scholarly journals Explaining success of performance management systems

2019 ◽  
Vol 68 (2) ◽  
pp. 362-388
Author(s):  
Erkki K. Laitinen ◽  
Tarmo Kadak
Keyword(s):  
Financial Performance ◽  
Performance Management ◽  
Corporate Performance ◽  
Least Squares Method ◽  
Management Systems ◽  
Path Coefficient ◽  
Content Type ◽  
Performance Management Systems ◽  
The Impact ◽  
Perceived Environmental Uncertainty

PurposeThe purpose of this paper is to use the logical chain of key factors (KFs) to explain the success of performance management systems (PMS) and corporate performance.Design/methodology/approachThe authors use the strength of the KFs chain to capture PMS success. First, the authors assume that perceived environmental uncertainty (PEU) is positively associated with the strength (H1). The higher the PEU, the stronger is the chain as a response to uncertainty. Second, the authors assume that the strength improves performance (H2) but third, that the impact of the strength is negatively moderated by competition (H3). Fourth, the authors assume that this improvement leads to superior corporate performance (H4). The research model is tested by applying the partial least squares method for a sample of 61 Estonian and Finnish firms.FindingsEmpirical evidence shows that PEU is negatively correlated to the strength of the chain but when controlled for a set of control variables, the path coefficient is positive. The strength of the chain is positively associated with improvement in performance. The impact of the strength of the chain on financial performance is negatively moderated by competition. The improvement in performance is positively associated with the attainment level of strategic goals. The improvement in non-financial performance does not significantly affect corporate profitability.Practical implicationsThe levels of PEU and competition should be taken into the account when designing, adjusting and assessing the PMS of organization.Originality/valueThe authors give explanation why evidence about the effects of PMS on the performance of the firm is mixed.

Catch-22

2017 ◽  
Vol 38 (2/3) ◽  
pp. 78-87
Author(s):  
Thomas Kaarsted
Keyword(s):  
Side Effects ◽  
Performance Management ◽  
Management Systems ◽  
Original Research ◽  
Content Type ◽  
Performance Management Systems ◽  
Research Libraries ◽  
Course Of Action ◽  
Catch 22 ◽  
The Impact

Purpose Services to researchers are a key strategic focus point for academic libraries. In many cases these services are linked to performance management systems. However, this kind of system for measuring scholarly research has unintended side effects and may demotivate researchers on a number of levels. This presents somewhat of a catch-22 for research libraries. The purpose of this paper is to describe the Bibliometric Research Indicator (BRI) in Denmark, show why the researchers may feel demotivated, outline the dilemmas and the effects on libraries, and present a possible course of action. Design/methodology/approach At least 14 countries have implemented performance management systems for researchers. The impact has been the topic of several – primarily quantitative – studies, e.g., in Denmark. The analysis is made by means of a qualitative study (interviews with 43 Danish researchers), using motivation crowding as well as self-determination theory to further explore their motives and experiences, to determine whether these factors have any influence on their experience of the BRI. Findings The analysis confirms earlier studies which showed that researchers as a whole do not see the BRI as supportive and that this kind of system may have unintended side effects. Unintended side effects include pressure, limitation of freedom, a drop in the perceived standard of research, the slicing of articles, negative collegial behavior as well as borderline academic theft. In connection researchers do not see the incentives or rewards given by the system as supportive. Research limitations/implications This BRI study is made within only one country and as these systems tend to vary not only from country to country but also with incomparability within faculties and institutes, further studies might expose different patterns. However, as the results fit a more general trend within the research area, the takeaways could potentially prove useful for research libraries in general. Furthermore it could be beneficial to research libraries in general to get a clearer understanding of the role they play, which in part could be done by surveying them on this subject. Practical implications The finding presents potential dilemmas for research libraries, as they might get caught in the crossfire between expectations or demands from the university management and the hope and dreams from individual scholars with the risk of unintentionally alienating a key target group. Thus, a possible course of action is outlined including focus points and target areas for libraries. Originality/value This paper presents original research with some key findings with a focus on the dilemmas for research libraries with regard to BRI-like systems, strategic management and performance measurement.

