Integrated Performance Measurement Research Articles

A Systematic Literature Review of Performance Pyramids System Implementation in the Manufacture Industries

The prevailing literature and empirical studies on organizational performance management stress the increasing importance of non-financial performance measures and propose companies implement an integrated performance measurement system. The purpose of our research is to investigate the characteristics of performance measurement and management in various industries. This paper discusses the published literature related to the Performance Pyramids System (PPS), focusing on the latest progress in the 18 years, starting from 2002 until 2020. This paper involves the study review of 50 articles related to PPS implementation of available database search, including Google Scholar, Elsevier, Science Direct, and other publishers in the world. This literature review contains results from a variety of different perspectives. The perspective includes the industry's focus, the focus of the number of distribution by country, the year of publication, and the number of publishers. This is useful for all types of manufacturing industries to find solutions to problems. The paper also provides advantages for researchers next to add to the literature. The aims of this study are: (i) to identify the most discussed approaches in the literature to evaluate the organizational performance, and (ii) to carry out a diagnosis of how small and medium enterprises with economic activity in several countries measure and operationalize the evaluation of their performance. To meet the study's objectives, we analyzed published studies in scientific journals and conducted twelve interviews in SMEs. The results indicate that, in addition to the majority of the studied organizations not having a formal process of their strategy, they also do not measure their products in an integrated system that would allow them to evaluate according to their strategic goals.

Is the Use of Integrated Performance Measurement System by Banks Really “Integrated”? A Structural Equation Modeling Approach

This paper investigates the implementation of integrated performance measurement (IPM) system, the extent of integration among four performance measures proposed by the balanced scorecard as an IPM framework (namely financial, customer, internal business process, and learning and growth perspectives) and the impact of non-financial disclosure on financial performance. The study employed ex post facto research design. A self-designed disclosure checklist containing forty-eight (48) items across financial (18), customer (18), internal business (4), and learning and growth (8) perspectives was used to analyze performance disclosure for a 3-year period of 2012–2014. Structural equation modeling was used to explore the interaction among the performance measures, as well as the impact of non-financial disclosure on financial performance post-IPM implementation. The study concludes that banks do not adopt an integrative approach to performance measurement and disclosure, as performance appears to be communicated in a haphazard manner. Failure to embrace an integrative approach to performance disclosure appears to be responsible for the low impact of non-financial disclosure on financial performance. The originality of the current study stems from the awareness that it developed a disclosure checklist that can be used by other studies to assess the quality of performance disclosure in annual reports. To the researchers’ knowledge, the study is the first, in the Nigerian context, to assess the level of integration among performance measures in an IPM system using secondary data. The excessive focus on the financial measures implies that firms are not leveraging on the synergistic benefits of an integrative approach to performance measurement and disclosure.

지방정부의 성과역량별 지표구성과 추적조사평가: DEA를 활용한 통합성과 측정

본 연구는 지방정부의 효율성 분석 방법인 DEA-CCR, BCC를 이용하여 자율통합 지방정부의 성과를 분석하는 데 목적을 두고 있다. 성과측정을 위한 자료는 창원시 통합 전·후를 고려하여 2009~2018년까지 10년간의 시계열 데이터를 활용하였다. 투입변수는 연도별 공무원 수, 세출 예산이며, 산출변수는 4개의 역량으로 구분하여 선정하였다. 자치역량지표는 1인당 담당 주민 수, 지방세 수입, 재정자립도, 청렴도 등이며, 생산역량은 지역총생산 규모, 사업체 수, 종사자 수, 고용률 등이며, 기반역량은 도로율, 하수도 보급률, 문화기반시설 수, 1인당 공원면적, 종합병원 병상 수 등이며, 공공서비스 역량은 범죄검거율, 보육시설 수, 노인복지시설 수, 학교 수 등을 활용하였다. 통합창원시의 DEA 효율성 분석 결과는 다음과 같다. 첫째, 자치역량은 통합 창원시 출범 전에는 창원시의 평균 효율성 점수가 가장 높았고, 통합 후는 창원 성산구와 의창구의 효율성은 1로 높았고, 마산회원구는 0.8582, 진해구 0.7566으로 순이다. 둘째, 생산역량은 통합 전에는 창원시와 마산시의 효율성이 높았고, 통합 후에는 창원 성산구와 의창구는 평균 효율성 값이 1이고, 마산회원구와 합포구는 각각 0.7880, 0.7338이고, 진해시는 0.5829로 낮았다. 셋째, 기반역량은 통합 전에는 창원시와 진해시가 높았고, 통합 후에도 창원 성산구와 의창구 그리고 진해구의 효율성 값이 1로서 높게 나타나 창원시의 통합으로 인한 효과가 큰 것으로 나타났다. 넷째, 공공서비스 역량은 통합 전에는 모든 도시의 평균 효율성이 1로 높았지만, 통합 후에는 창원 성산구와 의창구를 제외한 진해구 0.8550, 마산회원구 0.8018, 마산합포구 0.7731의 순으로 낮게 나타났다. 결론적으로 창원시의 통합 전과 후의 역량별 성과에는 차이가 있고, 그 효과는 높은 것으로 판단된다. 앞으로 도시 특성에 맞는 역량지표를 개발하여 지속적인 추적조사가 필요하다.

