Multidimensional Performance Measurement System Research Articles

FİNANSAL VE FİNANSAL OLMAYAN PERFORMANS İLE KURUMSAL YÖNETİM ARASINDAKİ İLİŞKİNİN İNCELENMESİ: KURUMSAL YÖNETİM ENDEKSİNDEKİ İŞLETMELER ÜZERİNE BİR UYGULAMA

Son otuz yılda, sadece finansal verilere dayalı performans ölçümünün yetersizliği anlaşılarak finansal ve finansal olmayan bilgilerin birlikte kullanıldığı çok boyutlu performans ölçüm sistemleri geliştirilmiştir. Ayrıca küresel finansal krizler ve şirket iflasları kurumsal yönetimin önemini artırmış ve bu konuda düzenlemeler yapılmıştır. Bu çalışmanın amacı, kurumsal yönetim endeksinde yer alan işletmelerin finansal ve finansal olmayan performansları ile kurumsal yönetim uyum notları arasındaki ilişkiyi incelemektir. Araştırmada yer alan 18 şirketin finansal performansı, 2019 yılına ait finansal oranlar kullanılarak TOPSIS yöntemiyle; finansal olmayan performansı ise çok boyutlu performans ölçüm sistemlerinden kurumsal karne, performans prizması ve performans piramidi kullanılarak hesaplanmıştır. Sonuç olarak, firmaların finansal performans sıralamaları ile kurumsal yönetim uyum notlarının arasında bir ilişki olmadığı tespit edilirken, finansal olmayan performans sıralamaları ile kurumsal yönetim uyum notları arasında %10 hata payında zayıf-orta düzeyde pozitif yönlü bir ilişki olduğu belirlenmiştir.

Co-Production Performance Evaluation in Healthcare. A Systematic Review of Methods, Tools and Metrics.

Co-produced practices and publications in the healthcare sector are gaining momentum, since they can be a useful tool in addressing the sustainability and resilience challenges of health systems. However, the investigation of positive and, mainly, negative outcomes is still confused and fragmented, and above all, a comprehensive knowledge of the metrics used to assess these outcomes is lacking. To fill this gap, this study aims to systematically review the extant literature to map the methods, tools and metrics used to empirically evaluate co-production in health services. The search took place in six databases: Scopus, Web of Science, Psych INFO, PubMed, Cochrane and CINAHL. A total of 2311 articles were screened and 203 articles were included in the analysis, according to PRISMA guidelines. Findings show that outcomes are mainly investigated through qualitative methods and from the lay actor or provider perspective. Moreover, the detailed categorisation of the quantitative measures found offers a multidimensional performance measurement system and highlights the impact areas where research is needed to develop and test new measures. Findings should also promote improvements in empirical data collection on the multiple faceted co-produced activities and spur the consciousness of the adoption of sustainable co-productive initiatives.

The Balanced Scorecard (BSC) as a Multidimensional Performance Measurement System Tool: Case the Company of Algeria Post

This paper aimed to clarify the role that the Balanced Scorecard (BSC) as a performance measurement tool in the company of Algeria Post. The BSC is a strategic performance management system, has been proven suitable for the public sector as the financial aspect is not their only concern. The BSC is « A multidimensional performance measurement system that should serve as decision support for managers. It includes indicators of progress and delay as well as internal and external indicators. It organizes the measures in a coherent system around four balanced perspectives: financial perspective, customer perspective, internal process, learning, and growth ». (Kaplan. S & Norton, 2004, P186). This study focused to improve the company of Algeria Post overall performance, the management control systems established should be re-evaluated and its tools should be improved to ensure reactivity in the decision-making and the measuring of the company performance. Our work consists of proposing a new approach to the performance management system for the model of the BSC as a performance measurement tool in the company of Algeria Post. The purpose of this article is to answer the main question of the study: should the company rely on the balanced scorecard as a performance measurement tool to achieve its strategic goals? First able, we counted on the stages of scientific research by gathering information about the company of Algeria Post, after that to conduct our study, we opted for a qualitative approach, using documentary research, interviews, and observation as tools for data collection. In the course of our designing of the proposed model of the BSC for the company. During our design of the proposed model of the balanced scorecard for the company we decided to follow a specific methodology to obtain the desired results taking into account the governmental nature of the organization of the company’s. We deemed it necessary to apply a public sector BSC model, using a top-down principle from (Kaplan and Norton, 2014) combined with the implementation procedures described in the theoretical side by (Alain Fernandez, 2013). It is noted that through the performance indicators of the customer perspective that the company realized some respectful objectives, but most of them are short lived ones, simultaneously, the internal processes perspective was the most performing by focusing on improving the quality of electronic services and the commercial network as a whole.

