Effective Performance Measurement Research Articles

Implementation of Balanced Scorecard to Achieve The Company's Strategic Objectives

The company's strategic objectives play a vital role in directing the company towards the desired achievement and planning the steps to achieve it. Clarity of corporate objectives supported by commitment to them can lead to significant performance improvements, in contrast to providing objectives that are vague or too general. The process of achieving these goals involves monitoring through performance measurement. One effective performance measurement method is using the Balanced Scorecard, which combines financial and non-financial aspects of the company. The purpose of this study is to analyze the application of the Balanced Scorecard to achieve the company's strategic goals. The research method used is qualitative, with data collection techniques through literature studies. The collected data were then analyzed through three stages, namely data reduction, data presentation, and conclusion drawing. The results showed that the use of Balanced Scorecard (BSC) can effectively assist the company in achieving its strategic goals. Good linkages between financial, customer, internal business, and growth and learning perspectives can produce optimal performance both in terms of financial and non-financial aspects for the company. The BSC approach focused on improving company performance not only encourages improvement in financial aspects, but also becomes the basis for evaluating the company's strategy to achieve continuous improvement.

STRUCTURAL EQUATION MODEL-BASED PERFORMANCE MEASUREMENT SYSTEM FOR TRANSFERRING PPP WATER PROJECTS: A CHINA PERSPECTIVE

A series of performance measurement need to be carried out throughout the project life cycle to ensure the successful transfer of public-private partnership (PPP) assets and meet stakeholder needs. More and more water projects are stepping into the transfer phase, but less studies carry out in-depth and systematic discussion on the performance measurement of PPP water projects at the transfer phase. Hence, to fill this gap, this research establishes a new performance measurement system (PMS) for evaluating the performance of the PPP projects stepping into the transfer phase based on the key performance indicators (KPIs). Through case study, expert interview and questionnaire, this paper formulates the logical basis behind PPP water projects at the transfer phase and subsequently constructs the transfer performance measurement system (TPMS) of these projects. Then, it conducts a confirmatory analysis of the impact relationship between the indicators based on structural equation modeling (SEM). Findings of expert interview and questionnaire indicate that there are 7 primary and 26 secondary indicators, and the model has a good fit. The TPMS will provide governments, operators and other stakeholders with a comprehensive and complete understanding as to indicators required of an effective performance measurement of PPP water projects.

Innovative Human Resource Management Strategies in the Era of Digital Transformation

In the era of digital transformation, innovative human resource management (HR) strategies are very important for organizations to overcome the challenges faced in adopting digital technology. This research conducted a thorough literature review to explore key factors associated with innovative HR strategies in the era of digital transformation. The results of the literature review show that adapting technology in HR, increasing employee digital competence, talent management, and effective performance measurement are important aspects in achieving organizational success in this digital era. Apart from that, organizational adaptation to new phenomena also demands adaptive HR management strategies. This research also proposes a hypothesis that links these various factors to an organization's success in facing digital transformation. It is hoped that this research can provide valuable insight for organizations in developing relevant and effective HR strategies in facing the challenges of the digital era.

Blockchain sharding for e-commerce supply chain performance analytics towards Industry 5.0

ABSTRACT In today’s competitive and volatile e-commerce markets, effective supply chain performance measurement (SCPM) gradually becomes essential for investigating pitfalls and loopholes in strategic vendor management and business development. Surrounding the atmosphere of Industry 5.0, sustainability and resilience are two primary pillars, which should be further considered in the SCPM beyond merely operational effectiveness and efficiency. This study customises evaluation criteria based on the green supply chain operations reference model. Moreover, a blockchain sharding-enabled performance analytics system is designed, where a real-life case analysis is conducted to verify the system efficacy. Consequently, the supply chain sustainability and resilience can be fostered.

Impact Of Interactive Control In Improving Academics' Performance: Mediating Role Of Fairness

This study aims to empirically examine the direct and indirect effects of interactive control on performance by analysing the role of justice as an intervening variable. This research uses a survey approach by distributing questionnaires directly or online. The research sample obtained was 383 academics at universities throughout Indonesia. Data analysis was carried out using structural equation modelling. The results showed that interactive control has no direct effect on performance. However, interactive control indirectly affects academic performance through fairness. This suggests the importance of improving fairness in effective performance measurement to improve academic performance. The novelty of this study lies in equity as an intervening variable in the relationship between interactive control and performance. The findings of this study provide practical insights for higher education management to implement an interactive control approach that can increase the sense of fairness towards implementing performance measurement systems to impact academic performance positively.

