Cambridge
University Press.
Anthony, R. and Govindarajan, V., 2007.
Management Control Systems, Chicago,
Mc-Graw-Hill/ Irwin.
Audi, R. (2003). Epistemology: a contemporary
introduction to the theory of
knowledge (Vol. 2). Psychology Press.
Boswell, W. R., & Boudreau, J. W. (2002).
Separating the developmental and
evaluative performance appraisal uses.
Journal of Business and Psychology,
16(3), 391-412.
Brink, P. J. (1991). Issues of reliability and
validity. Qualitative nursing research: A
contemporary dialogue, 164-186.
Buelens, M., & Van den Broeck, H. (2007). An
analysis of differences in work
motivation between public and private
sector organizations. Public
administration review, 67(1), 65-74.
Burgelman, R. A., & Sayles, L. R. (1988). Inside
corporate innovation. Simon and
Schuster.
Burgess, S., & Ratto, M. (2003). The role of
incentives in the public sector: Issues and
evidence. Oxford review of economic
policy, 19(2), 285-300.
Cardinal, L. B. (2001). Technological innovation
in the pharmaceutical industry: The use
of organizational control in managing
research and development. Organization
Science, 12(1), 19-36.
Chenhall, R. H. (2003). Management control
systems design within its organizational
context: findings from contingency-based
research and directions for the
future. Accounting, organizations and
society, 28(2), 127-168.
Corbey, M.H. (2010), Agent of steward? Over
mensbeeld en management control,
Maandblad voor Accountancy en
Bedrijfseconomie, vol. 84, no. 9
(September), 487-492.
Covington, M. V., & Müeller, K. J. (2001).
Intrinsic versus extrinsic motivation: An
approach/avoidance reformulation.
Educational Psychology Review, 13(2),
157-176.
22
Davis, J. H., Schoorman, F. D., & Donaldson, L.
(1997). Toward a stewardship theory of
management. Academy of Management
review, 22(1), 20-47.
Deci, E. L. (1975). Intrinsic motivation. New
York: Plenum Press.
Deci, E. L., & Ryan, R. M. (Eds.).
(2002). Handbook of self-determination
research. Rochester: University
Rochester Press.
Deshpande, R., & Zaltman, G. (1982). Factors
affecting the use of market research
information: A path analysis. Journal of
marketing research, 14-31.
Dewar, R., & Werbel, J. (1979). Universalistic and
contingency predictions of employee
satisfaction and conflict. Administrative
science quarterly, 426-448.
Dewar, R. D., Whetten, D. A., & Boje, D. (1980).
An examination of the reliability and
validity of the Aiken and Hage scales of
centralization, formalization, and task
routineness. Administrative Science
Quarterly, 120-128.
Dilulio, John D., 1994, Principled agents: the
cultural bases of behavior in a federal
government bureaucracy, Journal of
Public Administration Research and
Theory 4:277-318.
Donaldson, L., & Davis, J. H. (1991).
Stewardship theory or agency theory:
CEO governance and shareholder
returns. Australian Journal of
management,16(1), 49-64.
Frey, B. S., Homberg, F., & Osterloh, M. (2013).
Organizational control systems and pay-
for- performance in the public
service. Organization Studies,
0170840613483655.
Griffin, R. W. (1990), Management, 3rd edition.
Dallas: Houghton Mifflin Company.
Hackman, J. R., & Oldham, G. R. (1976).
Motivation through the design of work:
Test of a theory. Organizational
behavior and human performance, 16(2),
250-279.
Hage, J., & Aiken, M. (1967). Relationship of
centralization to other structural
properties. Administrative Science
Quarterly, 72-92.
Hall, R. H. (1968). Professionalization and
bureaucratization. American sociological
review, 92-104.
Herzberg, F. I. (1966). Work and the nature of
man. Cleveland: World Publishing
Herzberg, F., Mausner, B., & Snyderman, B. B.
(1959). The motivation to work. New
York: John Wiley & Sons.
Herzberg, F. (1986). One more time: How do
you motivate employees. New York: The
Leader Manager, 433-448.
23
Hopper, T., & Powell, A. (1985). Making sense of
research into the organizational and
social aspects of management
accounting: A review of its underlying
assumptions [1]. Journal of
management Studies, 22(5), 429-465.
Houston, D. J. (2000). Public-service motivation:
A multivariate test. Journal of public
administration research and theory, 10(4),
713-728.
Ilgen, D. R., Fisher, C. D., & Taylor, M. S. (1979).
Consequences of individual feedback on
behavior in organizations. Journal of
applied psychology, 64(4), 349.
Kauffman, D. F., Soylu, M. Y., & Duke, B.
(2011). Validation of the motivation to
teach scale. H. U. Journal of
Education, 40(40).
Khandwalla, P. N. (1974). The design of
organisations. New York: Harcourt Brace
Jovanovich, Inc.
Kinicki, A. J., Prussia, G. E., Wu, B. J., & McKee-
Ryan, F. M. (2004). A covariance
structure analysis of employees' response
to performance feedback. Journal of
applied psychology, 89(6), 1057.
Kirsch, L. J. (1996). The management of complex
tasks in organizations: Controlling the
systems development process.
Organization Science, 7(1), 1-21.
Kleinginna Jr, P. R., & Kleinginna, A. M. (1981).
A categorized list of motivation
definitions, with a suggestion for a
consensual definition. Motivation and
emotion, 5(3), 263-291.
Kolk, B. van der (2013). Bonussen: kunnen we
zonder? Maandblad voor Accountancy
en Bedrijfseconomie, vol. 87, no. 3
(March), 487-492.
Kovach, K. A. (1995). Employee motivation:
Addressing a crucial factor in your
organization's performance. Employment
Relations Today, 22(2), 93-107.
Laing, R.D. (1967). The Politics of Experience.
New York: Ballantine.
Louise Barriball, K., & While, A. (1994).
Collecting Data using a semi‐structured
interview: a discussion paper. Journal of
advanced nursing, 19(2), 328-335.
Maciariello, J. A., & Kirby, C. J. (1994).
Management control systems: using
adaptive systems to attain control.
Prentice-Hall International.
Otley, D. (1994). Management control in
contemporary organizations: towards a
wider framework. Management
accounting research, 5(3), 289-299.
Ouchi, W. G. (1979). A Conceptual Framework
for the Design of Organizational Control
Mechanisms. Management Science,
25(9), 833-848.
Pearce, J. L., & Porter, L. W. (1986). Employee
responses to formal performance
24
appraisal feedback. Journal of Applied
Psychology, 71(2), 211.
Perry, J. L., & Porter, L. W. (1982). Factors
affecting the context for motivation in
public organizations. Academy of
management review, 7(1), 89-98.
Pugh, D. S., Hickson, D. J., Hinings, C. R., &
Turner, C. (1969). The context of
organization structures. Administrative
Science Quarterly, 91-114.
Rainlall, S. (2004). A review of employee
motivation theories and their
implications for employee retention
within organizations. The journal of
American academy of business, 9, 21-
26.
Robbins, S. P. (1991). Organizational behavior:
Concepts, controversies, and
applications. Prentice Hall.
Roberson, Q. M., & Stewart, M. M. (2006).
Understanding the motivational effects
of procedural and informational justice in
feedback processes. British Journal of
Psychology, 97(3), 281-298.
Rockness, H. O., & Shields, M. D. (1984).
Organizational control systems in
research and development. Accounting,
Organizations and Society, 9(2), 165-177.
Swanborn, P. G. (1996). A common base for
quality control criteria in quantitative and
qualitative research. Quality and
Quantity, 30(1), 19-35.
Taylor, M. S., Tracy, K. B., Renard, M. K.,
Harrison, J. K., & Carroll, S. J. (1995).
Due process in performance appraisal: A
quasi-experiment in procedural
justice. Administrative Science Quarterly,
495-523.
Turner Parish, J., Cadwallader, S., & Busch, P.
(2008). Want to, need to, ought to:
employee commitment to organizational
change. Journal of Organizational
Change Management, 21(1), 32-52.
Vroom, V. H. (1964). Work and motivation. New
York: Wiley.
Wiley, C. (1997). What motivates employees
according to over 40 years of
motivation surveys. International Journal
of Manpower, 18(3), 263-280.
Wright, B. E. (2001). Public-sector work
motivation: A review of the current
literature and a revised conceptual
model. Journal of public administration
research and theory, 11(4), 559-586.
Yin, R. K. (2013). Case study research: Design
and methods. Sage publications.
25
Appendix A. Interview questions: variables and items at the individual unit level.
Variables Items References
Introduction
When did you start working for Omrop Fryslân?
Could you briefly describe the goal of your department?
What is your role within this department?
For how long have you held this position already?
What are the core tasks that are part of your function?
What has changed in terms of management control, over the past five years?
What is your opinion on these changes?
Behaviour Control
Mechanisms:
Performance appraisal
Stage 1: measuring the frequency and nature of performance appraisal Abbey (1982)
What are the performance appraisals based on? Kinicki et al. (2004)
What is the ratio between formal and informal performance appraisals?
What is the ratio between positive and negative performance appraisals?
How often do performance appraisals occur?
Stage 2: measuring the impact of performance appraisal
What is your opinion on the performance appraisals?
How do the performance appraisals affect your intrinsic work motivation?
Centralisation
Stage 1: measuring the level of centralisation Aiken and Hage (1968)
How large is the ability to take action yourself, without supervisor approval? Dewar et al. (1980)
What are the consequences if an unauthorised decision is made or action is taken? Khandwalla (1974)
Stage 2: measuring the impact of centralisation
What is your opinion on the centralisation that you have to cope with?
How does the present degree of centralisation affect your intrinsic work motivation?
Formalisation
Stage 1: measuring the level of formalisation Aiken and Hage (1968)
Are formulated rules available for every work situation? Desphande and Zaltman (1982)
Are standard procedures established for every work situation? Dewar and Werbel (1979)
Do these rules and procedures need to be strictly followed; are there consequences? Hall (1968)
Stage 2: measuring the impact of formalisation
What is your opinion on the formalisation that you have to cope with?
How does the present degree of formalisation affect your intrinsic work motivation?

