Disentangling the effect of perceived performance management system accuracy on intrinsic and extrinsic motivation

Purpose: This study aims to explore the effects of performance management systems’ (PMS) perceived accuracy on employees’ motivation. More specifically, this study draws on motivation crowding theory and self-determination theory to hypothesize the relationships between perceived PMS accuracy and intrinsic and extrinsic motivation and introduce two contextual moderating factors: participation in decision-making and task uncertainty. Design/methodology/approach: Data were collected through a questionnaire distributed to a sample of local government employees. Data were collected longitudinally over two measurement waves (T1 and T2), each separated by a four-month lag. Findings: The results revealed that perceived PMS accuracy is positively associated with both intrinsic and extrinsic motivation, and participation in decision-making and task uncertainty both positively moderate the relationship between perceived PMS accuracy and extrinsic motivation. Originality/value: This study contributes to clarifying the relevance of perceived PMS accuracy and the role played by significant contextual variables and offers recommendations to help design and implement PMS more effectively.