DEVELOPMENT OF BALANCED SCORE CARD FRAMEWORK FOR PERFORMANCE EVALUATION OF AIRLINES

The paper aims to design a multidimensional performance measurement system for airlines in order to address the complexity of balancing objectives and operational activities. The research design and methodology uses secondary data collection i.e. annual reports and business reports of airlines which are collected from the airlines own website. The paper develops and applies a customized version of balanced scorecard based on a new set of performance measures. Data on eleven performance enablers for a case study of 100 world major airlines during 2009 to 2013 is considered in the study to develop performance measurement framework of Airlines based on balanced scorecard. The Measurement of Research Construct Adopted from Wu and Laio (2014) is validated through confirmatory factor analysis using Lisrel 8.8 and developed modified set of indicators of the constructs. Further, CRITIC method is used to determine relative weights of the indicators under respective perspectives of balanced scorecard.

Modeling the public distribution system: a PO-P approach

Public distribution system (PDS) is the lifeline of food security in India which involves provisioning of foodgrains. To manage this supply chain more efficiently, an effective performance management system is a pre-requisite. This paper utilises the performance objectives-productivity approach to formalise a performance measurement methodology for the PDS supply chain of foodgrains at state level. Here, the actual values of the performance measures are compared with the objectivated values to arrive at the productivity index which indicates the degree of performance of PDS and its various components. In this model the optimal values of the “objectivated output” can be obtained either by solving a goal programming model or through benchmarking in the multi attribute utility theory framework. As fast movement of foodgrains is vital to reduce the degree of perishability due to losses during transit and storage, this multi-dimensional performance measurement system also rates the losses of foodgrains during various stages of freight transportation with a view to minimise the same. The primary aim in applying this method is to arrive at a benchmarking technique to assess if such supply chain is working effectively and efficiently which is akin to auditing the system. By using the given approach some standardisation could be brought into arrive at the authentic performance level of the PDS.

Performance measurement in the networked context of convention and visitors bureaus (CVBs)

The management of Convention Bureau offices (CBs) requires coordination of several tourism-related operators and that the CB private/public members’ demand for accountability be met. Building on the argument that CB managers could employ a multi-dimensional performance measurement system (PMS) to face the challenge of managing different stakeholders’ expectations, this study aimed to understand which performance metrics CBs monitor, the group of stakeholders the metrics refer to, and if they are integrated into a formalized PMS. The research is based on multiple case study analyses. The findings indicate that the management function and number of CB partners affect the presence of a multi-dimensional analysis. Managers dedicate their attention to salient stakeholders, whose legitimacy is strongly related to their contribution to the CB (i.e. shareholders and partners providing financial support). The salience perceived by CB managers is resource-dependent and affects the dimensions on which the process of performance measurement focuses. Thus, a single performance measurement model for all CBs that would be useful for dialogue with stakeholders is not feasible.

The relationship regulator: a buyer-supplier collaborative performance measurement system

PurposeThe purpose of this paper is to propose an innovative buyer-supplier performance measurement system (PMS) (called relationship regulator – RelReg), aimed at stimulating collaboration on mutual performance. The RelReg is described all throughout the phases of its lifecycle: first, design features and visual representation of the new measurement framework are reported; second, guidelines on how to implement, use and review the system are provided, highlighting the role of the buyer and the supplier at each step.Design/methodology/approachA theory building and testing approach is applied. The RelReg developed features primarily ground on previous scientific contributions matched with empirical evidence collected through case studies, workshops and focus groups. The resulting conceptual model is then validated through a dyadic buyer-supplier case study.FindingsTwo conceptual frameworks are provided: the RelReg dashboard – a multidimensional PMS; and the RelReg lifecycle – set of activities to be performed by both the buyer and the supplier all along the adoption process. Moreover, empirical insights on relevant issues to be considered when adopting the RelReg are reported.Originality/valueThe RelReg represents an innovative and smart tool, allowing buyer-supplier dyads to collaborate on relationship performance.

