Premium
JUDGEMENT RELATED ISSUES IN PERFORMANCE EVALUATION
Author(s) -
Belkaoui Ahmed
Publication year - 1982
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.1468-5957.1982.tb01010.x
Subject(s) - judgement , normative , variance (accounting) , psychology , accounting , relation (database) , actuarial science , applied psychology , social psychology , computer science , economics , political science , data mining , law
Performance evaluation of individuals, processes and activities in management accounting involves mostly a clinical judgment on whether or not to investigate a variance between actual performance and standard performance. Two judgment‐related issues are examined in relation to the lack of validity of performance evaluation, namely: a) the difficulty in the determination of the base rate advocated by the normative accounting control models, and b) the evidence on the judgment fallibility and its effect on performance evaluation.