Performance Measurement Management Research Articles

Firm Size as a Mediator between Inventory Management and Performance of Nigerian Companies

This study employed a dissimilar methodology in investigating the mediating role of firm size on the relationship between inventory management and performance of non-finance companies publicly listed on the Nigerian Exchange Group. The study was hinged on just-in-time paradigm while variables of inventory management and financial performance were obtained from the annual reports and accounts of 76 non-finance companies. The results obtained from the structural equation modelling showed that size of firm mediates on the relationship between inventory management and financial performance measures of the study and it was found to be significantly positive. On the basis of this, it was suggested that companies need to strengthen inventory management practices as well as increasing their sizes. The size of companies can be increased by way of investing more funds in their asset structures.

Influence Debt To Equity Ratio and Current Ratio On Profit Growth Of Building Construction Companies Listed On The Indonesian Stock Exchange In 2020

The main motive of investors in investing capital into one or several companies is to obtain profits (profit/return). Investors can find out whether the company is able to provide the expected benefits or returns by measuring management performance within the company. When investing, investors can measure financial performance through the profits generated by the company. Profit is the company's main source to maintain its survival. Profit growth is a change in the percentage increase in profits obtained by the company. In this research, the leverage ratios used are the Debt-to-Equity Ratio (DER) and Current Ratio (CR) on Profit Growth. The sample used in this research used a purposive sampling method, namely the annual financial reports of Building Construction Companies on the BEI in 2020 as many as 12 companies. The results of this research show that the Partial Debt to Equity Ratio (DER) has a negative and significant effect on Profit Growth, while the Current Ratio (CR) has a negative and insignificant effect on Profit Growth. Keywords : Debt to Equity Ratio (THE),Current Ratio (CR), Profit Growth

OPINI AUDIT GOING CONCERN: SINYAL NEGATIF TERHADAP KEBERLANJUTAN OPERASIONAL PERUSAHAAN (STUDI LITERATUR)

The continuity of a company needs to be considered and maintained, especially in the midst of economic conditions full of intense competition. Companies will frequently have to contend with divergent interests between shareholders and management when maintaining operational shortages. The most effective way to manage such differences of interest is to hire an auditor. The auditor's role is to measure management performance and verify that financial reports are accurate. Furthermore, evaluating the financial statements' equality, auditors take a company's viability into consideration. The purpose of this study is to understanding the drivers that influence going concern audit opinions while evaluating the continuing company’s operations. The research methodology that uses is literature review. The results of the research demonstrate that debt default, earlier opinions, and audit delay all have an impact on the going concern audit opinions. Furthermore, opinion shopping has no impact on whether going concern audit opinions are accepted.

From performance to horizon: managements’ horizon and firms’ investment efficiency

PurposeThis study proposes a novel measure for management’s horizon (short-termism or myopia vs long-termism or hyperopia) derived from easily obtainable firm-level accounting and stock market performance data. The authors use the measure to explore the impact of managements’ horizon on firms’ investment efficiency.Design/methodology/approachThe authors rely on two commonly used but uncorrelated measures of management performance: accounting performance (return on capital employed, ROCE) and stock market performance (average abnormal return, AAR). The authors combine these measures to develop a multidimensional framework for performance, which classifies firms into four groups: efficient (high accounting and high market performance), poor (low accounting and low market performance), myopic (high accounting and low market performance) and hyperopic (low accounting and high market performance). The authors validate this framework and deploy it to explore the relationship between horizon and firms’ investment efficiency.FindingsIn validation tests, the authors show that management myopia (hyperopia) explains firms’ decision to cut (grow) research and development investments. Further, as expected, myopic (hyperopic) firms are associated with significantly more (less) accrual and real earnings management. The empirical tests on the link between horizon and investment efficiency suggest that myopic managers cut new investments while their hyperopic counterparts grow the same. Ultimately, the authors find that myopia (hyperopia) exacerbates(mitigates) the over-investment of free cash flow problem.Originality/valueThe authors introduce a framework for assessing management’s horizon using easily obtainable measures of performance. The framework explains inconsistencies in prior empirical research using different measures of performance (accounting versus market). The authors demonstrate its utility by showing that the measure explains decisions around research and development investment, earnings management and firm investments.