Assessing the Effect of Performance Appraisal on Employee Productivity in Organzations; A Study of Chikankata Town Council, Kafue Gorge Training Centre and Riverside Farm Institute

The study assessed the effects of Performance Appraisal on Employee Productivity in organizations; A study of Chikankata Town Council, Kafue Gorge Training Centre and Riverside Farm Institute. The objectives were to determine the effects of performance appraisal on employee’s productivity in an organization. The results obtained from the study would generate insight that would assist organizations in developing effective performance measurement strategies for it would enable the organizations to identify and develop guidelines that would enhance effective staff appraisal that would improve staff performance and for academicians and scholars, the study findings would be beneficial to forming the basis for future research on the subject, providing a critical examination of the field. The study used qualitative research design. A stratified proportion sampling was employed to obtain a suitable unit representative of analysis with the target population of 310 employees from three (3) different institutions namely; Chikankata Town Council, Riverside Institute and Kafue Gorge Training Centre. The study was anchored on expectancy theory. The study targeted the population of 310 staff based in Chikankata District with the sample size of 45 employees. The researcher used the interview guide and focus group questions as the data collection instruments that was pilot tested using 15 staff based in Chikankata District. The data was analysed by use of Microsoft excel. Specifically, means, averages and percentages were employed by the researcher. The data analysis tools were simple tabulations and presentations of the report using spreadsheets. The data is presented using tables, charts and graphs. The findings indicated that performance appraisal is important because the process offers organizations a valuable opportunity to measure how each staff in relations to previously established standards and expectations. The study recommends that Managers, supervisors and employees should be involved in the planning process of performance appraisal and the Performance appraisal policy should be easily accessible to all members of staff and performance appraisal process in the organization should be more transparent and rational.

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).

From the inside looking out: towards an ecosystem paradigm of third sector organizational performance measurement

ABSTRACT Effective organizational performance measurement supports the long-term viability of third sector organizations. According to extant literature, it has been driven by accountability, legitimacy and improvement. While some aspects of these are outward-facing, their focus seems to be intra-organizational. Our study shows evidence of a different approach to third sector organizational performance: qualitative data from the Scottish social care third sector suggest a paradigm shift on what drives and enables performance measurement in this sector. Moving away from an instrumental, compliance- and inward-focused approach, our findings point to an organizational performance measurement ecosystem marked by adaptation, sustainability strategies and inter-organizational collaborations.

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.

Systematic Literature Review of Performance Measurement Systems in Health Sector of Pakistan

Building The research study is primarily focused on identifying the parameters of Performance Measurement System within the healthcare sectors of Pakistan. The main purpose is to identify the efficacy of different Performance Measurement Systems within Pakistan, and its impacts on performance of physicians. Considering the current performance and situation in healthcare sector of Pakistan, it has been analyzed that the country has come a long way towards progress, however there is still a major lacking of proper standards and guidelines which must be followed in all the healthcare institutions. The problem statement emphasizes over the need of PMS in the healthcare institutions, with the help of which the improvements and efficacy in performance of the healthcare professionals can be determined. The research objective designed for this study is identify the impact of Performance Measurement Systems on the improvisations in current practices, on patient satisfaction and recovery, changes in patterns of mortality rates and budgetary control within the country for healthcare sectors. In order to conduct this research study, the type of research method which has been mainly opted is qualitative analysis involving the write up of a Systematic Literature Review. This review has been designed on the basis of PRISMA method, and proper skimming of research articles have been performed accordingly. 22 articles have been taken for further investigation, published after the year of 2010. The indicators which have been focused on in this study include Patient Satisfaction, Mortality, Survival rates and Cost Allocation to healthcare sectors of the country. Based on the findings of number of research articles, it has been identified that Patient Satisfaction and Cost Allocation have not been improved via Performance Management System. However, during the COVID-19 pandemic, the mortality and survival rates in the public and private sectors of the country were controlled due to constant supervision by governmental agencies and the use of an effective and efficient Performance Measurement method for staff members in the healthcare industry.

Efficiency Management of Women Poultry Farmers Using Hybrid DEA and Machine Learning Approach: A Case of SHG-based Production in Sub-Himalayan North Bengal

Data envelopment analysis (DEA) offers a linear programming approach to evaluate the efficiency in diverse fields of production and service sectors with wide utilization for effective performance measurement operations. DEA has found its useful applications in agriculture to examine optimal resource use for sustainable consumption. The popularly used two-step process where DEA is employed along with a regression model to explain the impact of exogenous factors on efficiency has been employed in past studies. This article aims to combine the conventional DEA approach with machine learning (ML) models for establishing a novel alternative method for performance measurement as well as the prediction of key exogenous factors affecting the efficiency of the women self-help groups (SHGs) led poultry farmers in sub-Himalayan North Bengal surrounding the Siliguri region of Darjeeling district. For this purpose, in the first step, DEA was employed to measure the efficiency of 80 women poultry farmers belonging to 20 SHGs and in the second step, the state-of-the-art random forest (RF) technique has been employed to predict the most important efficiency influencing variables. The results suggested inefficiencies among the SHG women with wide variation between the efficient and inefficient units. The use of the RF model predicted important factors such as the role of non-governmental organizations, educational level, financial inclusion, landholding and poultry rearing experience in years to impact the efficiency of these women farmers. As a result, the hybrid DEA-ML approach is useful to tackle ill adversities in poultry production that may help the women SHGs to develop agriculture-based income.

