Effective Performance Measurement System Research Articles

Pengaruh Sistem Pengukuran Kinerja dan Disiplin Kerja terhadap Kinerja Pegawai Bea dan Cukai dalam Pengawasan Rokok Ilegal

According to law enforcement in excise sector, customs and excise officers are supervise on illegal cigarettes. The main purpose is to diminish illegal cigarettes and optimizing revenue in excise from cigarettes sector. Enforcement was intensively on illegal cigarettes throughout 2014-2016, shown by 902 cases increase to 2.409 cases. In contrary, illegal cigarettes increased throughout 2014-2016 from 11,73% to 12,14%. Those illegal cigarettes also causing affect to revenue in excise from cigarettes sector, primarily in 2016 while target realization 100,02% only, because revenue was collecting Rp137.969.225.430.00 from target set at Rp137.935.634.471.520. Discrepancy between sum of cases on illegal cigarettes, illegal cigarettes and revenue in excise from cigarettes sector becomes an interesting research topic. This research employs survey method which population are customs and excise officers work on enforcement unit in Indonesia. Sampling method is probability on cluster sampling to collect quantitative data and analyzed those data summarize using descriptive and verification approach to find out the effect of performance measurement system and work discipline to performance of customs and excise officers in supervision illegal cigarettes. This research concludes performance measurement system and work discipline give a positive and significant effect to customs and excise officers’ performance in supervision and reducing illegal cigarettes and optimizing revenue in excise from cigarettes sector

Pengaruh Sistem Pengukuran Kinerja dan Disiplin Kerja terhadap Kinerja Pegawai Bea dan Cukai dalam Pengawasan Rokok Ilegal

According to law enforcement in excise sector, customs and excise officers are supervise on illegal cigarettes. The main purpose is to diminish illegal cigarettes and optimizing revenue in excise from cigarettes sector. Enforcement was intensively on illegal cigarettes throughout 2014-2016, shown by 902 cases increase to 2.409 cases. In contrary, illegal cigarettes increased throughout 2014-2016 from 11,73% to 12,14%. Those illegal cigarettes also causing affect to revenue in excise from cigarettes sector, primarily in 2016 while target realization 100,02% only, because revenue was collecting Rp137.969.225.430.00 from target set at Rp137.935.634.471.520. Discrepancy between sum of cases on illegal cigarettes, illegal cigarettes and revenue in excise from cigarettes sector becomes an interesting research topic. This research employs survey method which population are customs and excise officers work on enforcement unit in Indonesia. Sampling method is probability on cluster sampling to collect quantitative data and analyzed those data summarize using descriptive and verification approach to find out the effect of performance measurement system and work discipline to performance of customs and excise officers in supervision illegal cigarettes. This research concludes performance measurement system and work discipline give a positive and significant effect to customs and excise officers’ performance in supervision and reducing illegal cigarettes and optimizing revenue in excise from cigarettes sector.

Performance measurement and management in small companies of the service sector; evidence from a sample of Italian hotels

PurposeThis paper aims to examine how modern small-medium enterprises (SMEs) operating in the tourism industry perceive and define corporate performance, and how they measure and monitor businesses’ achievements. Actual performance measurement activities are expected to show how (and if) companies manage the key factors that drive value creation and value erosion processes. Are effective performance measurement activities aligned with main theoretical prescriptions?Design/methodology/approachTheory and previous empirical research on SMEs’ performance is instrumentally used to identify those key factors that are supposed to drive small/medium hotels’ business performance; building on a resource-based view (RBV) framework, which provides the theoretical perspective to link resources, capabilities and actions to firm performance, a model based on the financial, the operational and the organisational dimension of firm’s success is developed through the selection of a set of consistent financial and non-financial indicators. The balanced performance measurement model is then tested via a field research study based on a semi-structured questionnaire sent to 540 selected SMEs active in the tourism sector.FindingsThe results suggest that small-medium Italian hotels, typically family firms managed by owners, tend to adopt a balanced system of performance measurement that keeps track of the financial and non-financial dimensions of hotel’s performance; customer orientation proves to be an extremely important leading indicator of non-financial corporate performance. Amongst traditional financial indicators, net profits, profitability ratios such as return on investment and return on sales, revenues for available room, occupancy rate and some cost efficiency ratios are found to be relevant, whereas extensive use is made of non-financial metrics such as customer satisfaction, number of complaints, number of new and repeat customers, employee competencies and staff abilities. Furthermore, some interesting results about frequency of measurement and purpose of measurement are also presented.Research limitations/implicationsData used in this study do not allow for a comprehensive analysis of the correlation between hotel performance and a specific measurement model implemented. Further future research that is meant to be developed will focus on the issue of addressing the nexus between firm performance and resource and capability used as strategic factors and monitored with an effective performance measurement system. The sample can also be expanded to carry out comparative analysis.Practical implicationsThe results shed some further light on performance measurement activities actually implemented by Italian hotels. The evidence gives a contribution to understanding the relationship between critical resources and capabilities that need to be developed and effectively managed to reach superior business performance. Furthermore, the study highlights the need to design and implement a customised performance measurement model, which accounts for firm-specific resources and capabilities and sector-specific features for the hotel to properly manage those strategical success factors that can deliver sustained competitive advantage to the firm.Originality/valueThis research paper contributes to performance measurement literature, by suggesting that the development and the implementation of a simplified but structured and complete performance measurement system, designed on the specific needs and features of SMEs, seems to be a sensible way to improve resources and capabilities utilisation and to obtain a holistic understanding of the achievements of these organisations.

