Performance management on the shop floor – an investigation of KPI perception among managers and employees

2020 ◽  
Vol 12 (4) ◽  
pp. 461-473
Author(s):  
Jasmin Ohlig ◽  
Thomas Hellebrandt ◽  
Amelie I. Metzmacher ◽  
Patrick Pötters ◽  
Ina Heine ◽  
...  
Keyword(s):  
Performance Management ◽  
Performance Indicators ◽  
Management System ◽  
Design Methodology ◽  
Qualitative Interviews ◽  
Shop Floor ◽  
Performance Management System ◽  
Negative Perception ◽  
Content Type ◽  
Floor Level

Purpose The purpose of this paper is to investigate the application of key performance indicators (KPIs) on shop floor level in German small- and medium-sized enterprises (SMEs). The paper focuses on the examination of perception differences between shop floor employees and managers with regard to collection, calculation and consolidation of KPIs as well as visualization and motivational aspects. Design/methodology/approach To examine the hypothesis on differing perceptions regarding KPIs, 27 qualitative interviews with shop floor employees and production managers within 6 SMEs from the German machinery and equipment industry were conducted on basis of a semi-structured guideline. Findings The findings show that shop floor employees self-assess a lack of relevant knowledge when it comes to understanding KPIs. Moreover, the results show that shop floor employees perceive the visualization of shop floor KPIs as insufficient and non-motivational. This goes along with the finding that managers are aware of the lacking benefit of KPIs resulting from the rather negative perception of shop floor employees. The interviewed managers recognize a strong potential for improvement of their KPI systems. Originality/value The interview results confirm the need to design a performance management system on the shop floor that considers and aligns both management and operations, is directed to the shop floor level, considers explicitly the perspective of employees and integrates motivational elements.

Investigating design targets for effective performance management system: an application of balance scorecard using QFD

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alpana Agarwal
Keyword(s):  
Performance Management ◽  
Employee Engagement ◽  
Management System ◽  
Quality Function Deployment ◽  
Employee Performance ◽  
Performance Management System ◽  
Management Support ◽  
Balance Scorecard ◽  
Content Type ◽  
Effective Performance

PurposeAn effective performance management must track level of employee engagement, ensure employee feedback on all aspects and ensure that the people act on that information. Also, it must ensure accessibility of essential conditions to perform. Considering the challenges associated with existing performance management system, present study attempts to discover factual expectations from the employees. The paper also establishes required conditions for fulfilling such expectations.Design/methodology/approachPresent study attempts to discover factual expectations from the employees using the Balance Scorecard approach (BSC). Furthermore, using Quality Function Deployment (QFD), relation between employers' expectation and requirements necessary to fulfill such expectations has also been determined.FindingsThe suggested model has been developed as House Of Performance Management (HOPM) outlining potential leveraging points for enhancing the performance, based on which immediate actionable measures for effective and efficient performance management can also been advocated. The HOQ suggested in this paper can be source of reference while developing performance management system for an organization. Besides, it can help the Human Resource team to discover strategic opportunities and set targets.Originality/valueEffective goal setting, pooled with a method to track progress and identify obstacles, contribute to attainment of bottom to top line results. However, designing and implementing such performance management system has been associated with many challenges like lack of top management support, perception of the process as time-consuming, failure to communicate clear and specific goals and expectations, lack of consistency, etc. (Managing employee performance, 2019). Hence most organizations have been increasingly looking for effective ways of assessing employee performance that can promote stakeholders' satisfaction, employee engagement and continuous improvement.

scholarly journals Proposed Corporate Performance Management Using Integrated Performance Management System (IPMS) at PT Pos Indonesia (Persero)

2018 ◽  
Vol 7 (3.25) ◽  
pp. 71
Author(s):  
Eliza Prilianti ◽  
Muhammad Tresnadi Hikmat
Keyword(s):  
Performance Management ◽  
Performance Indicators ◽  
Management System ◽  
Performance Management System ◽  
Business Opportunity ◽  
Process Implementation ◽  
New Business ◽  
Delivery Services ◽  
Increasing Demand ◽  
Integrated Performance

The big market shifting in postal industry begun since a physical letter was being substituted by digitalization of technology, yet it brings new business opportunity in the e-commerce industry. The e-commerce industry in Indonesia is expected to grow by approximately 18% annually in the next five years. It triggers an increasing demand for parcel delivery services. However, the performance of PT Pos Indonesia (Persero) as a State Owned Enterprise engages in postal industry shows the declining trend. The volume of parcel delivery declined during the last three years. The company has not been able to manage its performance due to the incompatibility of performance management system. The purpose of this research is assisting the company to design new performance management system to improve its performance. The Integrated Performance Management System (IPMS) framework is selected because it is able to overcome the issues in the company. There are five stages of IPMS framework includes foundation, background and information, design process, implementation, and refreshment. It consist of three perspectives includes organizational output, internal process, and resources availability. This research proposed the performance management system for Pos Indonesia and produces 20 key performance indicators (KPI) that derived from company’s vision, mission, and strategy.  