More Related Content

What's hot

11.a two factor model of organizational citizenship behaviour in organizations
11.a two factor model of organizational citizenship behaviour in organizations11.a two factor model of organizational citizenship behaviour in organizations
11.a two factor model of organizational citizenship behaviour in organizationsAlexander Decker
 
Job satisfaction and contributing variables among the bank employees in cudda...
Job satisfaction and contributing variables among the bank employees in cudda...Job satisfaction and contributing variables among the bank employees in cudda...
Job satisfaction and contributing variables among the bank employees in cudda...iaemedu
 
E0321030034
E0321030034E0321030034
E0321030034
inventionjournals
 
General apa guidelines final
General apa guidelines finalGeneral apa guidelines final
General apa guidelines finalMani Ali
 
Thesis organizational work environment, teamwork and organization performance
Thesis organizational work environment, teamwork and organization performanceThesis organizational work environment, teamwork and organization performance
Thesis organizational work environment, teamwork and organization performance
Ali Raza
 
The Role of Organizational Silence on the Staff Performance from Administrato...
The Role of Organizational Silence on the Staff Performance from Administrato...The Role of Organizational Silence on the Staff Performance from Administrato...
The Role of Organizational Silence on the Staff Performance from Administrato...
inventionjournals
 
Human relations and behavioral science approach to motivation in selected bus...
Human relations and behavioral science approach to motivation in selected bus...Human relations and behavioral science approach to motivation in selected bus...
Human relations and behavioral science approach to motivation in selected bus...
Alexander Decker
 
Change management assignment on organizational challenges
Change management assignment on organizational challengesChange management assignment on organizational challenges
Change management assignment on organizational challenges
Total Assignment Help
 
20131211378&r1995 v1-n3-str252-261
20131211378&r1995 v1-n3-str252-26120131211378&r1995 v1-n3-str252-261
20131211378&r1995 v1-n3-str252-261
Dr ASMA Imran
 
Paper eiasm conference 2012- def
Paper eiasm conference 2012- defPaper eiasm conference 2012- def
Paper eiasm conference 2012- defJudith van Helvert
 
09e41508ff540ef787000000
09e41508ff540ef78700000009e41508ff540ef787000000
09e41508ff540ef787000000Rituraj Yadav
 
Employee perceived training effectiveness relationship to employee attitudes
Employee perceived training effectiveness relationship to employee attitudesEmployee perceived training effectiveness relationship to employee attitudes
Employee perceived training effectiveness relationship to employee attitudes
missnurin
 
The Relationship between Psychological Health, Self-Confidence and Locus of C...
The Relationship between Psychological Health, Self-Confidence and Locus of C...The Relationship between Psychological Health, Self-Confidence and Locus of C...
The Relationship between Psychological Health, Self-Confidence and Locus of C...
IJERA Editor
 
Transformation Leadership
Transformation  LeadershipTransformation  Leadership
Transformation Leadership
Poramin Insomniaz
 
D353451.pdf
D353451.pdfD353451.pdf
D353451.pdf
ajmrdjournals
 
Increasing employee organizational commitment by correlating goal setting
Increasing employee organizational commitment by correlating goal settingIncreasing employee organizational commitment by correlating goal setting
Increasing employee organizational commitment by correlating goal settingAlexander Decker
 
Quantitative Research Study "employees’ job satisfaction, commitment, job saf...
Quantitative Research Study "employees’ job satisfaction, commitment, job saf...Quantitative Research Study "employees’ job satisfaction, commitment, job saf...
Quantitative Research Study "employees’ job satisfaction, commitment, job saf...
Muhammad Yasir Arslan, MIEAust CPEng PMP MBA
 
Two numbers for growth, innovation and high performance: Working and optimal...
Two numbers for growth, innovation and high performance:  Working and optimal...Two numbers for growth, innovation and high performance:  Working and optimal...
Two numbers for growth, innovation and high performance: Working and optimal...
The University of Alabama
 

What's hot (20)

JML MSA 699
JML MSA 699JML MSA 699
JML MSA 699
 
11.a two factor model of organizational citizenship behaviour in organizations
11.a two factor model of organizational citizenship behaviour in organizations11.a two factor model of organizational citizenship behaviour in organizations
11.a two factor model of organizational citizenship behaviour in organizations
 
Job satisfaction and contributing variables among the bank employees in cudda...
Job satisfaction and contributing variables among the bank employees in cudda...Job satisfaction and contributing variables among the bank employees in cudda...
Job satisfaction and contributing variables among the bank employees in cudda...
 
E0321030034
E0321030034E0321030034
E0321030034
 
General apa guidelines final
General apa guidelines finalGeneral apa guidelines final
General apa guidelines final
 
Thesis organizational work environment, teamwork and organization performance
Thesis organizational work environment, teamwork and organization performanceThesis organizational work environment, teamwork and organization performance
Thesis organizational work environment, teamwork and organization performance
 
The Role of Organizational Silence on the Staff Performance from Administrato...
The Role of Organizational Silence on the Staff Performance from Administrato...The Role of Organizational Silence on the Staff Performance from Administrato...
The Role of Organizational Silence on the Staff Performance from Administrato...
 
Human relations and behavioral science approach to motivation in selected bus...
Human relations and behavioral science approach to motivation in selected bus...Human relations and behavioral science approach to motivation in selected bus...
Human relations and behavioral science approach to motivation in selected bus...
 
Change management assignment on organizational challenges
Change management assignment on organizational challengesChange management assignment on organizational challenges
Change management assignment on organizational challenges
 
20131211378&r1995 v1-n3-str252-261
20131211378&r1995 v1-n3-str252-26120131211378&r1995 v1-n3-str252-261
20131211378&r1995 v1-n3-str252-261
 
Paper eiasm conference 2012- def
Paper eiasm conference 2012- defPaper eiasm conference 2012- def
Paper eiasm conference 2012- def
 
09e41508ff540ef787000000
09e41508ff540ef78700000009e41508ff540ef787000000
09e41508ff540ef787000000
 
Employee perceived training effectiveness relationship to employee attitudes
Employee perceived training effectiveness relationship to employee attitudesEmployee perceived training effectiveness relationship to employee attitudes
Employee perceived training effectiveness relationship to employee attitudes
 
The Relationship between Psychological Health, Self-Confidence and Locus of C...
The Relationship between Psychological Health, Self-Confidence and Locus of C...The Relationship between Psychological Health, Self-Confidence and Locus of C...
The Relationship between Psychological Health, Self-Confidence and Locus of C...
 
Transformation Leadership
Transformation  LeadershipTransformation  Leadership
Transformation Leadership
 
Thesis-final-RGZ
Thesis-final-RGZThesis-final-RGZ
Thesis-final-RGZ
 
D353451.pdf
D353451.pdfD353451.pdf
D353451.pdf
 
Increasing employee organizational commitment by correlating goal setting
Increasing employee organizational commitment by correlating goal settingIncreasing employee organizational commitment by correlating goal setting
Increasing employee organizational commitment by correlating goal setting
 
Quantitative Research Study "employees’ job satisfaction, commitment, job saf...
Quantitative Research Study "employees’ job satisfaction, commitment, job saf...Quantitative Research Study "employees’ job satisfaction, commitment, job saf...
Quantitative Research Study "employees’ job satisfaction, commitment, job saf...
 
Two numbers for growth, innovation and high performance: Working and optimal...
Two numbers for growth, innovation and high performance:  Working and optimal...Two numbers for growth, innovation and high performance:  Working and optimal...
Two numbers for growth, innovation and high performance: Working and optimal...
 

Viewers also liked

PhD proposal Final(4)
PhD proposal Final(4)PhD proposal Final(4)
PhD proposal Final(4)Petra Smit
 
Relationship Between Job Satisfaction and Absenteeism of the Employees in the...
Relationship Between Job Satisfaction and Absenteeism of the Employees in the...Relationship Between Job Satisfaction and Absenteeism of the Employees in the...
Relationship Between Job Satisfaction and Absenteeism of the Employees in the...
Zahedul Islam
 
Job satisfaction questionnaire[1]
Job satisfaction questionnaire[1]Job satisfaction questionnaire[1]
Job satisfaction questionnaire[1]Keshab Dahal
 
Job Satisfaction Perception of Management Loyalty and Turnover Intent A Confi...
Job Satisfaction Perception of Management Loyalty and Turnover Intent A Confi...Job Satisfaction Perception of Management Loyalty and Turnover Intent A Confi...
Job Satisfaction Perception of Management Loyalty and Turnover Intent A Confi...
Atif Ahmed
 
Questionnaire on training
Questionnaire on trainingQuestionnaire on training
Questionnaire on trainingswati_tiwari
 
A research on effectiveness of training & development programme at t. t. min...
A research  on effectiveness of training & development programme at t. t. min...A research  on effectiveness of training & development programme at t. t. min...
A research on effectiveness of training & development programme at t. t. min...
Projects Kart
 
Questionnaire on absenteeism
Questionnaire on absenteeismQuestionnaire on absenteeism
Questionnaire on absenteeismSukumar17
 
The role organizational rewards on employees motivation
The role organizational rewards on employees motivationThe role organizational rewards on employees motivation
The role organizational rewards on employees motivationAwais Sargana
 
Motivation Ppt
Motivation PptMotivation Ppt
Motivation Ppt
Mary Shannon
 
A questionnaire for training and development 3
A questionnaire for training and development 3A questionnaire for training and development 3
A questionnaire for training and development 3Rashi Joshi
 
Questionnaire
QuestionnaireQuestionnaire
Questionnaire
annurevathy
 
Employee motivation FOR MBA FROJECT
Employee motivation FOR MBA FROJECTEmployee motivation FOR MBA FROJECT
Employee motivation FOR MBA FROJECT
John Ap
 
Questionnaire on training and development
Questionnaire on training and developmentQuestionnaire on training and development
Questionnaire on training and developmentSusmitha Chowdary
 
Management Development (Modern) PowerPoint Content
Management Development (Modern) PowerPoint ContentManagement Development (Modern) PowerPoint Content
Management Development (Modern) PowerPoint Content
Andrew Schwartz
 
IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE
IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE  IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE
IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE
ProfSaghirJaved
 

Viewers also liked (15)

PhD proposal Final(4)
PhD proposal Final(4)PhD proposal Final(4)
PhD proposal Final(4)
 
Relationship Between Job Satisfaction and Absenteeism of the Employees in the...
Relationship Between Job Satisfaction and Absenteeism of the Employees in the...Relationship Between Job Satisfaction and Absenteeism of the Employees in the...
Relationship Between Job Satisfaction and Absenteeism of the Employees in the...
 
Job satisfaction questionnaire[1]
Job satisfaction questionnaire[1]Job satisfaction questionnaire[1]
Job satisfaction questionnaire[1]
 
Job Satisfaction Perception of Management Loyalty and Turnover Intent A Confi...
Job Satisfaction Perception of Management Loyalty and Turnover Intent A Confi...Job Satisfaction Perception of Management Loyalty and Turnover Intent A Confi...
Job Satisfaction Perception of Management Loyalty and Turnover Intent A Confi...
 
Questionnaire on training
Questionnaire on trainingQuestionnaire on training
Questionnaire on training
 
A research on effectiveness of training & development programme at t. t. min...
A research  on effectiveness of training & development programme at t. t. min...A research  on effectiveness of training & development programme at t. t. min...
A research on effectiveness of training & development programme at t. t. min...
 
