Performance Measurement Practices Research Articles

Impact of the changing business environment on performance measurement and management practices

While there is abundant literature in the field of performance measurement systems and performance management practices (PMM), there is little research into how the current highly volatile, uncertain and ambiguous operating environment are affecting the way organisations measure and manage performance. The literature suggests that business trends are indeed affecting the way organisations are managed in general, but their effect on PMM is rarely investigated. Thus, the purpose of this paper is to explore how current business trends are impacting PMM. A literature review reveals five business trends and develops an analytical framework based on organisational control theory. This framework is then used to explore the impact of these business trends through fine-grained case studies across four diverse organisations. Findings suggest that emerging technologies enable collaborative networks creating opportunities for co-creating value while, at the same time, fostering innovation. The findings are theorised using organisational control dimensions that lead to a number of propositions concerning: how the use and purpose of PMM is changing; how strategic objectives are expressed and deployed with particular differences in strategic and turbulent environments; changes in the focus and scope of how performance is measured and reviewed. The paper contributes to existing knowledge by explaining the changing nature of PMM from an organisational control perspective and also by presenting a framework to inform future studies investigating the impact of new business trends on PMM. The paper also reveals practical insights for improving performance measurement systems and performance management practices in organisations.

Measuring performance during crises and beyond: The Performance Promoter Score

Many organizations are curtailing or even abandoning performance management because of difficulties measuring performance and disruptions in performance-based pay due to the COVID-19 crisis. Contrary to this growing and troubling trend, we argue that it is especially important during the crisis to not only continue but also strengthen performance management to communicate a firm’s strategic direction, collect valuable business data, provide critical feedback to individuals and workgroups, protect organizations from legal risks, and retain top talent. To do so, we offer a solution to overcome the challenges associated with measuring performance during a crisis. Specifically, we extend and expand upon the well-established Net Promoter Score measure in marketing and introduce the Performance Promoter Score (PPS) to measure performance. We offer evidence-based recommendations for collecting PPS information for individuals, workgroups, and other collectives, computing a Net Performance Promoter Score (NPPS); using multiple sources of performance data, and using PPS for administrative and developmental purposes as well as to provide more frequent performance check-ins. PPS is a convenient, practical, relevant, and useful performance measure during a crisis such as the COVID-19 pandemic, but it is also an innovation that will be useful long after the pandemic is over.

다품종 혼류 생산라인의 생산계획에 관한 연구: 자동차 카메라 생산라인을 중심으로

This paper presents a case study of production planning and scheduling in automobile camera production system with multi-products mixed production lines. Recently most automobiles are increasingly equipped with rear or surround cameras as devices for assisting safe driving. The various customized options of cameras in automobile require the production system to be more flexible in terms of product and process variety. This study develops a production planning model using a mixed integer linear programming and proposes alternatives of dispatching policies in the above mentioned production environment. The validity and efficiency of proposed model and policies were investigated in comparison of the current practices in a real production system. The experimental case analyses show that the proposed model and policies are quite more efficient in given practical performance measures.

System dynamics applications in performance measurement research

PurposeThis study investigates system dynamics (SD) applications in performance measurement (PM) research and practice. A bibliometric analysis was conducted to investigate the maturity of this research area and identify opportunities for development.Design/methodology/approachA systematic literature review (SLR) was conducted to provide a comprehensive and rigorous review of the existing literature. The search was conducted on 10 platforms identifying 97 publications, which were evaluated using bibliometric analysis.FindingsThe analysis revealed that applications of SD are most commonly used in the PM system design phase to model organisational performance. In addition, the bibliometric results showed a highly dispersed author set, with most studies using exploratory methods, suggesting that the research is in a relatively early stage of development. The results also showed that over 50 per cent of the causal models were not validated, emphasizing an important methodological gap in this research area.Research limitations/implicationsThis SLR is limited to indexed publications on 10 platforms, the search strategy was relatively precise and only available papers in English language were used for the literature review.Practical implicationsPM systems supported by SD can help managers understand and improve organisational behaviours by addressing dynamic complexities and relationship between variables. This study evaluates the maturity of this research area including information about the current development of this area and opportunities to build on existing knowledge.Originality/valueThis study identifies how SD approaches are applied to PM and highlights areas that require further research consideration. This paper is the first of two publications to result from this study and focuses on evaluating the current state of this research area.

