Development Of Performance Measurement System Research Articles

Performance measurement system in local governments: A critical analysis and advancements

The literature highlights the need to develop and utilise a balanced, dynamic, and multi-perspective performance measurement system (PMS) for managing organisations. The system should report the key performance indicators (KPIs) to support decision-making processes. Although the useful approaches for the development of this system are described in the literature, they are not sufficiently applied to public organisations. Hence, this paper aims to identify and apply a useful approach for PMS design in a local government according to national legislation. A qualitative case study method is adopted in this research. It is recognised as the most effective method for obtaining an in-depth understanding of complex environments. To define the steps for developing a PMS, the context and regulation of an Italian municipality are investigated in this research. The result highlights the steps of PMS development suggested by national legislation. It illustrates a local government context, highlighting the considerable complexity of the organisational perspective and numerous controls to carry out to be compliant with the legislation background. The contribution of this study is twofold. First, the study contributes to the performance measurement literature through the approach definition of PMS development in local governments. Second, it contributes to practice by providing a useful case study of PMS development of local governments according to a national legislation background. The research describes a useful approach for designing a PMS in a complex and bureaucratic environment. Moreover, it highlights the main steps to develop a performance measurement system in a local government.

The role of organisational culture and leadership style in performance measurement and management: a longitudinal case study

Since the 90s the need to develop Performance Measurement Systems and Performance Management Practices (PMM) in public organisations has been highlighted, however, the contingency factors influencing PMM still lack a deep understanding. To contribute to filling this research gap, the paper aims to investigate the influence of leadership style and organisational culture on the PMM-sustaining performance of an Italian justice court through a longitudinal case study. In the investigated case, firstly, the shift from passive avoidant to transactional leadership style supports the implementation of a performance measurement system (PMS). Then, the further change from transactional to transformational leadership favours the development of achievement culture and the development of participative performance management practices. This paper identifies a theoretical framework on how leadership styles and organisational culture interplay with the PMM evolutionary path, and some key practical determinants for driving the efficient implementation of PMM in justice courts.

Productivity enhancement: lean manufacturing performance measurement based multiple indicators of decision making

Developing an appropriate performance measurement system to foster continuous improvement can be challenge due to the company’s strategy and diversity of characteristics. This paper aims to develop performance measurement systems (PMS) for productivity enhancement of a particularly lean company or organisation. The PMS is based on multiple indicators decision making (MIDM) and uses the fuzzy analytical hierarchy process (FAHP). The hierarchical levels by choosing the perspectives and indicators were employed the fuzzy vagueness and uncertainty in human judgment into crisp scores from pair-wise comparison as decision making. Hierarchical mechanisms and multiple indicator of performance can create a link between tactical operational processes and strategic levels. It may assist a company in terms of measuring progress toward its goals, allowing decisions to be made regarding strategic management and operational activities, which will lead to continuous improvement. The PMS framework accommodates the company’s performances to enhance their productivity. A case study was performed to explore the applicability and potential strength of the lean PMS model.

Design of Conceptual Framework for Measuring Operational Performance of Third-Party Logistics

Abstract— The logistics business is expected to soar significantly, for which will reach 30 percent by 2020, driven by the growth of transaction of e-commerce. This growth, indeed, requires an apparent concern from the transporter logistics to continuously enhance their performance. On the other hand, the performance of logistics transporters will provide a positive contribution to the increase of LPI (Logistics Performance Index) score of Indonesia. Thus, the development of performance measurement systems is necessary to maintain the competitiveness level of logistic actors. This study provides a comprehensive overview of performance measurement systems in regard to the 3PL (third party logistics) companies. The goal of this study is to develop such a conceptual framework that portrays the essential elements necessary to take into account when implementing performance monitoring system to the 3PL companies. The conceptual framework is established using grounded-theory approach which comprises of four main steps: collecting and mapping data sources, categorizing the data, identifying and naming concepts, and establishing a conceptual model. The framework itself, is constructed into two main stages: 1) developing KPIs, 2) measuring the performance. To exhibit the applicability of the proposed approach, a numerical experiment is provided. This research has two main contributions. First, the study fills the theoretical gap pertaining to the concept of performance assessment systems in case of 3PL companies. Second, in practical view the proposed conceptual framework contributes to the academia by describing the basis of establishing performance monitoring as well as to the practitioners who wish to better measure performance in the transporter logistics.

