Effective Performance Measurement System Research Articles

On entrepreneurial and ambidextrous universities. Comparative study in Ibero-American Higher Education Institutions

Higher Education Institutions (HEIs) currently face new challenges that break traditional schemes which focus solely on teaching. HEIs have become organizations that explore and exploit existing knowledge through technology transfer and commercialization. This study analyzes the effect of Performance Measurement Systems (PMSs) on the outcome of knowledge ambidexterity (i.e., the simultaneous pursuit of exploration and exploitation). A Qualitative Comparative Fuzzy Set Analysis was performed, which identified the combination of the antecedent conditions that generate exploration and exploitation outcomes in Ibero-American HEIs. These results show that knowledge ambidexterity performance in Ibero-American universities is conditioned by the design of the PMSs in every particular university context that considers the combination of these factors: Absorptive Capacity, Indicator System, Reward System and Organizational Structures. Overall, this study demonstrates that PMSs have a positive effect on achieving success in the exploration (research performance and academic reputation) and exploitation (technology transfer and employability) of knowledge in Ibero-American HEIs.

Performance measurement systems in the health and care sector: Are targets and monitoring additional demands or resources for employees?

PurposeThis paper aims to improve our understanding of performance measurement systems in the health and care sector, by focussing on employee reactions to core performance measurement practices. Targets and monitoring are hypothesised to be associated with employee perceptions of job control, supportive management and job demands, which in turn, are expected to be linked to employee-wellbeing and organisational commitment.Design/methodology/approachMatched employee workplace data are extracted from a nationally representative and publicly available survey. Structural equation models are estimated.FindingsPerformance measurement systems are neither perceived as resources nor additional demands. Setting many targets and a focus on productivity can lead to negative employee outcomes, since these positively correlate with perceptions of job demands, which negatively correlate with employee wellbeing. However, monitoring financial performance and monitoring employee performance may be helpful to managers, as these are positively associated with employee perceptions of job control and supportive management, which positively correlate with job satisfaction and organisational commitment and, negatively, with anxiety. Overall, common criticisms of performance measurement systems in healthcare are questioned.Originality/valueGiven the lack of consensus on how performance measurement systems can influence employee experiences and outcomes, this study combines theories that argue for performance measurement systems in managing operations with models developed by psychologists to describe how perceptions of the work conditions can affect employee attitude and wellbeing. A conceptual model is therefore developed and tested, and potential direct and indirect effects of performance measurement systems in the health sector are inferred.

Integrated performance measurement system for Slovak heating industry: A balanced scorecard approach

The prerequisite for businesses’ success, competitiveness, and non-bankruptcy is their performance. An effective performance measurement system is a suitable tool for measuring and improving business performance. The development in performance measures moved from financial measures focused on company profitability to measurement systems combining different methods, approaches, and tools. The paper aims to identify key performance indicators for Slovak heating companies based on the developed integrated performance measurement system. The analysis sampled 292 Slovak companies within SK NACE 35 (heating industry). The performance measurement system was built on balanced scorecard principles, while the least absolute shrinkage and selection operator (Lasso regression) method was used to select financial indicators. Based on the combination of the above methods, a performance measurement system framework for the analyzed sample of businesses was created. The results show that when managing performance, the analyzed businesses should focus on the following financial performance indicators: Receivables turnover ratio, Return on equity, Return on costs, Total debt to total assets, Material intensity, Labor to revenue ratio, Netto cash flow to assets, Net working capital to total assets, and Short-term liabilities to assets. When building performance measurement system based on balanced scorecard principles, financial indicators were supplemented by non-financial ones. In addition to the original balanced scorecard principles, the performance measurement system was extended by environmental constituents. Also, the paper’s deliverable combines Lasso regression and balanced scorecard principles in order to select key performance indices. AcknowledgmentThis paper is prepared within the grant scheme VEGA No. 1/0741/20 (the application of variant methods in detecting symptoms of possible bankruptcy of Slovak businesses in order to ensure their sustainable development).

