Performance management, metric quality, and trust: Survey evidence from healthcare organizations

Abstract

We examine the impact of performance management (PM) and metric quality on trust and performance in healthcare organizations. Prior research found that PM can elicit feelings of distrust, as healthcare professionals can perceive control as curbing their autonomy. We examine whether the quality of metrics (i.e., their accuracy, sensitivity, and verifiability) can help PM to enhance interpersonal trust in healthcare settings. We mobilize self-determination theory (SDT) and argue that PM using high-quality metrics can address managers' needs for competence and autonomy, which in turn can impact interpersonal trust and unit performance. Using survey data from 152 middle managers in healthcare settings, we find that metric quality moderates the relationship between PM and interpersonal trust, which is subsequently positively linked with unit performance. Also, we find that action control and cultural control are positively associated with interpersonal trust. We complement literature on the control-trust nexus by highlighting the importance of metric quality, and by showing which forms of control can be instrumental in creating a high-trust work environment.