Current Performance Measurement Systems Research Articles

PENGUKURAN KINERJA KARYAWAN PADA PT HT MANUFACTURING

This research focuses on measuring the performance of employees at PT HT Manufacturing, a company producing fishing bait and equipment. The study aims to assess employee performance in the Painting department and identify potential areas for improvement. The current performance measurement system is found to be subjective, emphasizing financial targets only. The theoretical framework discusses the concept of performance, performance measurement, human resources management, and the Human Resource Scorecard (HRSC). The HRSC is an important tool for measuring and managing the strategic contributions of human resources to achieve the company's objectives. The research methodology used is a survey, employing questionnaires and interviews to collect data from 24 employees in the Painting department. Data validity and reliability are tested using statistical analyses like correlation and Cronbach's alpha.
 The findings reveal that most indicators used to measure employee performance are valid and reliable. However, one indicator related to measuring performance between employees and their superiors is found to be invalid. The research concludes that the company's performance measurement needs improvement, and employee training plays a crucial role in enhancing job satisfaction and overall performance.Overall, this study provides valuable insights into the performance measurement process at PT HT Manufacturing and offers recommendations for enhancing employee performance and job satisfaction through effective training programs.

Performance measurement and management in the British higher education sector.

Theoretical enquiry and empirical studies demonstrate the significance of performance management (PM) in the higher education sector and it is a fulcrum for developing a strategic role for people management within universities. In spite of the perceived weaknesses of people management in the higher education sector, in general, the current period of rapid and substantial contextual change may necessitate greater formalisation of HR practices across the British higher education sector. In addition to the changing role of the HR function and line managers, these developments may result in an increasingly stringent performance regime across the sector, especially in more hard-pressed institutions. Through a literature review and a pilot study, this paper attempts to address two main research questions: (i) what are the current performance management practices in the British Higher Education sector? and (ii) what needs to be done to strategically align these practices within HEIs in the UK? This paper discusses the wider literature related to performance management in general and to academic institutions in particular. We also undertook a small-scale qualitative study to explore the views of HR professionals on the need for, and the current performance measurement systems in their universities in the UK. The preliminary findings confirmed that PM is a key issue in the respondents' institutions, with substantial and recent changes in policy. This underscores the need for a large-scale research agenda to capture the current dynamics of change the sector is undergoing. The paper concludes by stimulating a policy debate and placing a number of research calls, along with suggestions on how these research questions may be investigated.

Penerapan Balanced scorecard untuk meningkatkan kinerja Perbankan Syariah Sumatera Utara

Islamic banking has enormous potential considering that Indonesia has the largest Muslim population in the world. The current performance measurement system for Islamic banks is still financial and non-financial, and there is an imbalance in the actual value of the company because it views financial and non-financial measurements as two important things that are not correlated. A comprehensive performance measurement system is urgently needed considering that Islamic banks must be able to follow market developments, such as the Balanced Scorecard. The aim of this research is to analyze the influence of the financial, customer, internal business, learning, and growth perspectives. Analyze which perspective is the most dominant in influencing the management performance of Islamic Banks. The results of the current research are Islamic banks in the growth stage towards the sustainability stage because they are supported by the application of goal-setting theory. Increasing employee performance satisfaction can be achieved by implementing an optimal system of leadership, motivation, and work spirit. This can be shown by the success of Islamic Banks in getting several awards from the business media.

A Comparative Integration Study of Performance Metrics in Microfinance

This study aims to understand the cause-and-effect relationship between financial and non-financial measures under a balanced scorecard (BSC) model in the microfinance sector of Bangladesh. Structural equation modeling is employed to test non-financial relationships hypothesized under BSC model and one sample t-tests are conducted to further relate non-financial variables to the financial performance variable for two microfinance providers. While all non-financial variables share positive and significant relationships, findings show that customer perspective and internal business process factors are quite strong and more evident for Grameen Bank than a cooperative bank. As such, microfinance providers which will improve their non-financial perspectives can ultimately benefit from increased financial performance. The article draws attention to microfinance providers so that they can address shortcomings in their current performance measurement systems and identify mechanisms that can help them improve their financial performances. Implications and future directions are discussed too.