Questionnaire on absenteeism
Questionnaire on absenteeismQuestionnaire on absenteeism
Questionnaire on absenteeism
 
The role organizational rewards on employees motivation
The role organizational rewards on employees motivationThe role organizational rewards on employees motivation
The role organizational rewards on employees motivation
 
Motivation Ppt
Motivation PptMotivation Ppt
Motivation Ppt
 
A questionnaire for training and development 3
A questionnaire for training and development 3A questionnaire for training and development 3
A questionnaire for training and development 3
 
Questionnaire
QuestionnaireQuestionnaire
Questionnaire
 
Employee motivation FOR MBA FROJECT
Employee motivation FOR MBA FROJECTEmployee motivation FOR MBA FROJECT
Employee motivation FOR MBA FROJECT
 
Questionnaire on training and development
Questionnaire on training and developmentQuestionnaire on training and development
Questionnaire on training and development
 
Management Development (Modern) PowerPoint Content
Management Development (Modern) PowerPoint ContentManagement Development (Modern) PowerPoint Content
Management Development (Modern) PowerPoint Content
 
IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE
IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE  IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE
IMPACT OF TRAINING AND DEVELOPMENT ON EMPLOYEE PERFORMANCE
 

Similar to Master's Thesis MSc BA - O&MC, Marc Haakma

A New Method For Measuring Organizational Authority And Accountability Quant...
A New Method For Measuring Organizational Authority And Accountability  Quant...A New Method For Measuring Organizational Authority And Accountability  Quant...
A New Method For Measuring Organizational Authority And Accountability Quant...
Gina Rizzo
 
Promoting Organizational Citizenship Behaviour Through High .docx
Promoting Organizational Citizenship Behaviour Through High .docxPromoting Organizational Citizenship Behaviour Through High .docx
Promoting Organizational Citizenship Behaviour Through High .docx
briancrawford30935
 
organization behaviour disertation.pdf
organization behaviour disertation.pdforganization behaviour disertation.pdf
organization behaviour disertation.pdf
ZhaolinWang3
 
organization behaviour disertati.docx
organization behaviour disertati.docxorganization behaviour disertati.docx
organization behaviour disertati.docx
ZhaolinWang3
 
hrm asgn.docx
hrm asgn.docxhrm asgn.docx
hrm asgn.docx
NicholasOgolla1
 
RESEARCH PROPOSAL MBA-HUMAN RESOURCE MANAGEMENT1. Project (re.docx
RESEARCH PROPOSAL MBA-HUMAN RESOURCE MANAGEMENT1. Project (re.docxRESEARCH PROPOSAL MBA-HUMAN RESOURCE MANAGEMENT1. Project (re.docx
RESEARCH PROPOSAL MBA-HUMAN RESOURCE MANAGEMENT1. Project (re.docx
ronak56
 
An Empirical Study On The Factors That Affect Employee Motivation And Their R...
An Empirical Study On The Factors That Affect Employee Motivation And Their R...An Empirical Study On The Factors That Affect Employee Motivation And Their R...
An Empirical Study On The Factors That Affect Employee Motivation And Their R...
Sandra Long
 
Shanu_assingment_shamssir.docx
Shanu_assingment_shamssir.docxShanu_assingment_shamssir.docx
Shanu_assingment_shamssir.docx
MdIftekharAhmedFerdo
 
106 International Journal of Business and Public A.docx
106             International Journal of Business and Public A.docx106             International Journal of Business and Public A.docx
106 International Journal of Business and Public A.docx
hyacinthshackley2629
 
Implementing an Employee PerformanSystem Experience Tradition/tutorialoutlet...
 Implementing an Employee PerformanSystem Experience Tradition/tutorialoutlet... Implementing an Employee PerformanSystem Experience Tradition/tutorialoutlet...
Implementing an Employee PerformanSystem Experience Tradition/tutorialoutlet...
pinck2339
 
Motivation_through_the_design_of_work_Te.pdf
Motivation_through_the_design_of_work_Te.pdfMotivation_through_the_design_of_work_Te.pdf
Motivation_through_the_design_of_work_Te.pdf
SaniyaFayaz1
 
134 536-1-pb
134 536-1-pb134 536-1-pb
134 536-1-pb
Muhammad Wasim
 
Context matters examining ‘soft’ and ‘hard’ approaches to emp.docx
Context matters examining ‘soft’ and ‘hard’ approaches to emp.docxContext matters examining ‘soft’ and ‘hard’ approaches to emp.docx
Context matters examining ‘soft’ and ‘hard’ approaches to emp.docx
dickonsondorris
 
3HR StrategiesKey concepts and termsHigh commitment .docx
3HR StrategiesKey concepts and termsHigh commitment .docx3HR StrategiesKey concepts and termsHigh commitment .docx
3HR StrategiesKey concepts and termsHigh commitment .docx
lorainedeserre
 
Analysis of performance management on employee motivation a case of kenya ele...
Analysis of performance management on employee motivation a case of kenya ele...Analysis of performance management on employee motivation a case of kenya ele...
Analysis of performance management on employee motivation a case of kenya ele...
Alexander Decker
 
RAP on Topic 6 of BSC Honors Oxford Brookes Thesis - A Critical Review of Key...
RAP on Topic 6 of BSC Honors Oxford Brookes Thesis - A Critical Review of Key...RAP on Topic 6 of BSC Honors Oxford Brookes Thesis - A Critical Review of Key...
RAP on Topic 6 of BSC Honors Oxford Brookes Thesis - A Critical Review of Key...
ghostwriter ghostwritingmania@yahoo.com
 
A Literature Review On Motivation
A Literature Review On MotivationA Literature Review On Motivation
A Literature Review On Motivation
Sarah Marie
 

Similar to Master's Thesis MSc BA - O&MC, Marc Haakma (20)

A New Method For Measuring Organizational Authority And Accountability Quant...
A New Method For Measuring Organizational Authority And Accountability  Quant...A New Method For Measuring Organizational Authority And Accountability  Quant...
A New Method For Measuring Organizational Authority And Accountability Quant...
 
Promoting Organizational Citizenship Behaviour Through High .docx
Promoting Organizational Citizenship Behaviour Through High .docxPromoting Organizational Citizenship Behaviour Through High .docx
Promoting Organizational Citizenship Behaviour Through High .docx
 
organization behaviour disertation.pdf
organization behaviour disertation.pdforganization behaviour disertation.pdf
organization behaviour disertation.pdf
 
organization behaviour disertati.docx
organization behaviour disertati.docxorganization behaviour disertati.docx
organization behaviour disertati.docx
 
hrm asgn.docx
hrm asgn.docxhrm asgn.docx
hrm asgn.docx
 
hrm asgn.docx
hrm asgn.docxhrm asgn.docx
hrm asgn.docx
 
RESEARCH PROPOSAL MBA-HUMAN RESOURCE MANAGEMENT1. Project (re.docx
RESEARCH PROPOSAL MBA-HUMAN RESOURCE MANAGEMENT1. Project (re.docxRESEARCH PROPOSAL MBA-HUMAN RESOURCE MANAGEMENT1. Project (re.docx
RESEARCH PROPOSAL MBA-HUMAN RESOURCE MANAGEMENT1. Project (re.docx
 
An Empirical Study On The Factors That Affect Employee Motivation And Their R...
An Empirical Study On The Factors That Affect Employee Motivation And Their R...An Empirical Study On The Factors That Affect Employee Motivation And Their R...
An Empirical Study On The Factors That Affect Employee Motivation And Their R...
 
Shanu_assingment_shamssir.docx
Shanu_assingment_shamssir.docxShanu_assingment_shamssir.docx
Shanu_assingment_shamssir.docx
 
106 International Journal of Business and Public A.docx
106             International Journal of Business and Public A.docx106             International Journal of Business and Public A.docx
106 International Journal of Business and Public A.docx
 
Implementing an Employee PerformanSystem Experience Tradition/tutorialoutlet...
 Implementing an Employee PerformanSystem Experience Tradition/tutorialoutlet... Implementing an Employee PerformanSystem Experience Tradition/tutorialoutlet...
Implementing an Employee PerformanSystem Experience Tradition/tutorialoutlet...
 
Motivation_through_the_design_of_work_Te.pdf
Motivation_through_the_design_of_work_Te.pdfMotivation_through_the_design_of_work_Te.pdf
Motivation_through_the_design_of_work_Te.pdf
 
134 536-1-pb
134 536-1-pb134 536-1-pb
134 536-1-pb
 
Context matters examining ‘soft’ and ‘hard’ approaches to emp.docx
Context matters examining ‘soft’ and ‘hard’ approaches to emp.docxContext matters examining ‘soft’ and ‘hard’ approaches to emp.docx
Context matters examining ‘soft’ and ‘hard’ approaches to emp.docx
 
3HR StrategiesKey concepts and termsHigh commitment .docx
3HR StrategiesKey concepts and termsHigh commitment .docx3HR StrategiesKey concepts and termsHigh commitment .docx
3HR StrategiesKey concepts and termsHigh commitment .docx
 
Literature review
Literature reviewLiterature review
Literature review
 
Analysis of performance management on employee motivation a case of kenya ele...
Analysis of performance management on employee motivation a case of kenya ele...Analysis of performance management on employee motivation a case of kenya ele...
Analysis of performance management on employee motivation a case of kenya ele...
 
Taylor_3300_L4-A1
Taylor_3300_L4-A1Taylor_3300_L4-A1
Taylor_3300_L4-A1
 
RAP on Topic 6 of BSC Honors Oxford Brookes Thesis - A Critical Review of Key...
RAP on Topic 6 of BSC Honors Oxford Brookes Thesis - A Critical Review of Key...RAP on Topic 6 of BSC Honors Oxford Brookes Thesis - A Critical Review of Key...
RAP on Topic 6 of BSC Honors Oxford Brookes Thesis - A Critical Review of Key...
 
A Literature Review On Motivation
A Literature Review On MotivationA Literature Review On Motivation
A Literature Review On Motivation
 