KERJA SAMA MEMODERASI PENGARUH SISTEM PENGENDALIAN MANAJEMEN TERHADAP KINERJA STRATEGIC SUPPLY RELATIONSHIP (STUDI KASUS RUMAH SAKIT DI KOTA PALEMBANG

This research is a model that tests the effect of performance measurement systems on role clarity,psychological empowerment and managerial performance. This research was conducted at ahospital in the city of Palembang, with a sample of 55 managers. Data collected fromquestionnaires were delivered directly to the object of the research and tested through SEM usingAMOS. The test results show that the Management Control System has a positive and negativeeffect on cooperation, Management Control Systems have a positive and negative effect on SSRsPerformance, Management Control Systems have positive and negative effects on SSRsPerformance with collaboration and communication as moderating variables. That way theManagement Control System effectiveness afects the performance of SSRs.

Risk Management Practices to Strengthen Public Sector Accountability

Manuscript type: Research paper Research aims: Risks can challenge the public sector’s service delivery system and growth sustainability. While the notion of modern accountability demands some display of risk management (RM) initiatives, less attention has been given to the impact of RM practices on organisational accountability as well as the effect of performance measurement system (PMS) use on RM practices. Drawing from the resource-based view, this study attempts to investigate the predictive effect of RM practices and (PMS) use on accountability by using a mediation framework. Design/Methodology/Approach: Cross-sectional survey is applied to collect data from the top management of the Malaysian Federal Statutory Bodies (FSBs). The research framework is tested by analysing the data of 110 Malaysian FSBs through the structural equation modelling technique (PLS-SEM). Research findings: The result of the study demonstrates that PMS use for monitoring and PMS use for attention-focusing have a significant positive effect on RM practices. Additionally, RM practices mediate the relationship between PMS use and accountability. Theoretical contribution/Originality: This paper is among the few to assess the effect of PMS use on RM practices and to determine the mediation effect of RM practices on the relationship between PMS use and accountability. Practitioner/Policy implication: These findings provide valuable insights for authorities in the public sector on the ways to enhance public sector governance through new mechanisms of accountability such as RM practices. Research limitation/Implication: This study uses a non-probability sampling. Considering the difference in design and use of control systems among the different sectors or industries, the results may not be generalised to other populations. However, the outcome of this study suggests that RM practices do strengthen public sector accountability with the appropriate use of the PMS. Keywords: Risk Management, Performance Measurement System, Accountability, Public Sector JEL Classification: M41

Determinants of passenger loyalty in multi-airport regions: Implications for tourism destination

This study examines the drivers of passenger loyalty to the airport in a multi-airport region. For this purpose, partial least squares–structural equation modelling (PLS–SEM) was used to analyse survey data. The findings highlight the role of customer segmentation to define marketing and operational strategies, which should be used to strengthen the loyalty to the airport as well as to contribute to the improvement of the tourism destination image. In addition, this research offers an integrative approach to analyse passenger perceptions and attitudes regarding the airport experience. This integrative approach can also help airport managers to design and implement more effective performance measurement systems, which could be used to transform the airport environment in a tourism experience.

