Digital technologies and the balance between control and empowerment in performance management

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eirik Bådsvik Hamre Korsen ◽  
Marte Daae-Qvale Holmemo ◽  
Jonas A. Ingvaldsen
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Management Practices ◽  
Single Case ◽  
Command And Control ◽  
Digital Technologies ◽  
Performance Measurement System ◽  
Content Type ◽  
And Control

Purpose This paper aims to explore how manufacturing organisations’ performance measurement and management (PMM) systems are evolving when digital technologies (DTs) are deployed. It focusses on the operational level, asking whether DTs are used to promote command-and-control or empowerment-oriented performance management. Design/methodology/approach The findings are based on a single case study from a department of a Norwegian electrochemical plant. The department recently implemented a performance measurement system (PMS) supported by DTs to capture, analyse and visualise close-to-real-time performance data on individuals and teams. The authors analysed both the management practices associated with the new PMS and how those related to other PMM-subsystems in the organisation. Findings When seen in isolation, the new PMS was used to promote empowerment and operators reported a significant increase in perceived psychological empowerment. However, other parts of the organisation’s PMM system remained control-oriented, so that the overall balance between control and empowerment remained stable. Practical implications New PMSs might be added to support local needs and create arenas for empowerment without disturbing the overall balance in the PMM system. Originality/value Building on the insights from the case study, the authors propose that DTs may be deployed to promote both command-and-control and empowerment within different PMM subsystems in the same organisation. Hence, the deployment of DTs is likely to have contradictory effects, which are best understood through a “system of systems” perspective on PMMs.

Digitalisation and the performance measurement and management system: reinforcing empowerment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eirik Bådsvik Hamre Korsen ◽  
Jonas A. Ingvaldsen
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Information And Communication Technologies ◽  
Continuous Improvement ◽  
Industry 4.0 ◽  
Management Practices ◽  
Middle Managers ◽  
Performance Measurement System ◽  
Content Type

PurposeThis study explores how information and communication technologies (ICT) can contribute to empowerment in an Industry 4.0 setting.Design/methodology/approachThe results are based on a case study of a Norwegian manufacturing organisation that has highly automated production and an integrated ICT platform. Data analysis was guided by the Smith and Bititci (2017) framework for performance measurement and management.FindingsWhen powered by advanced ICT, the performance measurement system matures. The design and development of the ICT platform also reinforce the organisation's existing performance management practices. Empowerment is strengthened when automated collection, analysis and reporting of performance data free up middle managers' time so that they, together with operators, can drive continuous improvement.Research limitations/implicationsThe findings are limited to a single case study and require further testing for transferability to other organisations. Future research should explore whether performance management practices are also reinforced by ICT in more command- and control-oriented organisations.Practical implicationsThe paper suggests an alternative strategy of Industry 4.0 transformation for organisations committed to empowerment. Such organisations should rely on in-house, iterative ICT development and build digital competence broadly.Originality/valueThis article contributes to the understanding of how performance measurement and management are interrelated and evolve in the context of Industry 4.0. To the best of the authors’ knowledge, highlighting the role of middle managers in empowering operators through continuous improvement is novel in the performance measurement and management literature.

scholarly journals The use of management control and performance measurement systems in SMEs

2018 ◽  
Vol 38 (11) ◽  
pp. 2169-2191 ◽  
Author(s):  
Biljana Pešalj ◽  
Andrey Pavlov ◽  
Pietro Micheli
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Control Systems ◽  
Management Practices ◽  
Single Case ◽  
Management Control ◽  
Theory And Practice ◽  
Content Type ◽  
And Performance