Pendekatan Malcolm Baldrige Criteria For Performance Excellent (Education Criteria) dalam Perancangan Sistem Pengukuran Kinerja Fakultas Teknik Univeritas Udayana menuju Sertifikasi AUN-QA

The Faculty of Engineering, Udayana University is one of the faculties in Udayana University. The Faculty of Engineering has 5 departments that have a lot of interest. Currently, the Faculty of Engineering is preparing to support Udayana University in obtaining the Asean University Network - Quality Assurance (AUN-QA) certification which is targeted for a visitation in 2021. One of the supporters in obtaining this certification is that the Faculty of Engineering must have a performance measurement system. In this research using an integrated performance measurement system that designed through the Malcolm Baldrige Criteria For Performance Excellent (Education Criteria) approach which is integrated with several methods, namely IPMS in determining the Key Performance Indicator (KPI) which becomes a determining indicator of later performance. assisted by using the Analytical Hierarchy Process (AHP) method in giving the weight of each KPI. After the KPI has a weight, then a comprehensive scoring is carried out using the Objectives Matrix (OMAX) method so that an index number per period is generated which is the reference for the level of performance of the department, as well as a Traffic Light System (TLS) to find out which KPIs require improvement based on color. With the creation of an integrated performance measurement system, it is hoped that the Faculty of Engineering can make continuous improvements. The results showed that the Performance Indicator from the Faculty of Engineering in this period was 427.19 with 24 KPIs being measured. The Performance Indicator shows that the overall performance of the Faculty of Engineering is above average (300). Only 2 categories are in the red zone of 21%, namely Student Criteria (KPI 1 and KPI 4) and Management Criteria (KPI 18, KPI 19, and KPI 20). In the following year, the Faculty of Engineering must focus on the five KPIs so that later they can improve performance.

Finding the weak link in the chain: an integrated performance measurement framework for complex logistics systems

PurposeThis paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.DesignThis briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.FindingsThe study develops an integrated performance management framework for complex, multi-role organizations that incorporates performance management design, systems thinking and problem-solving (theory of constraint). The authors test the applicability of their framework through an oil and gas industry case study, demonstrating its usability.OriginalityThe briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Business Schools as Living Labs: Advancing Sustainability in Management Education

The buildings in which we teach management and decision analysis are ideal labs for advancing sustainability in management education, experiential learning, and integrated performance measurement. Utilizing building-based learning and design competition, student teams can learn about aspects of sustainability while proposing investments into the spaces we spend over 90% of our time inside of buildings. Buildings on university campuses provide an opportunity to design and deliver hands-on assignments showing how the actions taken on an existing building can improve the overall health and performance of that building and its owners and occupants. Contributions of this study include a primer on how to develop and deliver building-based learning and demonstrating ways in which to integrate a social cost of carbon in investments with a proven approach to assess and measure the return on integration of financial, environmental, and human health and productivity in a return on integration, integrated rate of return, and integrated future value. Insights and the lessons learned provide linkages to learning outcomes and assessment so that learning objectives are aligned with and advance sustainability in management education and the United Nations’ Sustainable Development Goals with outcomes generalizable to any building and business.

Integrated Performance Measurement as a Strategic Management Accounting Approach: A Case of Beverage Businesses in Thailand

This study aims to examine the effects of integrated performance measurement on firm success of beverage businesses in Thailand. Integrated performance measurement, organizational commitment, organizational citizenship behavior, and firm success are the main variables of the study. In this study, all 653 beverage businesses from Department of Business Development, Ministry of Commerce, Thailand are the samples of the study. The data collection was provided during February - April, 2016. A mail survey procedure via questionnaire was used for data collection. 163 responses were received. Of the surveys completed and returned, 159 were usable. The structural equation model (SEM) is conducted to examine the effects of integrated performance measurement on organizational commitment, organizational citizenship behavior and firm success. The results show that integrated performance measurement positively influences organizational commitment, organizational citizenship behavior and firm success. Organizational commitment positively affects both organizational citizenship behavior and firm success while organizational citizenship behavior positively impacts firm success. In summary, integrated performance measurement as a strategic management accounting approach is a key determinant of firms' business outcome. Firms need to support their resources and capabilities in developing, implementing, utilizing, and maintaining integrated performance measurement. Potential discussion, conclusion, and suggestions and directions for future research are highlighted.

