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.

DEVELOPING PERFORMANCE MANAGEMENT SYSTEM WITH BALANCED SCORE CARD APPROACH: A CASE STUDY OF PT. SMART-MODULAR BUILDING INDONESIA

2020 ◽  
Vol 25 (3) ◽  
pp. 200-215
Author(s):  
Elia Oey ◽  
Daniel Tommiki ◽  
Fachrun Nisaa Widyastuti
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Continuous Improvement ◽  
Measurement System ◽  
Management System ◽  
Performance Measurement System ◽  
Balanced Score Card ◽  
Performance Management System ◽  
Score Card

Performance Measurement System (PMS) is essential for any organization, as it serves as guiding compass for continuous improvement. The research is a case study in a modular concrete company refining their current PMS using Balanced Score Card approach. The research developed Balanced Score Card starting from the whole company level, and then cascaded down into 3 main company activities, design, supply and construction. Measurement for 1st quarter of 2019 was done, and target and action plans for each activity were also set for the studied company

The Impact of Strategic Performance Measurement System on Organizational Performance in Saudi Universities

2013 ◽  
Vol 1 (2) ◽  
pp. 64-71
Author(s):  
Naser Zouri ◽  
Zahra Abdolkarimi ◽  
Seyed A. Payambarpour
Keyword(s):  
Performance Measurement ◽  
Organizational Performance ◽  
Performance Management ◽  
Enterprise Resource Planning ◽  
Measurement System ◽  
Resource Planning ◽  
Planning System ◽  
Performance Measurement System ◽  
Strategic Performance ◽  
The Impact

Objective- The aim of the study is to enhance the mechanism of strategic performance measurement system goals base of four research questions: (i) to what association between the MCS and enterprise resource planning system (ERPS) intention to strategy performance management system (SPMS)? (ii) To what association between the performance management system (PMS) and ERPS intention to SPMS? (iii) To what relationship between the resource–based view/capabilities and ERPS intention to SPMS? (iv)To do comprehensiveness of organizational performance factors affected on ERPS intention to SPMS? Methodology/Technique A survey questionnaire was used to collect the data in Madinah, Reyaz, and Jeddah. Data was collected during the last section of 2013 of which 160 successful questionnaires were gathered for further analysis. Findings The result shows the impact of evaluation SPMS to solve the market place error and also ability of executives' level of management to solve the behaviours issue in business organization. Novelty - The significance of study contribute executive branch in Saudi universities for the safety of strategic performance measurement system implementation to be modified or changed, taking into account the financial metrics and non-financial when designing a control system. Type of Paper Empirical paper Keywords: , Strategic performance measurement system, Enterprise resource planning system, Strategic management category, Market place error.

Knowledge building about performance evaluation in lean production

2019 ◽  
Vol 30 (5) ◽  
pp. 798-820 ◽  
Author(s):  
Andre Eduardo Staedele ◽  
Sandra Rolim Ensslin ◽  
Fernando Antônio Forcellini
Keyword(s):  
Performance Evaluation ◽  
Strategic Planning ◽  
Performance Measurement ◽  
Performance Management ◽  
Measurement System ◽  
Lean Production ◽  
Performance Measurement System ◽  
Research Approach ◽  
Content Type ◽  
Practical Implications

Purpose The purpose of this paper is to focus on the analysis of the characteristics and gaps of a literature fragment from the international scientific publications on performance evaluation in lean production, aiming to generate new knowledge and suggestions for future scientific research. Design/methodology/approach The authors have adopted “ProKnow-C” methodology, a qualitative research approach that is used for literature selection, identification, analysis and reflection on the established characteristics. Findings From a bibliographic portfolio of 67 research works, 91 per cent of the works have individual metrics and 84 per cent have sets of metrics. Evaluating the focus of the performance measurement system, 34 per cent of works measure performance, 43 per cent compare performance and only 18 per cent assist in strategic planning. Evaluating the phases of the PMS life cycle, 87 per cent attend to the design, and 66 per cent attend to the activities of data collection, allow diagnosis, evaluate performance and communicate results. However, only 3 per cent of the studies analysed the use of PMS after its implementation and no research evidenced the review of metrics and objectives based on strategic planning. Research limitations/implications The search formula to capture the bibliographic portfolio (BP) was limited to the following terms: performance measurement, performance evaluation, performance assess*, performance appraisal, management, indicator*, critical factors, best practices, lean production, lean manufacturing and lean system. The BP was determined based on the limitations set by the research authors: articles published in English and Portuguese languages, from 2000 to 2018, in the Engineering Village, Scopus, EBSCO, Web of Science, ProQuest and Science Direct databases, which were freely available on the internet. Lastly, conceptual knowledge was used to select the articles, so there is a chance that unintentional losses could happen. Practical implications As practical implications for practitioners, the authors have identified that a PMS from an organisation that aims to become “lean” needs to be defined and revised considering its strategy, adjusting its set of metrics and targets to the internal and external challenges. As practical implications for researchers, opportunities have been identified to develop longitudinal studies in PMS utilisation and review to understand how the measurement system must evolve over time through changes in the internal and external environments of organisations. Originality/value This research adds value because its results allow researchers and practitioners to visualise the boundaries of the knowledge from the BP, about performance management in lean production, and what their gaps are in relation to the reference model of performance evaluation. This research is original because it was not observed in the literature review, a research that used the ProKnow-C methodology for analysis of the alignment and gaps between lean production and performance evaluation.

