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| Junwook Yoo and Igor Semenenko |
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| ''Performance measure aggregation – two action levels'' |
| ( 2021, Vol. 41 No.2 ) |
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| 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. |
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| Keywords: aggregation, performance measures, sufficiency, performance evaluation |
JEL: M1 - Business Administration: General
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| Manuscript Received : Nov 16 2020 | | Manuscript Accepted : Apr 09 2021 |
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