Purpose The purpose of this paper is to respond to recent calls for understanding how multiple management control (MC) and performance measurement (PM) systems are used simultaneously for managing performance, particularly in the context of small- and medium-sized enterprises (SMEs). Design/methodology/approach Data are collected during an in-depth case study of MC and PM and management practices in a Dutch SME using multiple data sources and elicitation methods, including interviews and participant observations. Findings This study identifies managerial practices that enable the interplay of the four control systems – beliefs, boundaries, diagnostic and interactive – helping the organization manage organizational tensions in relation to short- and long-term focus, predictable goal achievement and search for new opportunities, internal and external focus, and control and creativity. Research limitations/implications This paper advances the research on integrating multiple aspects of performance management, particularly technical and social. This research is based on a single case study; future qualitative and quantitative studies could explore the interplay between the four control systems in other settings and explore the relationship between control systems and leadership style. Practical implications Managing performance requires active and continuous use of all four control systems. This is particularly salient in SMEs where less formal controls play a key role and where balance needs to be ensured despite the lack of managerial processes and capabilities. Originality/value The findings advance PM and management theory and practice in the context of SMEs.

Performance measurement system in the situation of simultaneous vertical and horizontal integration

2016 ◽  
Vol 36 (10) ◽  
pp. 1182-1200 ◽  
Author(s):  
Jukka Pellinen ◽  
Henri Teittinen ◽  
Marko Järvenpää
Keyword(s):  
Performance Measurement ◽  
Single Case ◽  
Field Studies ◽  
Production Performance ◽  
Performance Measurement System ◽  
Horizontal Integration ◽  
Content Type ◽  
Performance Measurement Systems ◽  
Integration Strategies

Purpose The purpose of this paper is to extend the knowledge of the use of performance measurement systems (PMS) in situations where the benefits of both vertical and horizontal integration strategies are sought simultaneously. Design/methodology/approach This is a single case study, the purpose of which is to build a contextual theory. Findings The main results highlight three competing and partly contradictory tendencies in the development and use of PMS in organizational integration. In addition, the authors have identified features of PMS that may benefit or hinder integration. Grounded on empirical findings the paper presents a more complete theoretical framework of PMS for integration. Research limitations/implications The propositions of the framework need to be tested in different contexts with case and field studies or a large sample of data using statistical techniques to improve external validity. The causal relationships explored in this study may be further developed using longitudinal studies. Practical implications In acquisition situations there exists the need for vertical integration to control the growing complexity but at the same time for horizontal control to advance customer-centred production. Performance measurement is the key issue to examine the execution and results of such integrations. Originality/value Case study findings are used to develop a more comprehensive theory of PMS design and use in situations where both vertical and horizontal integration are sought. Contrary to current understandings, the central statement of this study is that horizontal organization is not an alternative to vertical organizational structure but they can be effectively coupled.

Exploring the performance effects of performance measurement system use in maintenance process

2014 ◽  
Vol 20 (4) ◽  
pp. 377-401 ◽  
Author(s):  
Jaakko Tätilä ◽  
Pekka Helkiö ◽  
Jan Holmström
Keyword(s):  
Performance Measurement ◽  
Measurement System ◽  
Single Case ◽  
Performance Measurement System ◽  
Content Type ◽  
System Use ◽  
Performance Effects ◽  
Improved Performance ◽  
Maintenance Process

Purpose – The intended function of performance measurement is to support the effective management of an organisation and the improvement of organisational performance. However, how performance measurement should be used operationally to support the achievement of improved performance is not self-evident. The purpose of this paper is to examine the operational use of performance measurement in practice and to describe how different use practices contribute to improved performance. Design/methodology/approach – The authors conducted an exploratory single case study in a maintenance process. Data were collected using a mixed methods approach that encompassed qualitative meetings and interviews (identification of usage practices) followed by a quantitative survey (elaboration of usage practices and their performance effects). Findings – Three usage practices are relevant: Inspect and Improve, Motivate, and Decision Making. Improved performance is best achieved through motivational and supportive improvement use. Furthermore, performance measurement systems must be designed properly to establish their use. Research limitations/implications – Being based on a single-case study, the identified usage practices may be limited to field service organisations or other organisations with similar organisational structures. The findings suggest opportunities for further research linking operational performance measurement system use and the body of knowledge on the design and purpose of performance measurement in maintenance processes. Practical implications – A performance measurement system can be used as a motivational improvement tool in operational level leadership. Upper level management must support its use by designing an understandable and applicable system. Originality/value – This paper identifies specific usage practices that contribute to improved performance, thereby providing a more detailed view than the usage categories found in the extant literature. The focus is on operational, rather than strategic, level management.

