Organizational performance measurement by a framework integrating BSC and AHP

2016 ◽  
Vol 65 (7) ◽  
pp. 959-976 ◽  
Author(s):  
Tahere Yaghoobi ◽  
Firoozeh Haddadi
Keyword(s):  
Performance Evaluation ◽  
Performance Measurement ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
Evaluation Model ◽  
Telecommunications Industry ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Financial Perspective ◽  
And Performance

Purpose Performance measurement, especially at the enterprise level, requires intense consideration of experts and managers in organizations from both theoretical and practical aspects. The purpose of this paper is to investigate the overall organizational performance by developing a performance evaluation model, based on integrating two methodologies of balanced scorecard (BSC) – a multiple perspective plan for performance assessment – and analytic hierarchy process (AHP) – a structured technique for organizing and analyzing complex decisions. Design/methodology/approach The method was conducted in Isfahan Telecommunications Company (ITC), in 2013. In total, 27 managers of ITC were invited to participate. First, according to overall firm goals, key performance indicators (KPIs) were established with respect to four perspectives of BSC framework. Then pairwise comparisons were done, through standard AHP questionnaires, to determine the preference weights of each indicator and perspective and give precedence to them. Findings Organizational performance can be measured by the proposed model in a telecommunications industry. According to the adopted method, company KPIs, relative importance of BSC perspectives and performance evaluation of functional areas were identified. Practical implications This study provides guidance regarding strategies for improving organizational performance beyond the financial perspective. Originality/value Previous studies illustrate various applications of joint BSC and AHP. However, this study applies the integrated framework throughout an organization in a new application field and shows not only company’s features but also telecommunications industry features.

Performance Measurement using Balance Score Card and its Applications: A Review

2015 ◽  
Vol 4 (3) ◽  
Author(s):  
Shradha Gawankar ◽  
Sachin S. Kamble ◽  
Rakesh Raut
Keyword(s):  
Performance Measurement ◽  
Organizational Performance ◽  
Performance Management ◽  
Balanced Scorecard ◽  
Strategic Change ◽  
The Balanced Scorecard ◽  
Balance Score Card ◽  
Measurement Framework ◽  
Score Card ◽  
And Performance

This paper aims to propose the idea of briefly explaining the balance scorecard by highlighting its use, application in depth. A critical enabler in achieving desired performance goals is the ability to measure performance. Despite the importance of accurately measuring organizational performance in most areas of academic research, there have been very few studies that have directly addressed the question of how overall organizational performance is or should be measured. Perhaps more importantly, none of these studies seems to have significantly influenced how overall organizational performance is actually measured in most of the empirical research that uses this construct as a dependent measure. The most popular of the performance measurement framework has been the balanced scorecard abbreviated as BSC. The BSC is widely acknowledged to have moved beyond the original ideology. It has now become a strategic change management and performance management process. The approach used in this paper is the combination of literature review on evolution of balance score card and its applications in various sectors/organizations/ areas. This paper identify that the balanced scorecard is a powerful but simple strategic tool and the simplicity of the scorecard is in its design. By encompassing four primary perspectives, the tool allows an organization to turn its attention to external concerns, such as the financial outcomes and its customers expectations, and internal areas, which include its internal processes to meet external requirements and its integration of learning and growth, to successfully meet its strategic expectations. This paper provides a comprehensive overview of the balanced scorecard combined with application and strategy, which are now in a better position to begin to recognize managements expectations and to discover new ways to build value for workplace learning and performance within organization.

Intellectual capital and performance measurement systems in Iran

2018 ◽  
Vol 19 (2) ◽  
pp. 294-320 ◽  
Author(s):  
Kaveh Asiaei ◽  
Ruzita Jusoh ◽  
Nick Bontis
Keyword(s):  
Performance Measurement ◽  
Organizational Performance ◽  
Intellectual Capital ◽  
Structural Model ◽  
Chief Financial Officers ◽  
Least Squares Regression ◽  
Content Type ◽  
Intellectual Assets ◽  
Performance Measurement Systems ◽  
And Performance

PurposeThe purpose of this paper is to empirically explore how the effect of intellectual capital (IC) on organizational performance is indirect and mediated through performance measurement (PM) systems.Design/methodology/approachData were collected from a survey of 128 chief financial officers of Iranian publicly listed companies. Hypotheses were tested using partial least squares regression, a structural modeling technique which is appropriate for highly complex predictive models.FindingsResults from the structural model indicate that, in general, companies with a higher level of IC place a premium on the balanced use of PM systems in a diagnostic and interactive style. Furthermore, the results provide some evidence that IC is indirectly associated with organizational performance through the intervening variable of the balanced use of interactive and diagnostic PM systems.Practical implicationsThis study sheds light on the issue of how senior management should use PM systems to take full advantage of intellectual assets which could lead to improved organizational performance.Originality/valueThis is the first study of its kind to synthesize a model which examines IC, PM systems, and organizational performance. Although the effect of different types of intangible assets on performance has been substantially examined in the literature, less effort has been devoted to understanding the role of PM systems in leveraging an organization’s IC.