Viability and change in the 21st century organisation: a cybernetic perspective

The 21st century organisation works and networks in an interconnected world where ambiguity and uncertainty abound. This dynamic environment necessitates continuous vigilance over the forces that impact the organisation's performance, and continual refinement of the sociotechnical infrastructure that supports its purpose. Relevant and timely decision-making is essential to managing change. However, absent resilient structural arrangements in place to effectively cope with change, the outcomes of decisions taken will be speculative, at best. In this article, we explore the (core) functions that form the traditional paradigm of management and consider the cybernetic structure of the viable system model as an alternate means of maintaining organisational cohesion during times of relative normality and during times of change. Moreover, we describe a pragmatic conceptual framework, which bridges the gap between the traditional and the cybernetic approach that can be used to manage change. Finally, we apply this framework to transform a traditional performance monitoring scheme into an integrated multidimensional performance measurement system.

Balanced performance measurement in research hospitals: the participative case study of a haematology department

BackgroundThe paper aims to review, design and implement a multidimensional performance measurement system for a public research hospital in order to address the complexity of its multifaceted stakeholder requirements and its double institutional aim of care and research.MethodThe methodology relies on a participative case study performed by external researchers in close collaboration with the staff of an Italian research hospital.ResultsThe paper develops and applies a customized version of balanced scorecard based on a new set of performance measures. Our findings suggest that it can be considered an effective framework for measuring the research hospital performance, thanks to a combination of generalizable and context-specific factors.ConclusionsBy showing how the balanced scorecard framework can be customized to research hospitals, the paper is especially of interest for complex healthcare organizations that are implementing management accounting practices. The paper contributes to the body of literature on the application of the balanced scorecard in healthcare through an examination of the challenges in designing and implementing this multidimensional performance tool. This is one of the first papers that show how the balanced scorecard model can be adapted to fit the specific requirements of public research hospitals.

Testing Strategy with Multiple Performance Measures: Evidence from a Balanced Scorecard at Store24

ABSTRACTThis study investigates the idea that business strategies can be tested and validated based on statistical analysis of a firm's internal performance measures. The strategy literature describes business strategies using the concepts of formulation, implementation, and fit. The management accounting literature links these strategy concepts with the selection and use of performance measures. Building on these two streams we examine whether and how a multidimensional performance measurement system can be used to distinguish between strategic problems related to strategic inputs, customer-oriented strategic outputs, and financial performance. We use data from the performance measurement system of a field site that formulated, implemented, and subsequently abandoned an innovative operating strategy. Managers learned the strategy was ineffective over a two-year period. We find that the company's internal performance measures systematically reveal more timely information about problems with the strategy. Furthermore, the performance measures can help identify where and why the strategy failed. The results are consistent with strategy inputs leading to positive customer experiences but poor financial performance because of a poor fit between the strategy and the firm's internal capabilities and skills. These results provide evidence that strategically linked firm-specific performance measures can be used (1) to evaluate strategy on a timely basis, and (2) to distinguish between problems, such as strategy formulation, implementation, and fit, that cause strategies to fail.

The Effect of Multi-Dimensional Performance Measurement System on Market Orientation

The objective of this study is to examine the effect of performance measurement system design on market orientation behavior.The data were collected using mail survey to top management of Malaysian listed companies.The results show that non-financial measures have a positive and significant relationship with market orientation.An implication of these findings is that the managers should include both financial and non-financial measures in designing their PMS.Theoretically, this study contributes to the resource-based theory by identifying PMS as an antecedent to build market orientation and thus contribute to develop an organizational competitive advantage.

