Performance Measurement Practices Research Articles

Study of employee performance measurement, evaluation and management practices in tourism and catering companies in Szeklerland(with special reference to Harghita county)

As a resource, people are one of the most important factors in the modern economy. From a subjective measurement approach, it can form the basis of business performance measurement. In this research, I am looking for answers to the question: what does business practice show, and how consistent is it with theoretical findings? The results of the research show that companies operating in the hospitality sector in Harghita County are consistently aware of the fact that employee performance contributes greatly to company performance. For this very reason, employee guidance, performance monitoring and feedback are considered significantly important. Employee performance is measured and evaluated informally, often on a monthly basis. The standardised, formal form of measurement, on the other hand, is only done annually, from time to time when necessary. However, its frequency increases significantly with the size of the company. Companies are moderately satisfied with the current employee performance measurement and evaluation. They are therefore aware that there is room for improvement. In their opinion, the introduction of a performance management system in the future would make a significant contribution to solving the problems discussed in the research. In doing so, it would also contribute to the improving of the company's business performance at the same time. Our development objective could be to provide guidance in this area for the future.

Performance Measurement and Management During the Roman Empire: Evidence From the Letters of Pliny the Younger to Emperor Trajan

This article examines performance measurement and management practices of the Roman Empire during the reign of Emperor Trajan (98–117 CE). The main thesis is that the administration of imperial provinces possessed some of the underlying concepts of modern public performance measurement and management practices developed more recently as part of the New Public Management movement. The article uses the 121 letters in the correspondence between Pliny the Younger as Imperial Governor ( Legatus Augusti) of the Province of Bithynia and Pontus (110–113 CE) in modern day Turkey and Emperor Trajan to demonstrate that performance measurement and management practices is more ancient than its development as part of the New Public Management movement.

문화예술분야 사회적기업 성과지표에 대한 탐색적 연구

Arts and cultural social enterprises are organizations that create diverse social values through cultural activities. This study aims to explore performance indicators for arts and cultural social enterprises to enhance our understanding of their performance and investigate their sustainability. To this end, we reviewed and synthesized literature on arts and cultural social enterprises both domestically and internationally, focusing on the Social Value Index (SVI) and the Art & Culture Social Performance Evaluation Model (ARC-SPEM) currently in use. This synthesis informed the proposal of new performance indicators spanning social, economic, and artistic dimensions. Subsequently, a survey among arts and cultural social enterprise experts and a hierarchical analysis process (AHP) were conducted. The analysis highlighted the relatively recognized importance of social performance indicators compared to economic and artistic ones. ‘Cultural welfare and appreciation’ and ‘arts and cultural education’ emerged as priorities in the social dimension; ‘providing jobs for artists’ was prominent in the economic dimension; and ‘art as a social activity’—which employs art to generate diverse values— was underscored in the artistic dimension. However, a case study on the current performance measurement practices of arts and cultural social enterprises in Korea revealed inconsistencies in the criteria, terminology, and categories used across organizations, along with a lack of comprehensive quantitative and qualitative data for appropriate performance assessment. We conclude that to ensure the sustainability of arts and cultural social enterprises, it is crucial to concurrently consider the peculiarities of art jobs, donations and sponsorships, service-oriented activities, and genre-specific value chains from social, economic, and artistic perspectives. Furthermore, artistic performance indicators not only impact artistic outputs but also influence social and economic outcomes, highlighting the need to acknowledge each organization’s unique artistic nature. This study’s significance lies in its systematic and comprehensive identification of performance indicators, acknowledging the unique attributes of arts and cultural social enterprises. It provides a foundation for revisiting previously overlooked performance metrics and facilitates communication with various stakeholders by introducing new artistic performance indicators tailored to the arts and cultural sector.