scholarly journals Management learning, performance and reward: theory and practice revisited

2014 ◽  
Vol 33 (4) ◽  
pp. 342-356 ◽  
Author(s):  
Caroline Rowland ◽  
Roger Hall
Keyword(s):  
Competitive Advantage ◽  
Performance Management ◽  
Organizational Effectiveness ◽  
Theory And Practice ◽  
Management Systems ◽  
Content Type ◽  
Performance Management Systems ◽  
Management Learning ◽  
Wide Range ◽  
The Impact

Purpose – The purpose of this paper is to explore the extent to which organizational learning is recognized through performance management systems as contributing to organizational effectiveness and competitive advantage. Design/methodology/approach – It reviews several pieces of research, employing a wide range of methods, including: content analysis of managers’ reflections; questionnaires completed by managers and mentors; a large-scale survey involving ethnography, interviews and questionnaires; and analysis of documents from professional bodies and management delivery centres. Findings – Genuine integration of individual and organizational goals or transfer of learning from the individual to the organization is not evident. Few qualitative measures of organizational performance are employed. The impact of metrics such as IIP or EFQM on organizational effectiveness is nor discernible. Management learning and development is rarely measured even when it is encouraged by the organization. There is a clear divide between research, teaching and learning and workplace practice. Performance management systems create perceptions of unreliability and inequity. Research limitations/implications – Espousing the value of learning and learning to learn, measuring them accurately and rewarding them with meaningful changes to working life can only improve organizational effectiveness. Research into the few organizations that have successfully embraced triple loop learning in their development of managers may offer a template for transformational learning to sustain competitive advantage. Originality/value – Management development processes have been successful in developing individuals but less successful in achieving organizational development. This paper offers new insights into that gap and the omissions in the metrics by which performance is measured.

Performance management in public universities: overcoming bureaucracy

2018 ◽  
Vol 67 (4) ◽  
pp. 736-753 ◽  
Author(s):  
Nunzio Angiola ◽  
Piervito Bianchi ◽  
Letizia Damato
Keyword(s):  
Performance Management ◽  
Public Universities ◽  
Organizational Factors ◽  
Public University ◽  
Management Systems ◽  
Management Tools ◽  
Performance Levels ◽  
Content Type ◽  
Performance Management Systems ◽  
Adoption And Implementation

Purpose Considering a micro performance perspective, the purpose of this paper is to analyze whether and to what extent the adoption of better performance management systems could improve the performance levels of a public university. Design/methodology/approach With reference to a period of four years (2011-2014), the quality of performance management systems of 29 Italian universities (response rate: 48 percent) was examined and the possible effects on performance levels of these institutions were analyzed by means of statistical methodologies (multiple regression analysis). Outcome indicators were considered. Findings The findings indicate the need to go further “measurement,” and to take care of performance “management,” especially in complex organizations as universities, where academicians identify themselves more with their professions than with the organization and where technicians and administrative employees might look at the performance-based reform with “bureaucratic eyes.” A fruitful cooperation between the professional soul and the bureaucratic one is paramount. Originality/value Studies which analyze organizational factors that could affect the adoption and implementation of performance management systems are rare, and use in prevalence qualitative methods or refer to machine bureaucracies, not many to professional ones as public universities. Moreover, the performance management literature in a public university context deepens the topic of the selection of KPIs and the focus is mainly on macro performance or on management tools for gathering and analyzing performance measures.