Performance measurement effects on organizational responses to threats

2015 ◽  
Vol 19 (1) ◽  
pp. 24-32 ◽  
Author(s):  
George Huber
Keyword(s):  
Performance Measurement ◽  
Organizational Performance ◽  
Performance Management ◽  
Measurement System ◽  
Management System ◽  
Organization Design ◽  
Performance Measurement System ◽  
Performance Management System ◽  
Content Type ◽  
Management Literature

Purpose – The purpose of this paper is to explain how an organization’s performance measurement system can influence the appropriateness of an organization’s responses to threats. Design/methodology/approach – Inductive and deductive reasoning, drawing on major theories and on empirical findings in the management literature. Findings – An organization’s performance measurement system can influence the effectiveness of the organization’s detections of threats and the appropriateness of the organization’s responses to threats and, in these ways, contribute to the organization’s robustness and sustainability. Practical implications – Formation of an appropriate performance management system can prove critical to both detection of and responses to organizational threats. As such, an organizational performance management system can contribute to organizational robustness and sustainability. Originality/value – The idea, that an organization’s performance measurement system can influence the effectiveness of the organization’s detections of threats and the appropriateness of the organization’s responses to threats, is not articulated in the management literature. Thus, the research reported here is original and would seem to have value to the research community, the organization design community (as an organization’s control systems are an important component of its architecture), and the management community.

Tata Power Delhi Distribution Ltd: measuring beyond the metrics

2012 ◽  
Vol 2 (2) ◽  
pp. 1-17
Author(s):  
Monica Singhania ◽  
R. Venkatesh
Keyword(s):  
Performance Management ◽  
Balanced Scorecard ◽  
Management System ◽  
Graduate Program ◽  
Planning Process ◽  
Performance Management System ◽  
Inclusive Growth ◽  
Strategy Formulation ◽  
Content Type ◽  
The Balanced Scorecard

Subject area The focus is on a performance management system and its strategic alignment using a Balanced scorecard in a Public Private Partnership framework. This case study analyses the situation for Tata Power Delhi Distribution (TPDD) which needs to realign its strategy to meet the emerging sustainability challenges of inclusive growth and combating the climate change. The case covers the field of strategic management, strategy formulation and performance management system deployment using the balanced scorecard. It touches upon the emerging need for corporates to look beyond economic signals and take social and environmental impacts into strategy planning process. Study level/applicability The case can be used in the following courses; post graduate program in public administration; MBA/Post graduate program in management in strategic management; executive training program for Government executives in public sector organizations to highlight the concept of performance management system in PPP companies. Case overview After the initial tumultuous years, TPDD emerged as one of the efficient power distribution companies in Delhi region. One of the major management tools that was helpful to achieve this was the balanced scorecard. TPDD's general manager for corporate strategy & planning reviewed the process and the due diligence that went into designing and implementing the balanced scorecard. Now, after the balanced scorecard success story, he along with Dr Ganesh Das, Head of Group – Strategy wants to take it to a next level and integrate their strategies related to inclusive growth of community and combating the ill effects of climate change. They believe that the balanced scorecard method that had helped them to achieve their strategic goals will help them to achieve future objectives too. But whether the existing four perspectives: financial, customer, internal process and learning and growth would adequately address the emerging challenges or whether there was a need to introduce a new perspective – “The Social Perspective” – is what they contemplate in the case. Expected learning outcomes The case can be used to teach the following: the importance of strategy in an organization and how it helps the firms to realize their stated vision; to highlight the process of strategy formulation and its deployment; to help students realize the difficulties in realizing a strategic goal through performance management system; use the balanced scorecard as an effective tool for strategy deployment and organizational alignment; to introduce students the concept of sustainability in the organization and emerging global challenges; and to illustrate the complexities involved in a strategic planning process Supplementary materials Teaching notes.