Master's Thesis MSc BA - O&MC, Marc Haakma

  • 1. Evaluating management control: the impact of performance appraisal on intrinsic employee motivation Marc Haakma S 2184869 A Master's Thesis submitted to the University of Groningen - Faculty of Economics and Business, in partial fulfilment of the requirements for the degree of MSc Business Administration: Organizational and Management Control. Thesis supervisor: B. van der Kolk, MSc. Second assessor: A. R. Abbassi, MSc. Abstract Firm performance is the general focus of a manager. However, this requires getting the most out of employees, as they are at the core of the organisation. Motivation plays a significant role in this process. This paper examines the effect of performance appraisal as a management control mechanism on intrinsic employee motivation. Applying stewardship theory, it was found that informality and positive or negative feedback in performance appraisals increase intrinsic motivation; this effect is strengthened by frequency. Use of data collected for this study is regulated by a strict nondisclosure agreement, which requires the researcher to protect the company's identity and its proprietary information. Keywords: intrinsic motivation, management control mechanisms, performance appraisal, public sector, stewardship theory 1. Introduction Employees are at the core of an organisation; after all, employees physically represent an organisation and carry out its mission, and thus, give an organisation the essential opportunity to exist. It is therefore of importance to managers, that employees feel appreciated and are driven to perform their job. In other words, employee motivation should be regarded as a key factor in determining long-term employer success levels (Kovach, 1995). The field of employee motivation, however, is complex. In its general sense, motivation is already a difficult concept to define, as demonstrated by Kleinginna and Kleinginna (1981) in a laborious attempt to reach a consensual definition. Furthermore, much research has been conducted on what drives employee motivation specifically, which again reflects the complexity of the term.
  • 2. 2 Rather than investigating which specific factors drive employee motivation, this study will focus on the prevailing organisational relation between managers and employees, by emphasising the role management control. Managers are in charge of making decisions for coping with change, and even though firm performance is the general focus of a manager, they must also consider how employees will be affected (Turner Parish et al., 2008). This is where the field of management control will be included in the research, by focusing on a particular management control mechanism that has a potential influence on employee motivation: performance appraisal. However, for the particular relation described above, the field of management control misses the concrete grips that give managers insight into what the impact of performance appraisal is on employee motivation. It is however a case that entails a large degree of managerial relevance and importance for organisations, as performance appraisals can be considered as one of the most important human resource practices (Cardinal, 2001; Boswell and Boudreau, 2002). The field of employee motivation has provided many different views over the years, resulting in numerous theories that all adopt a specific perspective in addressing employee motivation. The stewardship theory will be used in this research, which can be regarded as a relatively novel theory of motivation that focuses on the self-development desires and intrinsic motivation of employees (Donaldson and Davis, 1991). Little empirical research has been conducted regarding stewardship theory; it will therefore benefit from this research, as it will test the views of this theory in a practical setting. Furthermore, the research will be conducted in a public sector organisation; it is believed that public sector employees are more intrinsically motivated than private sector employees, and show a high level of commitment to their organisation (Dilulio, 1994). Therefore, this research fits well with stewardship theory. The main theoretical objective of this research is to contribute to the field of management control by examining the relation between performance appraisal and intrinsic motivation in an organisation. The research does not focus on identifying key tasks that are associated with management control, but rather, focuses on the effects of performance appraisal— a significant management control mechanism— on employee motivation. This mechanism is widely recognised and has been studied in considerable detail in management control literature, but nevertheless is still believed to provide a fruitful opportunity for studying the relationship between management control and intrinsic motivation in an organisational environment, and therefore, maintaining the relevance between management control and its context (Chenhall, 2003; Hage and Aiken, 1967; Otley, 1994; Pugh et al., 1969). The stewardship theory of motivation will be used to maintain a close connection with this literature field. This theory is believed to further solidify the basis for this research, and the legitimacy of this theory in practical situations will be tested further. Subsequently, the following research question is formulated in the present research: What is the relation between performance appraisal and intrinsic employee motivation in a public sector organisation?
  • 3. 3 Prior literature will be used to discuss the stewardship theory, and its role in the present study. Based on this, hypotheses will be formulated on the effect that performance appraisal has on employee motivation. Consequently, research will be conducted to verify these hypotheses in a practical setting. It is then analysed whether the examined case demonstrates a confirmation to the formulated hypotheses. Potential observed deviations from the stewardship theory perspective will subsequently attempted to be explained. The remainder of this paper is structured as follows. Section 2 comprises a literature review, which discusses the background of the research problem by reviewing relevant prior literature to provide a legitimate basis on which the present research is built and hypotheses are formulated. Consequently, this section will address the gap in the literature that this research will attempt to fill. Section 3 elucidates the data- gathering process and the research method used in this paper. Section 4 introduces the research setting and presents the findings of the research, which section 5 critically reflects upon by analysing and relating these findings to prior research. Section 6 then reflects on this research in its entirety, by readdressing the research question, the research implications and the limitations of this research. 2. Literature review 2.1. Employee motivation Motivation can be defined as “the willingness to exert high levels of effort toward organisational goals, conditioned by the effort's ability to satisfy some individual need” (Robbins, 1991). Based on this, it can be argued that an unsatisfied need creates a tension for employees, which can be acted upon and consequently relieved by an employee through the exertion of effort (Rainlall, 2004). The research on employee motivation is abundant; a large amount of research has been conducted on employee motivation in an attempt to indicate its effects. It is assumed that employee motivation is a crucial factor in organisational performance through this characteristic exertion of effort (Griffin, 1990; Robbins, 1991; Kovach, 1995), which in turn makes employee motivation a valuable and sought after concept for managers. In addition to the effects, it is believed that the drivers of employee motivation are also of great practical importance to managers. These drivers will lead to the effects that will impact the organisation in a manner for which the manager is responsible, which consequently seems to offer an opportunity for management to influence employee motivation levels. Moreover, the primary objective of employee motivation research has not been to learn about how certain employee behaviour occurs, but rather to learn how to motivate employees so that they will perform the responsibilities and tasks assigned by the organisation (Wright, 2001). Wiley (1997) for instance, examined what motivates employees by conducting a multi-industry survey and found that good wages, full appreciation for work done, job security, promotion and growth in the organisation, and interesting work were the top five factors that motivated employees in their jobs. A similar list can be extracted from Kovach (1995), in which he discusses a survey that presented interesting work, full appreciation of work done, feeling of being in on things, job
  • 4. 4 security and good wages as the five most desired factors that contribute to employee motivation. Often, research on employee motivation is conducted on the basis of an underlying motivation theory. Along with the amount of research conducted on employee motivation, the number of theories that are used in this field can also be characterised as abundant. To provide a theoretical foundation for this discussion, this section will draw from this extensive range of employee motivation theories. Although a synthesis of employee motivation theories lies beyond the scope of the present research, a brief overview of a number of dominant theories is presented below to provide a foundation that theoretically solidifies the way employee motivation is to be perceived, and, consequently, to obtain a rudimentary understanding of employee motivation. The two-factor theory on motivation states that factors leading to job satisfaction are separate and distinct from the factors that lead to job dissatisfaction, and assumes a neutral ground between satisfaction and dissatisfaction. Moreover, the theory distinguishes between motivators, which arise from intrinsic job conditions and lead to job satisfaction, and hygiene factors, which are of an extrinsic nature and lead to job dissatisfaction when they are absent. Thus, hygiene factors are necessary to maintain job satisfaction, but do not lead to increases in job satisfaction (Hackman and Oldham, 1976; Herzberg et al., 1959; Herzberg, 1966). It is stated that, in order to increase job satisfaction and consequently motivation, the intrinsic aspect of the job should be emphasised through job enrichment (Herzberg, 1986). Another well-known employee motivation theory is the expectancy theory developed by Vroom (1964). The expectancy theory takes a different approach in that it does not provide specific employee motivation suggestions. Rather, it suggests that employees believe there are relationships between work effort, achieved performance and the rewards they receive from their effort and performance (Vroom, 1964). It follows that this theory focuses on selfish individuals that want to maximise satisfaction, referring to extrinsic and intrinsic values which management must discover. While the preceding two theories provide unprejudiced support for extrinsic influences, self-determination theory seems to focus primarily on intrinsic sources of motivation. It suggests that self-determination and intrinsic motivation are triggered through the presence of competence, relatedness and autonomy (Deci and Ryan, 2002). To summarise, regardless of which theory is followed, it seems that there are specific factors that should be considered by management when focusing on employee motivation. In short, it can be stated that these theories focus on either an intrinsic, extrinsic or mixed approach, much in the same way as the drivers of motivation described above can be characterised by either an intrinsic or extrinsic nature. However, it can be argued that using such a theory in this research may result in an inaccurate, ambiguous perspective on motivation, when the selected theory does not suit the scope and setting of the research. Therefore, an employee motivation theory that provides a good fit with the present research setting must be identified.
  • 5. 5 2.2. Employee motivation in the public sector It can be stated that research regarding specific characteristics of employee motivation in the public sector plays a subordinate role in the field of employee motivation; in spite of the fact that the motivation of employees is of great importance to public sector organisations, less attention is paid to this sector by public sector scholars (Frey et al., 2013; Wright, 2001). However, the observation that motivation literature tends to concentrate too much on industrial and business organisation employees in the private sector is not new, but rather stems from several decades ago (Perry and Porter, 1982). As this study focuses on the public sector, progress will be made regarding this issue. Prior literature provides evidence that differences exist between public and private sector employees, in particular with respect to their motivation (Buelens and Van den Broeck, 2007; Frey et al.,2013). Specifically, there is a broad consensus that intrinsic motivation provides the main drive for public sector employees, through motivation by aspects such as self-development opportunities, recognition, autonomy and learning opportunities. This notions contrasts extrinsic motivation focus of private sector employees through financial rewards, prestige and status (Buelens and Van den Broeck, 2007; Houston, 2000). Consequently, it can be argued that self-interest theories are not sufficient for analysing motivation in the public sector, as this does not fit well with the public sector research setting. This generates a notable point of consideration, as a deviation from the dominant agency theory in the management control literature must be made; the agency theory assumes that managers are self-interested actors that rationally maximise their own personal economic gain (Donaldson and Davis, 1991), and therefore suits the description of a self-interest theory. Alternately, a different theory must be adopted, to avoid compromising the values that prevail in public sector motivation. 2.3. Stewardship theory An alternative theory is stewardship theory, which provides a different model of human behaviour, which assumes these managers are not agents motivated by individual goals and personal gain, but rather stewards whose motives are aligned with the principals' objectives (Davis et al., 1997). In other words, it states that managers' goals are in line with the organisational goals, thus, it assumes goal congruence. Even in cases that are characterised by goal incongruence, managers will prefer to pursue organisational goals instead of individual goals (Corbey, 2010). This more altruistic perspective further assumes that an employee's motivation is of an intrinsic nature, which counterbalances the agency theory focus on extrinsic motivation. This perspective is regarded as appropriate for this study, as it acknowledges the importance of intrinsic motivation in the public sector and accordingly suits the present research setting. Therefore, this study will adopt the stewardship theory. Although stewardship theory focuses on intrinsic motivation, it is important to recognise the approach this research takes regarding the interplay between extrinsic and intrinsic motivation. While this research places a clear focus on intrinsic motivation, it is believed that intrinsic motivation does not yield an absence of extrinsic factors (Covington and Müeller, 2001;
