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Fear, anxiety can drive firms to the wall

Ambitious corporate incentive schemes and performance goals can cause anxiety among employees, consequentially having a negative impact on productivity.

Professor Wai Fong Chua believes there is considerable fear and anxiety in today’s corporates, especially those experiencing financial challenges.

When thinking about how quickly organisations downsize, or outsource as possible solutions to internal problems, it’s understandable that managers and staff can adversely react to what financial systems were originally set up to achieve. As fear becomes dominant, employees can become so afraid of production goals that they may not provide truthful information to their employers at the risk of losing their job.

Professor Chua’s research has confirmed the need to better understand ‘affective technologies’ – processes, information systems and performance/financial goals that have an emotional impact and economic consequences.


Podcast

Listen to an interview about the study with Professor Wai Fong Chua to learn more.

Published work

Boedker C and Chua W 2013 'Accounting as an Affective Technology: a Study of Circulation, Agency and Entrancement', Accounting, Organizations and Society, vol.38:4, pp. 245-67