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.