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.

scholarly journals Supply chain performance measures and metrics: a bibliometric study

2018 ◽  
Vol 25 (3) ◽  
pp. 932-967 ◽  
Author(s):  
Deepa Mishra ◽  
Angappa Gunasekaran ◽  
Thanos Papadopoulos ◽  
Rameshwar Dubey
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Performance Management ◽  
Citation Analysis ◽  
Performance Measures ◽  
Critical Evaluation ◽  
Performance Measurement System ◽  
Supply Chain Performance ◽  
Content Type ◽  
And Control

Purpose The purpose of this paper is to review the existing literature on supply chain performance measures and metrics (PMMs). It provides a critical evaluation of 234 articles published in past 24 years. Design/methodology/approach The paper examines the studies published from 1991 to 2014 by adopting the bibliometric technique of citation and co-citation analysis. Findings The analysis of the results indicate that the number of articles on supply chain PMMs is increasing at its fastest pace in the past few years. Furthermore, the study identifies some of the most influential articles on performance measurement and metrics. Finally, it concludes that there has been a transition from traditional to more sophisticated performance measurement system. Research limitations/implications This study focuses only on supply chain performance measurement and metrics and excludes research on performance management and control. Thus, researchers may explore and extend this area of research. Originality/value To the knowledge of the authors, this is the first study to review the literature on supply chain PMMs by using citation and co-citation analysis. The study includes 234 articles over the time of 24 years (1991-2014).

scholarly journals How performance measurement influences stakeholders in not-for-profit organizations

2017 ◽  
Vol 37 (9) ◽  
pp. 1164-1184 ◽  
Author(s):  
Haley Allison Beer ◽  
Pietro Micheli
Keyword(s):  
Performance Measurement ◽  
Single Case ◽  
Institutional Logics ◽  
Performance Goals ◽  
Content Type ◽  
For Profit ◽  
Not For Profit ◽  
And Performance ◽  
The Uk

Purpose The purpose of this paper is to examine the influences of performance measurement (PM) on not-for-profit (NFP) organizations’ stakeholders by studying how PM practices interact with understandings of legitimate performance goals. This study invokes institutional logics theory to explain interactions between PM and stakeholders. Design/methodology/approach An in-depth case study is conducted in a large NFP organization in the UK. Managers, employees, and external partners are interviewed and observed, and performance-related documents analyzed. Findings Both stakeholders and PM practices are found to have dominant institutional logics that portray certain goals as legitimate. PM practices can reinforce, reconcile, or inhibit stakeholders’ understandings and propensity to act toward goals, depending on the extent to which practices share the dominant logic of the stakeholders they interact with. Research limitations/implications A theoretical framework is proposed for how PM practices first interact with stakeholders at a cognitive level and second influence action. This research is based on a single case study, which limits generalizability of findings; however, results may be transferable to other environments where PM is aimed at balancing competing stakeholder objectives and organizational priorities. Practical implications PM affects the experience of stakeholders by interacting with their understanding of legitimate performance goals. PM systems should be designed and implemented on the basis of both their formal ability to represent organizational aims and objectives, and their influence on stakeholders. Originality/value Findings advance PM theory by offering an explanation for how PM influences attention and actions at an individual micro level.