Innovative Bahavior In Higer Education Institution: Does Performance Measurement Systems Matters?

Purpose: This study aims to empirically examine the direct and indirect effects of performance measurement systems on innovative behavior and analyze the role of psychological empowerment as an intervening variable. Methodology/approach: The study adopts a survey research design, utilizing a questionnaire distributed directly to respondents. Data were collected from 133 respondents representing eight universities in Yogyakarta. A purposive sampling technique was employed to select the sample. Data analysis was conducted using structural equation modeling. Findings: The results indicate that performance measurement systems directly impact innovative behavior. Additionally, the study reveals an indirect influence of performance measurement systems on innovative behavior through psychological empowerment. Practical implications: The study highlights the importance of developing effective performance measurement systems and creating an environment that supports psychological empowerment to enhance innovative behavior within organizations. Originality/value: The novelty of this research lies in the inclusion of psychological empowerment as an intervening variable in the relationship between performance measurement systems and innovative behavior. The findings provide practical insights for practitioners in designing effective innovation strategies and offer directions for future research in this field.

Measuring marketing performance: a better model

PurposeMarketing professionals are under pressure to implement methods and metrics that demonstrate the value of the function. This paper aims to propose a model to measure marketing performance, focusing on four categories of metrics and two types of factors that influence the effectiveness of the assessment process.Design/methodology/approachThe paper is organized in three parts. The first part includes a synthesis of the theoretical background on the subject. Next, the rationale and architecture of the model are presented, together with an explanation of the elements that compose it. A reflection on the work developed is presented in the last section.FindingsBenefits regarding how to best assess marketing practice are considerable, as organizations with effective performance measurement systems tend to show better results than others. In this context, the choice of metrics is important, but it is also necessary to understand the mechanisms through which the effectiveness of the measurement process can be improved.Originality/valueLiterature has mainly focused attention on the effect of individual programs on specific measures or on conceptual models that do not sufficiently address all major elements in the marketing assessment process. This work extends previous contributions on the subject, presenting a model that combines metrics with factors underlying the measurement process.

UNVEILING SUCCESS: PERFORMANCE MEASUREMENT SYSTEMS IN QUICK SERVICE RESTAURANT CHAINS

This study examines the importance and effectiveness of performance measurement systems in quick service restaurant (QSR) chains. With the highly competitive nature of the QSR industry, it is crucial for restaurant chains to implement robust performance measurement systems to track and evaluate their operational and financial performance. This research investigates the key metrics and indicators used in performance measurement systems within QSR chains, as well as the impact of these systems on business success. A combination of qualitative and quantitative research methods, including interviews and surveys, is employed to gather insights from industry professionals and managers. The findings shed light on the significance of performance measurement systems in driving operational efficiency, enhancing customer satisfaction, and improving overall business performance in the QSR industry.

Predictors of strategic procurement performance metrics adoption in county governments: empirical evidence from Kakamega county government, Kenya

PurposeAmidst the scarcity of resources, it is undisputable that an effective public procurement performance measurement system (PMS) is required particularly in county governments, especially for Kenya to realize its ambitions in devolved governance system. County governments cannot be effectively evaluated on their performance if the long-term, strategic impact of public procurement processes and projects is not captured. Arising from this backdrop, this study aims to determine the predictors of strategic procurement performance metrics (SPPM) adoption in public procurement PMS of county governments.Design/methodology/approachAnchored on institutional theory and public sector scorecard model, a survey research design was adopted where data were collected through census from 115 respondents working in procurement, finance and stores department of Kakamega county government. Data were collected using questionnaire (75.56% response rate) and key informant interviews, and analyzed by using multiple regression model and ordinal logistic regression models.FindingsMultiple regression model and ordinal logistics regression revealed that national government support negatively and significantly, and regulatory framework positively and significantly affects the adoption of SPPM.Practical implicationsThere is need for formal mechanism that will enable the national government in partnership with the council of governors to be proactively involved in developing procurement performance measurement capacity of county governments. This study’s findings also provide suggestions for a working regulatory framework required for the adoption of SPPM by county governments.Originality/valueThis work adds value to the prevailing body of knowledge on public procurement PMS in the public sector.