DEVELOPING PERFORMANCE MANAGEMENT SYSTEM WITH BALANCED SCORE CARD APPROACH: A CASE STUDY OF PT. SMART-MODULAR BUILDING INDONESIA

Performance Measurement System (PMS) is essential for any organization, as it serves as guiding compass for continuous improvement. The research is a case study in a modular concrete company refining their current PMS using Balanced Score Card approach. The research developed Balanced Score Card starting from the whole company level, and then cascaded down into 3 main company activities, design, supply and construction. Measurement for 1st quarter of 2019 was done, and target and action plans for each activity were also set for the studied company

Determinants of organizational performance of football clubs

Russian football currently finds itself in a challenging economic situation. In light of the upcoming FIFA World Cup in 2018 all members of the Russian football industry will be under immense pressure. Russian professional football clubs have been struggling to keep with European club management standards. This article aims to evaluate the industry-specific features of organizational performance within the context of professional football clubs. The current performance measurement system within Russian football is based on 5 straightforward licensing criteria, which do not conform with international requirements. During the course of the study the author was able to identify the main factors, which may be used to form a new performance measurement system for Russian professional football clubs.The findings of this paper allow to formulate the main directions of future research in the field of organizational performance of football clubs. The most acclaimed methodologies of foreign researchers attempted to combine both sporting and non-sporting (financial, marketing, etc.) indicators. The main theoretical findings may be used to modernize the current licensing system within Russian professional football. This article attempted to systemize the body of literature on organizational performance of sports organizations and football clubs by both Russian and foreign scholars. The conclusions of this study help broaden the understanding that in the current economic realities the ability to win competitions may not be regarded as the sole purpose of professional football clubs. Football clubs must strive to simultaneously achieve success on and off the pitch.

Assessing redundancies in environmental performance measures for supply chains

Incorporating environmental sustainability into production systems and supply chain management perspectives is a growing issue; this requires thorough efforts in measuring the environmental performance of such systems and benchmarking these against industry standards, through the usage of appropriate indicators.The usage of environmental indicators in order to monitor and manage sustainability issues is an ongoing topic of debate and deliberation in the scientific community, which has generated the development of several methodological and conceptual approaches, often incorporated into Life Cycle Assessment frameworks, enabling the evaluation and monitoring of cumulative polluting impacts resulting across the whole product supply chain. In this field, the main challenge is to identify indicators to be employed in environmental assessments, in such a way that a precise account of sustainability issues is given without overloading end-users with overly complex and redundant information.By utilising well-established environmental indicators measuring the sustainability performance of supply chains, this paper aims at critically assessing the amount of redundancy embedded in current performance measurement systems, also identifying the subset of environmental indicators that, if employed, could cover a wide amount of environmental impact categories without redundancies and providing decision-makers with a clear perspective.

BALANCED SCORECARD IN MANUFACTURING COMPANY

Due to the competitiveness in business world has been rising rapidly; the company must be able to enhance its performance in order to compete with other competitors. In measuring the performance, company should have a good performance measurement system that can assess the company’s performance comprehensively and appropriately. Balanced scorecard assessed to become a comprehensive and appropriate performance measurement systems that help the organization not only measure the performance but also manage the strategies. In this research, the researchers aim to analyze the current performance measurement systems applied in PT. Yokatta Indonesia as a sample. The type of research method is qualitative research and uses descriptive qualitative. Questionnaire has been tested for validity and reliability by using SPSS for Windows Release 19.0. Data analysis is used triangulation in combining several qualitative and quantitative data. From the results, performance measurement system balanced scorecard is being implemented in PT. Yokatta Indonesia not appropriately with considering some factors related with management style, additional costs, and also company infrastructures.

A research and industry perspective on automotive logistics performance measurement

PurposeThe purpose of this paper is to assess the current state of performance measurement (PM) in academic literature and in the automotive supply chain (SC). The research question is to what extent PM systems (PMS) in academic literature and in industry are applicable in automotive logistics.Design/methodology/approachThe authors use a combination of a systematic literature review (SLR) and an industry survey. The SLR is used to identify literature on design aspects for PMS and current PMS reported in academic literature. The survey adds an industry perspective and is used to validate the design aspects found in literature. The synthesis aims to deliver both, current research gaps and needs in industry.FindingsThe findings from SLR indicate, there is a broad base of literature regarding design aspects for PMS. Literature on PMS in context of automotive logistics is nevertheless rare. The industry survey leads to the conclusion that conformity with design aspects from literature increases added value of PMS. Nevertheless, current PMS show improvement needs in automotive context. Academic literature lacks detailed process orientation, transparency and is seen as too high level to be helpful for practitioners. For systems in industry, the SC perspective can be improved. In addition, applicability for continuous improvement is identified as research need in industry and literature.Research limitations/implicationsDue to the selected survey approach, additional research is required to obtain more generalizable results. To increase reliability and validity, a selection of the findings should be further analyzed, e.g. by focusing on regions outside Western Europe or a more in depth analysis of selected aspects. In addition insights into selected research topics highlighted in the paper should be assessed in detail by applying different methodologies (e.g. case studies) to validate the findings.Originality/valueThe findings add to the research on PMS. Latest academic literature is reviewed. The findings are combined with an industry perspective. The combination of SLR and a broad survey enables us to draw conclusions which are relevant for researchers and practitioners alike. Where academic research should focus more on the practical applicability, industry can benefit from the findings by integrating a more holistic perspective into their PMS, especially with a SC wide evaluation.