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

2019 ◽  
Vol 68 (5) ◽  
pp. 938-957 ◽  
Author(s):  
Ali Anjomshoae ◽  
Adnan Hassan ◽  
Kuan Yew Wong
Keyword(s):  
Performance Measurement ◽  
Supply Chains ◽  
Balanced Scorecard ◽  
Performance Indicators ◽  
Information Overload ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Humanitarian Supply Chains ◽  
Humanitarian Organizations ◽  
Integrated Performance

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

KCEBSA

2017 ◽  
Vol 30 (4) ◽  
pp. 625-643 ◽  
Author(s):  
Shu-Chen Kao ◽  
ChienHsing Wu ◽  
Chieh-Lin Huang
Keyword(s):  
Balanced Scorecard ◽  
Delphi Method ◽  
Evaluation Model ◽  
Practical Case ◽  
Analytic Hierarchy ◽  
Qualitative Variable ◽  
Content Type ◽  
Knowledge Community ◽  
Internal Process ◽  
Community Evaluation

Purpose From the academic perspective, there are challenges to develop an appropriate evaluation model that is linked to both theoretical and professional viewpoints for online knowledge community evaluation (KCE). These challenges are mainly the evaluation principles, the method used to derive the evaluation items, and the techniques used to determine the importance of evaluation items to formulate the evaluation model. The purpose of this paper is to propose and develop an online KCE model by considering the Delphi method, analytic hierarchy process (AHP) technique, and balanced scorecard (BSC) approach that contains facets of member, strategy, learning and growth, and internal process. Design/methodology/approach The qualitative study was used to develop the KCE model. The BSC approach was used to construct the facets of evaluation model. The Delphi method and AHP technique were utilized to derive structural measure items and to determine item weight in the development process, respectively. An illustrated practical case was used to demonstrate the proposed KCE model. Findings The member facet is perceived the most important facet while the internal process the least, implying that the invited participants perceive that community members, as represented by member satisfaction and loyalty, are the most important factors. In the knowledge management process sub-facet, knowledge creation obtains the highest weight compared with knowledge acquisition, dissemination, and utilization. Data analysis results based on 822 survey samples for the demonstrated Yahoo!Kimo Knowledge+ case are obtained. Findings and implications are also addressed. Originality/value Unlike the exclusively quantitative approach, the proposed KCE model balances both qualitative and quantitative approaches. First, it performed a face-to-face collaboration based on the Delphi method to deal with the unstructured cognition, opinions, and comments of the invited participants. Second, it developed an evaluation model based on the consensus of the invited participants by using the AHP technique in which the perceived importance of measure item to their immediate super item (qualitative variable) is transformed into number (quantitative variable).

Monitoring and regulating corporate identities using the balanced scorecard

2009 ◽  
Vol 13 (2) ◽  
pp. 116-135 ◽  
Author(s):  
Jai Kim ◽  
Caroline Hatcher
Keyword(s):  
Performance Measurement ◽  
Balanced Scorecard ◽  
Identity Management ◽  
Corporate Identity ◽  
Management Control ◽  
Content Type ◽  
The Balanced Scorecard ◽  
Measurement Systems ◽  
Performance Measurement Systems ◽  
And Performance

PurposeThe purpose of this paper is to provide a parallel review of the role and processes of monitoring and regulation of corporate identities, examining both the communication and the performance measurement literature.Design/methodology/approachTwo questions are posed: Is it possible to effectively monitor and regulate corporate identities as a management control process? and, What is the relationship between corporate identity and performance measurement?FindingsCorporate identity management is positioned as a strategically complex task embracing the shaping of a range of dimensions of organisational life. The performance measurement literature likewise now emphasises organisational ability to incorporate both financial and “soft” non‐financial performance measures. Consequently, the balanced scorecard has the potential to play multiple roles in monitoring and regulating the key dimensions of corporate identities. These shifts in direction in both fields suggest that performance measurement systems, as self‐producing and self‐referencing systems, have the potential to become both organic and powerful as organisational symbols and communication tools. Through this process of understanding and mobilising the interaction of both approaches to management, it may be possible to create a less obtrusive and more subtle way to control the nature of the organisation.Originality/valueThis paper attempts the theoretical and practical fusion of disciplinary knowledge around corporate identities and performance measurement systems, potentially making a significant contribution to understanding, shaping and managing organisational identities.