Performance measurement and its impact on Brazilian public academic libraries

2017 ◽  
Vol 51 (3) ◽  
pp. 579-590
Author(s):  
Milena Celere ◽  
Glauco Henrique de Sousa Mendes ◽  
Gilberto Miller Devós Ganga ◽  
Roberto Antonio Martins
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Academic Libraries ◽  
Quantitative Research ◽  
Management Practices ◽  
Performance Measurement System ◽  
Survey Method ◽  
Research Approach ◽  
Performance Management Systems ◽  
Library Management

Assessment and measurement of performance in academic libraries are well established. However, in developing countries such as Brazil, this has not been fully explored. This study aims to contribute to the knowledge by investigating practices of measuring library performance in Brazilian public academic libraries and analyzing their relationship with managerial processes. It employs a survey method with a descriptive-explanatory objective and follows a quantitative research approach. Data was gathered from 149 libraries. Results indicate that performance measurement system at academic libraries in Brazil lack systematic methods. However, libraries with implemented performance management systems have better management practices, reflecting in their library management maturity.

Institutional logics and risk management practices in government entities: evidence from Saudi Arabia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peter Murr ◽  
Nieves Carrera
Keyword(s):  
Risk Management ◽  
Saudi Arabia ◽  
Management Practices ◽  
Single Case ◽  
Institutional Logics ◽  
Content Type ◽  
Traditional Logic ◽  
Adoption And Implementation ◽  
The Government

Purpose This study aims to understand how institutional logics influence the adoption and implementation of risk management (RM) practices by government entities in a non-western, developing country. Design/methodology/approach This study draws on the institutional logics perspective (ILP) to analyze a case study of a government entity in Saudi Arabia. Data were obtained from semi-structured interviews, observations and documentary evidence. Findings Findings suggest that the adoption and implementation of RM projects by Saudi governmental agencies was rooted in a traditional logic, even though the catalyst of the government for adopting a RM culture across government agencies was framed within a reform program inspired by a modernization logic. In the entity under investigation, the RM project led to an unstable situation where actors were confronted with these two competing logics. Although the project used manifestations of a modernization logic, the actions of individuals within the organization were embedded in a traditional logic. Research limitations/implications The study is based on a single case study in a specific country, limiting the generalizability of the findings. Originality/value This study provides novel evidence of the adoption and implementation of RM in governmental entities in a developing, non-western, country using ILP. Doing so enhances our knowledge about how managers struggle with competing institutional logics in an underexplored setting and enriches current accounts of key drivers and barriers of RM. It also addresses calls for a deeper understanding of the logics and managerial practices interplay in the public sector.

scholarly journals Evolutionary paths of performance measurement and management system: the longitudinal case study of a leading SME

2020 ◽  
Vol 24 (4) ◽  
pp. 495-510
Author(s):  
Alberto Sardi ◽  
Enrico Sorano ◽  
Alberto Ferraris ◽  
Patrizia Garengo
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Management System ◽  
Management Style ◽  
Longitudinal Case Study ◽  
Management Information ◽  
Content Type ◽  
Evolutionary Paths

Purpose The literature highlights the relevance of performance measurement and management system in small and medium enterprises (SMEs) to face the current competitive environment. However, a number of studies investigate how performance measurement and management system is effective for evolving and how contingency factors could influence this change. Newer experiences are sporadic and rarely investigated by researchers and practitioners. The purpose of this study is to identify the feasible evolutionary path of performance measurement and management system in leading SMEs to respond to current business challenges. Furthermore, it aims to contribute to the understanding of the role of key contingency factors influencing this evolution. Design/methodology/approach A longitudinal case study, based on retrospective and real-time investigations, is performed to investigate the primary evolutions of the performance measurement and management system and its key determinants. Findings The findings highlight two evolution paths, increasing the maturity of performance measurement. The first path highlights a strong command and control of performance management; the second path shows a democratic and participative of performance management. Moreover, management information system, organizational culture and management style are highlighted as key contingency factors in the change of performance management. Originality/value The authors contribute to knowledge in performance measurement field, showing how the efforts for developing performance measurement and management system in a leading SME could determine two different evolutionary paths. Furthermore, the paper describes the increasing role of organizational culture, management style and management information system in performance management evolution, as well as the relevance of online chats and social media in performance management activities.

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