scholarly journals Implementation of Government Performance Accountability System (SAKIP) in Indonesian Local Government (Case of Regional Development Planning Board of Sukabumi Regency)

2021 ◽  
Vol 5 (1) ◽  
pp. 59
Author(s):  
Tomi Setianto ◽  
Sinta Ningrum ◽  
Didin Muhafidin
Keyword(s):  
Local Government ◽  
Organizational Performance ◽  
Performance Management ◽  
Management System ◽  
Central Government ◽  
Structured Interview ◽  
Development Planning ◽  
Performance Measurement System ◽  
Performance Management System ◽  
Public Performance

The use of performance measurement system in the public sector (PMS) has become a panacea in addressing an inefficient bureaucracy that fails to meet the citizen satisfaction by its lethargic service delivery. It has introduced a way for public managers to better generate outcome policy into a concrete-measurable actions. While many countries already demonstrates the benefit of using the system, Indonesia remain struggle in implementing the ideal of performance management particularly in the context of local government that usually lacking of adequate capacity and sources. Despite the continuous support by central government, the diverse of socio-environmental context hinder local government to fully implements of SAKIP. This paper sought to portray the implementation and challenges that is faced by one local government agencies in Sukabumi, West Java Indonesia in implementing Indonesian public performance management system (SAKIP). This paper is using qualitative approach by conducting structured interview to key informants. The results showed that organizational variables have been able to accommodate the implementation of SAKIP policy through units formed specifically in organizational structure and governance regulations, organizational interpretation variables are still necessary to improve the dissemination of policy information to all levels of employees, application variables where the implementation of policies are still experiencing constraints, especially in planning and evaluation, as well as a lack of specific strategies in improving organizational performance. This paper reinforces the results of previous studies related with performance management system in Indonesian local government that its implementation has not been yet showing their best result.

scholarly journals PERFORMANCE MEASUREMENT SYSTEM OF THE RESOURCES IN REPUBLIC OF KOSOVO

2019 ◽  
Vol 32 (1) ◽  
pp. 101-104
Author(s):  
Baki Koleci ◽  
Redon Koleci
Keyword(s):  
Performance Measurement ◽  
Organizational Performance ◽  
Measurement System ◽  
Management System ◽  
Nonprofit Sector ◽  
Performance Measurement System ◽  
Work Processes ◽  
Learning And Development ◽  
Joint Research ◽  
The Public

Professor Robert Kaplan of Harvard Business School and David Norton as the Balance Scorecard Collavorative founder and director of Palladium Group with joint research since 1990 and so far have come to the conclusion of how contemporary enterprises advertise in business, stressing that organizations have strategies to well formulated, but 7 out of 10 organizations are not successful in its realization. As a main cause have highlighted the lack of appropriate instrument for realization of the strategy. Their collaboration in the 1990 project "Measurement of performance of the organization" that involved 12 companies and has resulted in the creation of the BSC concept.The concept development is documented in the abovementioned four articles published at the Harvard Busniess Review, and then described in detail in Norton and Kaplan's The Balances Scorecard: Translating Strategy into Action. At first, this was a new system of performance measurement in organizations that took into account the organization's success from four specific perspectives (financial, consumer, internal processes, and learning and development).The BSC "Measuring Organizational Performance" combines measuring with the organization's strategic plan. The BSC concept of "Performance Measurement of the Organization" states that it is very important to select measurements based on strategic successes rather than to improve the existing performance prospects so that we need to focus on those work processes that need to be performed especially good to be the successful strategy.With the development of the BSC concept "Performance Measurement of the Organization" has come up the combination of financial and non-financial measurements that are created by the organization's strategy. The creators of the measurement measurement for the result of the organization should be in direct relation.Now the BSC "Measuring Organizational Performance" presents a widespread strategic management system, only in the profitable but also in the nonprofit sector of the public sector. Thanks to the perspectives, a framework for the BSC "Measurement of Organizational Performance" was created and for that organizations it was possible to measure how values are created for their customers, how to advance their own ability and invest in the employees, for systems and procedures to advance performance in the future. According to BSC authors, "Performance Measurement of the Organization" as an advanced performance measurement system has developed an inclusive management system, which for the first time enables us to summarize feedback on strategy implementation.

