Performance appraisal systems for marketing managers: A conceptual framework and empirical evidence.

Abstract

This dissertation develops a conceptual framework for the types of performance appraisal systems used to evaluate the performance of marketing managers. This framework identifies: (1) the performance appraisal systems (PAS) currently in-use to evaluate marketing managers, (2) the antecedents that influence the selection of specific appraisal systems, and (3) the subsequent effects of these systems on marketing managers' "gaming" behavior, performance, satisfaction with the appraisal system, and interdepartmental coordination. To test the developed hypotheses a national survey of marketing managers was conducted. Among other findings, the research identifies four characteristics of PAS that capture the range of systems currently used. These four attributes are: output-oriented PAS, behavior-oriented PAS, interpersonal evaluation, and document-based appraisal systems. Further, the research suggests that environmental characteristics, organizational characteristics, and organizational strategy influence the PAS used in marketing departments. Moreover, the results support the notion of direct effects of the performance appraisal systems on dysfunctional behavior, satisfaction with the appraisal system, and interdepartmental coordination. Further, this study is the first investigation, not only in the marketing literature but also in the human relations literature, to advance and examine a contingency perspective with regard to the appraisal systems. The results, overall, provide mixed support for the proposed contingency relationships. Namely, that the external and internal context of the organization lead marketing managers to respond differently to the appraisal systems in-use. More importantly, the research findings imply that when organizations design their strategies they need to also implement the appropriate internal processes (i.e., appraisal systems) if these strategies are to be successful. Finally, our research indicates that if marketing managers are given the opportunity to participate in various stages of the appraisal process then they respond positively to the appraisal system and the evaluation process.