Controllability Assumptions: The Effects of Cross-understanding on the Provision of Relative Performance Information

In this paper, we extend the controllability literature by investigating how reciprocity of controllability in performance evaluations can lead to better employee job performance. It specifically looks at how a consistent superior-subordinate assessment of performance measure properties manifests in cross-understanding that supports the effectiveness of relative performance information due to informativeness of comparison elevating employee job performance. In addition, our analysis recognizes the cognitive perspective of relative performance information, which can also influence managers´ willingness to make discretionary use of information and the effectiveness of communicative efforts.