Implementation Of Performance Measurement System Research Articles

What Drives the Institutionalization of Performance Measurement Systems in Indonesian Local Government?

Objective - The objective of this paper is to explore and understand the motivators of institutionalization of Performance Measurement Systems (PMS) in the Indonesian Local Government (ILG), particularly in the Batu municipality presenting the performance paradoxes. Performance accountability issues have been encouraging the Batu municipality to implement PMS since the beginning of the 2000s. Methodology/Technique - The theoretical framework and interpretation of this study are adopted from the institutional theory (coercive, mimetic, normative, and allomorphism) which is used to analyze the phenomenon. The researchers employ a single case study to scrutinize the motivators of institutionalization by elaborating on document analysis conducted from the interviews of 10 employees in a different range of management levels (top, middle, and lower). Findings - The results of this study reveal that exogenous (coercive, mimetic and normative) and endogenous (allomorphism) drivers encourage the institutionalization of PMS in the Batu municipality with coercive pressure as a major driver and allomorphism as a mere ceremonial driver (rather than an instrument). Novelty - The practical implications of this study can be used to improve the PMS process and the quality of performance reporting in the Batu municipality and in other local governments. This paper is also expected to fill the gap in existing literature on the implementation of PMS within a developing country (in this case, Indonesia). Type of Paper: Empirical Paper. Keywords: Performance Measurement Systems; Institutional Theory; Indonesian Local Government; Batu Municipality. JEL Classification: P47, M48, P49. DOI: https://doi.org/10.35609/jber.2019.4.1(3)

Perceptions of the Use of an Outcome Monitoring Tool in a Clinical Psychology Training Centre: Lessons Learned for Performance Measurement

Abstract: The purpose of this study was to examine the perceptions of the Outcome Questionnaire (OQ) following its implementation in a university-based psychological services training centre. Participants were doctoral-level student clinicians (n = 49), clinical supervisors (n = 17), and clients (n = 24). Data was collected through surveys, semi-structured interviews, and focus groups. Findings indicated that the majority of clinicians used the OQ to monitor outcomes and the majority of stakeholders perceived it as useful. However, the extent to which the information provided by the OQ was being used was variable. Lessons learned for implementation of performance measurement systems within mental health services are discussed.

Understanding the practice of performance measurement in industrial collaboration: From design to implementation

This study focuses on the design and implementation of a performance measurement system (PMS) for industrial collaboration. This article provides insights from two case studies of industrial collaboration. The research aims to study the crucial characteristics of PMS design and implementation in industrial collaboration, in which multiple tiers, extending beyond the buyer-supplier dyad, are considered. Prerequisites and challenges are crucial characteristics that should be examined in the design and implementation of a PMS. The results indicate three main characteristics affect the design and implementation of a PMS in an industrial collaboration: 1) the importance of collaboration, 2) the importance of coordination and integrated information systems within the system implementation, and 3) the importance of acknowledging the impact of varied customer needs.

Performance measurement indicators in the healthcare industry: a systematic review

This systematic review addresses a gap in the literature on performance appraisal systems for healthcare workers. The study explores the efficiency of employee performance measurement systems in providing accurate measurement of the performance of healthcare workers across various job types with a particular focus on performance indicators associated with soft skills. Cochrane guidelines for performing a systematic search in disciplinespecific and in multidisciplinary databases were supplemented with an independent manual search of relevant studies. Twenty-three articles were identified and classified into three categories: performance measurement systems, evaluation and development of measuring tools, and problems of measuring performance of medical practitioners. The review revealed that there is no comprehensive approach to performance evaluation in healthcare. The identification of soft skills as a performance indicator was lacking and none of the implemented performance measurement systems were reported to be effective. Implications for further research to focus on the development of performance measurements for all workers in the healthcare industry were highlighted.