Transparency in Hierarchies

ABSTRACTWe use an agency model to address the benefits and costs of transparency in a hierarchical organization in which the principal employs a manager entrusted with contracting authority and several workers, all under conditions of moral hazard. We define the principal's transparency choices as a decision to allow workers to observe their coworkers’ performances (observability) and as an investment in monitoring worker performance (precision). We find that whereas precision alleviates agency conflicts as expected, observability can exacerbate agency conflicts, especially if the manager's interests are misaligned sufficiently with those of the principal. Our results suggest several testable hypotheses including predictions that opaque performance measurement practices are well suited for small organizational units at lower hierarchical ranks, and in settings where the sensitivity‐precision of the available measures is low, workers’ performances are correlated positively, and managerial productivity is modest.

Performance Measurement Knowledge: A Comprehensive Literature Review

This scientific article presents a comprehensive literature review on performance measurement knowledge, exploring diverse aspects of performance management and measurement practices across various organizational settings. By drawing from a selection of seminal studies, this review aims to shed light on critical dimensions and emerging trends in performance measurement within the dynamic context of contemporary business environments. Furthermore, the article identifies research gaps and proposes a comprehensive research agenda to foster further exploration in the field of performance management.

The nature of measurement across the hybridised social sector: A systematic review of reviews

AbstractPerformance measurement and management serve as the key elements for demonstrating accountability to funders and stakeholders for many social entities. Although substantial study has been completed to understand the measurement practices employed by specific models of social entities, there is an absence of studies taking a broader perspective on organisational performance measurement across the entire system. A systematic review of reviews methodology identified previous systematic and meta‐studies of social performance measurement and management practices across the entire sector. The 19 reviews identified examined the measurement and management practices of a range of hybrid social entities including non‐profits, social enterprises, corporate social responsibility undertakings, impact investments and bonds, government departments, and knowledge‐intensive public organisations. The motivations of demonstrating accountability and learning opportunities for improvement are congruous across all entities. However, the approaches and methods employed to measure impact and meet these objectives are distinct between the different entity forms. Furthermore, acknowledgement of the different measurement approaches of other hybrid social entities was notably absent perhaps indicating a lack of knowledge dissemination across the broader system. Some barriers and complexities seem to be generalised across all hybrid entities; however, other challenges appear to be unique to specific hybrid models and measurement approaches. Through amalgamating a broad range of papers, we present opportunities to strengthen performance measurement and management across an increasingly hybridised social sector.Points for practitioners Performance measurement and management are crucial for demonstrating accountability and improving social impact for all forms of hybrid entities including non‐profits, social enterprises, corporate social responsibility undertakings, impact investments and bonds, government departments, and knowledge‐intensive public organisations. While the measurement practices of these organisational entities have been studied separately, there has been a lack of understanding as to the common practices and deviations across a hybrid organisational system. Practitioners should explore the different approaches and methods employed by the various social impact entities to identify opportunities for improved practice. Meeting the information needs of the diverse range of stakeholders in social services sector poses a challenge for all social initiatives. However, our review highlights the importance of ensuring that the voice and perspectives of social service recipients are adequately represented.

Exploring the use of innovation measurement in retail organisations: a multiple case study

ABSTRACT Innovation and its management in retail organisations is an emerging field, yet the measurement of innovation in this context remains challenging and under-researched. The study investigates innovation in large Swedish retail companies, focusing on monitoring and measurement of innovation performance. Through a qualitative, multiple case study, our findings reveal that retailers are aiming to become more active innovators. They are exerting a greater control over the innovation process, implementing a range of financial and non-financial indicators that encompass inputs, outputs, and the process itself. Innovation projects serve as vehicles for experimentation and learning about how to improve the structure of innovation efforts. However, challenges still arise when strategic objectives are not aligned with performance measurements across the organisation. Nonetheless, existing performance measurement practices can support innovation capability development in retail, especially in relation to culture and competence development and utilising external knowledge for open innovation. The paper advances theory by offering insights into how retailers gain more control of innovation through measurement, contributing to the growing landscape of strategic innovation management in retail. We propose a model, informed by theoretically built framework and empirical data, to guide retail organisations in defining new measurements that promote a holistic perspective to building innovation capability.