scholarly journals The development of a performance measurement system for indirect procurement: a Delphi study

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michail Darom ◽  
Eoin Plant
Keyword(s):  
Performance Measurement ◽  
Performance Management ◽  
Measurement System ◽  
Delphi Study ◽  
Mission Statement ◽  
Middle Eastern ◽  
Performance Measurement System ◽  
Management Approach ◽  
Content Type ◽  
A Performance

Purpose This study aims to address the current gap in knowledge of indirect procurement performance management. It attempts to argue the need for a specific and tailored performance management approach for the indirect procurement function that incorporates a balanced approach, beyond financial measures. Design/methodology/approach The case study approach evaluated key performance indicators from a balanced scorecard (BSC) perspective in the development of a performance measurement system (PMS) for a Middle Eastern university’s indirect procurement division. It initially reviewed the literature to assess potential indicators for this context. It used vision and mission statement analysis alongside expert interviews to augment the literature. The candidate indicators were then evaluated and ranked by an expert panel through applying a four-round Delphi technique. Findings Twenty-nine procurement-specific indicators are suggested in a BSC framework. The five highest-ranked indicators were not in the financial perspective unlike other BSC studies in the broader field of supply chain management (SCM). Practical implications The study suggests a framework and indicators for a procurement PMS for practitioners to consider. It also highlights there is no one-size-fits-all and that organisations need to tailor PM to the organisation and divisional strategy and operational needs. This study aids the development of guidelines for executives and procurement management that wish to develop indicators and a PMS. Originality/value This study contributes to knowledge by partly addressing the under-researched field of indirect procurement PM. The literature suggested that various roles in SCM require specific PM indicators. This study puts forward a BSC framework with 29 indicators specifically for indirect procurement. Fourteen of these indicators were derived from non-literature sources. This study enhances knowledge and contributes to the limited debate and evidence on indirect procurement PM and the broader PM literature.

Reward encourages beast.....oops, best!

2018 ◽  
Vol 8 (4) ◽  
pp. 1-17
Author(s):  
Neetu Purohit
Keyword(s):  
Organizational Culture ◽  
Organizational Performance ◽  
Performance Management ◽  
Management System ◽  
Performance Appraisals ◽  
Management Systems ◽  
Performance Management System ◽  
Content Type ◽  
Performance Management Systems ◽  
Performance Targets

Learning outcomes: The reading and discussion on case will enable participants to appreciate importance of reward management in performance management system for both employee and organizational good; to develop insight on the effect of perceived discrimination on the motivation of employees; to internalize the effect of perceived unjust, subjective, non-communicative, non-transparent policies on the behavior and productivity of employees and overall organizational culture and climate; and to comprehend the importance of HR and OB issues with respect to performance management system for the benefit of employee morale, motivation and organizational culture. Case overview: The effectiveness of an employee is the key factor for the employer. All the profit that the company or the organization makes depends on the employees’ productiveness. The case needs to be understood in the overall context of performance management system (Ferreiraa and Otley, 2009) with focus on elements of appraisal and compensation via rewards and recognition as per objective standards. Performance management systems (PMSs) is a more general descriptor if the intention is to capture a holistic picture of the management and control of organizational performance. Performance management policies and practices refer to the processes of setting, communicating and monitoring performance targets and rewarding results with the aim of enhancing organizational effectiveness (Fee, McGrath-Champ and Yang, 2011). PMS includes both the formal mechanisms, processes, systems and networks used by organizations, and also the more subtle, yet important, informal controls that are used (Chenhall, 2003; Malmi and Brown, 2008). Otley (1999) proposed a framework which highlights five central issues which need to be considered as part of the process of developing a coherent structure for performance management systems. The five areas addressed by this framework include identification of the key organizational objectives and the processes and methods involved in assessing the level of achievement under each of these objectives, formulating and implementing strategies and plans, as well as the performance measurement and evaluation processes, process of setting performance targets and the levels at which such targets are set, rewards systems used by organizations and the implications of achieving or failing to achieve performance targets and types of information flows required to provide adequate monitoring of performance. While the case touches upon all the aspects of the PMS framework, it revolves round the reward episode and elaborates on the way it affects all stakeholders, those who got the benefit, those who felt discriminated and those were mere observers to the episode. Objective performance appraisals are needed to ensure that every employee produces the best performance and that the work performed is rewarded with reasonable increases in pay scales or special additional allowances or incentives. This system carries crucial importance as it helps managers to decide which rewards should be handed out, by what amount and to whom. Additionally, performance appraisals may increase an employee’s commitment and satisfaction (Wiese and Buckley, 1998) The case readers need to notice that when organizations fail to follow objective appraisal or reward standards, the same rewards become a cause of contention. The reward which was handed over to the employees in this case was in addition to the annual appraisal. Though the role of rewards has been well-recognized in motivating the employees to continue performing at high level and encourage others to strive for better performance, what needs to be recognized that rewards’ per say does not serve purpose. They need to be dealt within the context of performance management system. Using rewards to favor or discriminate a few employees by using subjective standards backfires and does no good as the person who is favored cannot take pride in it and is not motivated to perform better or equally well as he/she also knows that the work has no relation to the reward, it is personal favor, on the other hand, the one who is discriminated feel discouraged and demotivated to perform. Rewards have the potential to both help and harm the organization if dealt in a callous and careless manner. Use of rewards to favor or discriminate certain people due to subjective preference can be suicidal for the organization and irreparably damage the trust of the employees in the management. It has been well stated that fairness and objectivity are the core principles using an assessment of the nature and size of the job each is employed to carry out (Torrington et al., 2005). If any organization decides to include rewards as a motivating mechanism, it needs to cull out unambiguous and transparent criteria for rewarding. If employees perceive procedural or distributive injustice from the management, it is not only detrimental for the employee’ relations and teamwork, it also tarnishes the reputation of the organization and jeopardizes the culture of the organization. Reward management needs to be closely related to performance appraisals, job evaluations and overall performance management systems. The current case elaborates on one such instance where unjustified inequity in reward system not only disturbed the employees concerned but it had bred a negative image of the organization among other employees too, organizational citizenship was replaced with contempt and feeling of apathy. Complexity academic level Post graduate students and working professionals can benefit from this study. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code Human resource management.