Management Accounting and the Shortcomings of Current Performance Measurement Systems

Balanced Scorecard (BSC) is one of the most talked about performance measurement systems in the management accounting literature in the past two decades. In this paper, we argue that the BSC has failed to perform as a comprehensive performance measurement systems though it focuses on both financial and nonfinancial indicators. By presenting a historical review of the BSC, we explore the key shortcomings of the BSC and discuss the steps which have been taken to address the shortcomings of the BSC since its introduction in the 1990s. And finally, we present our research findings regarding the shortcomings of the BSC in practice

A relationship framework and application in between strategy and operational plans for manufacturing industry

The objective of this paper is to develop a system that calculates a company’s strategic manufacturing performance using indicator values of competitive priorities classified according to manufacturing players and their weights and to determine strategic operations plans to guide short-term decisions based on performance and indicator values. A framework is designed that measures strategic manufacturing strength and links these competitive priorities to manufacturing strategy to plan operations that are compatible with the manufacturing strategy. This framework is applied in a panel furniture company. Quantitative data are obtained from Enterprise Resource Planning database. This work provides a new, more structured methodology with greater quantification and new insights. It is hoped that this decision support system helps that managers of a company in their strategic operations plans decision-making as they develop manufacturing capabilities against competitors. This study eliminates several gaps between the academic literature and current management practice, suggesting that researchers should consider the impact of theory on the process of strategy operations planning. It also offers a way for organizations with respect to determine strategy operations planning according to their current performance measurement systems. This study includes a different approach than those described in the literature because it includes a conceptual model, novel methods used in performance calculation and decision-making related to strategic operations plans.

Effects of performance measure implementation on clinical manager and provider motivation.

Clinical performance measurement has been a key element of efforts to transform the Veterans Health Administration (VHA). However, there are a number of signs that current performance measurement systems used within and outside the VHA may be reaching the point of maximum benefit to care and in some settings, may be resulting in negative consequences to care, including overtreatment and diminished attention to patient needs and preferences. Our research group has been involved in a long-standing partnership with the office responsible for clinical performance measurement in the VHA to understand and develop potential strategies to mitigate the unintended consequences of measurement. Our aim was to understand how the implementation of diabetes performance measures (PMs) influences management actions and day-to-day clinical practice. This is a mixed methods study design based on quantitative administrative data to select study facilities and quantitative data from semi-structured interviews. Sixty-two network-level and facility-level executives, managers, front-line providers and staff participated in the study. Qualitative content analyses were guided by a team-based consensus approach using verbatim interview transcripts. A published interpretive motivation theory framework is used to describe potential contributions of local implementation strategies to unintended consequences of PMs. Implementation strategies used by management affect providers' response to PMs, which in turn potentially undermines provision of high-quality patient-centered care. These include: 1) feedback reports to providers that are dissociated from a realistic capability to address performance gaps; 2) evaluative criteria set by managers that are at odds with patient-centered care; and 3) pressure created by managers' narrow focus on gaps in PMs that is viewed as more punitive than motivating. Next steps include working with VHA leaders to develop and test implementation approaches to help ensure that the next generation of PMs motivate truly patient-centered care and are clinically meaningful.

