The Moderating Effect of Goal Setting on Performance Measurement System-managerial Performance Relationship

The aim of this study is to examine the moderating effect of goal setting characteristics on the performance measurement system-managerial performance relationship. Goal characteristics studied were goal difficulty, goal specificity, goal participative and goal commitment. The population of this study was middle level managers in banking institutions in Pekanbaru City, Indonesia. A survey was conducted to 108 managers and 51 useable responses were then analyzed by using Moderated Regression Analysis (MRA). The results prove that goal specificity, goal participative and goal commitment strengthen or moderate the relationship between performance evaluation system and managerial performance. Data of this study failed to support the moderating effect of goal difficulty on performance measurement system-managerial performance relationship.