Performance Measurement Systems in Continuous Improvement Environments: Obstacles to Their Effectiveness

The implementation of an effective performance measurement system (PMS) is essential in organizations seeking continuous improvement and sustainability, especially in the context of Industry 4.0. However, a number of barriers/obstacles hampers this effectiveness. For example, the inclusion of performance indicators without practical use, or presenting absurd results, are frequent in the industry, leading people to distrust and devalue such systems. The main research question in this study is: What are the main obstacles to effective performance measurement systems in organizations? These obstacles will be identified and categorized, and some conditions required to eliminate/mitigate them will be explored. A systematic literature review is carried out, according to the PRISMA methodology, to identify the most frequent factors referred to as obstacles to PMS effectiveness, due to their negative influence on the implementation, use or maintenance of these systems. This review resulted in the identification of 175 obstacles that were then classified into 19 types of obstacles divided into 6 categories, whose definition was inspired by the 6M approach usually associated with Ishikawa diagrams. Then, the relationships between the obstacles are explored and investigated in order to identify interdependencies that may further influence the effectiveness of the PMS. Solutions and methodologies that can help mitigate/eliminate their impact on PMS effectiveness are also identified.

A framework for logistics performance indicators selection and targets definition: a civil construction enterprise case

Paper aims This paper proposes a roadmap framework based on a literature review to choose the most proper indicators and targets for a given logistics process derived from the organization's strategic goals. Originality One of the many benefits from the introduction of technologies and the digitization of logistics processes is the acquisition of a great amount of data, which is a valuable asset for an efficient management. In order to transform this data into useful information, most companies rely on performance indicators. In this sense, this paper proposes a roadmap framework based on previous works to guide managers on how to choose a set of indicators that are linked to the company’s targets. To the best of our knowledge, no previous research has proposed a framework dealing with target definitions based on historical data and previous standards or benchmarking, as well as the logistics indicators choice based on the representation theory. Research method In order to elaborate the framework, a two-step structured literature review was carried out, combined with a case application. The literature review included steps based on the works of Govindan & Bouzon (2018) and Moher et al. (2009). The Scopus and the Web of Science databases were selected to gather material to base this study. The framework was applied in a Brazilian construction enterprise, located in Joinville city, Southern Brazil. Main findings The framework application showed that the methodology can facilitate the selection of indicators linked with the company’s strategic goals. Additionally, the indicators legitimation process with managers, a step from the framework, showed that managers' knowledge about the company’s processes is essential for a successful logistics performance system implementation. However, the managers can be resistant to changes for new indicators, and this situation should be avoided during the legitimation process. Future studies may expand the methodology application to other areas than logistics, and future applications of the framework in a Logistics 4.0 environment should provide more insights for the model. Implications for theory and practice From a theoretical perspective, a complete table of logistics performance indicators is provided, as well as the framework for indicators and target definition. From a practical panorama, the framework application shows that practitioners can use this study as a guide to develop more effective logistics performance measurement systems. Moreover, concluding remarks on the relationship between digital transformation and performance measurement systems are provided.

Industrial Performance Measurement Systems Coherence: A Comparative Analysis of Current Methodologies, Validation and Introduction to Key Activity Indicators

This paper discusses and integrates the concept of complexity in the industrial performance measurement and management systems (PMM) theory, providing a comprehensive overview of the different methodologies used within the decision systems research area. It also discusses the importance of introducing Key Activity Indicators (KAI) within PMM, specifically related to the Operations and Supply Chain management research and industrial areas. Moreover, it provides validation of the methodology through a case study concerning the production environment of a multinational pharmaceutical company. The main research objective is to design appropriate industrial PMM systems with the aim of increasing the industrial efficiency and effectiveness of manufacturing and service organizations. An analysis of the central industrial performance measurement systems design methods is conducted, classifying them into macro-categories and conducting a comparative study. Based on the analysis of the different proposed methods, organisations will be able to choose the best one based on their needs to design effective decision systems. The research work allows organisations to evaluate, assess, and design effective industrial performance measurement systems. Moreover, the proposed methodology can be easily integrated within an Industry 4.0 context, and benefit from the digitalization environment to obtain continuous feedback on the effectiveness of the industrial PMM.