Strategy Focused Schools: An Implementation of the Balanced Scorecard in Provision of Educational Services

The main mission of the educational institutions is to provide benefit and create the social values for the society. In order to ensure educational institutions to deliver their main mission, they should measure whether they have achieved their strategic objectives or not. While most of the main objectives of the businesses are financial such as maximizing the profits, however educational institutions’ prior performance objectives are not financial ones. Therefore, the performance management of the high schools as an educational institution should be based on nonfinancial performance perspectives. By bringing a comprehensive system to performance measurement, the balanced scorecard (BSC) may help educational institutions to motivate and evaluate the organizational performance. The BSC may be a suitable model to be used in public and non-profit organizations by defining the links between leading inputs, processes, and outcomes and focusing on the importance of managing these components to achieve the organization's strategic priorities. While the implementation of the balanced scorecard (BSC) in the different sectors is frequently seen in the literature, very few researches has been conducted concerning the application of the BSC in the education sector. In this study we will develop a BSC model for the high school in Turkey. First we will review the administrative structures, functions and the operations and the current performance measurement systems of the high schools. Later in the study we develop the perspectives of the school balanced scorecard and we define strategic objectives, performance measures relating to these objectives, performance targets for each measure and initiatives. In the study, we suggest that if high schools use the balanced scorecard as a strategic performance management system it may help them to be strategy focused and may better serve their missions.

Business Performance Analytics: level of adoption and support provided to Performance Measurement Systems

Despite several studies on the importance of Performance Measurement Systems (PMS), often their implementation is considered insufficient or unsatisfactory. This situation is motivating research on several issues: PMS design and focus, cultural and technological aspects, and the specific contexts of implementation. This paper introduces Business Performance Analytics (BPA) as an important framework for successful PMS design and adoption. Specifically, it defines BPA as the use of data and analytical methods to understand and control business dynamics and performance. Based on an exploratory survey on a group of global companies, the paper highlights the importance of measurement not fully delivered by current PMS, together with a first examination of the implementation of BPA in practice. The analysis shows a low level of adoption of BPA both for strategic and operational decisions. At the same time, companies adopting BPA have a higher perception of relevance of statistical and mathematical tools for supporting the decision-making process. The results also show the presence of the two clusters with very different approaches to performance measurement. The "advanced" one is characterized by the implementation of Business Intelligence tools, together with advanced management accounting and PMS approaches. Compared with the "basic" one, the "advanced" cluster shows a higher perception of BPA effectiveness in supporting the decision-making process and also a higher satisfaction for the contribution provided by the information system to the management action.

The price-setting newsvendor with service and loss constraints

Current performance measurement systems consider not only financial measures, like costs and profits, but also non-financial indicators with respect to customer service, quality and flexibility. Using the newsvendor model, we analyse the respective influence of these possibly conflicting performance measures on important operations and marketing decisions, for instance the order quantity and the selling price of a product. As in the classical newsvendor model for price-independent as well as price-dependent demand distribution, the objective of the firm is to maximise expected profit. In this paper, we also consider a service constraint—a lower bound for the level of product availability—and a loss constraint—an upper bound for the probability of a loss occurring. For both models, we provide conditions for the existence of solutions. We then analyse the influence of demand variability using a set of conditions specifying the quantiles of the predetermined performance measures: a higher variability of demand implies a smaller admissible region of the decision variables. In the price-independent case, the optimal solution has a control-limit structure: the optimal order quantity is thus given either by the classical newsvendor solution or by the control-limits corresponding to the constraints. In the price-setting model with multiplicative demand, this structure is used to check whether small admissible prices are determined by the service constraint or by the loss constraint. Using these structural results, a procedure is developed to more easily enable the computation of the optimal values of the order quantity, selling price and expected profit.

Business Excellence Measurement of Supply Chains Based on Collaboration Degree and Service Level

Supply chain refers to a network of business entities that work together in efforts to acquire materials, convert these materials into products, and deliver these products to customers. The current performance measurement systems concentrate on measuring operational processes in a supply chain and fail to provide evaluation of the integrated business excellence. This paper conducts the research on the business excellence measurement of supply chains, where "collaboration degree" (CD) and "service level" (SL) are introduced to represent the supply chain's immediate and long-term yields respectively. As a result, an integrated indicator named "business excellence indicator" (BEI) is obtained to quantitatively evaluate the supply chain's overall business advantage. The rationality of our work is analyzed empirically through an application case.