  • 6. 6 Kauffman et al., 2011). Thus, this research deviates from a potentially problematic continuum-view of intrinsic and extrinsic motivation, and assumes that a balance of intrinsic and extrinsic motivation is attainable, with the proportions of intrinsic and extrinsic motivation varying across employees and organisations. Therefore, a dichotomous nature of intrinsic and extrinsic motivation is not supported in this research, as the two types of motivation are not believed to be jointly exhaustive nor mutually exclusive (Covington and Müeller, 2001). Nevertheless, this research focuses on intrinsic motivation, in accordance with the abovementioned fit with the public sector research setting. It must also be noted that this research will apply the stewardship theory on a different hierarchical relationship within an organisation than is described above, namely the manager and the manager's subordinates. Not only does this provide a fruitful opportunity to expand on current stewardship theory knowledge and thus place it in a wider perspective, it also paves the way for analysing the relationship between management control and employee motivation from a different theoretical perspective, therefore fitting well with the current research setting. 2.4. Management control Management control is concerned with coordination, resource allocation, motivation, and performance measurement (Maciariello and Kirby, 1994). Anthony and Govindarajan (2007) defined management control as the “process by which managers influence other members of the organisation to implement the organisation’s strategies”. Guided by these definitions, it becomes clear that employee motivation plays a key role in management control practices; exploring the attitudes that employees hold concerning motivational factors allows the creation of an environment that fosters employee motivation (Wiley, 1997). However, it can be stated that further classification of such practices is needed, so that the selection of specific management control mechanisms is theoretically solidified. The field of management control provides a classical trichotomy of control classes: input, output and behaviour controls (Ouchi, 1979; Rockness and Shields, 1984). Input controls regulate the antecedent conditions of performance, and assess whether individuals suit the organization, regarding internalised norms and professional standards (Cardinal, 2001; Frey et al., 2013). Although input control increases the variety of ideas produced and exposure to scientific knowledge, it is also more demanding as it is not observable (Cardinal, 2001; Frey et al., 2013). Therefore, concerning the present research setting, a focus on input control is regarded as a suboptimal decision. As output control concentrates on assigning a value to the realised output, these control mechanisms are not deemed to fit well with the public sector, which is central to this research, as public service could be characterised by output ambiguity (Burgess and Ratto, 2003). Moreover, a high degree of interdependence exists among tasks, which impedes the attribution of outputs to individuals (Frey et al., 2013). Due to the fact that output ambiguity prevents the existence of a reliable and valid measure of the desired outputs, a focus is placed on behaviour control, following the framework of Ouchi (1979). Behaviour control
  • 7. 7 focuses on the monitoring of employee behaviour in the process that leads to output, and regulates how the work should be done through the use of rules and procedures (Cardinal, 2001; Ouchi, 1979; Rockness and Shields, 1984). However, behaviour control has been predominantly viewed as a mechanism that hampers creativity and fosters employee dissatisfaction, and could lead to rigidity and a decrease in flexibility (Adler and Borys, 1996; Cardinal, 2001). Therefore, a focus on adaptation to changing environments seems to be necessary (Frey, 2013). However, as control is necessary in an organisation, it is prudent to make an effort to understand what sorts of behaviour control mechanisms are effective, particularly in settings that are affected by significant changes. Guided by this reasoning, the present research will focus on behaviour control, as it is believed that this type of control provides a relevant and important point of focus regarding management control. Close attention will be paid to the way performance appraisal affects the level of employee motivation within the organisation. 2.5. Hypothesis development Performance appraisals are a means to carry out the monitoring function of behaviour control, and can be considered one of the most important human resource practices (Cardinal, 2001; Boswell and Boudreau, 2002). The effect of performance appraisal on motivation, however, is not straightforward. Employees could perceive frequent performance appraisal as threatening, which could consequently cause their behaviour to become safer and more routine-based (Burgelman and Sayles, 1988; Cardinal, 2001). However, it could also be argued that performance appraisal is necessary for employees, as this feedback provides the information that is needed to make a judgement on the employee's competence, which is indicated as a focal point by intrinsic motivation (Deci, 1975; Hackman and Oldham, 1976; Ilgen et al., 1979 ). Guided by the latter line of reasoning and in line with stewardship theory, it is expected that employees will interpret the performance appraisals as contributing to their self-development and thus intrinsic motivation (Buelens and Van den Broeck, 2007; Davis et al., 1997; Houston, 2000). To enhance the tangibility of the performance appraisal control mechanism, the measure will be investigated on the basis of the construct of feedback richness, to represent several performance appraisal characteristics. More importantly, this procedure allows for variance to be measured, which consequently enhances the transparency of the conclusions of this research. A feedback-rich environment can be defined as a performance appraisal environment where employees receive specific, frequent and positive feedback (Kinicki et al., 2004). Kinicki et al. (2004) find that a feedback- rich environment is positively related to the perceived accuracy of performance appraisals. This accuracy notion can subsequently be connected to employee motivation in terms of implications, as prior research found that rich feedback enhances performance through an increase in motivation (Roberson and Stewart, 2006; Taylor et al., 1995). The present study will elaborate on the frequency and positive nature characteristics of a feedback-rich environment by placing a nuance on the positive motivation effect of performance appraisal through a focus on intrinsic motivation. Moreover, it will include
  • 8. 8 negative feedback, arguing that negative feedback in performance appraisals also yields a positive effect on intrinsic motivation. In line with stewardship theory, it can argued that employees value negative feedback, in a sense that they can reflect on it and use it as a self-development opportunity. To further develop the variance measurement process, the effect of performance appraisal on intrinsic motivation will also be judged on the basis of a distinction between formal and informal performance appraisal. Prior literature states that generally, employees perceive a more informal, more reciprocal nature of performance appraisal as preferable (Pearce and Porter, 1986). This notion seems to reserve a central role for employee perception, on which this study will focus. Moreover, in line with Kinicki et al.'s (2004) feedback-rich environment notion, it can be stated that informal performance appraisals are desired more for intrinsic motivation, due to a higher degree of feedback specificity, through spontaneity and greater relevance and recency of the feedback. However, in line with stewardship theory, it assumed that formal performance appraisals also yield a positive effect, given that they also provide learning and self-development opportunities (Buelens and Van den Broeck, 2007; Davis et al., 1997; Houston, 2000). Notwithstanding this, it is still expected that informal performance appraisals have a stronger positive effect on intrinsic motivation than formal performance appraisals. Based on this literature review, the following hypotheses are formulated: H1: A high frequency of performance appraisals has a positive impact on intrinsic employee motivation. H2a: Positive feedback in performance appraisals has a positive impact on intrinsic employee motivation. H2b: Negative feedback in performance appraisals has a positive impact on intrinsic employee motivation. H3a: Formal performance appraisals have a positive impact on intrinsic employee motivation. H3b: Informal performance appraisals have a larger positive impact on intrinsic employee motivation than formal performance appraisals have. A critical note regarding these hypotheses must be made. Although the hypotheses are in line with the stewardship theory perspective, an implicit requirement must be met. Management controls should be used in a behavioural way that satisfies employees' intrinsic desires; an intrinsic approach should be adopted rather than an extrinsic approach (Van der Kolk, 2013). If the latter approach is adopted, this may have counterproductive effects on intrinsic motivation, as employees are assumed to desire an intrinsic approach. This statement also clarifies the role of perception in this research; employees form opinions on the basis of which these hypotheses will be verified. In summary, this section has demonstrated that a fruitful contribution can be made to prior literature, regarding the relation between performance appraisal and intrinsic motivation. This has resulted in the formulation of five hypotheses. Specifically, it is argued that performance appraisals have a positive impact on motivation of employees, as employees will perceive them as contributing to their
  • 9. 9 development, consequently increasing their intrinsic motivation. This positive relation is included in five hypotheses, covering positive feedback and negative feedback in performance appraisals, formal and informal performance appraisals and the frequency of performance appraisal. It follows that this distinction should be clearly maintained in the execution of this research, to provide optimal results. This matter will be discussed in depth in the following section. 3. Methodology 3.1. Research design In this research, a theory testing approach will be adopted; stewardship theory will serve as a foundation to identify the effect of performance appraisal on intrinsic motivation. Theory testing is an appropriate approach in view of the present theoretical gap that is to be filled, guided by the formulated hypotheses that is derived from relevant prior literature. In order to verify these hypotheses, a case study is conducted. Furthermore, an interpretive approach predominates this qualitative research, as the present research is based on a wide array of perceptions of individuals (Hopper and Powell, 1985). Therefore, the subjective nature of the social world is emphasised in this research, as it attempts to understand it primarily from the frame of reference of those being studied, rather than assuming an independent reality that might exist external to them (Hopper and Powell, 1985; Laing, 1967). 3.2. Data collection To examine the nature of the relationship between performance appraisal as a management control mechanism and intrinsic motivation in this particular case, thirteen semi-structured interviews will be conducted among employees, serving as the primary data collection method. The interviews will be conducted at Omrop Fryslân, the regional radio and television broadcasting organisation of Friesland, a province of the Netherlands. The research setting will be further elaborated upon in the findings chapter that follows this chapter. As the unit of analysis in this research is the individual, the research focuses on the perception of respondents, in collecting data concerning the formulated hypotheses. Therefore, the semi- structured interview is believed to be a suitable instrument, as it possesses qualities that emphasise this aspect of the research, through the facilitation of probing respondents for more information and the exploration of new themes (Louise Barriball and While, 1994). Moreover, interviews are regarded as an important instrument in a case study approach (Yin, 2013). The employee satisfaction survey, which has recently been conducted at Omrop Fryslân by an external consultancy bureau, will serve as the secondary data collection method of this study. This report provides an insight into the organisation-wide views and opinions of employees, which are relevant to the management control and employee motivation concepts studied in this research. Of the 205 distributed questionnaires that were sent out to Omrop Fryslân's employees, 142 were returned. These questionnaires were all virtually complete and thus usable, which equates to a response rate of