Integrated Performance Measurement of Local Hotels in the Context of a Global Tourism Destination: A Case Study of Samui Island, Thailand

This is a qualitative study with the objective to search for the patterns and directions in an integrated performance measurement of local hotels through secondary data from existing research collections and primary data from personal in-depth interviews with 12 local hotel administrators in the global tourism destination of Samui Island, Thailand. In this study, we found that the performance measurement of local hotel businesses on Samui Island, Thailand, a global tourism destination, was composed of various components. Each component was integrated; the performance measurements of each component are not undertaken separately. The financial aspect is not the sole focal component; rather, it is connected to other aspects, i.e., the operation and stakeholder relationship. The financial aspect of the local hotels, on the other hand, includes measurements of income and return on investment. In addition, the operation of the businesses emphasises the satisfaction with the customer service, while the stakeholder relationship stresses customer loyalty. Importantly, a sense of ownership on the part of the personnel, trust in their colleagues, and a sense of being a part of the community in which the businesses operate are all taken into consideration.

An Integrated Key Performance Measurement for Manufacturing Operations Management

This paper proposes a comprehensive production performance measurement framework and illustrates the method to evaluate the performance and guide practitioners to make further improvement. The development comprises four steps. (1) Performance indicators derived from business excellence models are enumerated to provide the performance model: 74 indicators, which can be classified in terms of their characteristics, are identified in six criteria. (2) A multiple criteria decision-making approach based on the analytic hierarchical and network processes, which determine the weights of the criteria and indicators, is applied. In addition, this study introduced additional formulas to derive the final performance values. (3) A performance measurement framework that integrates the measurement and result analysis processes is implemented. (4) The proposed framework is verified through a case study. The results of the case study show that the proposed framework identifies the gaps and discrepancies among the management levels, enabling the determination of means for continuous improvement.

Evaluation university ranking system using quacquarelli Symonds and integrated performance measurement system approach

Institutional assessment in the current era is indispensable because of increasing global competition and economic and information growth. Assessment efforts were also carried out on various factors including improving the quality of lecturers, meeting study programs that were in line with national development needs, developing educational curricula, improving the quality of community services and research, and adding internal and external collaboration. It aims to strengthen management and governance so that it has good performance and makes the university a World Class University (WCU). Fulfillment of WCU criteria in faculties or departments is one of the steps to determine the strategy for achieving a tertiary institution by giving more weight to faculty excellence to encourage the use of relevant new criteria. Also, in the ranking process, there are different criteria or indicators in several ranking techniques in the world as a manifestation of performance appraisal of the overall implementation of the organization. Quacquarelli Symonds (QS) is a rating agency that evaluates university weaknesses and strengths and produces assessments that show achievement ratings. The QS ranking also has six indicators that are believed to illustrate the value of the university.

Modelling the Relationship Between the Level of Adoption of Sustainability Practices and Performance of Construction Firms Using Structural Equation Modelling

Abstract The need to carry out construction activities in a sustainable manner in the Niger Delta region of Nigeria has become very imperative. The aim of the study was to establish the relationship between the adoption of sustainable construction practices and performance of construction firms using a structural equation modelling approach. In tandem with the survey approach adopted for the study, 1179 copies of structured questionnaire were administered while 980 valid responses were received giving a response rate of 83.2 %. Data were analysed using descriptive statistics and structural equation modelling. This study revealed that the extent of implementation of sustainable construction practices accounted for 36 %, 37.8 %, 43.5 %, 51.6 %, 65.8 %, and 32.9 % of the variability in annual employment growth, annual financial turnover, remuneration and benefits, general employee satisfaction, social performance and net income growth of the construction firms, respectively. The study concluded that there was a positive relationship between the extent of implementation of sustainable construction practices and firm performance. It was also concluded that the adoption level of sustainable construction practices accounted for 85 % of the variability in the overall firm performance. Hence, proper implementation of sustainability practices at the firm level leads to improvement in the firm performance. It was recommended that construction firms should not use only financial performance indicators to evaluate their performance level but rather use multi-dimensional approaches. This will enable firms to have holistic knowledge of the level of their performance. The construction firms should adopt the structural equation model developed in the study to carry out integrated performance measurement.