The Balanced Scorecard as a Management Tool for Assessing and Monitoring Strategy Implementation in Health Care Organizations

Both prior literature and reported managerial practices have claimed that the Balanced Scorecard is a management tool that can help organizations to effectively implement strategies. In this article, we examine some of the contributions, dilemmas, and limitations of Balanced Scorecards in health care organizations. First, we describe the evolution of Balanced Scorecards from multidimensional performance measurement systems to causal representations of formulated strategies, and analyze the applicability of Balanced Scorecards in health care settings. Next, we discuss several issues under debate regarding Balanced Scorecard adoption in health care organizations. We distinguish between issues related to the design of Balanced Scorecards and those related to the use of these tools. We conclude that the Balanced Scorecard has the potential to contribute to the implementation of strategies through the strategically-oriented performance measurement systems embedded within it. However, effective adoption requires the adaptation of the generic instrument to the specific realities of health care organizations.

El Cuadro de Mando Integral como instrumento para la evaluación y el seguimiento de la estrategia en las organizaciones sanitarias

Both prior literature and reported managerial practices have claimed that the Balanced Scorecard is a management tool that can help organizations to effectively implement strategies. In this article, we examine some of the contributions, dilemmas, and limitations of Balanced Scorecards in health care organizations. First, we describe the evolution of Balanced Scorecards from multidimensional performance measurement systems to causal representations of formulated strategies, and analyze the applicability of Balanced Scorecards in health care settings. Next, we discuss several issues under debate regarding Balanced Scorecard adoption in health care organizations. We distinguish between issues related to the design of Balanced Scorecards and those related to the use of these tools. We conclude that the Balanced Scorecard has the potential to contribute to the implementation of strategies through the strategically-oriented performance measurement systems embedded within it. However, effective adoption requires the adaptation of the generic instrument to the specific realities of health care organizations.Full English text available from:www.revespcardiol.org

Assessing the effectiveness of a performance evaluation system in the public health care sector: some novel evidence from the Tuscany region experience

Since 80’s the introduction of New Public Management principles has promoted the use of performance measurement to drive a more efficient, effective and accountable public sector. The adoption of a sophisticated and comprehensive multidimensional performance measurement system, which looks beyond traditional financial measures, based on organization strategies, such as the balanced scorecard, has thus been suggested. This revolution in the public management came together with the devolution processes that involved most European public health systems. Set within this context, in the last decade, each of the twenty Italian regions developed its own management tools. Among others, the Tuscan performance evaluation system (PES) has been valued as a particularly innovative and comprehensive system. This paper reports the novel experience of the Tuscan PES; in particular, it measures PES effectiveness and discusses the critical factors that could have led to the PES success. Five are the critical success factors identified by researchers: the visual reporting system, the linkage between PES and CEO’s reward system, the public disclosure of data, the high level of employees and managers involvement into the entire process and the strong political commitment. All those factors run together to achieve better results; however, the process of development of the system plays a pivotal role. Scholars suggest the use of a constructive approach in order to gain effective changes in human organization. According to this stream of literature, this paper contributes by the novel experience of the Tuscan PES in addressing as a further fruitful application of the constructivist approach in healthcare.

The key financial and non-financial performance measures of manufacturing firms in Malaysia

Evaluating the organisation’s growth and success solely based on financial indicator is insufficient in today’s business which is dynamic and competitive particularly in the manufacturing industries. The multidimensional performance measurement system that includes both the financial and non-financial measures that is widely used is the balanced scorecard approach. This study empirically explores the emphasis on performance measures by manufacturing firms in Malaysia using the BSC concept. It also examines the influence of business profiles such as business activity, business ownership and business longevity on performance measures. This study contributes to management accounting research by exploring the usage of financial and non-financial measures and influences by the business profile.

Measuring and Motivating Quantity, Creativity, or Both

ABSTRACTWe examine how worker productivity differs when compensation is based on quantity, creativity, or the product of both measures. In an experiment in which participants design “rebus puzzles,” we find that combining quantity and creativity measures in a creativity‐weighted pay scheme results in creativity‐weighted productivity scores that are significantly lower than those generated by participants with quantity incentives alone. Follow‐up analysis indicates that relative to participants in the quantity‐only condition, participants in the creativity‐weighted condition produce approximately the same number of high‐creativity puzzles, but produce significantly fewer puzzles overall. Thus, while participants rewarded for creativity‐weighted output tend to restrict their production to high‐creativity efforts, they are unable to translate this focus into a greater volume of high‐creativity output. Implications address a possible explanation for firms' reluctance to incorporate creativity measures within multidimensional performance measurement systems, notwithstanding published suggestions to do so.