The association between the interactive and diagnostic use of financial and non-financial performance measures with individual creativity: The mediating role of perceived fairness

This study examines the associations between top management’s interactive and diagnostic use of financial and non-financial performance measures with individual manager’s (i.e. middle and lower level managers) creativity, and the mediating role of middle and lower level manager’s perceived fairness of their performance appraisal on such associations. Using data from a survey of 220 middle and lower level managers from manufacturing organisations in Australia, the structural equation model revealed direct positive associations between both the diagnostic use of financial performance measures and the interactive use of non-financial performance measures with individual creativity. Further, the positive effect of the interactive use of financial performance measures on individual creativity is positively and fully mediated by distributive, interpersonal and informational fairness, while the positive effect of the interactive use of non-financial measures is positively and partially mediated by interpersonal and informational fairness. In addition, procedural fairness positively and partially mediates the effect of the diagnostic use of financial performance measures on individual creativity, and interpersonal fairness positively and fully mediates the effect of the diagnostic use of non-financial performance measures on individual creativity. The findings contribute to the performance measurement and appraisal literature examining the interactive and diagnostic use of both financial and non-financial performance measures and extends the sparse literature on the role of perceived fairness in explaining the behavioural effect of performance measurement systems. The findings also provide implications for practice, revealing the importance of the interactive and diagnostic use of financial and non-financial performance measures, and manager’s perception of the fairness of performance appraisal processes as a mechanism through which individual manager’s creativity can be enhanced.

Pengaruh total quality management terhadap kinerja manajerial dengan sistem pengukuran kinerja dan sistem penghargaan (reward) sebagai variabel intervening (studi empiris pada perusahaan BUMN di Kota Jambi)

This study aims to prove empirically (1) the effect of total quality management on managerial performance, (2) the effect of quality management (3) The effect of performance measurement systems on managerial performance. (4) The effect of total quality management on the reward system (reward) (5) The effect of the reward system on managerial performance (6) The effect of total quality management on managerial performance is mediated by the performance measurement system (7) The effect of total quality management on performance managerial mediated by the reward system. The sample used as many as 98 respondents are managers in BUMN companies in Jambi City. The results showed that (1) total quality management had a significant and significant effect on managerial performance. (2) Total quality management significantly affects the performance measurement system. (3) The performance measurement system significantly affects managerial performance in Jambi City companies. (4) Total quality management significantly affects the reward system. (5) The reward system significantly affects managerial performance in Jambi City companies. (6) Total quality management has a significant and significant effect on managerial performance mediated by the Jambi City BUMN performance measurement system. (7) The total quality of management does not have a significant and significant effect on managerial performance mediated by the reward system.

Key performance indicators for measuring performance of facilities management services in hotel buildings: a study from Sri Lanka