Redundancy Optimization of Complex Networks with Capacity Delay Related Reliability Integrated Performance Measure

In this paper, an efficient heuristic method is presented for deciding the redundancy of complex networks in a constrained environment in an optimal manner. The proposed method is a heuristic approach to optimally maximize the Capacity Delay Related Reliability (CDRR) measure of the complex network by selecting the optimal component for each stage without violating the constraints. The proposed method is named as Proposed Heuristic Method (PHM). The problem of Redundancy Allocation Problem (RAP) is demonstrated for a five unit complex structure considering linear constraints and the solution obtained using PHM are compared and found to be better with existing heuristic methods.

Use of strategic management accounting techniques by companies in the Czech Republic

The purpose of this paper is to investigate the degree of use of strategic management accounting (SMA) techniques and the main factors affecting this in the Czech Republic. In order to achieve such an understanding, we apply a quantitative approach, rooted in contingency theory, including descriptive statistics, correlation analysis and regression analysis. The most intensively-used SMA techniques are strategic planning and budgeting, customer accounting, and target costing. The least-used are integrated performance measurement systems, strategic pricing and activity-based costing. Our respondents indicated that they expect an increase in the use of all SMA techniques over the next 3 years. Regression analysis confirms that the implementation of differentiation strategy (as opposed to cost leadership strategy) has a statistically significant and positive influence on SMA use. The findings of this study contribute to the better theoretical understanding of the contingent factors influencing the use of SMA techniques.

Budgeting practices to improve health system performance

This article presents the main findings of two OECD Surveys of Senior Budget and Health Officials conducted in the Latin American and Caribbean region. The surveys help to understand the approaches to budgeting, and take account of the prominent role of agents in the health system across the region, including social health insurance agencies and subnational governments. The focus, however, is on the application of performance-orientated reforms to budgeting, and the extent to which countries in the region have adopted such reforms to improve the efficiency of health expenditure to achieve universal health coverage. The findings point to the use of performance and results-based budgeting in the region, along with new models of provider payment systems integrating performance measures.

Novel fuzzy fractional order PID controller for non linear interacting coupled spherical tank system for level process

In this paper, a novel Fuzzy Fractional Order Proportional Integral Derivative (FFOPID) controller is proposed to control the liquid level of Two Tank Spherical Interacting System (TTSIS). Spherical tanks are widely used in process industries due to its high storage capacity. These are non-linear due to its varying surface area with respect to its height and hence the level control of a spherical tank system is a challenging task. Fractional Order Proportional Integral Derivative (FOPID) controller is designed for a liquid level control of a spherical tank which is modelled as a fractional Order System. The performance indices such as rise time, settling time, peak time and peak overshoot are analysed for the proposed control scheme and compared to conventional controllers such as PI, PID, PID-SMC, FOPID. Moreover the time integral performance measures such as ITAE, IAE and ISE are analysed. Experimental results are shown to validate the obtained results with those of simulations. It has been proven that FFOPID outperforms all other existing techniques in terms of various time domain specifications and time integral performance measures.

Defining the Integrated Performance Measurement Systems in Small and Medium Enterprises: An Advanced Model

Purpose: The purpose of this paper is to propose an “Integrated Performance Measurement System” (PMS) addressing the measurement and management of the financial and non-financial performance and “Intellectual Capital” (IC) for the “Small and Medium Entreprises” (SMEs). The paper relies on the “Integrated New Model” (INM) by Pirozzi and Ferulano (2016) that deals with the same task applied to a specific sector. Thus, we propose the modification of the INM model to define a “Renewed and Advanced Model” called “INM*” as integrated PMS for SMEs. 
 
 Design/methodology approach: We used a qualitative method with an inductive and deductive approach to obtain an advanced model INM*. Thus, the SMEs characteristics are translated in our advanced INM* model according to the INM* structure and the IC framework. Moreover, we integrated in our proposed model INM* the “Strategic Management Accounting” (SMA) and the “Systems of Innovation” (SI) perspectives.
 
 Findings: We proposed the advanced model INM* as integrated PMS. This is a model supporting entrepreneurial and innovative SME as well as a conceptual framework summarizing the interactions and the knowledge conversions that occur between the IC components within the innovation processes. Thus, the proposed model is a useful tool for SMEs organizations.
 