Developing a building information modeling–based performance management system for public–private partnerships

2020 ◽  
Vol 27 (8) ◽  
pp. 1727-1762 ◽  
Author(s):  
Jingfeng Yuan ◽  
Xuewei Li ◽  
Yongjian Ke ◽  
Wei Xu ◽  
Zhao Xu ◽  
...  
Keyword(s):  
Performance Management ◽  
Information And Communication Technologies ◽  
Management System ◽  
Building Information Modeling ◽  
Communication Technologies ◽  
Information Modeling ◽  
Performance Management System ◽  
Content Type ◽  
Other Information ◽  
Building Information

PurposeEffective performance management (PM) in public–private partnership (PPP) projects is critical to realizing value for money (VFM). This study aims to provide an in-depth understanding of problems existing in PPP PM and possible avenues for improvement, presenting an experimental system to verify that building information modeling (BIM) and other information communication technologies can improve PPP PM.Design/methodology/approachThe mixed research method adopted in this study combined empirical research with experimental research. Semistructured interviews were used to ascertain the current situation of PPP PM with the help of Nvivo software. A BIM-based performance management system (BPMS), which combines BIM with Web and Cloud technology, was then constructed to achieve performance monitoring, performance measurement, and performance-based payment. Finally, a case study was introduced to explain the function application of the proposed system.FindingsThe case demonstration verified is found to verify that the developed BIM-based execution framework for PPP PM can effectively guide stakeholders toward achieving mixed PM, promote effective PM, and improve work efficiency with the support of BIM and other information and communication technologies.Originality/valueThrough the development of a BPMS for PPP projects, the effectiveness and efficiency of PM are improved. Practical PM applications are also provided to different stakeholders, through which the key performance indicators and the behaviors of the government and private-sector partners can be monitored to form a more comprehensive and reasonable PM mechanism and promote the realization of VFM in PPP projects.

Improving the government performance management system in South Korea

2018 ◽  
Vol 7 (3) ◽  
pp. 266-278 ◽  
Author(s):  
Jongho Roh
Keyword(s):  
South Korea ◽  
Performance Management ◽  
Management System ◽  
Government Performance ◽  
Performance Management System ◽  
Content Type ◽  
South Korean ◽  
Efficient Performance ◽  
Leadership Diversity ◽  
The Government

Purpose The purpose of this paper is to review the current performance management system of the South Korean Government and make recommendations for improvements to its institutional, operational, and value dimensions. Design/methodology/approach Based on a literature review, the government performance management system in South Korea is analyzed according to its institutional, operational, and value dimensions. Findings The Korean Government’s performance management system has developed distinct features such as strong political leadership, diversity in types of performance evaluation, the institutional involvement of civilian experts, and a mutually cooperative system among agencies tasked with efficient performance management. This paper concludes that the government performance management system requires further improvement in its institutional, operational, and value dimensions. Originality/value The paper provides scholars and policy makers concerned with government performance management, with diverse perspectives and suggested areas for improvement.

Lessons from mandated implementation of a performance management system

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jean-Sebastien Marchand ◽  
Mylaine Breton ◽  
Olivier Saulpic ◽  
Élizabeth Côté-Boileau
Keyword(s):  
Performance Management ◽  
Management System ◽  
Large Scale ◽  
Management Systems ◽  
Public Healthcare ◽  
Performance Management System ◽  
Management Tools ◽  
Content Type ◽  
Performance Management Systems ◽  
Organisational Context

PurposeLean-inspired approaches and performance management systems are being implemented in public healthcare organisations internationally. However, the literature is inconclusive regarding the benefits of these management tools and there is a lack of knowledge regarding processes for large-scale implementation of these tools. This article aims to describe the implementation process and to better understand how this process influences the mandated performance management system.Design/methodology/approachThis research is based on a comparative case study of three healthcare organisations in Canada. Data consist documents, non-participant observation and semi-structured interviews with key actors (n = 30). Analysis is based on a sociotechnical approach to management tools that considers organisational context, and the tool's technical substrate, theory of action and managerial philosophy.FindingsResults show that despite a standardised national mandate, the tool as implemented varied between organisations in terms of technical substrate and managerial philosophy. These variations are explained by the flexibility of the technical substrate, the lack of clarity of the managerial philosophy, and some contextual elements. Successful implementation may rest upon high hybridization of the tool on these different dimensions. A precise and prescribed technical substrate is not sufficient to guarantee implementation of a managerial philosophy.Practical implicationsMandated implementation of management tools may be more successful if it is explicit on the managerial philosophy, the technical substrate and the link between the two, and if it provides some leeway to adapt both to the organisational context.Originality/valueThis is one of the few studies to describe and analyse the process involved in mandated large-scale implementation of performance management systems in public healthcare organisations.