Delegation of Stocking Decisions Under Asymmetric Demand Information

Problem definition: We consider the incentive design problem of a retailer that delegates stocking decisions to its store managers who are privately informed about local demand. Academic/practical relevance: Shortages are highly costly in retail, but are less of a concern for store managers, as their exact amounts are usually not recorded. In order to align incentives and attain desired service levels, retailers need to design mechanisms in the absence of information on shortage quantities. Methodology: The headquarters knows that the underlying demand process at a store is one of J possible Wiener processes, whereas the store manager knows the specific process. The store manager creates a single order before each period. The headquarters uses an incentive scheme that is based on the end-of-period leftover inventory and on a stock-out occasion at a prespecified inspection time before the end of a period. The problem for the headquarters is to determine the inspection time and the significance of a stock-out relative to leftover inventory in evaluating the performance of the store manager. We formulate the problem as a constrained nonlinear optimization problem in the single period setting and a dynamic program in the multiperiod setting. Results: We show that the proposed “early inspection” scheme leads to perfect alignment when J equals two under mild conditions. In more general cases, we show that the scheme performs strictly better than inspecting stock-outs at the end and achieves near-perfect alignment. Our numerical experiments, using both synthetic and real data, reveal that this scheme can lead to considerable cost reductions. Managerial implications: Stock-out-related measures are typically not included in store managers’ performance scorecards in retail. We propose a novel, easy, and practical performance measurement scheme that does not depend on the actual amount of shortages. This new scheme incentivizes the store managers to use their private information in the retailer’s best interest and clearly outperforms centralized ordering systems that are common practice.

From professional bureaucracy to competitive bureaucracy – redefining universities’ organization principles, performance measurement criteria, and reason for being

PurposeThis purpose of this study is to understand how the spread of audit culture and the related public sector reforms have affected Finnish universities’ organization principles, performance measurement (PM) criteria and ultimately their reason for being.Design/methodology/approachApplying extensive qualitative data by combining interview data with document materials, this study takes a longitudinal perspective toward the changing Finnish higher education field.FindingsThe analysis suggests the reforms have altered universities’ administrative structures, planning and control systems, coordination mechanisms and the role of staff units, as well as the allocation of power and thus challenged their reason for being. Power has become concentrated into the hands of formal managers, while operational core professionals have been distanced from decision making. Efficiency in terms of financial and performance indicators has become a coordinating principle of university organizations, and PM practices are used to steer the work of professionals. Because of the reforms, universities have moved away from the ideal type of professional bureaucracy and begun resembling the new, emerging ideal type of competitive bureaucracy.Originality/valueThis study builds on rich, real-life, longitudinal empirical material and details a chronological description of the changes in Finland’s university sector. Moreover, it illustrates how the spread of audit culture and the related legislative changes have transformed the ideal type of university organization and challenged universities’ reason for being. These changes entail significant consequences regarding universities as organizations and their role in society.

Performance measurement practices in service industries (A case study of nepal telecom)

Performance measurement practices in service industries (A case study of nepal telecom)

Analiza merenja performansi sistema bezbednosti i zdravlja na radu u rudarsko energetskom kompleksu

In modern mining complexes, the amount of available information on the performance of occupational health and safety systems is constantly increasing. Measurement and evaluation of system performance, as well as the need to develop a better measurement model, arises primarily due to necessity of the improvement of occupational health and safety. The scope of the model aiming to maturity analysis of safety performance measurement, which was applied in the research whose results are presented in this paper, included the performance measurement practice, the commitment and culture of performance measurement and the use of measurement results. In addition to the three basic topics mentioned, an assessment related to the state of the occupational health and safety system was added. As a result of the application of the proposed model, an overall maturity score was obtained. This paper presents the results of the maturity analysis of occupational health and safety system performance measurement in the company TE-KO "Kostolac", which identifies areas that will be given special attention in the future in terms of improving the management of occupational health and safety.