 Originality/value: The renewed and advanced model INM* is useful in the academic and practical communities. It exhibits the advantages related to the innovative usage of a unique measurement system devoted to accomplish all the measurement tasks activated by SMEs. In addition, two other models are proposed and, in turn, are available for further research.

Integrating performance measurement, system dynamics, and problem-solving methods

Purpose Transport logistics systems in companies with additional public service roles are complex and could benefit from new approaches to performance management. Existing approaches tend to be fragmented; thus, the purpose of this paper is to integrate balanced performance measures, a dynamics model, and the problem-solving method into a new model. Design/methodology/approach An integrated framework is developed by reviewing literature and synthesising attributes of performance measurement systems, system dynamics and problem-solving methods. The framework is then applied to a multiple-role company’s sea transportation system. The study uses statistical methods to identify performance indicators, management interviews with document study to develop a dynamics model, and simulation methods to formulate an improvement plan. Findings The performance measurement design stage allowed for the identification of balanced, aligned performance indicators, while the system dynamics model illuminated the impact of the system components’ interrelationships on performance output. The problem-solving method allowed for analysis of system performance, identification of constraints and formulation of a performance improvement plan. Practical implications This framework can help transport logistics system stakeholders in multiple-role companies avoid silo thinking, misaligned performance objectives, local optima and short-term solutions. Originality/value This study contributes to the existing body of research by introducing a novel framework integrating performance measurement, system dynamics and the problem-solving method. It also addresses a theoretical gap by showing how interconnecting components of sea transportation systems affect transport logistics performance.

Novel tuning rules for PIDC and PID load frequency controllers considering robustness and sensitivity to measurement noise

A novel method for designing Load Frequency Controllers (LFC) is proposed in the present paper. Proportional-Integral-Derivative controllers with and without serial compensator – PID and PIDC – are considered in contexts of single-area and multi-area power systems. The proposed design methodology focuses on achieving efficient load disturbance rejection, while simultaneously preserving an adequate level of robustness with respect to measurement noise and model uncertainties. Explicit tuning formulas are provided for single-area power systems with reheated, non-reheated and hydro turbines, characterized by two free parameters. Dependence of integral performance measures (IAE and ITAE), as well as TVd for evaluating control effort, and sensitivity indices (Ms, Mp and Mn) in terms of these parameters is analyzed, and the associated performance-robustness trade-off is elaborated in detail. The proposed method is extended to multi-area power systems in a straightforward manner using decentralized PIDC/PID tuning. A comparative numerical study is performed involving several LFC techniques recently reported in literature.

An integrated AHP-based scheme for performance measurement in humanitarian supply chains

PurposeIn recent years, several performance indicators have been proposed in humanitarian supply chains (HSCs). Selecting the most relevant key performance indicators (KPIs) is challenging for some humanitarian organizations (HOs) because it involves a considerable amount of complexity and information overload which could lead to judgment biases in the decision-making process. Existing performance measurement studies lack critical analysis for prioritization of performance indicators. Since the process of KPIs selection and categorization is a complex, domain based and subjective process, a systematic guideline is needed. To address this gap, the purpose of this paper is to propose an integrated performance measurement scheme that can consolidate KPIs into an overall performance score based on the weighting of the performance indicators in HSCs.Design/methodology/approachData collection was based on questionnaire surveys and direct interviews with practitioners from international HOs.FindingsThis paper proposes an integrated scheme based on balanced scorecard and analytic hierarchy process for performance evaluation of HOs.Research limitations/implicationsThe respondents were limited to the humanitarian logistics experts from Malaysian-based international HOs.Practical implicationsThe scheme enables the benchmarking of HOs’ performance that could be useful for decision makers in HSCs.Originality/valueThis paper provides the ranking and prioritization of KPIs in HSCs. The approach presented in this paper enables an effective and integrated performance measurement in HSCs.

Performance Measurement using the Integrated Performance Measurement System Approach

As a non-profit organization in education, Senior High School has the responsibility to achieve educational goals. The school is required to have accountability to the public. Performance measurement is needed to determine organizational performance. Performance measurement can also find out the company's success in vision and mission. This study aims to measure performance in schools use an integrated performance measurement system (IPMS). This method becomes the starting point for setting goals and identifying Key Performance Indicators (KPI). The results of IPMS produced eight objectives and 33 KPIs. Objectives performance includes human resources, curriculum, finance, administration, teaching and learning activities, evaluation processes, work programs, and graduation. The results showed that 8 KPIs were red, 4 KPIs were yellow, and 11 KPIs were green. This performance measurement model can also be used in other organizations. This performance measurement model helps assess organizational performance.