The boundaries of a performance management system between learning and control

2015 ◽  
Vol 19 (3) ◽  
pp. 7-21 ◽  
Author(s):  
Paolo Canonico ◽  
Ernesto De Nito ◽  
Vincenza Esposito ◽  
Marcello Martinez ◽  
Lorenzo Mercurio ◽  
...  
Keyword(s):  
Performance Management ◽  
Management System ◽  
Single Case ◽  
Individual Performance ◽  
Specific Reference ◽  
Performance Management System ◽  
Content Type ◽  
And Control ◽  
A Performance

Purpose – This paper aims to consider how and to what extent it is possible to interpret a performance management system (PMS) as a typical control mechanism or in a more innovative way as a learning tool. PMSs are typically used for planning and coordination purposes. However, they may also be used as an opportunity to foster learning inside the organization. Design/methodology/approach – The empirical analysis was carried out during January-May 2014. A single case study was developed, in the first phase, through document analysis and semi-structured interviews with three top managers, to investigate the purpose and rationale of the design of the PMS. The investigation then continued with non-participant observation. Findings – The picture shows the dominance of “command and control” thinking, based on a cybernetic control system connected to targets and linking the achievement of these targets to individual performance. Practical implications – This paper helps to contextualize reflections on PMSs and potential learning outcomes in knowledge organizations, with specific reference to the airport industry. Originality/value – This paper contributes to the extant debate on the relationship between PMSs and learning. Traditionally, the literature has focused only on particular aspects of PMSs. Other authors, relying on a contingent approach, have instead put forward the need of a more comprehensive and integrated frameworks encompassing organic conception of PMSs, as well as of the interdependencies among their components. In the case study under scrutiny in this paper, adaptive or single-loop learning is taking place, in which adaptive changes occur but do not lead to any major changes.

Growing pains: problems in the performance appraisal of China's state-owned enterprises transformed from governmental organizations

2012 ◽  
Vol 2 (8) ◽  
pp. 1-10
Author(s):  
Huang Gui ◽  
Fu Chunguang ◽  
Chen Jingli ◽  
Pan Minting
Keyword(s):  
Performance Management ◽  
Performance Appraisal ◽  
Management System ◽  
Assessment System ◽  
Performance Management System ◽  
Appraisal System ◽  
Content Type ◽  
Governmental Organization ◽  
Growing Pains ◽  
Performance Appraisal System

Study level/applicability This case is suitable for undergraduates, MBA students and students from business administration departments in the teaching of human resources management and performance management. Case overview Luodian Electric Power Construction Corporation Group (LEPCC Group) is a state owned enterprise transformed from a construction unit of Luopu Power Supply Bureau (LPSB), a governmental organization in charge of all the electricity supply in Luopu City. The general manager of LEPCC, Gu Ming tried to set up a modern market-oriented management system for LEPCC. Unfortunately the problems that had accumulated in the past two decades during which LEPCC was a governmental organization made his reforms very difficult. The first headache for Gu Ming was the performance appraisal reform in LEPCC. The existing performance appraisal system seemed to have at least three problems in practice: unclear appraisal objectives, an improper assessment system, a different appraisal standard for similar positions. What should Gu Ming do to build a proper performance appraisal system to help the fast-growing LEPCC Group to make LEPCC a competitive market-oriented player? Expected learning outcomes The first objective of this case is to enable students to understand that the issues of working performance are issues of people first, rather than issues of the management system. If the management focuses on the system instead of on the staff of the company to design the performance management system, the system will be fruitless and inefficient. The second objective is to cultivate students' capability to apply the basic theories of human resource management and the knowledge of performance appraisal in case analysis and practical management. This case, seemingly about performance appraisal, is in fact about the organizational structure and processes of the organization. Reform should start with organizational analysis, job analysis and job descriptions. Only when all these have been done correctly, can the performance management system be designed more reasonably, scientifically and efficiently. Supplementary materials Teaching notes are available; please consult your librarian for access.

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