How Effectiveness Of Comprehensive Performance Measurement Systems on Manager's Performance Through Modification of Mental Models (Learning Process)

Authors
Donya Ahadian Poor Parvin 1
Fereydoon Rahnamay Roodposhti 2
Hashem Nikoomaram 3
Ramezanali Royaee 4
1 Department of Accounting, Science and Research Branch,Islamic Azad University,Tehran,Iran. (donyaahadiyan@yahoo.com)
2 Prof,Department of Accounting, Science and Research Branch, Islamic Azad University ,Tehran, Iran. (corresponding author),
3 Prof,Department of Accounting, Science and Research Branch, Islamic Azad University ,Tehran, Iran.(h-nikoumaram@srbiau.ac.ir)
4 Assistant Prof ,Department of Accounting, Science and Research Branch, Islamic Azad University ,Tehran, Iran.(r.royaee@srbiau.ac.ir)
10.29252/aapc.4.7.209
Abstract
One of the ways to reduce agency costs is to plan for the creation of effective decision-making information by designing appropriate comprehensive performance evaluation systems according to managers' learning process

One of the important factors in the processing and classification of information for cognitive learning is mental models that are categorized in two dimensions of mental model confirmation and mental model building.

managers mental model confirmation leads to the refinement, modification and expansion of existing mental models, and mental model building improves the flexibility, creativity and innovation for managers in the face on new information

The purpose of this study was to investigate the effect of comprehensive performance measurement systems on the performance of managers by modifying the modalities of the two aspect of learning at the individual level (mental model confirmation, mental model building.

This study was performed functional and descriptive-survey approach. The data were collected using a sample of 250 managers in manufacturing companies listed on Tehran Stock Exchange for the period 2015-2016 with Using structural equation have been analyzed, The results indicate that Comprehensive performance evaluation systems in any two aspects of learning (build and confirmed mental model) have a significant positive and meaningful effect on the modification of the mental models, Of course, this effect is more in the building of mental models. Also, the development of mental models in both dimensions of building and confirmation improves the performance of managers.

Therefore, encouraging learning with incentive contracts based on the information provided by the comprehensive performance measurement systems is effective in improving the performance of managers and reducing the cost agency.
Keywords
manager's performance measurement systems
mental model confirmation
mental model building
financial and non-financial criteria
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Value and Behavioral Accounting
Volume 4, Issue 7
Summer 2019
Pages 209-239