PurposeThe concept of facilities management (FM) has been acknowledged as a novel avenue brought in to ensure productivity and customer satisfaction in the Sri Lankan hotel industry. Accordingly, performance measurement (PM) has become a crucial entity, where key performance indicators (KPIs) have become the most important instruments of PM in determining how well these FM services are performing. Unfortunately, nowadays, the service quality of hotel buildings has significantly retreated due to the absence of a proper PM system with relevant KPIs. Thus, the purpose of this study was to identify relevant KPIs to measure the performance of the FM services in Sri Lankan hotel buildings.Design/methodology/approachA mixed approach was used to conduct this study. Data were gathered through expert interviews and an expert survey. The expert interviews were conducted to identify the relevancy of KPIs that are discovered through literature review to the Sri Lankan context, and the expert survey was conducted to identify their level of importance. Collected data were analysed using content and statistical data analysis methods.FindingsEmpirical findings revealed that a PM system with relevant KPIs can be identified as a crucial requirement for FM services in hotel buildings in Sri Lanka to meet the customer needs successfully. Adequate and relevant KPIs are significantly vital for an effective PM system for FM services. Thus, ultimately, 68 most important KPIs have been captured amongst the generally identified KPIs, which can be used in developing a proper PM system to measure the performance of FM services in hotel buildings.Originality/valueThe previous studies have just focused on the PM in FM services in a general manner where a significant dearth in existing knowledge can be identified when it comes to exploring relevant KPIs for an effective PM system to be implemented in hotel buildings in Sri Lanka to measure the performance of FM services. Accordingly, the current study unveils the most important KPIs, which can be used in measuring the performance of FM services in hotel buildings. The study recommends the use of a proper PM system with identified KPIs by respective industry practitioners to enrich the performance of FM services in hotel buildings in Sri Lanka and thereby achieve the ultimate goals successfully.

Розробка систем оцінки ефективності команд із залучення-продажу нових клієнтів

In 2019 at IBM, it was found that there is a strong dependence on a few large banks in bank sales, and the growth targets of the sales division cannot be achieved due to the existing business with these same customers. To counteract this dependency, an NCA-specific sales team for the banking industry was established to support small and medium-sized banks with personal commitment and expertise and to develop them into long-term business partners of IBM. This research focuses on the development of a performance measurement system for NCA-Sales teams. It postulates the hypothesis that more effective and better-suited performance measurement systems can be developed for NCA-Sales of information technology towards financial institutions. Authors use the methodology of expert interviews and Mayrings qualitative content analysis to gain insights into the relevant factors that need to be considered when evaluating the performance of such sales teams. The paper identifies stakeholders, challenges, and goals that should be integrated into a performance measurement system as well as KPIs to measure them. The results are being consolidated into a conceptual sketch for an NCA-sales optimized PMS. The paper distinguishes itself from other research through an approach that gives detailed guidance for the practical implementation of its findings. The research was conducted with professionals in the IT sector; however, all of them were working for the same company, and the data was collected in the short span of one week as it was part of a research. The outcome can be used for further studies on how to effectively measure performance in NCA-Sales teams.

Performance Measurement Systems for Circular Supply Chain Management: Current State of Development

With circular supply chain management, the need arises to measure circularity as well as economic, environmental, and social performance. This places higher demands on performance measurement systems for circular supply chain management. The current paper studies the extent to which performance measurement systems for circular supply chain management can meet these higher demands. To gain this insight, a systematic literature review is conducted. Moreover, existing definitions of circular supply chain management are reviewed and an improved definition of circular supply chain management is developed. The current paper finds, among other things, that the literature on performance measurement systems for circular supply chain management is scarce. Moreover, most of the available performance measurement systems for circular supply chain management have not been tested in practice and are therefore still in an early phase of development. Furthermore, none of the available performance measurement systems for circular supply chain management meet the requirements for effective performance measurement systems. More specifically, including interdependencies between performance measures is a requirement that none of the performance measurement systems for circular supply chain management can meet. Including interdependencies would better support the complex decision making that arises in circular supply chain management and enable one to challenge strategic assumptions about the improvement of circularity, economic, environmental, and social performance in parallel.