Preserving the Privacy of Electronic Health Records using Blockchain

Abstract Electronic health records (EHRs) are health information of patients that are saved digitally in a network. Various opportunities to enhance patient care, performance measures in clinical practice and contribute to clinical research in the future are provided by EHRs. The schemes used to store EHRs have been very insecure in the present era of smart cities and homes. The data can be easily breached by hackers and unauthorized external parties. Also, the data is not accessible to patients and care providers. These schemes are unable to create a balance between data security and data accessibility. But blockchain can resolve these issues. Blockchain creates a ledger system that is immutable and allows the transactions to take place in a decentralized manner. The three main features of blockchain technology - Security, Decentralization, and Transparency make any application built using it secure and not accessible by unauthorized parties. The manipulation of data is almost impossible to do in a blockchain network. In this project, we propose a system to implement EHRs using blockchain technology and make EHRs more secure and private. The blockchain technology will keep control over access to information using its cryptographic techniques and decentralization. It will also maintain the balance between data privacy and data accessibility. Our main objective of this project is the framing of data privacy and security issues in electronic healthcare

Reverse logistics performance measures: a survey of Brazilian companies

Goal: The purpose of this research was to determine the most frequently used performance measures for the evaluation of reverse logistics in Brazilian companies. Furthermore, we sought to verify whether a correlation exists between certain performance measure dimensions (cost, asset management, customer service, and productivity), company size (micro, small, medium, and large), and their sectors of the economy.
 Design/Methodology/Approach: A survey of 125 Brazilian companies from different industrial sectors was conducted. Hypothesis testing allows carrying out inferences about population parameters, and the results indicate the acceptance or rejection of the hypothesis formulated.
 Results: This study presents a list of measures for the assessment of reverse logistics in different industrial segments, evidencing the major performance measures used. According to statistical analysis, large-sized companies are those that most frequently adopt performance measures to assess reverse logistics in Brazil. However, no correlation was verified between the performance measure dimensions evaluated and the sectors of the economy.
 Limitations of investigation: This study could not conclude about the maturity level of performance measurement in the investigated companies. The results presented are the first step towards reverse logistics performance measurement and more complementary studies are necessary.
 Practical implications: This paper presents a list of performance measures for reverse logistics assessment. This information could support decision making as it provides a possibility of analyzing the choice of the best measures.
 Originality/value: The main contribution of this paper is related to the scarcity of reverse logistics metrics in the literature. As an exploratory study, it could be used to improve the reverse logistics performance measurement studies and practice.

Performance Measurement Practices of Micro, Small, and Medium Enterprises: Toward the Adoption of Deming’s P-D-C-A Model

Performance Measurement Practices of Micro, Small, and Medium Enterprises: Toward the Adoption of Deming’s P-D-C-A Model

Measuring ombudsman performance: evidence from Brazilian ombudsman offices in public higher education institutions

This article aims to examine the performance measurement practices implemented by ombudsman offices of Brazilian public higher education institutions (BPHEI) and their impact on the ombudsman's effectiveness. Data collection involved a survey method, and the structural equation modelling technique was used to test the research hypothesis. The results indicate a low maturity level regarding the use of performance practices for BPHEI ombudsmen. However, when they are implemented, they have a positive impact on the practices of ombudsman offices and their effectiveness. The article concludes with a discussion about how the study extends previous research on ombudsman performance and the implications for practitioners and future research.

Measuring Digital Marketing Performance

Ever since its inception in the early 1990s, digital marketing has received significant attention as marketing strategies in industry and academia. The advent of the Internet and related information technologies has initiated the new marketing framework for business and business-related strategies. Companies have been taking significant actions to switch from traditional marketing to digital marketing strategies. Even then, the marketing performance measurement practices in this field are reported to be less developed. This article is an attempt to examine digital marketing media and its campaigns and provide a framework to measure the performance of digital marketing. To measure the performance of digital marketing campaigns, the article uses the balanced scorecard approach devised by Kaplan and Norton. In this article, descriptive comprehension is provided on the measurement of digital marketing performance. The measurement incorporates four perspectives such as customer, business value, internal processes, and growth and innovation. The outcome of this work may help managers and researchers gain insights into the theoretical and practical strategic characteristics of digital marketing and its performance measurement.