Freight Operational Characteristics Mined from Anonymous Mobile Sensor Data

Effective transportation performance measurement (TPM) benefits from ubiquitous transportation system monitoring both spatially and temporally. In the context of freight-oriented TPM, traditional devices such as inductive loops, cameras, manual counts, and so forth, may fail to provide comprehensive and high-resolution coverage, providing, for example, only volume counts for a small subset of links across a large network with no indication of trip linkages. New sources of big data from mobile sensors including on-board global positioning system (GPS) devices allow more comprehensive network coverage and insights into trip chaining behaviors. However, to gain actionable insights into system performance from large and noisy streams of mobile sensor data, it is necessary to mine it for relevant operational characteristics of the trucks it represents. Such characteristics include stop locations, stop duration, stop time of day, trip length, and trip duration. To address this methodological need, this paper presents three heuristic algorithms: “stop identification,”“path identification,” and “trip identification.” To address the issue of determining relevant operational characteristics, a multinomial logit (MNL) model approach is applied to determine the commodity carried based on the outputs of the heuristic algorithms. The MNL model is novel in that it relates operational characteristics to commodity carried thus filling a critical data gap that currently limits the development of advanced freight forecasting models. The set of models developed in this paper allow large-scale GPS data to be used for freight planning while maintaining levels of data anonymity that allow such data to be shared with public agencies.

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.

Measuring the efficiency of logistics channels

The researcher aims to study Measuring the efficiency of logistics channels with the purpose of research to study the testing of performance measurement tools (Performance) of logistics channels and evaluate the testing of that tool and bring effective performance measurement tools to use in the operation of logistics channels in the future. By collecting data from 515 persons Tran Slink Co., Ltd. employees and using the questionnaire as a tool. Statistics used to analyze the data were t-test, F-test (ANOVA and MANOVA), multiple correlation analysis, and multiple regression analysis. The results showed the relationship between the independent and dependent variables By analyzing multiple regression (Multiple regression analysis), a method for selecting variables into the equation so that the equation can predict the maximum variable criteria. There is a method for selecting variables by using Forward regression analysis. It can be concluded that the variables selected into the equation are quality dimensions using Item Fill Rate indicators. And the cost dimension by using the Logistics cost per unit and Cash Conversion Cycle indicators has a multiple correlation coefficient (Multiple R) equal to 0.842, a coefficient of determination (R Square) equal to 0.709, and an adjusted coefficient (R Square). 0.674 Standard error in the system (Standard Error) 26.830 The results of the correlation test between the efficiency of logistics channels (Y1) found that the quality dimension using the indicator Item Fill Rate (X1) had a P-value equal to 0.001, less than 0.05 (0.000 < 0.05). And the cost dimension using Logistics cost per unit indicator and Cash Conversion Cycle (X3) has a P-value equal to 0.001, less than 0.05 (0.000 < 0.05), that is, the main assumption is rejected. Ho The H1 sub-hypothesis is accepted, implying that the quality dimension using the Item Fill Rate metric and the cost dimension using the Logistics cost per unit and Cash Conversion Cycle metrics influence the efficiency of the logistics channel. It can be written as a regression equation as follows: Y=103.789 + 1.455 (X1) + 3.035 (X3).

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.

Conceptualizing the identification of critical success factors for heritage building maintenance management (HBMM)

Heritage building maintenance management (HBMM), which has been recognized as a tool to enhance sustainability, enables the preservation of past legacies for future generations. HBMM is also known for reducing the intensity of climate change and preserving embodied energy through adaptive reuse and conservation. To this end, facility management (FM) – a multidisciplinary approach toward achieving the functionality of the built environment – has been increasingly applied. However, the absence of clearly identified critical success factors (CSFs) and a systematic framework for identifying the CSFs for effective performance measurement of HBMM remains a salient problem. Intended to bridge this gap, this study aims at developing a framework for identifying the CSFs for HBMM. Conducted at the beginning of the study was a review of relevant literature in the domains of HBMM and FM. Afterward, a conceptual framework was developed by integrating different levels (strategic, tactical, and operational) of FM concepts and useful building performance measurement tools, thus resulting in a guide for identifying CSFs to meet the objectives of HBMM stakeholders. This study’s outcome helps practitioners identify relevant CSFs for achieving organizational maintenance goals and contributes to the existing knowledge about the management of heritage buildings. It can also serve as a basis for future studies that assess the significance of the identified CSFs in HBMM.

Towards holistic goal centered performance management in software development: lessons from a best practice analysis

There are strong motivating factors for more effective performance measurement practices in software development. Astute practices in this domain are lauded to improve efficiency and effectiveness. However previous studies have shown that measurement in software is intricate, complex and fraught with challenges. Consequently it is poorly managed in practice. Our research seeks to better understand performance management in a real world software development setting in order to identify the challenges and generate a roadmap for improvement. This paper presents findings from an inductive analysis of a radical measurement program in a global software organization. Our study investigates the level at which non-compliance with best practice can explain the company’s disappointing results. We found that a narrow focus on projects, rather than on organizational goals, has seriously hindered its success. We also found that the rate of change in the organization as a whole was impinging on the effective implementation of its measurement program. An analysis of the results demonstrates just how challenging software measurement is. The findings provide an evaluation of best practice relative to the literature that is informed by real industry experience.