Performance measurement systems in the health and care sector: Are targets and monitoring additional demands or resources for employees?

PurposeThis paper aims to improve our understanding of performance measurement systems in the health and care sector, by focussing on employee reactions to core performance measurement practices. Targets and monitoring are hypothesised to be associated with employee perceptions of job control, supportive management and job demands, which in turn, are expected to be linked to employee-wellbeing and organisational commitment.Design/methodology/approachMatched employee workplace data are extracted from a nationally representative and publicly available survey. Structural equation models are estimated.FindingsPerformance measurement systems are neither perceived as resources nor additional demands. Setting many targets and a focus on productivity can lead to negative employee outcomes, since these positively correlate with perceptions of job demands, which negatively correlate with employee wellbeing. However, monitoring financial performance and monitoring employee performance may be helpful to managers, as these are positively associated with employee perceptions of job control and supportive management, which positively correlate with job satisfaction and organisational commitment and, negatively, with anxiety. Overall, common criticisms of performance measurement systems in healthcare are questioned.Originality/valueGiven the lack of consensus on how performance measurement systems can influence employee experiences and outcomes, this study combines theories that argue for performance measurement systems in managing operations with models developed by psychologists to describe how perceptions of the work conditions can affect employee attitude and wellbeing. A conceptual model is therefore developed and tested, and potential direct and indirect effects of performance measurement systems in the health sector are inferred.

Developing a multidimensional performance measurement framework for international construction joint ventures (ICJVs): the perspective of Ghana-hosted ICJVs' practitioners

PurposeInternational construction joint ventures (ICJVs) will fully realize their potential for success and effectively monitor performance when an adequate and suitable performance benchmark is established. However, existing studies fall short of adequately providing a mutually acceptable benchmark for assessing the performance of ICJVs. This study aims to develop an adequate and suitable performance measurement framework for ICJVs.Design/methodology/approachA twofold structured questionnaire survey, supplemented by semi-structured interviews, was used to collect data from the practitioners of ICJVs hosted in the developing country of Ghana. The data were analyzed by using descriptive statistics, confirmatory factor analysis (CFA) and a hybrid-fuzzy logic approach.FindingsA list of 30 performance indicators (PIs), defined by project performance, perceived satisfaction, company/partner performance, socio-environmental performance and performance of ICJV management, was validated and proved to be significant. Only 22 out of the 30 PIs, focusing on project efficiency, societal improvement and organizational goals are realized by the ICJV practitioners. Further, suitable determinants and viable quantitative ranges for measuring each PI are established to prevent different interpretations of the meanings of PIs and objectively express the level of success in quantitative terms. The results call for further investigation of the convergence between the practice of and research into some PIs (e.g. socio-environmental performance) and a range of different performance levels (PLs) in a more scientific manner.Practical implicationsThis study not only advances the knowledge base and practice of performance measurement in ICJVs but could also assist stakeholders and decision-makers to assess, compare and monitor the performance of different ICJV projects on common grounds objectively.Originality/valueThis study not only comprehensively assessed PIs – what to measure – but also systematically determined suitable determinants – how to measure – for each PI.

The orchestration of green supply chain management practices to enable performance measurement and evaluation

This study aims at investigating the relationship between the implementation of green supply chain management (GSCM) practices and the implementation of environmental performance measurement and evaluation (EPME) practices. The theoretical model was empirically validated using structural equation modelling in a survey of 199 Brazilian managers working in sustainability areas. We introduce a novel framework that bridges systems theory with the practice-based perspective of firms. The framework advances the current understanding of factors influencing EPME adoption, structuring GSCM practices as system components: inputs, processes, outputs, and feedback loops. More specifically, we identify the direct effects of different GSCM practices in the implementation of EPME but also indirect effects cascading through input, process, output, and feedback loop practices. Our research addresses industry needs for guidance on how to implement GSCM practices and facilitate EPME. Managers need to orchestrate the adoption of GSCM practices in each of these system components by monitoring of inter-organisational and intra-organisational activities of their supply chains. Both EPME and feedback loop practices (e.g. customer collaboration) are key to achieving benefits concerning the environmental impact of supply chain operations.