The Effects of Organizational and Political Factors on the Development of Performance Measurement System (PMS) of Local Government Institutions

R esearch aims : This study aims to examine the influence of organizational and political factors on the development of performance measurement systems (PMS) based on its development purpose and identify the phenomenon of institutional isomorphism. Design/Methodology/Approach : This research uses mixed methods with sequential explanatory strategies. Quantitative data were obtained by survey using questionnaires and qualitative data collection using semi-structured interviews. Quantitative data analysis uses SEM PLS, and qualitative data analysis uses Content Analysis (CA). Research findings : This research shows that the open attitude of the local government apparatus in accepting change, strong commitment from the leaders, broad enough authority for management, and strong political support from internal and external determine the success of the PMS development process in local government institutions. Furthermore, the phenomenon of institutional isomorphism is also still found in the PMS development process in local government institutions. Theoretical Contribution/ Originality : This study complements previous research on the factors that influence the development of PMS and adds evidence that the phenomenon of institutional isomorphism exists in the PMS development process. Research in this field has not been much researched in public sector accounting, particularly in Indonesia. Practitioner/Policy implication : This research provides input to the local government regarding the factors that need to be considered in the PMS development process, so that the PMS development policy is successful and can improve the performance of the local government. Research limitation/Implication : The minimum number of respondents who are willing to be interviewed and the research sample is only limited in the DIY region is a limitation in this study that might affect the results. Further research is recommended to continue using the mixed methods by expanding the distribution area of the sample used and adding other variables that are considered influential and able to capture the phenomenon of institutional isomorphism in the PMS development process.

Development of performance measurement system in the context of Industry 4: a case study

To manage and cope with significant, radical changes of business processes and activities in the context of Industry 4, it is necessary for organizations to have a rapid reactive ability. This requirement may be fulfilled by performance measurement system (PMS) which should be aligned with and could reflect the current digitalization and innovative trends. According to this PMS should be developed due to changes in technology, business environment and organizational processes. But the main uncertainty here is to understand what are the main changes and development trends of PMS needed in the context of Industry 4?To solve this problem, the research presents how PMS can be developed facing industrial revolution using qualitative research method - case study with multiple sources of evidence from semi-structured interviews and documents analysis. According to research results a comprehensive framework for changes in PMS due to the alterations of Industry 4 was developed. Case study results show that technological developments and digitalization processes lead to a more intensive use of predictive methods in planning processes as well as faster control and decision making processes. The main contribution of this paper is to highlight the scientific literature of performance measurement by providing a comprehensive view of developments in PMS in the context of Industry 4. From a practical perspective, the study provides specific practical insights in order to support the reaction processes within organization.

Supply Chain Performance Measurement System Development for Shoes SME using Subcontract Production Strategy Based on Integrated SCOR-BSC Model

Textile and apparel companies are a company that is widely available in Indonesia. Small and Medium Enterprise is a business that is growing rapidly and has many competitors in Indonesia, one of which is engaged in the textile sector. SME proves as one of the businesses that can survive when the economic crisis hit the world in 1997-1998 and had an impact on the Indonesian economy [1]. Even so, SME has several problems, one of which is to develop its business. Performance measurement system required to develop its business. With a performance measurement system, SME can monitor business performance that can help companies in making future decisions to improve the performance of the company. This paper focuses on SME engaged in the shoe industry and using subcontract as its production strategy. This paper also using integrated SCOR-BSC model as the baseline to determine the KPI needed by the Shoe SME. The result of this research is integrated SCOR-BSC KPI which can be used as the basis on performance measurement system making.

ANALIS PENERAPAN BALANCE SCORECARD TERHADAP KINERJA PERUSAHAAN PADA PT MALINDO FEEDMILL TBK

This study aims to analyze the development of performance measurement systems at PT Malindo Feedmill Tbk and to find out the application of Balance Scorecard as a performance measurement system at PT Malindo Feedmill Tbk. This performance measurement is seen from a financial and non-financial perspective. This research was obtained from interviews, distributing questionnaires and observations. Data collection uses primary and secondary data. Primary data obtained from respondents of employees and customers of PT Malindo Feedmill Tbk. Secondary data is obtained from the annual report of PT Malindo Feedmill Tbk. Analysis and interpretation of non-financial terms are said to be good. While in terms of nonfinancial, although there is a fluctuation of financial ratios, it can be said to be quite good.