  • 10. 10 69,3%. Notwithstanding the fact that this survey could be regarded as an internally initiated investigation effort, therefore being subjected to organisational legitimacy and pressure, this response rate is argued to be favourable given the length and depth of the survey. The interview content is included in the appendix, and is structured as follows. Following the introductory questions, performance appraisal will be discussed in relation with intrinsic motivation, following a two-stage structure. The first stage focuses on indicating how strong the mechanism is in terms of presence and influence on respondents, and is based on the following data sources. Performance appraisal is assessed as the extent to which behaviour is measured and evaluated, and was based on empirical work by Abbey (1982) and Kinicki et al. (2004). The second sub-stages of the interview concerns the link between the given behaviour control mechanism and employee motivation. Given the semi-structured nature of the conducted interviews, the second sub-stage is less structured than the first stage, consequently providing the opportunity to provoke discussion about and exploration of the topics. In these sub-stages, the focus is placed on critical values of the stewardship theory. In addition, two key components of organisational structure will be briefly discussed, in an effort to map the structure of the organisation, following the same two-stage structure. Centralisation is assessed as the extent to which decision-making authority is concentrated in the organisation, and was based on empirical work by Aiken and Hage (1968), Dewar et al. (1980) and Khandwalla (1974). Formalisation is assessed as the extent to which behavioural procedures and rules are explicitly formulated, and was based on empirical work by Aiken and Hage (1968), Desphande and Zaltman (1982), Dewar and Werbel (1979) and Hall (1968). 3.3. Data analysis The primary data gathering instrument will produce a large amount of textual data, which implicitly involves a great responsibility for the researcher, as the researcher must ensure that the gathered information is collected in a clear and unbiased manner. To assist and to provide convenience in this matter, a recording device will be used in cases in which the given respondent agrees and the attention of both parties is not breached (Yin, 2013). Consequently, the interviews can be transcribed and coded efficiently and effectively after they have been conducted. In addition, a major challenge of the semi-structured interview based research process is to attain credibility, which holds that the research must be reliable and valid (Brink, 1991). Regarding reliability, this study adopts a classification of four sources of bias that must be avoided to ensure that the research results are independent of particular research characteristics and can therefore be replicated in other studies (Swanborn, 1996; Yin, 2013). Firstly, reliability is enhanced through the usage of multiple research instruments. The use of a semi-structured interview instrument and the consultation of the employee satisfaction report is regarded as such a triangulation approach, as multiple sources of evidence are combined (Van Aken et al., 2012; Yin, 2013). Therefore, instrument bias is reduced through triangulation, which remedies
  • 11. 11 shortcomings and biases of the used data collection instruments by complementing and correcting each other (Van Aken et al., 2012). Secondly, as interviews leave relatively more room for biases as a data collection interview, standardisation is of importance; this yields that explicit procedures for data collection, analysis and interpretation should be followed (Van Aken et al., 2012). As the interviews conducted in this research are of a semi-structured nature, this strategy is not fully exploited. Hence, the software package Atlas.ti is used to reduce researcher dependence by assisting the researcher to work in a systematic manner (Van Aken et al., 2012). Moreover, it can be stated that researcher bias is combated by the triangulation approach, as researcher independency is improved through the use of multiple researchers and working towards consensus. (Swanborn, 1996). Thirdly, as people within an organisation can have widely diverging views and opinions, it is of importance to gather a mixture of perspectives (Van Aken et al., 2012). Therefore, this study selects a diverse set of respondents, on the basis of age, tenure, position and department, which provides a source of information about organisational reality. Fourthly, a potential threat to the reliability of this study lies in the fact that this study is carried out in a limited time period, and therefore it does not consider a multitude of circumstances (Van Aken et al., 2012). Therefore, this source of situation bias could potentially have a restricting impact on the data collection process. However, as this research also investigates a recently conducted survey, two different time periods are included, hence reducing the situation bias. Validity presupposes reliability, as a research result is valid when it is justified by the way it is generated (Audi, 1998; Van Aken et al., 2012). This research relies on a trichotomy of validation criteria (Swanborn, 1996; Yin, 2013). To maintain a high level of construct validity, the present research pursues a high degree of adequacy and completeness of the measurement instruments. This is reached by making an effort to cover the relevant concepts of management control and employee motivation completely during the interviews. Moreover, as the semi- structured interview instrument is combined with a survey investigation, construct validity is enhanced through this triangulation approach (Yin, 2013). Internal validity is pursued through the use of a theoretical triangulation approach, as the multiple perspectives could facilitate the discovery of all causes, therefore ruling out alternative explanations regarding the proposed relationship (Van Aken et al., 2012). Moreover, by conducting systematic analysis, internal validity is maintained. Concerning the potential generalisability implications of this research, it is important to note that the investigation of the employee satisfaction report increases the number of studied objects, which consequently improves external validity (Van Aken et al., 2012). 4. Findings The findings are structured as follows. Firstly, the research setting will be introduced; the notions of centralisation and formalisations will be used to provide a more comprehensive view of the research setting. Secondly, covering the main objective of this study, performance appraisal will be discussed, in relation to intrinsic motivation. In quoting respondents' statements, a numbering
  • 12. 12 system is used to ensure confidentiality, while still allowing for distinction. 4.1. Research setting The research will be carried out at Omrop Fryslân: the regional radio and television broadcasting organisation of Friesland, a province of the Netherlands. Omrop Fryslân is an organisation with a strong brand name and has held a leading position in the regional society over the years due to its distinctive and innovative approach to broadcasting. Being part of the Dutch regional broadcasting system, Omrop Fryslân is a public sector organisation, therefore suiting the formulated description of an appropriate research setting. The case of Omrop Fryslân is particularly interesting because of the turbulent organisational climate it currently operates in; due to governmental pressures regarding an announced budget cut in the Dutch public broadcasting system. Consequently, as Omrop Fryslân is partially dependent on government funding, it may have to implement cost reduction measures. Considering the focus of the present research, this case provides a fruitful opportunity to study the relationship between management control mechanisms and employee motivation. In terms of organisational structure, centralisation and formalisation have proven to be two valuable notions in the interviews as well as in the employee satisfaction report, with regards to the forthcoming discussion regarding intrinsic motivation. Firstly, centralisation was shown to be a familiar term to a large number of employees; it was stated that it is present in the organisation, although the focus was laid on quality rather than the degree of centralisation, in terms of consequences for intrinsic motivation. Employees stated that decisions should be taken in a consistent manner, should originate from a legitimate source in terms of knowledge of facts, and should be conveyed in a manner that enables employees to recognise and understand the value and usefulness of these decisions. Moreover, it was deemed important that employees should be involved in decision-making, so that their voice is heard, and that their initiatives and ideas are taken into consideration. An excessively high degree of centralisation, however, was perceived by employees as obstructive, as it is believed to limit their actions. It was consequently perceived as having a negative effect on intrinsic motivation, as employees stated that it would limit their level of autonomy and responsibility; intrinsic motivation increases through an increase of freedom, and in this case, an increase in creativity. Regarding formalisation, employees stated that formalisation is not perceived to be present to a high degree, or at least not strikingly due to automatisms in workflows. They did, however, provide a clear-cut image of the relation between formalisation and intrinsic motivation. Based on observations, it can be argued that a moderate but steadfast degree of formalisation leads to an increase in intrinsic motivation, as it provides a grip for employees in their work procedures. However, overlapping with the centralisation notion, an excessively high degree of formalisation was perceived to lead to a decrease in autonomy and self-development opportunities, consequently decreasing intrinsic motivation. Strikingly, an increase in formalisation is felt by a number of employees, and has consequently been linked to the
  • 13. 13 uncertain future of the organisation. The new work procedures project, which is currently taking place in the organisation, is a concrete example of this according to the interviewed employees and the employee satisfaction report. This project aims to sharpen the degree of formalisation by providing a clearer structure for it. Employees stated that, for intrinsic motivation to be maintained, formalisation should be implemented in a way that includes employees in the process, maintains employee flexibility, yields consistency, adds value and makes sense to employees. 4.2. Performance appraisal and intrinsic motivation Drawing further on the interview and employee satisfaction report data sources, as well as the abovementioned statements, it can be argued that generally many statements can be traced back to the organisational relation that is central to the present study: the relation between employee and manager. Concentrating on this study's main objective— investigating the impact of performance appraisal— it is observed that intrinsic motivation plays a central role in the organisation, as is clearly illustrated by the following respondent's statement. Omrop Fryslân operates on the basis of intrinsic motivation; things are not always well organised, but then people think to themselves "I want this to be a good broadcast, that's what I want."; it's a passion. We all work together to ensure that it doesn't go wrong. That is something we recognise in each other, we want to produce work of quality. And in that sense, it's a very cosy organisation, there are many relationships, people get along well. Sometimes there are difficulties, but people know each other well, there are a lot of things that connect us. [12] Moreover, according to the employee satisfaction report, employees state that managers serve an important role regarding this. Employees expect their manager to motivate them intrinsically; they desire opportunities for self-development in their work and want to feel appreciated. On the basis of this, and in line with the current study's main objective, a fruitful opportunity ensues, as it can be argued that performance appraisal is an excellent opportunity to put this key task in the relation between manager and employee into practice. To enhance the clarity of the results regarding the main research, the main findings of this study are divided into three sections, representing the three different characteristics of performance appraisal as they were included in the three sets of formulated hypotheses. The frequency of performance appraisal and the effect on intrinsic motivation will be discussed in the first sub-paragraph, along with a verdict regarding hypothesis 1. In the second sub-paragraph, positive and negative performance appraisal feedback in relation to intrinsic motivation will be discussed, resulting in a verdict regarding hypotheses 2a and 2b. The third sub-paragraph will discuss performance appraisal of a formal and informal nature, in relation to intrinsic motivation, resulting in a verdict regarding hypotheses 3a and 3b.
  • 14. 14 4.2.1. Frequency of performance appraisal and intrinsic motivation The findings that concern hypothesis 1— the effect of performance appraisal frequency on intrinsic motivation— will be discussed here. In general, employees view a high frequency of performance appraisals as positive; this is especially linked to a desire to know where one stands. The employee satisfaction report confirms this relation; communication and transparency are valued highly on the work floor, and informal performance appraisal is regarded as a means to accomplish this. Regarding their intrinsic motivation, specifically, a positive effect is experienced by employees, as a high frequency of performance appraisal yields a high number of opportunities for self-development. Having many feedback and evaluation moments causes you to think deeply about things that might not be developed properly yet, or that you're struggling with a little. It gives you the opportunity to develop, which of course is a big part of intrinsic motivation. [13] Focusing on the employee-supervisor relationship, it can be argued that the supervisors do not sufficiently meet this desire of employees at times. Several employees have stated that there is little time to talk about matters, that they do not hear enough from their supervisor and that performance appraisal suffers from these time constraints as well. Moreover, it seems that performance appraisal is not high on the list of priorities, resulting in negligence. It's always under time pressure, an item has to be ready for a certain programme. And to discuss it the next day in peace doesn't work either. So it becomes quick, or at the coffee machine; something that comes across badly. [7] This desire for a higher frequency revealed a clear enterprising and perhaps venturous character of some employees, triggered by a sense of responsibility, and enabled by confidence, trust and communication. I am someone who does not always know how things work, so I walk up to him myself. I feel like I can always knock on his door, that I can always ask things. I'm also someone who appreciates responsibility. I think people can flourish in that, when you take action yourself. I believe it should come from both sides. You should not wait until the action is taken higher up in the organisation, you have to do something yourself too. You can complain, but then are you doing enough yourself? [4] However, a limit is set for this desire for high frequency; too many performance appraisals may convey feelings of restlessness and oppression, and may consequently hamper their intrinsic motivation. Notwithstanding this, it can be concluded that frequency generally has a positive effect on intrinsic motivation, therefore, hypothesis 1 is supported. Employees often linked this frequency notion to the other two sets of hypotheses; a high frequency magnifies the effect of positive or negative feedback in performance appraisals, and formal and informal performance appraisals on intrinsic motivation. Hence, it is believed that interweaving these connections in the forthcoming discussion, in the two following sub-