Does Performance-Based Budgeting Have a Correlation with Performance Measurement System? Evidence from Local Government in Indonesia

Abstract This study aimed to empirically test some variables related to Performance-Based Budgeting (PBB) and Performance Measurement System (PMS) implementation in the local government, namely Special Region of Yogyakarta, Indonesia. This study applied the mixed-methods approach with sequential explanatory strategy (QUANTITATIVE to Qualitative). Quantitative stage was conducted by testing the hypothesis using the Structural Equation Model (SEM) approach. On the qualitative stage, the interview was conducted to dig more information on the unsupported hypothesis. From the result of the hypothesis testing, it was discovered that the limitation of information system had a negative influence, while education had a positive influence towards the effectiveness of PBB. Furthermore, the effectiveness of PBB had a positive influence towards budget absorption, and the accountability also had a positive influence towards the use of performance information to practice the arrangement of PPB. Meanwhile, the qualitative analysis produced the finding that there were practices of PBB that could still be done manually and it was not supported by information technology. Besides, the implementation of PMS and PBB was more because of the coercive pressure rather than consciousness of normative apparatus.

20 Years of Performance Measurement System (PMS) Implementation in Indonesian Local Governments: Why is Their Performance Still Poor?

Manuscript type: Research paper. Research aims: This study aims to investigate the Performance Mea- surement System implementation in Indonesian local governments and the phenomenon of institutional isomorphism. Design/ Methodology/ Approach: This paper employed a qualitative approach,  using  semi-structured  interviews  and  observations.  The samples comprise the heads of departments and individuals representing the agencies and institutions in the Yogyakarta Special Region. A deductive thematic method was utilised as the data analysis technique. Research findings: The study reveals that institutional isomorphism is still in existence. It plays a dominant role in the Performance Measurement System (PMS) implementation of Indonesian local governments at the coercive level. This situation leads to the underachievement of the successful PMS implementation. Theoretical contributions/ Originality: This paper fulfills an iden- tified need for studying how institutional isomorphism influences PMS implementation. This area of study is underresearched in the public sector of accounting, particularly in Indonesia.  Practitioner/ Policy implications: The results of this study show that there is a need for the government or authorities to focus more on understanding how institutional isomorphism at the coercive level may lead to poor PMS implementation. The authorities also need to improve the condition by emphasising on normative isomorphism which can address the problems caused by limited information system, budgetary, human resources and difficulties in determining performance measures. Research limitation: This study is limited to the Yogyakarta Special Region province thus findings cannot be generalised while the approach used is confined to the qualitative method only. This may also affect the outcome of the findings to some extent. Keywords: Local Government, Institutional Isomorphism, Perfor- mance Measurement System, Public Sector Accounting. JEL Classification: G11, G02, C91

Business intelligence for performance measurement: A case based analysis

The adoption of IT-based performance measurement systems (PMS) has increased in recent times. The proliferation of business intelligence (BI) has significantly impacted performance measurement in organizations. In this paper a novel process-based framework is proposed to enable end-to-end analysis of technology driven PMS implementation in an organization. The framework has been used to study PMS implementation in a large manufacturing firm in India. The analysis of the case provides key lessons about successful planning, execution and adoption of a BI based PMS as well as identification of critical success factors (CSF) in the implementation of PMS, that would be of interest to organizations planning to implement a similar system.

Indonesian Local Government’s Accountability and Performance: the Isomorphism Institutional Perspective

This research aims to explore the accountability and performance of government agency in perspective of institutional theory. It analytically answer two research questions: Do institutional isomorphism exist in the implementation of performance measurement system and accountability in public sector organizations? (RQ 1 ) and Do government agencies actually use performance measurement information to aid decision-making and help plan for future performance improvement? (RQ 2 ). This study is a qualitative research to answer two research question proposed with use semi-stuctured and open interview from SKPD officers in the local government of Yogyakarta Province. The results of interview were analyzed use thematic content analysis. Our finding show that three form of institutional isomorphism (coersive, mimetic and normative) were existed in the implementation of performance measurement system and accountability in public sector organizations. This result also show an interesting finding in government agency that performance information who reported in LAKIP was only a formality. The information content in LAKIP is not used as feedback to aid decision-making and plan for future performance improvement.