scholarly journals PENILAIAN KINERJA PERGURUAN TINGGI ISLAM DENGAN BALANCED SCORECARD AGAR TERWUJUD LEMBAGA PENDIDIKAN ISLAM BERBASIS MAQASID SYARIAH

2017 ◽  
Vol 8 (2) ◽  
pp. 121-131
Author(s):  
Zuraidah Zuraidah ◽  
Esy Nur Aisayah
Keyword(s):  
Organizational Performance ◽  
Internal Control ◽  
Balanced Scorecard ◽  
Performance Measure ◽  
Strategic Objectives ◽  
Internal Process ◽  
The Balanced Scorecard ◽  
Financial Perspective ◽  
Process Perspective ◽  
And Performance

In improving organizational performance, alignment an organizations and individuals in the organization is very important. Balanced Scorecard is one of the alternative performance measure that aims to combine the performance measures of financial and non-financial. Inspired by Kaplan and Norton, the concept was developed in four perspectives: financial, customer, internal process and learning and growth. This article discusses how to build a balanced scorecard, include determining the strategic objectives, measures, targets, initiatives, and implementing the balanced scorecard in public organizations. The performance assessment of Islamic Universities have: 1) strategic targets financial perspective: the ability to obtain funding and cost efficiency, 2) strategic objectives perspectives of stakeholders, namely the satisfaction and pride for students, 3) strategic objectives of internal process perspective is a internal business portal, process and policy procedures, financial systems and reporting, internal control and performance measurement, research and community service quality, 4) strategic objectives of learning and growth perspectives improve the professionalism of human resources, improve the quality and infrastructure facilities. Islamic university has 21 strategic objectives in the four perspectives of the balanced scorecard. As well as the maqasid syariah used as an indicator both in aligning the results of an assessment of the performance of the Islamic universities.

A hybrid MCDM approach for performance evaluation in the banking industry

Kybernetes ◽  
2017 ◽  
Vol 46 (8) ◽  
pp. 1386-1407 ◽  
Author(s):  
Mohammad Ali Beheshtinia ◽  
Sedighe Omidi
Keyword(s):  
Performance Evaluation ◽  
Balanced Scorecard ◽  
Banking Industry ◽  
Multiple Criteria Decision Making ◽  
Fuzzy Topsis ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Environmental Care ◽  
Hybrid Approaches ◽  
Copeland Method

Purpose This paper aims to propose a hybrid multiple criteria decision-making (MCDM) technique for performance evaluation of banks in which the banks are assessed and ranked according to the criteria of the balanced scorecard (BSC) methodology and corporate social responsibility (CSR) views. Design/methodology/approach To clarify the performance of the proposed model, the MCDM technique was implemented in four banks in Iran as a pilot. First, proper criteria for banking industry are identified considering BSC and CSR. Consequently, analytic hierarchy process (AHP) and modified digital logic (MDL) techniques are used to determine the weights of criteria. The banks are ranked by fuzzy TOPSIS (FTOPSIS) and fuzzy VIKOR (FVIKOR). Using a combination of these techniques, four methods, namely, AHP-FTOPSIS, AHP-FVIKOR, MDL-FTOPSIS and MDL-FVIKOR, are obtained, each of which provides a different set of rankings for banks. Eventually, the obtained ranks are integrated using the Copeland method. Findings The results showed that the return on investment, debt ratio and lower energy consumption criteria are the most important, and enhancement of brand value, increasing customer loyalty and environmental care criteria have the lowest percentage of importance. Also, the final bank ranking is determined by the proposed method. Originality/value This paper identifies 6 criteria and 25 sub-criteria for evaluating the banks considering BSC and CSR viewpoints including some new sub-criteria that has not been considered before. Moreover, these hybrid approaches and especially MDL techniques have not been used by previous researchers.