A performance measurement system for R&D activities in the software sector

R&D activities in the software sector have a key role as they lead to sustainability of the sector and rapid development activities with shorter cycles. The importance of R&D activities in this sector requires an effective performance measurement system for companies to evaluate the performance of R&D activities. Hence, this study aims to establish a performance measurement system that is applicable to the software industry. The study consists of a sequential mixed method where first key performance indicator, drawn from preliminary interviews and then the data from 2012 to 2016 are collected and analysed. The results are interpreted by conducting in-depth interviews with performance management departments. This study uses various performance indicators for R&D oriented sectors combining them with the new KPIs that are specific to the software sector. The implemented method is used to rank the performance of a software company effectively. The study offers many performance-oriented interrelationships between financial, innovation, education, customer-oriented, and organisational factors. The study also offers interesting findings, related to the quality-versus-quantity measures indicating highly qualified employees lead to higher quality levels in research and patent applications rather than a higher number of outputs.

A performance measurement system for R&D activities in the software sector

R&D activities in the software sector have a key role as they lead to sustainability of the sector and rapid development activities with shorter cycles. The importance of R&D activities in this sector requires an effective performance measurement system for companies to evaluate the performance of R&D activities. Hence, this study aims to establish a performance measurement system that is applicable to the software industry. The study consists of a sequential mixed method where first key performance indicator, drawn from preliminary interviews and then the data from 2012 to 2016 are collected and analysed. The results are interpreted by conducting in-depth interviews with performance management departments. This study uses various performance indicators for R&D oriented sectors combining them with the new KPIs that are specific to the software sector. The implemented method is used to rank the performance of a software company effectively. The study offers many performance-oriented interrelationships between financial, innovation, education, customer-oriented, and organisational factors. The study also offers interesting findings, related to the quality-versus-quantity measures indicating highly qualified employees lead to higher quality levels in research and patent applications rather than a higher number of outputs.

ROLE AMBIGUITY AND PSYCHOLOGICAL EMPOWERMENT MEDIATE PERFORMANCE MEASUREMENT SYSTEMS TO MANAGERIAL PERFORMANCE

The purpose of this study is to analyze the effect of Performance Measurement System to Managerial Performance with mediation variables Role Ambiguity and Psychological Empowerment. This type of research is causality. This research was conducted on non-profit organization that is 7 Private University in Malang. The sample in this study the educational staffequivalent to the manager, the number of samples in this study was 79. The data analysis method used in this study is SEM PLS using WarpPLS 5.0 software. The results of this study indicate that the Performance Measurement System has a positive effect on Managerial Performance through mediation variables Role Ambiguity and Psychological Empowerment. Performance Measurement System has a positive and significant effect on managerial performance. The Performance Measurement System has an indirect relationship with Managerial Performance through Psychological Empowerment. The conclusion is that this study supports the hypothesis developed by Marginson, et al. (2015), but there are some unsupported hypotheses because of the different research objects that each type of organization has different characteristics.

A three-step methodology for process-oriented performance: how to enhance automated data collection in healthcare

ABSTRACTBackground. Healthcare managers often attempt to enhance process-oriented performance. However, this remains a challenge. New approaches aimed at increasing the implementation success of process-oriented performance measurement should be investigated.Methods. This study investigates and discusses a step-by-step methodology to implement an automated and effective process-oriented performance measurement system in a hospital. The methodology is based on a framework for developing dashboards based on three steps: the demand side, supply side, and the fit between the two. An illustrative case of the process of hip surgery in the operating room of two hospitals is used.Results. A methodology has been developed to define a reliable set of process-oriented performance metrics, allowing analysis and management of the different flows in healthcare in an integrated way, several methods were investigated to automatically integrate the data gathered into a reporting infrastructure that can be used to disseminate the results.Conclusion. This step-by-step methodology allows healthcare organizations to develop and implement effective process-oriented performance measurement in an automated way. This allows the alignment of the goals of hospital management and various stakeholders with the more analytical analysis of business process management notation and hospital information system (HIS) data.

Managing strategic performance in a dynamic business environment: A study of two Indian oil companies

In a volatile, uncertain, complex, and ambiguous work environment, organizations must adopt an effective strategic performance measurement (SPM) system that ensures their ability to be as flexible as circumstances require. A case study of two Indian oil companies—Oil and Natural Gas Corporation Ltd. and Oil India Ltd.—uses the situation actor process‐learning action performance framework to investigate the interaction among seven factors—strategic planning, strategic flexibility, strategy implementation, SPM system design, information system flexibility, SPM management issues, and performance feedback and learning—on the companies’ performance. The results lead to the formation of a dynamic model that managers can use to ensure that their organization's strategy is being translated into attainable goals and to drive enterprise‐wide performance improvement.