ANALISIS PERFORMANSI SUPPLY CHAIN MANAGEMENT MENGGUNAKAN METODE SCOR DAN AHP DALAM PENINGKATAN KINERJA DI ALETA LEATHER

This study aims to determine the final value of the results of Aleta Leather's supply chain management performance measurement. The data was then analyzed using SCOR and AHP methods. The results showed that the final value of Aleta Leather's supply chain management performance measurement results was 90.11 which was included in the excellent category. This result is obtained from the multiplication of the score value and the weight of selected performance indicators from 16 existing performance indicators. From the results of the analysis, two performance indicators were found that had values below the target, namely planning cycle time and material efficiency (yield). The conclusion of this study is that SCOR and AHP methods can be used to measure the performance of Aleta Leather's supply chain management well. Suggestions for performance improvement are training and development of natural resources, making agreements with suppliers and improving data analysis.
 Keywords: SCOR, AHP, Performance, Suply chain, Score

Public administration contributes to happiness: a study on the relationship between public value and happiness in Switzerland

PurposeIn public management research, the focus in the public value debate has been on public administration organizations’ broader societal outcomes. Public value describes how public administrations form a vital part of the social context in which people develop and grow. However, there has not yet been an analysis of how public administration contributes to happiness in society.Design/methodology/approachIn this study, we empirically analyze the relationship between people’s happiness and the public value of public administration. Our approach is based on a unique Swiss survey dataset comprising 870 individuals.FindingsWe find a positive relationship between public administration’s public value and happiness. We also find preliminary evidence with a moderation analysis that the relationship between a value-creating public administration sector and self-reported happiness is stronger for public administration employees.Research limitations/implicationsWhile correlation studies cannot claim causal explanations and common method bias may additionally limit any research in social science, we took a number of measures to mitigate related problem. We tested our model in two samples and took both several procedural techniques and a survey design minimizing common method bias.Practical implicationsThe paper discusses implications for public sector performance measurement for public management and practitioners.Social implicationsThis study calls for a more positive view on the multiple functions public administration performs for society. After an era of critical voices, our study helps reclaim public administration as a positive force for society at large in times of grand challenges, such as climate crisis, demographics and digitization.Originality/valueThis study has highlighted the importance between public administration’s public value and happiness in Swiss public service organizations. The study also showed that an employment in the public administration contributes to the happiness of individuals and beyond to society.

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.

Procurement Practices and Performance of Private Universities in West Nile, Uganda

This study examined the effect of procurement practices on the performance of private universities in West Nile, Uganda. Five private universities dully accredited by the National Council of Higher Education were analyzed. Using simple random sampling technique, a sample size of 140 employees was used. Data were sourced using a structured questionnaire. Analysis was conducted using both SPSS and SEM. The findings revealed that contract management is a significant precursor of private university performance. While unexpectedly, procurement planning and supplier selection proved to be statistically insignificant predictors of private university performance. Practically, this study will help private university owners improve performance by embracing practices such as contract inspection, documentation, relationship management, good communication and contract performance measurement. Additionally, given the need for improved performance of private universities in West Nile in particular, and Uganda in general, this study offers the understanding of a holistic view of performance from the procurement perspective and this is relevant for academicians.

The Effect of Profitability, Liquidity and Leverage Ratios on Internet Financial Reporting and Company Size as Moderating Variables During The Covid 19 Pandemic (An Empirical Study on the BEI Various Industries Sub-Sector)

