The importance of input control to work performance under the agency theory framework

Abstract

In the agency theory literature, output and behavioral controls have been quite thoroughly explored. However, input control (IC) that emphasizes personnel selection and staffing has only been discussed theoretically. Literature outside the agency theory, nonetheless, corroborates IC when competitions increase. With an empirical approach to strategic human resource management, this study explored the relationships between controls and work performance under the influences of two agency factors: principal–agent relationship and task programmability. Results show that controls are generally associated with work performance but more important are their moderating effects with the two contingent agency factors. Furthermore, hierarchical regression analyses reveal that IC is a vital factor for work performance. These findings suggest that IC deserves more attention under the conditions of increased competition.

Keywords:

• agency theory
• input control
• work performance