Measuring ombudsman performance: evidence from Brazilian ombudsman offices in public higher education institutions

This article aims to examine the performance measurement practices implemented by ombudsman offices of Brazilian public higher education institutions (BPHEI) and their impact on the ombudsman's effectiveness. Data collection involved a survey method, and the structural equation modelling technique was used to test the research hypothesis. The results indicate a low maturity level regarding the use of performance practices for BPHEI ombudsmen. However, when they are implemented, they have a positive impact on the practices of ombudsman offices and their effectiveness. The article concludes with a discussion about how the study extends previous research on ombudsman performance and the implications for practitioners and future research.

EARNED VALUE ANALYSIS, IMPLEMENTATION BARRIERS, AND MATURITY LEVEL IN OIL & GAS PRODUCTION

Poor performance measurement practices in the oil and gas industry can cause project cost overruns, schedule delays, and scope increases. Earned value management, as an integrated project planning and control method measuring cost and schedule performance, enables the early detection of performance issues, and allows corrective actions to be implemented in a timely manner. Through a structured interview survey, this study aimed to identify the current maturity level of earned value management practice in Malaysian oil and gas firms to determine the barriers hindering the use of this practice, and to identify critical success factors for enhancing earned value management implementation in the oil and gas industry. The findings revealed the major barriers to earned value management implementation, and potential strategies to improve the effectiveness of earned value management practice in this industry.

The Impact of Competing Institutional Pressures and Logics on the Use of Performance Measurement in Hybrid Universities

This study contributes to the current debate on competing institutional pressures and logics and performance measurement practices in hybrid universities and examines how shifts in logics have affected performance measurement practices at the organizational and individual levels. It draws upon the theoretical lenses of institutional theory and adopts a longitudinal case study methodology based on participant observations and retrospective interviews. The findings show that universities and academic workers are affected by external pressures related to higher education that include government regulations and control of the state (state pressure), the expectations of the professional norms and collegiality of the academic community (academic pressures), and the need to comply with international standards and market mechanisms (market pressures). Academic workers operate in an organizational context in which conflicting conditions from both academic and business logics co-exist. The results indicate that institutional pressures and logics related to the higher education field and organizational context shape the use of universities’ performance measurement practices and result in diverse solutions. While previous literature has focused mainly on competing logics and the tensions they may generate, this study shows that, in a university context, potentially conflicting logics may co-exist and create robust combinations.

Do rural cancer patients receive lower quality cancer care? Assessing the impact of rurality on oncology practice performance measures.

166 Background: Rural residents are diagnosed at later stages of cancer compared to urban residents, have poorer survival, and face distinct barriers to receiving quality cancer care. ASCO has developed policy initiatives to address rural cancer care; however, little is known about quality of cancer care among patients residing in rural areas. This study examined the impact of rurality on performance metrics, controlling for socioeconomic status and insurance type. Methods: We linked Washington state cancer registry records from 2015-2017 with claims records for two large commercial insurers, Medicare, and Medicaid. Using claims from this database, we generated eight nationally recognized quality measures. Rurality was measured by the Rural-Urban Commuting Area Codes (RUCAs) categorized into 4 levels (Metro, Metro with commute, Micropolitan, Small Town/Rural). Process and outcome measures were adjusted for age, sex, race, comorbidity score, stage, cancer type, marital status, the Area Deprivation Index, and treatment factors where appropriate. Results were stratified by payer type. Results: The table below lists the effect of a patient’s rurality on the quality metric where significant (p<0.05). Where rurality did not impact the performance measure, results are left blank. Conclusions: After controlling for socioeconomic status and payer type, quality of cancer care for rural cancer patients was not consistently poorer compared to urban patients. These results suggest that lower survival among rural patients may be due to factors beyond quality of care.[Table: see text]