Internet media has become a tool that provides a means for open company financial reporting as information for external parties because openness can reduce the level of information asymmetry that can occur in financial reports, so that it can accelerate company growth. The nature and characteristics of the internet which is easy to spread (pervasiveness), knows no borders (borderlessness), is timely (real time), low cost (low cost), makes disclosing information via the company website easier in finding all the necessary information related to the company, without having to incur high costs, Abdillah (2015). The development of the internet has created a new way of conveying company financial report information, namely using the Internet Financial Repoting (IFR) system, Yuli Kurniawati (2018). Every company has had many improvements in terms of company profits. Profitability is an indicator measuring management performance in managing company assets which can be shown by increasing profits that can be generated by the company. By indicating that the greater the company's profitability value, the company has good performance management. The liquidity ratio is an indicator of the level of a company's ability to pay short-term obligations. If the company is illiquid, there is a tendency for the company to experience bankruptcy. The ratio is prorated using the Current Ratio, which is about the comparison between current assets and current liabilities. The leverage ratio is a ratio that is an indicator of a company's capital structure. A high level of leverage can encourage management to carry out Internet Financial Reporting to take advantage of opportunities for good information from the company. Company size is a description of how big or small a company is, which can be measured by the size of the asset value, total sales, or the market value of the company's equity. Profitability and leverage influence the Internet Financial Report, while liquidity has no influence on the Internet Financial Report. Size can strengthen the influence of leverage on the Internet Financial Report, while size cannot strengthen the influence of profitability and liquidity on the Internet Financial Report

Boundaries of management performance measures (MPMs) disclosed in primary financial statements prepared in accordance with new standard planned to supersede IAS 1

Abstract We outline the management performance measures (MPMs)' boundaries based on the upcoming introduction of MPM's definition to International Financial Reporting Standards (IFRS). The literature investigates business performance measures concentrating on managers' needs, while IFRS aims to provide financial information to external users who provide resources to the entity. This indicates a gap between how performance metrics have been investigated so far and how IFRS will adopt them. We used analysis of the exposure draft of the planned standard together with working materials developed in the consultation process. Further, a case study is presented. Results show that the scope of MPM to be introduced to IFRS is limited compared to the broad spectrum of performance measures presented in the literature. We contribute by showing the avenues for future performance measures research using signalling and agency theory and by indicating the limited scope of MPMs and thus bound prospects for using them for a full assessment of the entity‘s performance.

Analiza efikasnosti sektora visokog obrazovanja u Europi - pristup temeljen na DEA analizi prozora

The aim of this study is to evaluate relative efficiency of tertiary education in the period between 2013 and 2020. Since resources used for higher education are scarce and education is mostly publicly funded, it is important to use these resources as efficiently as possible. In this paper, DEA Window Analysis was used, which allows a dynamic evaluation and comparison of efficiency results over time. The empirical analysis is carried out on higher education systems of 30 European countries through eight-year long period. Two inputs (academic staff and general government expenditure on higher education) and four outputs (graduates, mobile students from abroad, citable documents and citations) were chosen as variables in an output-oriented 3-year window DEA model for the assessment of technical efficiency (TE) as well as pure technical (PTE) and scale efficiency (SE) as its components. The results show that efficiency varies across countries and over time. Overall efficiency peaked in 2016 and declines steadily thereafter. When analysing the sources of inefficiency, PTE as a measure of management performance is overall higher than SE as a measure of optimal production size until 2017, except for 2015 when it is slightly lower than SE. We can conclude that the source of inefficiency until 2017 is generally the nonoptimal production size. From 2018, the situation changes and management performance becomes the main source of inefficiency. The results of this study may help policy makers in European countries in their efforts to increase the efficiency of higher education.

Balance Scorecard Sebagai Pengukur Kinerja Manajemen Ditinjau Dari Perspektif Keuangan

This study aims to analyze the implementation of Balanced Scorecard as a management performance measurement tool at UD. Devi, with a focus on the financial aspect. This research adopts a qualitative approach by applying data collection techniques in the form of interviews, observations, and document studies. The main respondents in this group are stakeholders at the leadership level of UD. Devi, who are directly involved in the process of implementing and using the Balanced Scorecard. In the context of UD. Devi, the implementation of BSC has a positive impact on measuring management performance. The holistic approach, open communication, active participation of all relevant parties, regular evaluation, and in-depth contribution of financial aspects have been key factors in the successful implementation of BSC.

