Abstract The purpose of this study was to clarify the conflicting findings from earlier research regarding the impact of evaluating performance with accounting data. This study developed a research model from prior research findings. From the model several relationships were identified for examination. The results of this examination indicate that the use of accounting data for evaluation purposes may result in functional behavior if (1) congruency exists regarding the evaluation method, (2) the method is perceived to be appropriate and fair, (3) reward is contingent upon variances, (4) goals are clear, (5) the task being measured is relatively predictable, and (6) the individual perceives a positive path with respect to the performance report.
Weisenfeld et al. (Tue,) studied this question.