Out of control? Tracking system technologies and performance measurement

This article explores how sophisticated and intrusive socio-technological surveillance advances, particularly tracking systems, have become normalized in the North American baseball industry. To make sense of the extensive archival and interview data, we draw on a Deleuzo-Guattarian framework. To this end, we argue that baseball has evolved into a society of control, facilitated and maintained by a rhizomatic surveillance network. We find that the introduction of new technologies has disrupted and changed performance measurement and management control practices in three key ways: (i) establishing the prospect of an ‘objective’ information utopia; (ii) transforming performance measurement into something independent of context; and (iii) measuring processes, not outcomes. Next, in the spirit of Deleuze and Guattari, we consider how the surveillance is being resisted. To this end, we find that instead of formal resistance, players voluntarily co-construct the system. We offer explanations for this, but we also turn our gaze on the consequences of the ever-expanding network of surveillance. Specifically, we consider the identity construction challenges for the target; which we refer to as the dark side of surveillance. We discuss the wider implications of our findings and challenge managers, regardless of workplace, to consider the consequences of introducing ever-more sophisticated monitoring and measurement systems, especially for those whom the systems target.

Do not settle for simple assessment: the effects of marketing metric uses on market-sensing capability

PurposeDespite the availability of many metrics and tools for marketing performance measurement, the way in which firms use their marketing metrics remains underexplored. This study aims to address this gap by empirically establishing the differing effects of the diagnostic and interactive uses of marketing metrics on firms’ market-sensing capability, contingent on competitive intensity and focus on market-related metrics.Design/methodology/approachThis study builds on survey data collected from 210 Irish-based firms, complemented by 21 in-depth interviews with business managers. Survey data are analysed using regression analysis.FindingsThis study finds that firms using marketing metrics interactively to communicate organizational focus are better able to sense their markets, especially under high competition. The authors observe a positive impact of the interactive use of metrics on market-sensing capability, but a U-shaped impact of their diagnostic use, the magnitudes of which further depend on competitive intensity and firms’ focus on market-related metrics.Research limitations/implicationsThis study provides a nuanced view of marketing performance measurement (MPM) practices within firms, particularly focussing on diagnostic versus interactive uses of marketing metrics. It also sheds further light on how two diverse uses of marketing metrics – diagnostic and interactive uses – influence a firm’s market-sensing capability. Moreover, the identification of boundary conditions also contributes to the discussion of contextuality in MPM, highlighting the importance of aligning a firm’s uses of marketing metrics with its business environment.Practical implicationsThis study provides novel insights into how diverse uses of marketing metrics may benefit firms. The differing effects of diagnostic and interactive uses of marketing metrics on market sensing highlight a primary need for developing the latter and for using the former only with caution. It establishes that all firms would equally benefit from an interactive use of marketing metrics that is pivotal to improving their ability to anticipate, detect and sense market changes.Originality/valueThis study provides novel understanding of the role of marketing metric uses in firms’ market-sensing capability and contributes to the discussion of contextuality in marketing performance measurement. It highlights the importance of aligning a firm’s use of marketing metrics with its business environment.