Performance Measurement Systems: Putting Organizational Effectiveness Ahead

In the last decade a plethora of studies have been carried out in the area of new multidimensional performance measurement systems (MPMS). Notable efforts were focused on PMS design issues related for example to the proper dimensions to be considered, new area of measurement(competencies, networks and supply chain), or their role in the strategy formulation. More recently new streams of research were addressed to the critical analysis of claimed effectiveness with specific regard to the linkage with business performance, or with the management control system (MCS). This paper extends the critical stream of research on MPMS to the organizational linkages of performance and presents a new framework based on the measurement of the relations between formal organizational units as units of analysis. Specifically, this framework introduces a new dimension in the designing of MPMS because it focuses on the measurement of the relationships and not on pre-codified indicators even if systematically organized (tableau de bord, balanced scorecard, ...). In this perspective, the approach enables MPMS to be aligned with the organizational structure of MCS and increases the effectiveness of the appraisal because they are based on a shared view of the organizational functioning. The framework is supported by a case study conducted in an Italian top luxury car firm.

Measuring and Motivating Quantity, Creativity, or Both

We examine how worker productivity differs when performance-based compensation is based on measures of quantity, creativity, or the product of both measures. In an experimental task in which participants design rebus puzzles, we find that quantity-based compensation increases the number of puzzles produced, and that creativity-based compensation improves average creativity ratings, as evaluated by an independent panel of raters. However, a weighted compensation scheme that rewards the product of quantity and average creativity ratings results in weighted productivity scores that are significantly lower than those generated by participants with quantity incentives alone. Follow-up analysis indicates that relative to participants compensated solely for quantity, participants in the weighted condition produce approximately the same number of high-creativity puzzles, but produce significantly fewer puzzles of mediocre creativity. This finding is consistent with the premise that participants rewarded for creativity-weighted output simplify their objective by restricting their production to high-creativity ideas, but are unable to translate this focus into a greater volume of high-creativity output. Implications address a possible explanation for why firms are reluctant to incorporate creativity measures within multi dimensional performance measurement systems, notwithstanding published suggestions to do so.

Effects of Subordinate Likeability and Balanced Scorecard Format on Permformance-Related Judgments

Previous appraisal research has found that subordinate manager likeability biases appraisal related judgments (Cardy and Dobbins, 1986; Tsui and Barry, 1986; Turban et al., 1990). We investigate whether the format and structure of the Balanced Scorecard (BSC) moderates subordinate likeability bias on evaluators' performance-related judgments (overall performance rating, strength of conviction in rating, and bonus money allocation). Following Lipe and Saltario (2002), we characterize the evaluation of subordinate managers using a multidimensional performance measurement system as a cognitively difficult task. We hypothesize that, in comparison to when a BSC format is not used, use of a BSC format fosters a 'divide-and-conquer' approach by evaluators and that the structure of the BSC will guide the application of this approach, which, in turn, is expected to mitigate the influence of subordinate likeability on evaluators' performance-related judgments. Unexpectedly, we find that the biasing effect of subordinate manager likeability on performance-related judgments is not moderated by the format and structure of the BSC. We also provide supplemental mediation analysis which demonstrates that likeability has a direct effect on bonus allocations in addition to the indirect effect it conveys through improved overall performance ratings.

Management accounting and performance measurement practices in service sector in Oman

The importance of management accounting practices in measuring multidimensional aspects of performance is rapidly increasing. However, little is known about such practices in the service sector and even less is known about the practices in developing countries. This paper reports on the performance measurement practices of four Omani service organisations. More specifically, it sought to understand and explain what factors affected the design and use of multidimensional performance measurement systems in the firms studied. The results indicate the way of using the performance measures models of the companies analysed differs depending on management's views and discretion, economic and social constraints, and competition.