Factors that affect the design and implementation of team‐based performance measurement systems

Abstract

PurposeThe purpose of this paper is to highlight the factors that enable and/or constrain the design and implementation of team‐based performance measurement systems.Design/methodology/approachThis research study departed from an industrially‐led project. The research strategies used (i.e. case studies, industrial workshops and action research) are suited to the applied and empirical nature of the study. The paper reviews the existing literature on team performance measurement. It then presents the findings based on a exploratory phase and a theory refinement phase.FindingsThe results of this study suggest that there are eleven factors affecting the design and implementation of TPMS. It also suggests that these factors are inter‐related with each other. As a result, the impact of one factor can reduce and even eliminate the impact of other factors.Research limitations/implicationsThere are two main limitations of this research. Firstly, carrying out more than one longitudinal study would increase the validity of the findings. Secondly, evidence was mainly gathered from companies from the manufacturing sector.Practical implicationsThese findings provide senior managers, human resource specialists and team leaders with the foundations to create the right conditions to design and implement TPMS.Originality/valueThe main contribution this paper makes is that it highlights the factors affecting the design and implementation of measurement system in the context of teams. This research identifies three factors (i.e. team maturity, focus and content of appraisal and reward systems, business process view) that are specific to TPMS design and that have not been fully addressed by previous research.