Financial disclosure and performance of microfinance institutions

2014 ◽  
Vol 10 (3) ◽  
pp. 314-337 ◽  
Author(s):  
Shakil Quayes ◽  
Tanweer Hasan
Keyword(s):  
Financial Performance ◽  
Least Squares ◽  
Least Squares Method ◽  
Financial Disclosure ◽  
Microfinance Institutions ◽  
Content Type ◽  
Three Stage Least Squares ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to analyze the relationship between financial disclosure and the financial performance of microfinance institutions (MFIs). Design/methodology/approach – The paper utilizes ordinary least squares method to analyze the impact of disclosure on financial performance, an ordered probit model to investigate the possible effect of financial performance on disclosure and utilizes a three-stage least squares method to delineate the endogenous relationship between disclosure and financial performance of MFIs. Findings – The paper finds that better disclosure has a statistically significant positive impact on operational performance of MFIs; second, it also shows that improved financial performance results in better financial disclosure. Keeping the endogenous nature of the relationship between disclosure and performance, the paper uses a three-stage least squares method to show that disclosure and financial performance positively affect each other simultaneously. Research limitations/implications – The paper attempts to delineate a positive association between better disclosure on financial performance of MFIs, which can be used for developing a better disclosure policy by management, formulating more effective guidelines for disclosure by the stakeholders and mandating more appropriate laws and uniform disclosure practice by regulators. Originality/value – This is the first study that uses a large number of MFIs from 75 countries; second, it uses a uniform scale of designating a disclosure rating (assigned by MIX Market) to show the relationship between disclosure and performance. Finally, it uses three-stage least squares method to address the possible endogeneity between disclosure and performance.

Integrating organisational- and individual-level performance management systems (PMSS): a case study in a large Indonesian public sector organisation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rudy M. Harahap
Keyword(s):  
Public Sector ◽  
Performance Management ◽  
Control Systems ◽  
Developing Country ◽  
Management Systems ◽  
Content Type ◽  
Performance Management Systems ◽  
Individual Level ◽  
Level Performance

Purpose This study aims to comprehensively examine the integration of organisational- and individual-level performance management systems (PMSs) in the context of public sector organisations (PSOs) of developing countries (DCs), by investigating the elements of PMSs in the studied organisation. Design/methodology/approach A case study in a large PSO of a developing country was conducted. The design of the study and the data analysis drew on Ferreira and Otley’s PMSs framework. Data were captured from electronic and printed document archives, online written interviews with participants and face-to-face interviews. The data then were triangulated and analysed thematically. Findings The study reveals a recursive relationship between culture and PMSs, and identifies conflicting regulatory requirements and a lack of information technology capacity led to the development of dual, loosely coupled PMSs in the studied organisation. Research limitations/implications The findings may not be generalisable beyond a large, PSO in a developing country; the study did not consider the linkages between the integration of organisational- and individual-level PMSs and other PMSs; the study looked at only two notions of culture; and the study asked participants to recall past events, so was retrospective in its design. Practical implications The findings illustrate the need for public sector managers and key policymakers to use both formal and informal control systems, together with technical and social integration mechanisms, as well as management accounting (MA) and human resources management (HRM) control approaches, when attempting to integrate organisational- and individual-level PMSs in the PSOs of DCs. Social implications Future studies may usefully investigate the integration of organisational- and individual-level PMSs in different contexts, consider culture and contextual factors when investigating the integration of organisational- and individual-level PMSs in different contexts, examine whether national culture also substantially impacts PMSs in other countries and attempt to inform the MA literature by drawing on HRM theory and research on individual-level PMSs. Such studies may help to address the gap between PMS theory and practice and better allow MA researchers to contribute to practice. Originality/value The study contributes to management control systems (MCSs) and PMSs literature by extending our understandings in the relationship between accounting and non-accounting controls, the contextual factors that affect PMSs and highlighting the importance of considering cultural context when integrating PMSs in the PSOs of DCs.