Vertical, horizontal, and self control in academia: Survey evidence on their diverging effects on perceived researcher autonomy and identity

Foucault-oriented research has since long argued that the proliferation of performance measurement systems (PMSs) within academia threatens perceived researcher autonomy and identity through normalization and stigmatization of deviants. The theoretical model developed in this study nuances these claims by suggesting that effects of PMSs will differ depending on whether they are enacted as important for superiors (vertical control), colleagues (horizontal control), the researchers themselves (self control), and how they are constructed by these very systems. Overall, the structural equation modelling analyses conducted on questionnaire data from some 700 Swedish researchers strongly confirm the model developed. Specifically, they show that PMSs enacted as a vertical form of control indeed threatens perceived autonomy and identity, and that horizontal control in the form of publish and peer pressure among colleagues works as a mediating mechanism which strengthens these effects. However, our analyses also show that when PMSs are enacted as important means of self control, this in fact increases perceptions of autonomy and reduces feelings of identity threat. We also find that the extent to which these systems construct researchers as high-performing is an important antecedent explaining how come they can be enacted in so different ways, and the effects thereof.

A Study of Performance Management System as a Strategic Tool of HRM

In present hard-hitting competition, one of the strategies to be a successful organization is to get right candidates for every available position in the organization and retain the good employees to have better and highly motivated workforce. So what actually needed for an organization and managers is to attract, retain and motivate a talented workforce? It is proven fact that all high performance organizations whether public or private are and must be focus on developing and adopting effective performance measurement and performance management system; because it is only with the help of these systems organization can remain high performer. Now-a-days, in any industry whether small or big, human resource management not just plays traditional role but they are using various strategical tools of HRM to evaluate its employees’ performance and manage it accurately with a new system in the field of HRM known as Performance Management System (PMS). PMS helps the organization in aligning individual’s goal and objectives with organizational objectives. This paper deals with how PMS can be utilized for taking various strategic HR decisions and the effectiveness of PMS. The result of the study shows that a performance management system acts as a strategic tool and a powerful foundation for the employees to achieve their ambitions and organizations to achieve their key financial goals.

The Effect of Participative Budgeting, Performance Measurement System, and Compensation of Managerial Performance in Pt. Aceh Sharia Bank, Aceh, Indonesia

The purpose of this study is to know the condition of participatory budgeting, performance measurement systems, compensation, and performance management. Then want to know the effect of participatory budgeting on managerial performance, the effect of performance measurement systems on managerial performance and the effect of compensation on management performance , the object of this study was conducted at the Aceh Syaria Bank in Aceh Province . Data analysis in this study uses multiple linear regression which aims to test and analyze, both together and partially influence participatory budgeting, the stem measuring performance, and compensation i nsentif on managerial performance at Bank Syaria Aceh , which is treated with the technique of multiple regression analysis based on Ordinary Least Squere (OLS) and processed using SPSS version 21. The results showed that participatory budgeting, performance measurement system, and compensation on managerial performance.

Applying a Balanced Scorecard Approach in Egyptian Travel Agencies: Opportunities and Obstacles

It is widely acknowledged that Egyptian travel agencies face more competition and need to apply the Balanced Scorecard (BSC) as effective performance measurement systems in order to be competitive and to remain in existence. The purpose of this study is to determine the availability of the basic ingredients for BSC application and its opportunities and obstacles. 300 questionnaire forms targeted managers of head offices and their branches. The Statistical Package for Social Sciences (SPSS) version 26 was used to analyze collected data. The result of the study showed that Egyptian travel agencies could apply the BSC. The obstacles do not significantly affect the application of BSC. There are significant differences between the head offices and branches regarding the availability of the BSC basic ingredients and its perspectives application. The study recommends that travel agencies need to support intensives and training programs to their staff to awareness them by the BSC implementation and its use to monitor the performance.

Digital-related capabilities and financial performance: the mediating effect of performance measurement systems

ABSTRACT The aim of this research is to investigate the mediating effect of performance measurement systems (PMS) in the connection between digital-related capabilities and financial performance. Moreover, this research examines how different types of digital-related capabilities can fuel PMS, leading to improved financial performance. The findings show that PMS significantly mediate the relationship between digital-related human and collaboration capabilities and financial performance. However, a significant mediating effect of PMS was not found between digital-related technical and innovation capabilities and financial performance. Using a structured survey questionnaire, the data was collected from Finnish SMEs, which operate in both the service and manufacturing industries.