Chinese manufacturing industry development strategy from the financial perspective

2016 ◽  
Vol 6 (2) ◽  
pp. 203-215 ◽  
Author(s):  
Yuxiang Pan ◽  
Yimin Huang ◽  
Ershi Qi
Keyword(s):  
Performance Evaluation ◽  
Pharmaceutical Industry ◽  
Development Strategy ◽  
Evaluation System ◽  
Evaluation Model ◽  
First Grade ◽  
Content Type ◽  
Financial Perspective ◽  
The Development Strategy ◽  
Performance Evaluation Index

Purpose – Based on literature review, the purpose of this paper is to design a comprehensive evaluation system for pharmaceutical industry from the financial perspective, and then analyses the development strategy of Chinese pharmaceutical industry according to the data of listed companies. Design/methodology/approach – This paper analyses the development strategy of Chinese pharmaceutical industry through building the grey dominance evaluation model including absolute degree of grey incidence model and relative degree of grey incidence model. Findings – Through the analysis of the grey dominance evaluation model, the authors find that four factors including total assets turnover, quick ratio, inventory turnover and current ratio can be grouped into first grade assessment indicator when evaluating the performance of Chinese pharmaceutical industry. These four indexes contain the concept of operational efficiency which shows that operation capability is the key to support the development of Chinese pharmaceutical industry, needing to be highly valued when organizations making business policy. When it comes to velocity of development, the contribution of R & D intensity is relatively small, which shows innovation ability of China’s pharmaceutical industry is still weak. Innovation is the lifeblood of enterprise development, needing to be improved to promote enterprise’s core competitiveness in the future development. Originality/value – This paper selects Y1-Y7 as the performance evaluation system of pharmaceutical manufacturing enterprises, while X1-X15 as performance evaluation index system from the financial perspective, which indicated that the evaluation system is scientific and practical. The empirical result shows that the operation capability makes the largest contribution to the performance of China’s pharmaceutical industry, while R & D ability and the enterprise core competitive ability are weak.

Organizational performance evaluation and performance paradox in CCI organizations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marge Sassi ◽  
Ülle Pihlak ◽  
Gesa Birnkraut
Keyword(s):  
Performance Evaluation ◽  
Mixed Methods ◽  
Organizational Performance ◽  
Mixed Methods Research ◽  
Design Methodology ◽  
Creative Industries ◽  
Expert Interviews ◽  
Content Type ◽  
And Performance ◽  
Cultural And Creative Industries

PurposeThe study aims to understand how practicing organizational performance evaluation (OPE) is related to the performance paradox (tensions between creative freedom and survival challenges) in “evaluation-hesitant” cultural and creative industries (CCI) organizations.Design/methodology/approachMixed methods research, consisting of moderation analyses and unstructured expert interviews.FindingsA conceptual model is developed to explain how creative freedom and survival challenges affect OPE in “evaluation-hesitant” CCI organizations.Originality/valueThe authors bring a new understanding to the factors that contribute to evaluation-hesitance in CCI. The paper contributes to discussing both the theory of paradox and flow theory in explaining the relations between OPE, creative freedom and survival challenges.

Performance measurement and management for maintenance: a literature review

2015 ◽  
Vol 21 (1) ◽  
pp. 2-33 ◽  
Author(s):  
Aditya Parida ◽  
Uday Kumar ◽  
Diego Galar ◽  
Christer Stenström
Keyword(s):  
Literature Review ◽  
Performance Measurement ◽  
Balanced Scorecard ◽  
Performance Indicators ◽  
Relevant Literature ◽  
Extensive Literature ◽  
Content Type ◽  
Performance Matrix ◽  
And Performance ◽  
Maintenance Performance

Purpose – The purpose of this paper is to provide a literature review of the performance measurement (PM) in maintenance. The authors aim to discuss the background and development of the PM for maintenance, besides defining the concept of performance measures for maintenance and the frameworks developed. Design/methodology/approach – A detailed and extensive literature search and study was undertaken by the authors on the concept and definition of PM, performance indicators (PIs), maintenance performance indicators and various performance frameworks. The history and theory of PM over different phases of business and technological developments have been critically examined and analysed in this review paper. Findings – This paper reviews and presents the different PIs and PM frameworks like; balanced scorecard (BSC), performance prism, performance pyramid and performance matrix, etc., and identifies their characteristics and shortcomings. After considering related issues and challenges, frameworks and approaches for the maintenance performance measurement (MPM) are also presented, where the emerging techniques like; emaintenance have also been discussed amongst others. More and more industries are applying the balanced and integrated MPM frameworks for their competitive survivability and sustainability. Practical implications – The concept, issues and approaches considered for the MPM frameworks can be adapted by the practicing managers, while trying to define and develop an MPM framework for the operation and maintenance activities. The considerations of the advantages and limitations of different frameworks can provide insights to the managers for implementation. Originality/value – Some literature reviews on MPM and MPM frameworks are available today. This paper makes an attempt to provide a detailed and relevant literature review, besides adding value in this new and emerging area.

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