  • 15. 15 paragraphs, will result in a more clear cut structure of findings, as well as providing a more comprehensive view regarding the relation between these aspects. 4.2.2. Positive and negative performance appraisal feedback and intrinsic motivation This sub-paragraph will discuss the findings regarding hypothesis 2a and 2b: the effect of positive and negative performance appraisal feedback on intrinsic motivation. On the basis of this distinction, striking findings arise. Positive feedback in performance appraisals is desired and is claimed to have a positive effect on intrinsic motivation; it drives employees and makes them feel appreciated. Moreover, it allows them to focus on a satisfactory goal to work towards. It is true that positivity drives me more, it gives me a thrill. You then keep doing what you're doing. If I deliver a performance, and both supporters and antagonists react overwhelmingly positive, then it motivates me. [6] Compliments are nice to hear in our profession. Positivity has an effect on intrinsic motivation; it is a form of appreciation that works well, you are being recognised. [12] An exception to this relation is found in the source of this positive performance appraisal feedback. If employees question the legitimacy of the information that is provided to them, the positive effect is reduced. For instance, this is the case when the manager is believed to have insufficient knowledge of the facts. I cannot take the performance appraisals seriously; they are retrospective, but due to a lack of knowledge I cannot debate with my supervisor. [8] However, this positive relation with intrinsic motivation does not provide a full picture; in line with the stewardship theory notion that employees are intrinsically motivated by self- development opportunities, negative performance appraisal feedback contributes to this positive relation as well by offering such self- development opportunities. However, conditions are imposed on the structure of the criticism expressed by a manager, in order for intrinsic motivation to indeed increase. For instance, not only does criticism need to be grounded, constructive and relevant, it also has to lead to personal growth opportunities. I always have to be able to do something with it, I can't deal with negativity and that's it, I have problems with that. Then I am only trying to please people. I am solution- oriented. We have had discussions with points of criticism, and afterwards I am glad that the facts are presented, on the basis of which you can make agreements. Criticism must yield the opportunity to do something with it. [12] If you're doing your best, under difficult circumstances, but you get a negative response like “this isn't good, that doesn't work”, so it's not constructive criticism- because that's always good- but just something negative, then it has a demotivating effect. So, give me constructive feedback, not things that are irrelevant. And we're dealing with that more and more often. Or that costs are too high, it takes too long,
  • 16. 16 this or that. You don't have control over that. The result has then become less important than the total cost package. [6] Although negative feedback in performance appraisals has a positive effect on intrinsic motivation, it must not gain the upper hand. The employee satisfaction report reinforces this line of reasoning; although employees desire managers to take a critical look at the current situation, negative performance appraisal feedback must not suppress positive performance appraisal feedback to a point where the latter is absent. Again, this is linked to the subordinate role that negative performance appraisal feedback fulfils in relation to intrinsic motivation; positive performance appraisal feedback is desired more. However, there seems to be a limit for both positive and negative performance appraisal feedback, which can be linked to the frequency notion. Too much positive or negative performance appraisal feedback, too often, is experienced as tiresome, as the credibility of the performance appraisals decreases. Notwithstanding this, it was derived from the employee satisfaction report that the current frequency of positive and negative performance appraisal feedback was regarded as unsatisfactory to barely satisfactory. Frequency is therefore, in principle, positively related to positive and negative performance appraisal feedback. It can be concluded that both positive or negative performance appraisal feedback generally have a positive effect on intrinsic motivation, therefore, hypothesis 2a and 2b are supported. 4.2.3. Formal and informal performance appraisal and intrinsic motivation The findings that regard to the effect of formal performance appraisal, as formulated in hypothesis 3a, and informal performance appraisal, as formulated in hypothesis 3b, on intrinsic motivation, will be discussed here. Scrutinising the effect of formal performance evaluations has not resulted in a clear direct relation with intrinsic motivation. A small group of respondents has stated that their intrinsic motivation would increase if formal performance appraisals had a more informal character. However, contrasting this notion, one employee stated that formal performance appraisals should be more critical for intrinsic motivation to increase. Therefore, although informality is desired and appreciated— even in formal performance appraisals— formality should not disappear completely; firm guidance is also desired. Drawing further on this line of reasoning, it is argued that informal performance appraisals prevail in relation to intrinsic motivation, due to the positive effect of high frequency. Formal performance appraisals generally occur twice a year, in the form of a retrospective performance evaluation interview and a functional assessment interview that focuses on the future. In general, formal performance appraisals are perceived as more top-down and artificial in nature, compared to informal performance appraisals, due to the fact that they are planned in advance, yielding more time to prepare feedback. Moreover, they are less frequent than informal performance appraisals and thus are regarded as a more important event. In contrast, informal performance appraisals are
  • 17. 17 of a more spontaneous nature. In summary, it can be argued that formal performance appraisals do not have a clear-cut effect on intrinsic motivation, while informal performance appraisals have a positive effect on intrinsic motivation. Formal is twice a year, informal happens on a daily basis for me, particularly because I am a professional perfectionist; you want to know what you have done, you want to move forward and get better, that is my motivation to develop. [3] It can be concluded that, while formal performance appraisals do not have a straightforward effect on intrinsic motivation, informal performance appraisals have a positive effect on intrinsic motivation; therefore, hypothesis 3a is rejected and hypothesis 3b is supported. Table 1 presents an overview of the hypotheses that were included in this research, along with their status resulting from the findings discussed in this chapter. In the forthcoming discussion, the findings will be compared to the literature from the literature review. The same structure as in previous chapters will be adopted for this discussion. Hypothesis Status Hypothesis 1 Supported Hypothesis 2a Supported Hypothesis 2b Supported Hypothesis 3a Rejected Hypothesis 3b Supported Table 1. Hypotheses overview. 5. Analysis 5.1. Frequency of performance appraisal and intrinsic motivation A perceived high frequency of performance appraisals has a positive effect on intrinsic motivation, as employees regard this as a high number of opportunities for learning and self- development. This is in line with stewardship theory, which states that employees are intrinsically motivated by these opportunities, as they enable them to reflect on themselves, and to improve (Buelens and Van den Broeck, 2007; Donaldson and Davis, 1991; Houston, 2000). Furthermore, as frequency is part of the feedback-rich environment description, this proved to be suiting for the positive relation between frequency and intrinsic motivation (Kinicki et al., 2004). This relation has been proven to be strong, as employees took the initiative to approach their supervisor, thus increasing the frequency of performance appraisals themselves. Based on this critical evidence, hypothesis 1 is confirmed. Moreover, this positive relation between performance appraisal frequency and intrinsic motivation also affects the other two sets of hypotheses; a high frequency magnifies the effect of positive or negative feedback in performance appraisals, and informal performance appraisals on intrinsic motivation. This is in line with Kinicki et al's (2004) feedback-rich environment description. Frequency does not have a clear effect on formal performance appraisal, due to the ambiguous relation between formal performance appraisal and intrinsic motivation. Although frequency has a clear effect on three of the performance appraisal characteristics, it also sets a limit; the positive effect of positive or
  • 18. 18 negative performance appraisal feedback diminishes when performance appraisals are deployed excessively, which attenuates the strength of the relevant formulated hypotheses. This line of reasoning also applies to informal performance appraisal. Formal performance appraisal is excluded from this line of reasoning, as employees did not formulate a consistent relation between formal performance appraisal and intrinsic motivation. 5.2. Positive and negative performance appraisal feedback and intrinsic motivation Positive feedback in performance appraisals is regarded as positive by employees, in relation with intrinsic motivation, as it offers employees a learning opportunity as well as an opportunity for self-development This conclusion is in line with stewardship theory and the description of a feedback-rich environment, which states that frequent and positive feedback is desired by employees (Buelens and Van den Broeck, 2007; Donaldson and Davis, 1991; Houston, 2000; Kinicki et al., 2004). Moreover, the same line of reasoning applies for negative feedback in performance appraisals. However, these lines of reasoning must be clarified. It should be noted that a balance between positive or negative performance appraisal feedback must be attained, for intrinsic motivation to increase. This balance includes more positive than negative performance appraisal feedback, which is in line with Kinicki et al.'s (2004) feedback-rich environment description. This is also where the current research contributes to literature. By narrowing the focus from motivation to intrinsic motivation, and by including the negative aspect of performance appraisals, it is found that negative performance appraisal feedback plays an important role in the positive relation with intrinsic motivation as well. This is in line with stewardship theory, which states that self- development opportunities are valued by employees; negative feedback is perceived as an opportunity to critically reflect upon performance, and consequently as an opportunity for self-development, thus increasing intrinsic motivation (Buelens and Van den Broeck, 2007; Houston, 2000). Sufficient supporting evidence has been identified, which leads one to confirm hypothesis 2a and 2b; though it should be noted that the positive relation in 2a is stronger, as positive performance appraisal feedback is desired more than negative performance appraisal feedback. 5.3. Formal and informal performance appraisal and intrinsic motivation Compared to prior literature on performance appraisals and intrinsic motivation, it can be concluded that the distinction between formal and informal performance appraisal has proven to be sensible, as clearly distinctive effects have been found on intrinsic motivation. Formal performance appraisals are regarded as both pressuring and desired by some employees, leading to an ambiguous and therefore insignificant relation with intrinsic motivation. Although a weaker positive effect of formal performance appraisals was formulated, this relation proved to be weaker and less clear than expected. Therefore, a nuance should be given to the unconditional nature of the self-development stewardship theory notion; not all self- development opportunities lead to an increase of
  • 19. 19 intrinsic motivation (Buelens and Van den Broeck, 2007; Donaldson and Davis, 1991; Houston, 2000). Informal performance appraisals, on the other hand, do have a straightforward effect on intrinsic motivation. In line with stewardship theory and the feedback- rich environment notion, it can be argued that informal performance appraisals provide frequent self-development opportunities of a spontaneous nature, which results in an increase in intrinsic motivation (Buelens and Van den Broeck, 2007; Donaldson and Davis, 1991; Houston, 2000). Moreover, this line of reasoning also suits the feedback-rich environment notion, which also offers an explanation for the difference in effect compared to formal performance appraisals; informal performance appraisals are believed to be more desired for intrinsic motivation, due to a higher degree of specificity, through spontaneity and greater relevance and recency of the feedback (Kinicki et al., 2008). In summary, regarding the performance appraisal characteristics that were included in this research, it can be concluded that the results are compatible with Van der Kolk's (2013) statement that management controls should be used in a behavioural way that satisfies employees' intrinsic desires. Only formal performance appraisal did not withstand this test, due to a lack of frequency and therefore insufficient opportunities for self- development. 6. Conclusion This study was conducted to address specific gaps in the literature regarding the effect of management control mechanisms and intrinsic motivation. Specifically, the main theoretical objective was to reveal the relation between performance appraisals and intrinsic motivation, which is in line with the research question. In summary, it was shown that positive and negative performance appraisal feedback, and performance appraisal of an informal nature have a positive effect on employee motivation; this effect is mainly explained by the self- development desire of employees. Moreover, a similar effect was triggered by a high frequency of performance appraisals. Formal performance appraisals, however, did not show a straightforward relation with intrinsic motivation. The findings of this study contribute to the field of management control, representing a clear and comprehensive picture of the effect of performance appraisal as a behaviour control mechanism on intrinsic motivation. Moreover, focusing on intrinsic motivation, this study contributed to the stewardship theory, by testing and consequently confirming its views regarding intrinsic motivation in a practical setting. Therefore, this study contributes to the scarce volume of empirical research on stewardship theory and bridges a potential relevance gap. In addition, as this study was conducted in the public sector, a contribution has been made to strengthen the current, subordinate role of the public sector in employee motivation research, in relation to the private sector. On the basis of these theoretical implications, two implications for practice arise. Firstly, it shows how performance appraisal affects intrinsic motivation. This presents a tailored guideline for managers; concrete requirements have been imposed by employees that should be met when implementing specific changes or additions to this specific behaviour