Measurement of Supply Chain Management Performance in the Wood Pellet Industry Using the SCOR Method Based on AHP, OMAX, and Traffic Light System

Wood pellets are one of the renewable fuels that are environmentally friendly and have the advantage of lower emission values than fossil fuels, so the increasing use of renewable energy fuels today. PT Yale Woodpellet Indonesia is one of the industries engaged in the production of wood pellets. Due to the increasing demand, PT Yale Woodpellet Indonesia once did not reach the production target. The approach that can be used to fix this problem is the SCOR (Supply Chain Operation Reference) model combined with AHP (Analytic Hierarchy Process), OMAX (Objective Matrix) and Traffic Light System to support the research. Based on the results of observations, interviews and distributing questionnaires to the company, 12 performance indicators were selected which were adjusted to the company's conditions. The results showed that there are two KPIs (Key Performance Indicator) that have not reached the target, which are in the yellow category so that corrective action needs to be taken to improve the company's supply chain performance. The KPIs are Qualification Accuracy of Raw Material (Slc) and Number of Trouble Machines (M2a).

Two years into the COVID-19 pandemic: An analysis of learning outcomes and student engagement at an economics university

The COVID-19 pandemic generated a switch from in-person to online learning. Using data from four academic years and two related disciplines (Management accounting and Performance measurement and control), we analyzed the impact of medium-term and exclusive online learning on student engagement, learning outcomes, and student perception of online learning. The sample consisted of four groups of undergraduate accounting students (a total sample of 415 students) from the most important university of economics in Romania. We applied paired t-tests and independent t-tests, correlation measures, and principal component analysis. The results showed a decline in learning outcomes from one discipline to another (seminar scores, exam results), and a decline for one discipline (Performance measurement and control) over a three-year period. Also, a weaker student engagement during the second year of the pandemic indicated that the passage of time highlighted the disconnect between students and the academic environment. Surprisingly, student engagement and learning outcomes were not correlated with two measures of student satisfaction (cognitive stimulation and convenience). It appears that student satisfaction with online learning remained at a high level despite an increased risk of academic failure. Unsurprisingly, there was a rebound in academic performance when classes switched to in-person education in the spring of 2022. Our results have implications for the future design of online and blended learning in universities.

Preventing fatal accidents in construction through the management of barriers

The research presented in this article addresses the construction industry's need for a real-time safety performance indicator for use in managing the risk of fatal accidents. It involves the development and testing of an indicator of the availability of barriers against fatal accidents when carrying out construction work. In designing the indicator, knowledge and experience from different fields have been utilized including classic barrier theory, barrier management in major-accident hazard industries, quality management, and safety performance measurement in construction. The main aim of the research has been to evaluate the barrier indicator in practical use. The evaluation is based on results from field tests of the barrier indicator at two construction sites and on data from fatal accidents in the construction industry. It provided support for the assumption in the design of the barrier indicator that a few types of hazards dominate the statistics of fatal accidents. The field tests demonstrated the usefulness of the barrier indicator, both in checking the status of the barriers in individual construction activities and in measuring the overall standard of barriers against fatal accidents on the construction site. The possibilities and limitations of the method are discussed based on general criteria for assessing safety performance indicators. Another aim has been to use the experiences from the field tests as input to the design of a method for barrier management through the phases of a construction project. This work resulted in a model that integrates the barrier indicator and underlying methods and tools into a barrier management system. There is significant potential for effective barrier management by integrating the indicator and associated methods and tools into the management systems in the construction industry utilizing digital technology.

Should asset impairments be included in earnings when evaluating stewardship by management?