The evolution of performance measurement systems in a supply chain: A longitudinal case study on the role of interorganisational factors

Supply chain performance measurement systems are important because they are the central managerial mechanisms for achieving efficient and effective supply chain management. Therefore, it is relevant to add to the many conceptual contributions on the subject to explore how such systems unfold and develop in practice. The objective of the present study is to investigate how forces located outside focal firm boundaries influence the evolution of performance measurement systems in supply chains. An evolutionary and dialectic approach is applied, acknowledging that change may be the result of collective action and of opposing influences and forces. Using a longitudinal case study approach, the emergence, proliferation and reconfiguration of three varied yet interrelated performance measurement systems designed to manage a supply chain in the hearing aid industry are explored. The case shows how the evolution of performance measurement systems in supply chains may be informed by multiple influences, some of which are external to the firm. Specifically, ‘interconnectivity of performance measures’, ‘availability and ownership of performance information’ and ‘performance representations’ are all found to be important factors influencing the evolution of the observed performance measurement systems. The framework of the proposed factors here builds on and extends previous research, which has not explicitly incorporated the potential influences of external entities and the supply chain context. Thus, the findings expand our knowledge on how performance measurement systems develop over time in supply chains. With this new knowledge, managers should be better equipped to develop robust and enduring performance measurement systems in supply chains.

Pengembangan Sistem Pengukuran Kinerja, Akuntabilitas Kinerja Dan Penggunaan Informasi Kinerja Di Pemerintah Daerah: Perspektif Isomorfisma Institutional

This study aims to explore the development of performance measurement, performance accountability, and the use of performance information in the Local Government using the qualitative theory of institutional isomorphism. The theory of institutional isomorphism is used to interpret and explain the phenomenon of coercive, mimetic and normative isomorphism in the development of performance measurement systems, performance accountability and use of performance information. This research is a qualitative research using semi-structured and open interviews. Qualitative data analysis in this study uses thematic analysis. The results of this study indicate that the three phenomena of institutional isomorphism (coercive, mimetic and normative) are found in the process of developing a system of performance measurement, performance accountability, and the use of performance information in the Regional Government

PERFORMANCE MEASUREMENT SYSTEMS IN THE CONTEXT OF NEW PUBLIC MANAGEMENT: EVIDENCE FROM AUSTRALIAN PUBLIC SECTOR AND POLICY IMPLICATIONS FOR DEVELOPING COUNTRIES

This research explored in depth the evolution of performance measurement systems in the context of new public management initiatives in Australian public sector. A governmental department in the Australian Capital Territory was selected for the purpose of the exploration. The qualitative research approach was adopted and data was collected following case study tradition. The main data sources were archival official documents and interviews. In addition, the researchers used direct observation to supplement and corroborate the archival documents and interview data. The empirical evidence presented in this research supports the fact that the selected Australian government department has implemented performance measurement systems in the line of new public management to illustrate the department’s commitment to efficiency and accountability. The research undertaken was in-depth, using a case study and though generalization is not possible from this single case study, the findings may be expected to add knowledge to existing literature and provide some important lessons for other public sector entities of the developing countries who are interested in adopting performance measurement systems as their control devices. Keywords: public sector, performance measurement systems, new public management, developing countries, Australia.

Executing strategy through comprehensive performance measurement systems

PurposeThe purpose of this paper is to investigate the mediating role of comprehensive performance measurement systems (PMS) – i.e. measurement systems that comprise financial and non-financial indicators, and which also consist of indicators related to different aspects of an organisation’s operations – in the relationship between strategy and company performance.Design/methodology/approachSurvey data of top managers of large European companies were collected and analysed by means of exploratory factor analyses and hierarchical regressions in order to validate the proposed hypotheses.FindingsThis research shows that different strategies lead to the use of different types of performance indicators. Also, it finds that the utilisation of a comprehensive PMS enables the implementation of both differentiation and cost-leadership strategies. Specifically, a comprehensive PMS positively mediates the effect of differentiation strategy on organisational and innovative performance, and of cost-leadership strategy on organisational performance.Research limitations/implicationsFurther research could be undertaken in other contexts and consider additional factors, such as the structure, maturity and different uses of PMS, and the cost of measuring performance. Qualitative studies could examine the role of PMS in dynamic environments, as well as the evolution of PMS during strategic transitions.Practical implicationsGreater consideration should be given to the utilisation of different types of performance indicators when implementing and re-formulating strategy.Originality/valueThis study clarifies the links between strategy and performance measurement, and it is the first to identify the mediating effect of comprehensive PMS between strategy and company performance.