  • 20. 20 control mechanism. Secondly, focusing on the intrinsic motivation notion, it was shown that intrinsic motivation can be of utmost importance in an organisation; it has proven to be a powerful driver that employees expect to be created and maintained by managers. A number of limitations to this research must be recognised. Firstly, the primary limitation of this study stems from the specificity of the research setting; the study covered one organisation, and the primary data collection method included only thirteen respondents. In spite of the fact that the organisation-wide employee satisfaction report reinforces the findings in this study, this leads to generalisability concerns, as generalising the findings to alternate contexts and organisations may prove to be difficult. Secondly, this study has focused on one behaviour control mechanism. Aside from excluded behaviour control mechanisms, it must also be noted that input and output control mechanisms could yield effects on intrinsic motivation. It has been stated that forms of control typically do not exist in isolation, but rather are combined to influence the attainment of a specific aim (Cardinal 2001; Kirsch 1996). Due to the focus of this study, this statement has not fully been taken into account. The findings of this study, along with its limitations, suggest interesting avenues for future research. Firstly, through the research on performance appraisal characteristics and their effect on intrinsic motivation, this study has opened up opportunities to further analyse the effects of these characteristics, and consequently increase the generalisability of this study's findings. Moreover, future research could further analyse the interconnectedness and interplay of these performance appraisal characteristics. Secondly, the performance appraisal notion could be broken down further, potentially identifying other characteristics that could conform or contradict the effects on intrinsic motivation which have been identified by this study. This would paint a fuller picture, resulting in more steadfast conclusions. Thirdly, it would be interesting to conduct a longitudinal case study in one or more companies, before, during and after a turbulent period, change or event. This would allow for variance to be measured, which stems from a change in perception potentially triggered by this change in the organisational environment. Acknowledgements I gratefully acknowledge the people that stood by me during this intensive period, which was preluded by an accident and required a considerable time period in recovery. I would like to thank my mum and dad, and my brother Sander, for supporting me in this time. I would also like to thank Emily, my girlfriend, who stood beside me from start to finish, for taking care of me and guiding me through this turbulent period- and also for proofreading my work. Furthermore, I am grateful for the helpful comments and suggestions received from my supervisor Berend van der Kolk, as well as Remi and Remco, my peers, who provided me with solid grips in finishing my Master's Thesis. I would also like to thank Omrop Fryslân, for granting me the opportunity to interview employees, and thus conduct my research.
  • 21. References Abbey, A. (1982). Technological innovation: the R & D work environment (No. 49). UMI Research Press. Adler, P. S., & Borys, B. (1996). Two types of bureaucracy: Enabling and coercive. Administrative science quarterly, 61-89. Aiken, M., & Hage, J. (1968). Organizational interdependence and intra-organizational structure. American sociological review, 912-930. Aken, J. van, Berends, H., & Van der Bij, H. (2012). Problem solving in organizations: A methodological handbook for business and management students. Cambridge University Press. Anthony, R. and Govindarajan, V., 2007. Management Control Systems, Chicago, Mc-Graw-Hill/ Irwin. Audi, R. (2003). Epistemology: a contemporary introduction to the theory of knowledge (Vol. 2). Psychology Press. Boswell, W. R., & Boudreau, J. W. (2002). Separating the developmental and evaluative performance appraisal uses. Journal of Business and Psychology, 16(3), 391-412. Brink, P. J. (1991). Issues of reliability and validity. Qualitative nursing research: A contemporary dialogue, 164-186. Buelens, M., & Van den Broeck, H. (2007). An analysis of differences in work motivation between public and private sector organizations. Public administration review, 67(1), 65-74. Burgelman, R. A., & Sayles, L. R. (1988). Inside corporate innovation. Simon and Schuster. Burgess, S., & Ratto, M. (2003). The role of incentives in the public sector: Issues and evidence. Oxford review of economic policy, 19(2), 285-300. Cardinal, L. B. (2001). Technological innovation in the pharmaceutical industry: The use of organizational control in managing research and development. Organization Science, 12(1), 19-36. Chenhall, R. H. (2003). Management control systems design within its organizational context: findings from contingency-based research and directions for the future. Accounting, organizations and society, 28(2), 127-168. Corbey, M.H. (2010), Agent of steward? Over mensbeeld en management control, Maandblad voor Accountancy en Bedrijfseconomie, vol. 84, no. 9 (September), 487-492. Covington, M. V., & Müeller, K. J. (2001). Intrinsic versus extrinsic motivation: An approach/avoidance reformulation. Educational Psychology Review, 13(2), 157-176.
  • 22. 22 Davis, J. H., Schoorman, F. D., & Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management review, 22(1), 20-47. Deci, E. L. (1975). Intrinsic motivation. New York: Plenum Press. Deci, E. L., & Ryan, R. M. (Eds.). (2002). Handbook of self-determination research. Rochester: University Rochester Press. Deshpande, R., & Zaltman, G. (1982). Factors affecting the use of market research information: A path analysis. Journal of marketing research, 14-31. Dewar, R., & Werbel, J. (1979). Universalistic and contingency predictions of employee satisfaction and conflict. Administrative science quarterly, 426-448. Dewar, R. D., Whetten, D. A., & Boje, D. (1980). An examination of the reliability and validity of the Aiken and Hage scales of centralization, formalization, and task routineness. Administrative Science Quarterly, 120-128. Dilulio, John D., 1994, Principled agents: the cultural bases of behavior in a federal government bureaucracy, Journal of Public Administration Research and Theory 4:277-318. Donaldson, L., & Davis, J. H. (1991). Stewardship theory or agency theory: CEO governance and shareholder returns. Australian Journal of management,16(1), 49-64. Frey, B. S., Homberg, F., & Osterloh, M. (2013). Organizational control systems and pay- for- performance in the public service. Organization Studies, 0170840613483655. Griffin, R. W. (1990), Management, 3rd edition. Dallas: Houghton Mifflin Company. Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work: Test of a theory. Organizational behavior and human performance, 16(2), 250-279. Hage, J., & Aiken, M. (1967). Relationship of centralization to other structural properties. Administrative Science Quarterly, 72-92. Hall, R. H. (1968). Professionalization and bureaucratization. American sociological review, 92-104. Herzberg, F. I. (1966). Work and the nature of man. Cleveland: World Publishing Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The motivation to work. New York: John Wiley & Sons. Herzberg, F. (1986). One more time: How do you motivate employees. New York: The Leader Manager, 433-448.
  • 23. 23 Hopper, T., & Powell, A. (1985). Making sense of research into the organizational and social aspects of management accounting: A review of its underlying assumptions [1]. Journal of management Studies, 22(5), 429-465. Houston, D. J. (2000). Public-service motivation: A multivariate test. Journal of public administration research and theory, 10(4), 713-728. Ilgen, D. R., Fisher, C. D., & Taylor, M. S. (1979). Consequences of individual feedback on behavior in organizations. Journal of applied psychology, 64(4), 349. Kauffman, D. F., Soylu, M. Y., & Duke, B. (2011). Validation of the motivation to teach scale. H. U. Journal of Education, 40(40). Khandwalla, P. N. (1974). The design of organisations. New York: Harcourt Brace Jovanovich, Inc. Kinicki, A. J., Prussia, G. E., Wu, B. J., & McKee- Ryan, F. M. (2004). A covariance structure analysis of employees' response to performance feedback. Journal of applied psychology, 89(6), 1057. Kirsch, L. J. (1996). The management of complex tasks in organizations: Controlling the systems development process. Organization Science, 7(1), 1-21. Kleinginna Jr, P. R., & Kleinginna, A. M. (1981). A categorized list of motivation definitions, with a suggestion for a consensual definition. Motivation and emotion, 5(3), 263-291. Kolk, B. van der (2013). Bonussen: kunnen we zonder? Maandblad voor Accountancy en Bedrijfseconomie, vol. 87, no. 3 (March), 487-492. Kovach, K. A. (1995). Employee motivation: Addressing a crucial factor in your organization's performance. Employment Relations Today, 22(2), 93-107. Laing, R.D. (1967). The Politics of Experience. New York: Ballantine. Louise Barriball, K., & While, A. (1994). Collecting Data using a semi‐structured interview: a discussion paper. Journal of advanced nursing, 19(2), 328-335. Maciariello, J. A., & Kirby, C. J. (1994). Management control systems: using adaptive systems to attain control. Prentice-Hall International. Otley, D. (1994). Management control in contemporary organizations: towards a wider framework. Management accounting research, 5(3), 289-299. Ouchi, W. G. (1979). A Conceptual Framework for the Design of Organizational Control Mechanisms. Management Science, 25(9), 833-848. Pearce, J. L., & Porter, L. W. (1986). Employee responses to formal performance
  • 24. 24 appraisal feedback. Journal of Applied Psychology, 71(2), 211. Perry, J. L., & Porter, L. W. (1982). Factors affecting the context for motivation in public organizations. Academy of management review, 7(1), 89-98. Pugh, D. S., Hickson, D. J., Hinings, C. R., & Turner, C. (1969). The context of organization structures. Administrative Science Quarterly, 91-114. Rainlall, S. (2004). A review of employee motivation theories and their implications for employee retention within organizations. The journal of American academy of business, 9, 21- 26. Robbins, S. P. (1991). Organizational behavior: Concepts, controversies, and applications. Prentice Hall. Roberson, Q. M., & Stewart, M. M. (2006). Understanding the motivational effects of procedural and informational justice in feedback processes. British Journal of Psychology, 97(3), 281-298. Rockness, H. O., & Shields, M. D. (1984). Organizational control systems in research and development. Accounting, Organizations and Society, 9(2), 165-177. Swanborn, P. G. (1996). A common base for quality control criteria in quantitative and qualitative research. Quality and Quantity, 30(1), 19-35. Taylor, M. S., Tracy, K. B., Renard, M. K., Harrison, J. K., & Carroll, S. J. (1995). Due process in performance appraisal: A quasi-experiment in procedural justice. Administrative Science Quarterly, 495-523. Turner Parish, J., Cadwallader, S., & Busch, P. (2008). Want to, need to, ought to: employee commitment to organizational change. Journal of Organizational Change Management, 21(1), 32-52. Vroom, V. H. (1964). Work and motivation. New York: Wiley. Wiley, C. (1997). What motivates employees according to over 40 years of motivation surveys. International Journal of Manpower, 18(3), 263-280. Wright, B. E. (2001). Public-sector work motivation: A review of the current literature and a revised conceptual model. Journal of public administration research and theory, 11(4), 559-586. Yin, R. K. (2013). Case study research: Design and methods. Sage publications.
  • 25. 25 Appendix A. Interview questions: variables and items at the individual unit level. Variables Items References Introduction When did you start working for Omrop Fryslân? Could you briefly describe the goal of your department? What is your role within this department? For how long have you held this position already? What are the core tasks that are part of your function? What has changed in terms of management control, over the past five years? What is your opinion on these changes? Behaviour Control Mechanisms: Performance appraisal Stage 1: measuring the frequency and nature of performance appraisal Abbey (1982) What are the performance appraisals based on? Kinicki et al. (2004) What is the ratio between formal and informal performance appraisals? What is the ratio between positive and negative performance appraisals? How often do performance appraisals occur? Stage 2: measuring the impact of performance appraisal What is your opinion on the performance appraisals? How do the performance appraisals affect your intrinsic work motivation? Centralisation Stage 1: measuring the level of centralisation Aiken and Hage (1968) How large is the ability to take action yourself, without supervisor approval? Dewar et al. (1980) What are the consequences if an unauthorised decision is made or action is taken? Khandwalla (1974) Stage 2: measuring the impact of centralisation What is your opinion on the centralisation that you have to cope with? How does the present degree of centralisation affect your intrinsic work motivation? Formalisation Stage 1: measuring the level of formalisation Aiken and Hage (1968) Are formulated rules available for every work situation? Desphande and Zaltman (1982) Are standard procedures established for every work situation? Dewar and Werbel (1979) Do these rules and procedures need to be strictly followed; are there consequences? Hall (1968) Stage 2: measuring the impact of formalisation What is your opinion on the formalisation that you have to cope with? How does the present degree of formalisation affect your intrinsic work motivation?