Abstract
Recently, there has been increasing pressure to change current performance measurement and management systems from control systems to those that support learning and continuous improvement. This change requires a specific corporate culture that supports the effective operation of performance measurement and management. This paper aims to clarify the relationship between corporate culture and performance measurement and management systems. Questionnaire survey data from Czech medium and large companies were collected and analyzed by Pearson’s chi-squared test to validate the proposed hypothesis. The research findings confirmed that performance measurement and management systems of companies that devoted sufficient energy and attention to performance-driven culture are more effectively developed. Analysis of different performance-driven culture attributes revealed which are the most important ones.
Highlights
In a dynamic, rapidly changing environment, measuring and managing performance effectively is becoming one of the main challenges for companies (Micheli and Mura 2017; Yadav and Sagar 2013; Prokop et al 2018)
Atkinson (2012) reiterates the importance of visible leadership, commitment, and support of top management, as well as the ability to learn from mistakes and adapt to changing circumstances, consistent communication and demonstration of the values provided by the performance measurement system, the use of a single language for performance management and last but not least, the need to give managers and employees flexibility and independence in adjusting behavior based on information from the performance measurement and management (PMM)
Performance-driven culture is operationalized into four attributes that most often define it (Kennerley and Neely 2003; Atkinson 2012): leadership focused on performance and visible commitment, consistent communication and demonstrating of the PMM system’s benefits, the ability to learn from mistakes and adapt to a changing environment, using the information attained from the PMM system for strategy and processes revision
Summary
Rapidly changing environment, measuring and managing performance effectively is becoming one of the main challenges for companies (Micheli and Mura 2017; Yadav and Sagar 2013; Prokop et al 2018). Kennerley and Neely (2003) state that only a few companies have a systematic process to manage their performance measurement systems development to reflect the organizational context. Attention needs to be focused on how to change the approach of companies from mere measurement to performance management (Bititci et al 2012). The current dominant paradigm in performance measurement and management (PMM), founded in the control systems literature, is beginning to be questioned to emphasize the potential inadequacy of existing approaches (Bourne et al 2018)
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