A supply chain performance measurement approach using the internet of things

PurposeThe purpose of this paper is to introduce a more practical approach for supply chain performance measurement (SCPM) and to approve the promising role of internet of things (IoT) technologies in SCPM systems.Design/methodology/approachThis is a conceptual paper that includes literature review analysis, designing a new approach for SCPM, and a case study scenario for proving its applicability.FindingsThe case study scenario shows that IoT can enhance SCPM, as it has the capability to enable real-time data collection, increase data efficiency as long as enable real-time communication within the supply chain (SC).Practical implicationsThe proposed approach can help to develop performance measurement systems and applications enabled by IoT technologies. These systems can be used to monitor, manage, and control the overall SC in real time and in a more integrated and cooperative manner.Originality/valueThis paper provides a structured systems building approach tailored to show how to employ IoT technologies in the field of SCPM. This approach could help in establishing new performance measurement applications, and it is believed that both practitioners and researchers will benefit from it.

Performance measurement system in the situation of simultaneous vertical and horizontal integration

Purpose The purpose of this paper is to extend the knowledge of the use of performance measurement systems (PMS) in situations where the benefits of both vertical and horizontal integration strategies are sought simultaneously. Design/methodology/approach This is a single case study, the purpose of which is to build a contextual theory. Findings The main results highlight three competing and partly contradictory tendencies in the development and use of PMS in organizational integration. In addition, the authors have identified features of PMS that may benefit or hinder integration. Grounded on empirical findings the paper presents a more complete theoretical framework of PMS for integration. Research limitations/implications The propositions of the framework need to be tested in different contexts with case and field studies or a large sample of data using statistical techniques to improve external validity. The causal relationships explored in this study may be further developed using longitudinal studies. Practical implications In acquisition situations there exists the need for vertical integration to control the growing complexity but at the same time for horizontal control to advance customer-centred production. Performance measurement is the key issue to examine the execution and results of such integrations. Originality/value Case study findings are used to develop a more comprehensive theory of PMS design and use in situations where both vertical and horizontal integration are sought. Contrary to current understandings, the central statement of this study is that horizontal organization is not an alternative to vertical organizational structure but they can be effectively coupled.

Accountability Reporting in Austrian Nonprofit Organizations - More than a Compliance Instrument?

Non-profit organizations (NPOs) are increasingly obliged to demonstrate performance in terms of efficiency and effectiveness. The introduction of performance measurement systems is advocated not only to promote external accountability but also for internal coordination purposes. However, studies concentrating on the use of performance measurement systems within NPOs and on how they balance both internal management needs and external accountability reporting obligations within their implemented performance measurement systems are scarce. We would like to narrow this gap by addressing this question with regard to NPOs in Austria. Therefore we analyze the design and instrumental purposes of their performance measurement systems employed, explore who exerts influence on the development of performance measurement systems and discuss several contingency factors in this context. Additionally, we inquire how the NPOs interviewed assess the cost-benefit ratio of the performance measurement systems imposed on them.

Visualization techniques supporting performance measurement system development

Purpose This paper aims to understand how performance measurement system development process can be supported by visualization techniques. It analyses the suitability of different visualization techniques in the tasks needed in designing, implementing and using performance measurement. Design/methodology/approach The research builds upon literature review and analysis. The empirical access to five recent performance measurement system development projects is also used to evaluate the applicability of visualization techniques. The emphasis is in information visualization, and the following techniques are examined: maps, diagrams, networks, visualized models, graphs, charts and dashboards. Findings The study provides a concise overview on visualization techniques highlighting the managerial tasks related to performance measurement system development process. It contributes as a discussion opener inviting more academicians to study the topic of visualization in management and to further test and broaden the proposals presented in the paper. Research limitations/implications Further in-depth empirical research is needed regarding each phase of performance measurement development process. A further study could also stress more the proactive use of performance measurement paying attention also to the external environment. Practical implications The topic of information visualization is practically driven. The results support practitioners in evaluating and choosing visualization techniques supporting their timely challenges in the performance measurement development. Originality/value Few studies on information visualization have been carried out in the context of management science. Visualization can integrate human in the data exploration process and improve understanding over large data sets without complex quantitative methods. Visualization techniques have been proposed as powerful means to enhance the effectiveness of performance measurement. This study structures and clarifies the ambiguous topic of visualization and performance management and suggests areas for further research.