Balancing perspectives on performance: “Measurement from the inside” and “measurement from the outside”

AbstractThis article investigates the nature of tensions “on the ground” between the internal and external stakeholders of arts organizations in terms of performance measurement. Based on the qualitative analysis of 19 interviews, the performance measurement practices of two different‐sized arts organizations highlight internal and external stakeholders' contrasting perspectives on a number of measurement dimensions. In endeavoring to understand tensions between internal and external stakeholders, the article highlights the main differences which result from seemingly opposed ways of knowing. Internal stakeholders tend more to reflect “phronesis,” based on value‐rationality, while external stakeholders are more inclined to technical (“techne”), or analytical (“episteme”) knowledge based on instrumental rationality. Nevertheless, there is some evidence of positive engagement between internal and external stakeholders. The article argues that in order to mitigate tensions, internal and external stakeholders should aim for culturally embedded understanding through evaluation‐focused dialogue. In providing both theoretical contributions to nonprofit literature and managerial implications, the article offers an original perspective that challenges existing practice and calls for greater understanding of conflicting interests when different stakeholders are involved in performance measurement.

The Relation Among Business Process Orientation Practices in Influencing Organizational Performance

Organizations always look for ways to improve their performance to survive in the business environment. One way to improve organizational performance is to improve business process orientation (BPO). Several studies identified practices that can be implemented and significantly impact an organization’s BPO maturity. These practices are called Critical Practices (CPs) strategic view, process definition and documentation, process measurement and management, organizational process structure, people management, process organizational culture, market orientation, supplier view, and information technology. However, most studies treat CPs independently, and the relationship between CPs and between CPs with organizational performance has not been addressed. This study tests and confirms the relationship between CPs, BPO, and organizational performance. Based on the literature, a structural model of the relationship between CPs and organizational performance is developed. An online questionnaire is designed to collect data from various organizations in Indonesia. The survey results are analyzed using Structural Equation Modeling (SEM) to investigate the relationship between variables. Most hypothesized relationships between CPs are confirmed except the relationship between supplier practices (SU) and culture (CT), which are not supported. Not all practices affect organizational performance directly, but they must be mediated by other practices to have a significant effect. The results suggest that to improve organizational performance, an organization needs to improve the practice of strategic view (SV), performance measurement (PM), customer (CU), process definition (PD), and information technology (IT).

Moderately developed employee performance appraisal systems in Hungarian hospitals

The aim of the study is to assess and present the structure of the performance management system and the practice of performance appraisal in Hungarian state-run hospitals in the framework of an exploratory, descriptive research. Objective data may be used to support performance appraisal practices, primarily alongside a strategic performance management goal. The performance measurement and evaluation practice emerging from the research can be considered to be of adequate quality on the basis of the recommendations formulated in the literature. It is found that moderately developed performance appraisal systems exist in Hungarian hospitals. When observing work performance, the direct results of employees’ work are the primary basis for performance appraisal. A scale for measuring the development of a performance appraisal system has been developed.

A Nationwide Evaluation of the State of Practice of Performance Measurements for Intelligent Transportation Systems

State departments of transportation’s (DOTs) decisions to invest resources to expand or implement intelligent transportation systems (ITS) programs or even retire existing infrastructure need to be based on performance evaluations. Nonetheless, an apparent gap exists between the need for ITS performance measurements and the actual implementation. The evidence available points to challenges in the ITS performance measurement processes. This paper evaluated the state of practice of performance measurement for ITS across the US and provided insights. A comprehensive literature review assessed the use of performance measures by DOTs for monitoring implemented ITS programs. Based on the gaps identified through the literature review, a nationwide qualitative survey was used to gather insights from key stakeholders on the subject matter and presented in this paper. From the data gathered, performance measurement of ITS is fairly integrated into ITS programs by DOTs, with most agencies considering the process beneficial. There, however, exist reasons that prevent agencies from measuring ITS performance to greater detail and quality. These include lack of data, fragmented or incomparable data formats, the complexity of the endeavor, lack of data scientists, and difficulty assigning responsibilities when inter-agency collaboration is required. Additionally, DOTs do not benchmark or compare their ITS performance with others for reasons that include lack of data, lack of guidance or best practices, and incomparable data formats. This paper is relevant as it provides insights expected to guide DOTs and other agencies in developing or reevaluating their ITS performance measurement processes.

