Authors: Jennifer Kunz
Addresses: Department of Accounting, Goethe University, Gruneburgplatz 1, RuW-Gebaude, D-60323 Frankfurt/Main, Germany
Abstract: This paper addresses the interplay between goal reflection and complexity of performance measures considering cognitively restricted decision-makers. Two types of decision quality are derived which provide a differentiated view on the influence of this interplay on long-term decision quality. The simulation experiments based on this differentiation deliver results which allow for a critical reflection on the benefits of goal reflection and the assumptions regarding the use of highly goal reflecting measures in incentive systems.
Keywords: performance measurement; performance measures; complexity; cognitive restrictions; cognitively restricted decision makers; goal reflection; experience-based learning; incentives; simulation; decision quality; decision making.
International Journal of Applied Decision Sciences, 2010 Vol.3 No.4, pp.311 - 337
Published online: 12 Nov 2010 *Full-text access for editors Access for subscribers Purchase this article Comment on this article