A conceptual framework for integrated performance management systems

2019 ◽  
Vol 31 (3) ◽  
pp. 309-324 ◽  
Author(s):  
Ulf Johanson ◽  
Roland Almqvist ◽  
Matti Skoog
Keyword(s):  
Conceptual Framework ◽  
Performance Management ◽  
Design Methodology ◽  
Present Form ◽  
Management Systems ◽  
Content Type ◽  
Performance Management Systems ◽  
Integrated Performance ◽  
Further Development ◽  
Practical Implications

Purpose The purpose of this paper is to further develop a conceptual framework for analysing performance management systems (PMS). The framework aims to be useful for a rich understanding of a specific organisation’s PMS. At the same time, it should preferable be simple so that it could be used even in practice. The framework adds to earlier work by Malmi and Brown (2008), Ferreira and Otley (2009), Broadbent and Laughlin (2009), Bedford and Malmi (2015) and Johanson et al. (2001). Design/methodology/approach The paper is theoretical but has also been applied to a Swedish municipality. The purpose of the latter was to understand if the framework is feasible so far. Findings The authors hold that the framework in its present form is useful to use as an analytical tool even if it needs to be subjected to further development. Research limitations/implications The paper addresses an issue that is continuously changing. This means that the suggested framework may suffer from theoretical weaknesses in some respects. To balance between a theoretically deep and exhaustive framework and a framework that is simple enough to use is a tricky question that needs further investigation. Practical implications The ambition with the framework is that it shall be useful even in practice. Originality/value The need for further research in the PMS area has been emphasised by the above researcher but also by, e.g., Van Helden and Reichard (2016). They hold that the authors need rich European cases to improve the understanding of how PMS works. The authors hold that the present framework has the potential to meet the demands from Van Helden and Reichard.

Will what is measured be used? An analysis of performance management systems in Pakistani state organizations

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abiha Zahra ◽  
Geert Bouckaert
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Management Systems ◽  
Performance Information ◽  
Institutional Perspective ◽  
Content Type ◽  
Management Framework ◽  
Performance Management Systems ◽  
State Organizations ◽  
And Control

PurposeWith performance as a core theme of public sector reforms, this article explores performance management systems in inter-organizational settings while testing the effect of performance measurement on its use for accountability and control. Using economic neo-institutional perspective in a hierarchical context with turbulent political history, the article investigates the variations in the use of performance information in inter-institutional settings across different legal categories of state organizations.Design/methodology/approachThe performance management framework of Van Dooren et al. (2010) is employed as the basis for this research that explains the link between performance measurement and use. To explore the management of performance in Pakistan, the survey data was collected in 2018; after two democratic governments completed their tenures.FindingsThe research indicated a lower extent of performance measurement and use by the parent ministries in the democratic regimes. This finding adds to the implications of economic institutional theory in a politically turbulent context, where political actors place less emphasis on performance and more emphasis on procedures. It was confirmed that the ministries use the measured performance information for accountability and control on the results, but the moderating role of legal categories in the performance framework did not get confirmation.Originality/valueThe article empirically tests the performance management framework from a Western context in a developing country that has not been discussed frequently in the performance management systems literature.

Remastering contemporary enterprise performance management systems

2017 ◽  
Vol 21 (3) ◽  
pp. 250-260 ◽  
Author(s):  
Michaela Blahova ◽  
Premysl Palka ◽  
Parissa Haghirian
Keyword(s):  
Performance Management ◽  
Management Practices ◽  
Management Systems ◽  
Enterprise Performance ◽  
Business World ◽  
Content Type ◽  
Performance Management Systems ◽  
Academic Texts ◽  
Current Trends ◽  
Synergy Effects

Purpose This paper aims to investigate current trends in selected management systems and analyses their mutual synergy effects to remaster contemporary enterprise performance management systems in the business sphere. Design/methodology/approach This research involves assembling key academic texts and other literature on the subject of changes in management systems worldwide and their influence on remastering contemporary enterprise performance management systems. The literature is reviewed using a systematic approach. More than 3,000 papers and studies are identified and content analysed. Findings The main trends and emerging themes of management practices in the current business world and their synergy effects are identified, reviewed and classified. Originality/value The field of performance management systems and their remastering based on individual corporate needs is an emergent area of study. This paper is relevant to academics, as well as the corporate world, because it introduces summarized results from an extensive number of published studies on the topic of trends in current management systems, their mutual synergy effects and their influence on performance management systems.

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