Subjective Performance Measurement: Multi-Case Study Based on Chinese Corporations

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SUBJECTIVE PERFORMANCE MEASUREMENT: MULTI-CASE STUDY BASED ON CHINESE CORPORATIONS Gao Chen and Tang Guliang Business School, Beijing Technology and Business University, China and Business School, University of International Business and Economics, China Abstract
Subjective performance measurement is a new hotspot in recent year western management accounting and motivation theory study. However, until now, there has been little research regarding the application of this theory in China. In order to bridge this research gap, this paper provides five propositions and four in-depth case studies in Chinese corporations. By the comparison of the application of subjective performance measures in China Minsheng Banking Corporation(CMBC), China
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Theory and research proposition
The definition of the subjective performance measure The subjective performance measure is a concept which is brought out compared to the objective performance measure. The objective performance measure refers to a measure method which compares the actual performance with the set performance goal based on some measures and formulas. Objective measures can be applied to legal contracts, because they are totally observable and testable. On the contrary, subjective measure is based on the person’s judgments or subjective measure method based on subjective indications. Being different from objective measures, subjective measures can’t be tested by other people, usually is only observable to the superiors. Besides that, subjective performance measure is used due to some uncertain factors and unexpected accidents. It has many forms, includes subjective determined weight, evaluation system contains some subjective measures and the factors decided by management based on the situations. Of all the forms, the subjective measure is the main one. Theoretical basis and proposition Figure 1 is the theoretical framework of this research paper. This study finds that the application of subjective performance measures in Chinese enterprises are influenced by economic factors as well as institutional factors. Economic factors, such as the nonfinancial measures, strategies and
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