PurposeThis paper aims to consider the relevance of asset impairments when evaluating stewardship by management.Design/methodology/approachThis paper considers association of earnings (including and excluding asset impairments) with contemporaneous stock returns which are used as a measure of management performance and demonstration of stewardship.FindingsEvidence is provided of earnings including asset impairments (an accounting measure of current measure firm performance) having a higher explanatory power for contemporaneous stock returns (an objective evaluation of current period firm performance) than earnings exclusive of asset impairments. Consistent with this, recognized asset impairments are significantly associated with contemporaneous stock returns. These results occur across firm years generally, as well as for firm years exhibiting indicators of impairment and firm years recognizing asset impairments.Research limitations/implicationsThis paper adds to the literature providing evidence of asset impairments not being recognised on a timely basis. Additionally, challenges are identified in evaluating the relevance of accounting information for so-called growth firms.Practical implicationsThese findings support continued recognition of asset impairments in the Statement of Profit or Loss if stewardship is accepted as an objective for financial reporting. It also suggests issues with the recognition of asset impairments that might be addressed by enhanced disclosure.Originality/valueThis paper is distinctive in that it considers the relevance of accounting information for evaluating stewardship, as distinct from decision-making. It also considers alternate measure of performance (earnings including and excluding asset impairments) for all firms rather than only those disclosing an alternate measure (i.e. a fair horse race)

Performance measurement in project management

Performance measurement in project management

Pengaruh Penerapan Balanced Scorecard terhadap Kinerja Manajemen di BPRS PNM Mentari Garut

This research is motivated by the weakness of the company's performance measurement system that focuses on financial aspects and ignores non-financial performance, so a performance measurement model is made using the balanced scorecard. This study aims to determine how the effect of the balanced scorecard on management performance in BPRS PNM Mentari Garut. The object of this research is to measure management performance. This type of research is quantitative associative. Data collection techniques in the form of observation, interviews, literature study and questionnaires. While the population is all employees, amounting to 42 people. The results showed that there was no influence of the financial perspective on management performance with the results of the t-test value tcount < ttable (1,933 < 2,021), there was a significant influence between the customer perspective on management performance and the results of the t test value tcount > ttable (3.182 > 2.021), there is a significant effect between the internal business process perspective on management performance with the results of the t-test value tcount > ttable (3,800 > 2,021), there is a significant influence between the learning and growth perspective on management performance with the t test results tcount > ttable (4,474 > 2,021), Simultaneously the Balanced Scorecard has a significant effect on management performance, it can be seen in the F test that the value of Fcount > Ftable (5.835 > 2.63).

Moderasi Reward Pada Pengaruh Sistem Akuntansi Manajemen Dan Pengukuran Kinerja Terhadap Kinerja Manajerial (Studi Kasus Perusahaan Bumn Di Kota Medan)

The purpose of this study was to determine the relationship between Managerial Performance (Y) and the Influence of Rewards (X1), Management Accounting Systems (X2), and Performance Measurement (X3). The research method used is descriptive quantitative. The Likert scale is used to assess factors and methods of collecting data through surveys. A total of 30 BUMN companies in Medan City were sampled for the population of BUMN companies in the city in this study. Partial Least Square-Structural Equation Modeling (PLS-SEM), which was performed using SmartPLS version 3.0 software, is the data analysis method used in this study. The research findings show that the reward variable partially has a positive and significant effect on managerial performance. The management accounting system variable partially has a positive and significant effect on managerial performance. The performance measurement variable partially has a negative and insignificant effect on managerial performance.
 Keywords: Reward, Management Accounting System, Performance Measurement and Managerial Performance

Prioritizing action plans to save resources and better achieve municipal solid waste management KPIs: An urban case study

ABSTRACT The management of municipal solid waste (MSW) in cities is one of the most complex tasks facing local administrations. For this reason, waste management performance measurement structures are increasingly implemented at local and national levels. These performance structures usually contain strategic objectives and associated action plans, as well as key performance indicators (KPIs) for organizations investing their resources in action plans. This study presents the results of applying a methodology to find a quantitative-based prioritization of MSW action plans for the City Council of Castelló de la Plana in Spain. In doing so, cause-effect relationships between the KPIs have been identified by applying the principal component analysis technique, and from these relationships it was possible to identify those action plans which should be addressed first to manage public services more efficiently. This study can be useful as a tool for local administrations when addressing the actions included in their local waste plans as it can lead to financial savings. Implications: This paper introduces and implements a methodology that uses principal component analysis to analyze real data from waste management KPIs and provide municipal solid waste managers with a decision-making tool for prioritizing action plans. The methodology saves financial resources and time, as well as reinforcing the probability of reaching the meta values of the main performance system KPIs.