Performance measurement for the strategic management of health-care estates

PurposeThe purpose of this study is to explore the role of performance measurement in current practices for strategic management of health-care estates.Design/methodology/approachThe research adopts a constructivist grounded theory approach, combining different methodologies of a pan-European qualitative questionnaire, interviews with international health-care providers and a case study of National Health Services (NHS) Scotland. Here, documentation analysis, observations and in-depth interviews involving NHS stakeholders were undertaken.FindingsThe analysis shows evidence that measuring estate performance has limited value for individual NHS boards regarding strategic decisions related to long-term planning and investment. This was due to design issues and the prioritisation of clinical delivery, which contribute to the neglect of the estate as a consideration in long-term strategic planning. This misalignment results in a tool which is valuable for accountability but which is less helpful to NHS boards in shaping future decisions around the estate.Practical implicationsResponding to a gap in understanding of the application of performance measurement in the context of health-care estates, this research provides three recommendations to promote a more effective and relevant performance measurement system. These actively recognise the importance of the estate within strategic decision-making as helping to inform the long-term planning and management of the estate within the individual NHS boards.Originality/valueThis paper shows the current role of performance measurement for the strategic management of health-care estates and identifies issues related to its applicability and value.

High-involvement innovation: views from frontline service workers and managers

PurposeThe purpose of this paper is to examine the experience of call centre employees who have been involved in high-involvement innovation (HII) activities to understand what frontline and managerial employees think of these involvement activities.Design/methodology/approachA qualitative case study approach is utilised, drawing on evidence from seven UK call centres. Various sources of data are examined, i.e. interviews, observation, call listening and documentary.FindingsFrom the analysis of the testimonies, it is found that job design, the mechanisms and practices as well as other people’s perceptions of involvement influence the experience of frontline and managerial employees. The findings highlight that HII has the potential to intensify jobs (both frontline and managerial employees) when the quantity of ideas submitted becomes a component of the employee performance appraisal system.Research limitations/implicationsThis research has shown that the heightened targets used in many of the cases have reduced the ability of employees to be involved in any innovation activities. What is not clear from the findings is that if performance measures can be used in a more participative way with employees so that they can have less time pressure allowing them to become more involved in innovation activities. Thus, an interesting direction for future research would be to consider the effects of performance measurement systems in the role they play in facilitating HII activities.Practical implicationsThe findings show that HII has the potential to enrich frontline employees’ jobs, making them feel more valued and giving them some variety and challenge in their job. Therefore, practitioners should approach employee involvement in the innovation process as something potentially fruitful and not just wasted time away from the phones.Originality/valueThis research is important as it explores what effects these involvement initiatives have on the employees and managers involved in them. This is valuable since there is no real consensus across human resource management, labour process and critical management fields resulting in a limited conceptualisation of the relationship between management practices, employee experiences and the outcomes. This research makes a contribution through the elaboration of current theory to understand the complexities and subtleties that exist between the high involvement management practices and the experience of workers and their managers.

THE EFFECT OF PERFORMANCE MEASUREMENT SYSTEM AND REMUNERATION TO EMPLOYEE PERFORMANCE WITH ORGANIZATIONAL CULTURE AS A MODERATING VARIABLE

This study aims to examine the effect of performance measurement system and remuneration on employee performance with organizational culture as moderating variable. This research uses survey research design with Partial Least Square (PLS) data analysis. Respondents in this study are 66 employees who have structural positions in KPP Madya Malang and KPP Pratama Batu. The results showed that the performance measurement system can improve employee performance. The results of this study demonstrated that organizational culture as a moderating variable was able to strengthen the relationship of performance measurement system and remuneration to employee performance. In addition, the results of the study was unable to prove that remuneration can improve the employees’ performance, because the remuneration given by the directorate general of taxes is not accompanied by a good performance appraisal.

THE EFFECT OF PERFORMANCE MEASUREMENT SYSTEM AND REMUNERATION TO EMPLOYEE PERFORMANCE WITH ORGANIZATIONAL CULTURE AS A MODERATING VARIABLE

This study aims to examine the effect of performance measurement system and remuneration on employee performance with organizational culture as moderating variable. This research uses survey research design with Partial Least Square (PLS) data analysis. Respondents in this study are 66 employees who have structural positions in KPP Madya Malang and KPP Pratama Batu. The results showed that the performance measurement system can improve employee performance. The results of this study demonstrated that organizational culture as a moderating variable was able to strengthen the relationship of performance measurement system and remuneration to employee performance. In addition, the results of the study was unable to prove that remuneration can improve the employees’ performance, because the remuneration given by the directorate general of taxes is not accompanied by a good performance appraisal.

