The Role of Strategic Performance Measurement on Job Satisfaction and Psychological Empowerment among Managers in the Automotive Sector

Market study has identified that innovation, creativity and reengineering are among the key success factors in the automotive industry that should be measured and monitored. These factors represent the element of broad scope in the Strategic Performance Measurement Systems (PPS) which combine both financial and non-financial measures. Past studies show that PPS has been implemented and practiced by the automotive companies in Malaysia. However, it remains unclear how the systems may influence individual behaviour as well as their performance. Therefore, this study examines the relationship between the effects of PPS on the staff motivation, psychological empowerment and performance levels. Based on a sample of 100 automotive sales managers, the findings reveal that financial measures are significantly related to the managers’ job satisfaction, psychological empowerment and performance. On the other hand, no evidence of significant relationship for the nonfinancial measures is found. Concern over PPS is related to the role of nonfinancial measures in influencing the individual’s job performance. Hence, the paper is concluded with the implications for theory and practice.