Analysis of barriers for performance measurement system effectiveness in a company: perceptions across hierarchical levels

Abstract

Purpose This study aims to identify the perception of people in a Portuguese company regarding the main barriers to the effectiveness of the existing performance measurement system (PMS) and whether those perceptions are dependent of people’s hierarchical levels, education levels, work shifts, gender and department. Design/methodology/approach Primary data was collected through structured interviews (adapted to three levels of interviewees in the company hierarchy) and Likert scale questionnaires. Descriptive statistical analysis of the collected data was performed as well as a chi-square test. Findings The results provide an insight on the perception of barriers to the PMS effectiveness in the company. After performing interviews and questionnaires it was possible to identify that the main perceived barriers were: poor communication system and issues on target definition, lack of trained resources, employee involvement, indicators understanding and use for improvement. Practical implications This study is the starting point to develop actions aiming to eliminate, or at least mitigate, the impact of the barriers on the PMS effectiveness. Originality/value PMSs play an essential role in an organization, so it is essential to identify what hinders its effectiveness. This study opens the discussion by diagnosing the company’s perception of the barriers to PMS effectiveness.