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

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

An Approach to Quantify the Factors That Affect Performance Measurement System Implementation

Although there have been many important academic advancements in the area of performance measurement systems, many practitioners and researchers still report encountering significant challenges during practical applications. This has led to the development of research to identify factors that affect the success of performance measurement systems. Previous studies attempt to identify and evaluate these factors, but there is little evidence of the inter-relationships and overall effects of various factors on the successful implementation of performance measurement systems. This article describes an exploratory study that applies an existing approach, originally proposed to design performance measurement systems, to investigate the effectiveness of the approach in quantifying the systemic effects of success factors on the implementation of a performance measurement system. The results of this study suggest that applying this approach provides quantitative assessments of the systemic effects of the success factors, which can be used to design more robust implementation strategies.

Performance Measurement as Policy Rhetoric: The Case of Federal Arts Councils

Various reforms at the federal level have led bureaucracies, including arts councils, to design and implement performance measurement systems. We still know very little about whether performance measurement has any influence on the external conditions of arts councils, or whether it serves as policy rhetoric for arts advocacy. In this article, we seek to understand the answers to these questions by conducting a case study of performance measurement at the National Endowment for the Arts (NEA). We conclude that there is little evidence that performance measurement at the NEA has had any appreciable effects on agency appropriation levels. Therefore, as a policy response to federally mandated performance measurement systems, arts councils might do better in focusing exclusively on metrics that capture internal efficiency, as opposed to those that serve to demonstrate performance to external constituencies.

Performance measurement as policy rhetoric: the case of federal arts councils

Various reforms at the federal level have led bureaucracies, including arts councils, to design and implement performance measurement systems. We still know very little about whether performance measurement has any influence on the external conditions of arts councils, or whether it serves as policy rhetoric for arts advocacy. In this article, we seek to understand the answers to these questions by conducting a case study of performance measurement at the National Endowment for the Arts (NEA). We conclude that there is little evidence that performance measurement at the NEA has had any appreciable effects on agency appropriation levels. Therefore, as a policy response to federally mandated performance measurement systems, arts councils might do better in focusing exclusively on metrics that capture internal efficiency, as opposed to those that serve to demonstrate performance to external constituencies.

Performance measurement system using balanced score card and tracking tool - a case study in a pharmaceutical company

Every organisation needs to measure where they are before they can make further improvement. In supply chain management, where suppliers and customers involved, it is important to have a comprehensive and aligned performance measurement system. The study is based on a multinational pharmaceutical company in Indonesia. It aims to refine the performance measurement system (PMS) for its export department. The export activities involve multiple logistic service providers as their suppliers and several inter-market customers. The PMS is done based on balanced score card (BSC) concept. The study gives practical approach on implementation of PMS in middle and part of organisation, aligning its internal needs and external environment, without losing BSC integrity. A tracking tool is also developed to assist in measuring and monitoring the KPIs.

Performance measurement system using balanced score card and tracking tool - a case study in a pharmaceutical company

Every organisation needs to measure where they are before they can make further improvement. In supply chain management, where suppliers and customers involved, it is important to have a comprehensive and aligned performance measurement system. The study is based on a multinational pharmaceutical company in Indonesia. It aims to refine the performance measurement system (PMS) for its export department. The export activities involve multiple logistic service providers as their suppliers and several inter-market customers. The PMS is done based on balanced score card (BSC) concept. The study gives practical approach on implementation of PMS in middle and part of organisation, aligning its internal needs and external environment, without losing BSC integrity. A tracking tool is also developed to assist in measuring and monitoring the KPIs.