Sustainability measurement system: a reference model proposal

PurposeThe primary aim of this paper is to develop a reference model for measuring corporate sustainability that can be used by organizations to integrate sustainability measures into their current performance measurement system, helping them to embed sustainability into daily activities and to forge a sustainability culture. A secondary intent is to present a critical analysis of some well‐known sustainability measurement initiatives, showing their strengths and shortcomings.Design/methodology/approachThe approach employed to develop the reference model described in this paper is a qualitative analysis of the complementarity, shortcomings and strengths of eight well‐known sustainability measurement initiatives alongside an extant corporate sustainability literature review.FindingsThe research carried out has found that there is not a single initiative analyzed that tackles all sustainability issues and in fact there is no consensus around what should be measured and how. The main divergences are related to the following aspects: different criteria are applied by the initiatives to classify issues between dimensions; same impacts are evaluated at different levels of a cause‐effect relationship continuum by the same initiative; disagreement about the groups of stakeholders a company should engage and assessing the company impacts that should be taken into account (direct only or those of its whole value chain). Moreover, the way in which most initiatives measure sustainability performance is not the most adequate to embed it into the performance measurement systems, since they evaluate sustainability via presence of management practice and employ absolute values indicators rather than result‐oriented measures and ratio indicators that are more adequate for internal decision making. In this context, a sustainability measurement model was developed that is more comprehensive, objective and value‐oriented, constituting an attempt to shed light on these problems.Research limitations/implicationsThe major limitation is the fact that the proposed model does not provide any guidance to select the sustainability key issues for an organization to be integrated into its current performance measurement system. It mainly provides a very comprehensive set of sustainability issues and measures that could be used.Originality/valueThis paper sheds light on some sustainability measurement current challenges – lack of consensus of what should be measured and how – and sustainability embedment into daily activities. Academics will find it useful in their research efforts since it presents a broad review of sustainability concepts as well as an analysis of strengths and shortcomings of all and each sustainability initiative focused. Practitioners will also find it useful as a tool to better understand the sustainability concept, to start measuring sustainability performance, to integrate it in, as well as to evaluate, their current performance measurement systems.

Quality improvement and redesign of performance measurement systems: an application to the academic field

The increasing competition both in the public and private sectors gave rise to a growing interest in quality improvement and in designing and implementing Performance Measurement Systems (PMS). Academic organizations also recognized the need for implementing performance measurement systems. Some recent works on PMS in the higher education make use of the Kaplan and Norton’s Balanced Scorecard (BSC) to translate the characteristic strategic goals (e.g. research and teaching excellence) into performance measures. However, a PMS needs to be updated when external or internal changes influence the organization modus operandi. In this way a continuous quality improvement of organization performance is required. This paper describes a methodology based on the BSC model to redesign a current PMS. In detail, a reference BSC-check matrix is proposed. A “mapping analysis” of the current PMS is developed to understand if all the operational aspects involved in goals achievement are considered and if proper indicators have been defined. As an example, the methodology is applied to a Department of the authors’ own University. The paper shows also how the proposed approach can be extended to other contexts.

The Role of the Performance Measurement Systems on Business Process Reengineering: An Empirical Study of Turkish Small and Medium Scaled Manufacturing Firms

The Role of the Performance Measurement Systems on Business Process Reengineering: An Empirical Study of Turkish Small and Medium Scaled Manufacturing FirmsToday, companies have begun to adopt more flexible structures to adapt to the rapidly changing environment. From the beginning of the 1990's, companies have needed radical changes to their organizational structures, especially their process methods. Companies need more flexible and faster organizational structures to respond effectively to their customers' growing variety of needs. This new concept of process reengineering has become an appealing alternative for companies.Reengineering means rebuilding an organization and its entrenched conceptions and design. Competition is intensifying today; reengineering is a convenient method of establishing a new and active structure.Reengineering tries to specify the role of performance measurement in the reengineering process. The effects of a current performance measurement system, the role of performance measurement, empowerment, integration and long-term strategic alignment are the basic subjects of reengineering. These elements are presented in this paper with positive statistical results. The results of the research and the trends observed are discussed and suggestions are presented for both managers and academicians.

An objective-oriented and product-line-based manufacturing performance measurement

Performance-measurement systems (PMSs) that are based on traditional cost-accounting systems do not capture the relevant performance issues for today's manufacturing environment. A variety of integrated systems have been proposed to overcome the limitations of the traditional PMSs, but these systems have been inadequate. This paper presents an integrated dynamic performance measurement system (IDPMS) that integrates three main areas: company management, process improvement, and the factory shop floor. To achieve an integrated system, these three areas are linked through dynamically defined performance measures and performance standards from production planning to customer. The indicators are transformed into quantitative just-in-time parameters that are utilized with management by objectives (MBO) principles to develop a manufacturing PMS that satisfies both internal and external customers. An example is given that illustrates how the IDPMS addresses current PMS requirements.