THE EFFECT OF PERFORMANCE MEASUREMENT SYSTEM AND REMUNERATION TO EMPLOYEE PERFORMANCE WITH ORGANIZATIONAL CULTURE AS A MODERATING VARIABLE

This study aims to examine the effect of performance measurement system and remuneration on employee performance with organizational culture as moderating variable. This research uses survey research design with Partial Least Square (PLS) data analysis. Respondents in this study are 66 employees who have structural positions in KPP Madya Malang and KPP Pratama Batu. The results showed that the performance measurement system can improve employee performance. The results of this study demonstrated that organizational culture as a moderating variable was able to strengthen the relationship of performance measurement system and remuneration to employee performance. In addition, the results of the study was unable to prove that remuneration can improve the employees’ performance, because the remuneration given by the directorate general of taxes is not accompanied by a good performance appraisal.

The Relationship between Strategic Performance Measurement System and Managerial Work Performance of Co-operatives in Malaysia

Performance measurement system has been recognized as critical factor for the effective and efficient management tool in competitive environment. The main research purpose is to investigate the current practices of strategic performance measurement system as well as to identify the level of managerial work performance among 100 best co-operative in Malaysia. This research also examines the relationship between strategic performance measurement system and managerial work performance. The selection of the sample is comprised the chairman, secretary, treasurer, manager and two members of the co-operative board among 100 best co-operative in Malaysia. The result indicates that the level of managerial work performance among 100 best co-operative in Malaysia is at the high level. Moreover, the correlation between strategic and managerial work performance among these co-operative shows that there are significant relationship between these two variables. The implication of the research findings in this study are co-operatives that have effective performance measurement system and use it as an internal control that is effective in their operations show that they are always be able to measure their performance. High performance in co-operative activities gives the impression that the management effectively and efficiently can manage their corporation. The goal of the co-operative cannot be achieved if there is low level performance of the management in the corporation.

From design to operations: a process management life-cycle performance measurement system for Public-Private Partnerships

Public–Private Partnerships (PPPs) have become a critical vehicle for delivering infrastructure worldwide. Yet, the use of such a procurement strategy has received considerable criticism, as they have been prone to experiencing time/cost overruns and during their operation poorly managed. A key issue contributing to the poor performance of PPPs is the paucity of an effective and comprehensive performance measurement system. There has been a tendency for the performance of PPPs to be measured based on their ex-post criteria of time, cost and quality. Such criteria do not accommodate the complexities and lifecycle of an asset. In addressing this problem, the methodology of sequential triangulation is used to develop and examine the effectiveness of a ‘Process Management Life Cycle Performance Measurement System’. The research provides public authorities and private-sector entities embarking on PPPs with a robust mechanism to effectively measure, control and manage their projects’ life cycle performances, ensuring the assets are ‘future proofed’.

Measuring organisational performance using a mix of OR methods

Performance measurement has become an increasingly important issue in recent years. In spite of the remarkable progress that has been achieved in this area of research, many performance measurement initiatives fall short of their potential in supporting decision-making. This paper argues that adopting a multi-method approach to assessing performance has the potential to result in more comprehensive and effective performance measurement systems. To support this assertion, the paper discusses the development of a performance measurement system for a Business Tax Department, which combined the use of several operational research (OR) techniques including qualitative system dynamics, data envelopment analysis and multiple criteria decision analysis. The use of these OR techniques was influential in developing and implementing the performance measurement system and has the potential to be transferred to other contexts.

A behavioural perspective on the effects of using performance measurement systems in the companies: Evidence from a case study

The effects of Performance Measurement Systems (PMS) on people’s behaviour are relevant for an organization performance and success. Yet motivational and behavioural consequences of PMS are far from being understood. This study aims to go further regarding the consequences on people’s behaviour of using PMS in organizations. In order to collect data researchers conducted a case study in a Portuguese multi-national company. Evidence shows that the way in which managers understand a PMS influences in a significant way how they behave. The data also lends support to the claim that PMS influence motivation, perceptions, participation and job-related stress of managers.