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Junwook Yoo and Igor Semenenko
 
''Performance measure aggregation – two action levels''
( 2021, Vol. 41 No.2 )
 
 
In practice, effort is often measured in two levels due to the simplicity. When employees' actions are restricted to two levels, this study shows that the basic measures can be aggregated into a one-dimensional sufficient aggregate without losing any information from the basic measures. The format of the one-dimensional sufficient aggregate is determined only by the statistical properties of the basic measures and the one-dimensional sufficient aggregate can be uniformly used regardless of organizational particulars. By using the one-dimensional sufficient aggregate, complexity of performance evaluation systems can be reduced and efficiency of motivating employees through performance evaluation can be substantially improved.
 
 
Keywords: aggregation, performance measures, sufficiency, performance evaluation
JEL: M1 - Business Administration: General
 
Manuscript Received : Nov 16 2020 Manuscript Accepted : Apr 09 2021

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