Performance measurement system implementation in a turbulent operating environment

Purpose The purpose of this paper is to examine how a performance measurement system (PMS) can be designed for small- and medium-sized enterprises (SMEs) operating in a turbulent environment. The current models and frameworks for the design and implementation of a PMS are for large companies; these traditional design and implementation processes are too multi-stage and long term for SMEs operating in a rapidly changing environment. Design/methodology/approach The study constructs a conceptual framework based on the performance measurement and management literature and empirical evidence from a longitudinal case study. Interviews, an analysis of strategic documents and documentation of the prevailing measurement system were conducted. Findings The study results reveal the framework for a flexible PMS design. In the framework, the PMS consists of core permanent measures that control the profitability of the company and supportive measures of the realisation of strategic targets. The supportive measures change and develop along with the strategy. Originality/value The study provides new understanding about the performance measurement design process in SMEs operating in a turbulent environment. The existing literature presents performance measurement design and implementation process models for large organisations, but these frameworks are too multi-stage and long term for SMEs.

Factors influencing use of a performance measurement system in a rehabilitation hospital

Background: Rehabilitation hospitals, like other healthcare organizations, are under increasing pressure to apply management tools such as performance measurement systems (PMSs). PMS implementation represents a major challenge as it involves significant organizational change. This study explored how a PMS was used in a rehabilitation hospital and what were the factors explaining its use.Methods: A qualitative longitudinal study was conducted. Two data sources were used: interviews with hospital directors and organizational documents. Semi-structured interviews were conducted pre-implementation (n = 7) and 10 months post-implementation (n = 7) of the PMS. A total of 111 documents produced between 2011 and 2014 were reviewed. The Consolidated Framework for Implementation Research (CFIR) was used as a conceptual framework for data collection and analysis.Results: Decision makers used the PMS mostly for monitoring and accountability purposes and also for promoting their organization’s performance and enhancing the organization’s credibility. It was rarely used to trigger change management projects. Major barriers to PMS use were the lack of planning of the implementation process, available resources and the perceived quality of the developed PMS. Major facilitators for PMS implementation were related to continuous leadership engagement, specific PMS characteristics (perceived advantages, lack of complexity), quality of communications, and a perceived need for a PMS. Some key recommendations are proposed to decision makers that may enhance PMS use.Conclusions: PMS use is influenced by multiple factors, however the positive or negative influence of each factor is context dependent. Key recommendations are proposed to decision makers that may enhance PMS use.

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

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

Performance Measurement and Performance Indicators

Performance measurement systems (PMSs) are developed and implemented to support the accomplishment of objectives of an organization or organizational initiative. PMSs are structured to enable monitoring of performance. This monitoring is accomplished through the identification of areas of concern and success, with the ultimate goals of developing organizational capabilities and enhancing organizational learning. This article reviews the literature on performance measurement and its implementation, and proposes a model to guide the development and implementation of PMSs. The article concludes with a consideration of the broader implications of PMSs and provides recommendations for future research in PMSs with regard to human resource development.

The Interplay of Passive and Purposeful Uses of Performance Information

Despite increasing investments in the design and implementation of performance measurement systems, the use of performance information has remained limited. Furthermore, performance information is ...

Review on Performance Measurement Systems

Performance Measurement System (PMS) is an important system in the purpose of improving the organization performance. PMS create a very significant connection between organizations due to measurement in the organization system directly related to the organization strategy. A well develop and implementation of comprehensive PMS helps the organization to develop and improvise the business environment thus improve better decision making process. Therefore, there is multi comprehensive approaches of PMS has been applied in both quantitative and qualitative are significant to measure, predict and evaluate on current and future organization performance. The adoption of different models has had on various dimensions and measure give the difference result of organization performance. Therefore, this paper discuss on the different PMSs which have been developed to be used in companies. As one of the first comprehensive attempts in the performance management area, in this article almost all popular PMSs have been reviewed. Many of company managers have their own preferable performance management, but the least number of them is aware of different available PSMs. However, this paper found some of most favorable PMSs developed for adaptation by the organization recently; and concludes with a need for a comprehensive model. DOI: 10.5901/mjss.2016.v7n1p123