The habitus of individuals in performance measurement practices in universities: a case study

PurposeThis study aims to explore the role of individuals’ habitus in an organization’s performance measurement practices. Habitus refers to how individuals with a particular background perceive and react to the social world.Design/methodology/approachDrawing from the habitus philosophy developed by Bourdieu in his practice theory (Bourdieu, 1977), this study used a qualitative research methodology involving face-to-face interviews, observations of performance evaluation meetings and examination of documents within a Sri Lankan public university.FindingsThe authors revealed the power of university individuals as they possess practical knowledge in their field where they operate to make effects in the practice of a performance measurement system (PMS). In addition, the research findings show that mutually opposing strategies, self-interests and individuals’ varied power relations collectively play a dominant role in deciding the practical operation of the PMS at the university.Research limitations/implicationsWhile this study is constrained to a Sri Lankan public university, its findings offer insights into how individuals within an organization can emerge as influential players in PMS practice.Originality/valueThe findings enhance the understanding of how PMS practice may operate beyond traditional, calculative and abstract forms in an organizational setting. Instead, individuals, as micro-level forces in a specific social space, shape organizational practices, such as PMS, in universities.

PERFORMANCE MEASUREMENT PRACTICES IN PROPERTY MANAGEMENT OF PUBLIC HOUSING MALAYSIA

Public Housing (PH) in Malaysia is commonly called for improvement, as property management issues continue to arise. To address these issues, performance measurement plays an important role in monitoring the efficiency and effectiveness of the operation in PH. However, limited performance measurement studies in PH provide an overview of what property management operations are to be measured. Hence, this paper aims to examine the performance measurement practices adopted in public housing. From here, six overarching themes, particularly management in tenancy, maintenance, building, social, financial, and administrative are identified. These six main themes are further divided into nineteen subthemes. Further, an interview is conducted with PH zone managers from Kuala Lumpur City Hall (DBKL) to examine the current management operation and performance measurement practices in PH Malaysia. This paper provides insightful information on the trend, indicators, and operations in the performance measurement practices in PH.

Performance measurement in the public sector: Mapping 20 years of survey research

AbstractThis paper maps 20 years of survey research on performance measurement (PM) practices in public sector organizations. Cumulative findings from the discipline of accounting enhance the understanding of public sector PM and its antecedents and effects. Four maps are presented that visualize the relationships among key variables from prior research in four empirical settings: government, health, education, and other domains. Furthermore, this review distinguishes between individual‐level and organization‐level effects of PM, and includes reflections on the appreciation of PM by public sector employees. The findings highlight that PM use and attributes such as fairness, subjectivity, and clarity significantly impact the outcomes yielded by PM systems. This paper contributes by synthesizing prior research on public sector PM and by identifying research gaps, areas of debate, and avenues for future research. In addition, findings from this review have the potential to add nuance to the sometimes‐polarized debate on the acclaimed “benefits” and “costs” of PM in the public sector.

Managing from a distance in international purchasing and supply

International purchasing and supply management (PSM) teams have long faced the visibility and understandability challenges of managing geographically dispersed and culturally distant suppliers. Problems arising from inadequate monitoring and control over suppliers can be attributed to geographical and cultural distance, capability gaps, weak institutions, and supply market dynamism. With transaction costs theory as our lens, we examine how international geographically and culturally distant purchasing and supply management (PSM) teams control emerging economy suppliers with formal management controls. We use interview survey data on 339 international customer-Chinese supplier relationships using supplier perceptions of the extent to which performance measurement and monitoring practices are used by their primary customer in the purchase reorder decision and control. The results demonstrate that the cultural and, to a lesser extent, geographical distance between the customer and the supplier is associated with more extensive use of formal management controls. Also, we find the relationship between geographical or cultural distance and the importance of performance measurement is strengthened for suppliers of complex components.