People-process-performance benchmarking technique in cloud computing environment

Purpose Cloud computing is relatively a new type of technology demanding a new method of management techniques to attain security and privacy leading to customer satisfaction regarding “Business Protection” measure. As cloud computing businesses are usually composed of multiple colocation sites/departments, the purpose of this paper is to propose a benchmark operation to measure and compare the overall integrated people-process-performance (PPP) among different departments within cloud computing organization. The purpose of this paper is to motivate staff/units to improve the process performance and meet the standards in a competitive approach among business units. Design/methodology/approach The research method was conducted at Cirrus Ltd, which is a cloud computing service provider where a focus group consists of six IT professionals/managers. The objective of the focus group was to investigate the proposed technique by selecting the best practices relevant criteria, with the relevant sub-criteria as a benchmarking performance tool to measure PPP via an analytic hierarchy processing (AHP) approach. The standard pairwise comparative AHP scale was used to measure the performance of three different teams defined as production team, user acceptance testing team and the development team. Findings Based on best practice performance measurement (reviewed in this paper) of cloud computing, the proposed AHP model was implemented in a local medium-sized cloud service provider named “Cirrus” with their single site data center. The actual criteria relevant to Cirrus was an adaptation of the “Best practice” described in the literature. The main reason for the adaptation of criteria was that the principle of PPP assumes multiple departments/datacenters located in a different geographical area in large service providers. As Cirrus is a type of SMEs, the adaptation of performance measurement was based on teams within the same data center location. Irrelevant of this adaptation, the objective of measuring vendors KPI using the AHP technique as a specific output of PPP is also a valid situation. Practical implications This study provides guidance for achieving cloud computing performance measurement using the AHP technique. Hence, the proposed technique is an integrated model to measure the PPP under monitored cloud environment. Originality/value The proposed technique measures and manages the performance of cloud service providers that also implicitly act as a catalyst to attain trust in such high information-sensitive environment leading to organizational effectiveness of managing cloud organizations.

Practical Performance Measurements of LTE Broadcast (eMBMS) for TV Applications

The 3GPP Release-14 specification has enhanced long-term evolution (LTE) enhanced Multimedia Broadcast Multicast Service (eMBMS) to enable the provision of television services according to some of the requirements of the broadcasting industry. These improvements include radio interface enhancements, such as support for larger intersite distances in single-frequency network deployments and the introduction of more flexibility including a dedicated eMBMS carrier with 100% broadcast resource allocation. Although the performance of LTE eMBMS has been extensively evaluated by numerical computations, it is crucial to perform laboratory measurements that provide insights into the operation of the system in a practical setup. This paper describes the construction of eMBMS chains within the laboratory to carry out physical-layer measurements within a controlled environment and presents a methodology to measure the signal-to-noise ratio (SNR) of eMBMS signals (that can time multiplex both unicast and broadcast parts). The SNR thresholds at different modulation and coding schemes are measured independently in the laboratories of the British Broadcasting Corporation Research and Development and Institut fur Rundfunktechnik, and the results are compared with the results obtained with numerical evaluations.

Performance Measurement System in the Governance of Waqf Institution: A Concept Note

Although reports revealed substantial improvements have been reported in the accounting and reporting of waqf properties, the lack of a sound internal control mechanism is of concern. The existing practice of performance measurement among waqf institutions is less standardised and did not consider their overall performance as a religious and voluntary institution. Organisations engagement in waqf affairs has also caused various issues relating to the ineffectiveness of management and administration of waqf assets. Thus, a systematic and comprehensive performance measurement system is required to adequately assess the performance and ensure proper governance of waqf institutions. Drawing from the Balance Scorecard (BSC) framework and Islamic concept, the paper aims to study and analyse relevant literature on the performance measurements for waqf institution and to develop a holistic performance measurement model suitable to assess the performance of waqf institutions. In this concept paper, the inductive and deductive methods besides analysis of relevant literature were utilised to arrive at the findings. A fifth perspective has been added to the traditional BSC framework. The fifth dimension focuses on the assessment of all activities of waqf institutions in accordance with the Shariah principles. The paper concludes that the governance of waqf entity can be achieved through a sound internal control system, which suggests the implementation of a shariah-based performance measurement system that incorporates both qualitative and quantitative dimensions to examine its current stance better. This type of performance measurement system can also ensure accountability and transparency of waqf institutions, as well as for them to strategize their initiatives better to contribute to long-term wealth creation of the society. The framework developed in this study can be utilised to provide one possible way for management of waqf institutions to address the issues arise from the inefficiency in managing waqf resources.