Is Performance Measurement System Going Towards Sustainability in SMEs?

Small and medium enterprises (SMEs) are important to maintain economic growth. However, how to sustain their performance in the long term is a big challenge. As for today's SMEs it is fundamental to manage their social and environmental responsibility, sustainability reporting is a common practice to respond to stakeholders’ expectations. The implementation of new theoretical performance measurement methods passes over with rational usage of internal resources in SMEs. This paper aimed at providing a systematic literature review of scientific works on performance measurement system (PMS) and sustainability reporting (SR) in SMEs, applying content analysis, in order to highlight literature gaps and to contribute at mapping, consolidating and developing a research agenda for the integration of SR and PMS in SMEs. The literature review shows that there is a clear need to stimulate the development of PMS in SMEs by expanding its functions, adopting a structure suitable for sustainability reporting.

Nursing contribution to the achievement of prioritized objectives in primary health care: a cross-sectional study.

Concern for the sustainability of health care systems has forced health authorities and insurance companies to develop performance measurement systems to promote the achievement of health objectives. These actions aim to stimulate quality improvement while controlling costs by making providers accountable for what they do as well as for the quality of the care they provide. However, the extent to which each professional contributes to the achievement of the health objectives is largely unknown. The aim of this study was to analyse the contribution of nurses to achieving the objectives for primary health care (PHC) services prioritized by the public insurer. A cross-sectional study was conducted using data from the PHC services of the public healthcare network in Catalonia, Spain, during the period 2006-09. Indicators linked to the prioritized health objectives were classified as nursing sensitive and non-nursing sensitive using criteria defined by international institutions. A multilevel linear regression model was applied to evaluate the temporal evolution of the two sets of indicators. Specifically, 39.4% of the indicators linked to the health objectives were nursing sensitive. The evolution of the indicators showed an improvement in the achievement of most of the prioritized objectives. Although this improvement was greater for nursing-sensitive indicator outcomes, the difference did not reach statistical significance (P = 0.09). Nursing has a relevant role in the achievement of a significant number of health objectives in PHC services. This contribution should be recognized as it has important consequences in terms of service payment and public health.

Designing a performance measurement system to support outsourcing decisions in a Finnish university

In recent years, the role and importance of performance measurement in public organisations has been much emphasised. However, the discussion on the issue so far has been on a rather general level. This paper aims to understand the challenges faced by public organisations in developing performance measurement systems (PMSs) for a specific managerial purpose, to support outsourcing decisions. The objective of the paper is approached with a literature review and a single qualitative case study carried out as an action research. The case study introduces a detailed description of a PMS development project carried out in the support services of a Finnish university. A framework developed in prior research is utilised to analyse the impacts of two typical characteristics (conflicting stakeholder needs and undefined objectives) of public organisations in a PMS design project. The contribution of the paper is to extend the existing understanding about public sector PMS especially regarding two key points: 1) to understand the impact of different purposes for measurement (in this case the outsourcing context) on the PMS development process; 2) to understand the need to align the PMS system with the organisational culture and other managerial control systems in order to achieve desired performance outcomes.

Analysis of process performance measurement models

In the literature, there are number of models that provide guidelines for the performance measurement system development and examine performance measurement problems from different perspectives. In this paper, some of the most important performance measurement models are considered. Furthermore, comparative analysis of these models, according to 11 criteria, was done. It was noticed that the majority of models takes into account the strategy or goals while determining performance but most of them don't specify performance indicators and only give an indication for their determination. Also, none of models link directly organizational goals and process performance indicators, which would allow model flexibility and adaptibility. On this basis, the need to develop a new model that would overcome these shortcomings was identified, and this represents a direction for further research.