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21 Mar 2016

Multiple Performance Measures Use and Job-related Tension in the Indonesian Higher Education Sector: The Effect of Leadership Orientations Use and Organizational Culture

Yuningsih, May 2013
Curtin University

Research has confirmed the benefits of using multiple performance measures. In the education sector, the use of appropriate multiple performance measures is considered to be one of the most important, challenging and controversial issues (Shao et al., 2007). However, accounting studies in this area have focused on business organizations, providing little attention to the educational sector. Furthermore, most of these studies have focused on how the use of multiple performance measures affects managers in making performance evaluation judgments, while only a few studies have investigated the effect of the use of multiple performance measures from the subordinates’ perspectives. The purpose of this study was to look at the behavioral responses of Heads of departments (i.e. as subordinates) to multiple performance measures used by their Deans. Job-related tension was used in this study to indicate the Heads’ responses to the use of multiple performance measures.

Research has emphasized the important roles of leadership orientations and organizational culture in explaining both the implementation of performance measurement and subordinates’ job-related tension. Thus, this study also attempted to identify whether the relationship between multiple performance measures use and job-related tension was moderated by leadership orientations use and organizational culture.

The data were collected by questionnaires completed by Heads of academic departments in Indonesian private universities. Multiple linear regression was used to test the hypotheses established in this study. Further analyses were performed to explain the nature of the significant two-way interaction.

This study found multiple performance measures use to be significantly negatively correlated with job related tension dimensions. When leadership orientations use was high, a two-way interaction effect was found for the interaction between multiple performance measures use and leadership orientations use on the job-related tension dimension of work overload. The three-way interaction between multiple performance measures use, leadership orientations use, and organizational culture was found only for one job-related tension dimension, namely ambiguity concerning performance. However, this three-way interaction effect was significant only at a moderate level.

The findings of this study have implications for the development of performance evaluation systems and personnel management, specifically in the area of performance measurement and leadership, for the higher education sector. This study has shown that higher education leaders should develop and use performance measures that capture a complete picture of their organizational performance. Added to that, the application of various leadership orientations is crucial, which highlights the importance of any related leadership training or leadership development programs for educational leaders.

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