TECHNO21: Design and Implementation of a New Performance Management System

2021 ◽  
pp. 097282012199495
Author(s):  
Asfia Obaid ◽  
Saman Rahman ◽  
Asia Mehmood ◽  
Neelab Kayani
Keyword(s):  
Organizational Culture ◽  
Organizational Performance ◽  
System Design ◽  
Performance Management ◽  
Management System ◽  
Performance Management System ◽  
Performance Levels ◽  
Strategic Objectives ◽  
Design And Implementation ◽  
The Face

The case highlights the key concerns and issues an organization may face if its performance management system (PMS) does not serve its intended purpose and how it can cause demotivation and dissatisfaction among employees and result in an overall decline in organizational performance. It also illustrates how employees’ organizational culture and perception can be as important as the system design and can present challenges even if an elaborate system is planned. In the face of increasing turmoil among employees towards management and the decreasing performance of the organization, TECHNO21 decided to change its current PMS, which seemed a difficult but necessary step to achieve the desired performance levels and overall strategic objectives of the organization.

Supplier performance measurement system use, relationship trust, and performance improvement: a dyadic perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vieri Maestrini ◽  
Andrea Stefano Patrucco ◽  
Davide Luzzini ◽  
Federico Caniato ◽  
Paolo Maccarrone
Keyword(s):  
Performance Measurement ◽  
Performance Improvement ◽  
Measurement System ◽  
Structural Equation ◽  
Performance Measurement System ◽  
Content Type ◽  
Performance Improvements ◽  
Supplier Performance ◽  
Performance Measurement Systems ◽  
The Impact

PurposeGrounding on resource orchestration theory, this paper aims to study the relationship between the way buying companies use their supplier performance measurement systems and the performance improvements obtained from suppliers, with relationship trust identified as a mediator in the previous link.Design/methodology/approachThe authors design a conceptual model and test it through structural equation modelling on a final sample of 147 buyer-supplier responses, collected by means of a dyadic survey.FindingsResults suggest that the buyer company may achieve the most by balancing a diagnostic and interactive use of the measurement system, as they are both positively related to supplier performance improvement. Furthermore, relationship trust acts as a mediator in case of the interactive use, but not for the diagnostic. This type of use negatively affects relationship trust, due to its mechanistic use in the buyer-supplier relationship.Originality/valueThe authors’ results contribute to the current academic debate about supplier performance measurement system design and use by analyzing the impact of different supplier performance measurement system uses, and highlighting their relative impact on relationship trust and supplier performance improvement. From a methodological perspective, adopting a dyadic data collection process increases the robustness of the findings.

scholarly journals THE RELATIONSHIP BETWEEN THE USE OF A PERFORMANCE MEASUREMENT SYSTEM, ORGANIZATIONAL FACTORS, ACCOUNTABILITY, AND THE PERFORMANCE OF PUBLIC SECTOR ORGANIZATIONS

2016 ◽  
Vol 31 (1) ◽  
pp. 1 ◽  
Author(s):  
Muhammad Ahyaruddin ◽  
Rusdi Akbar
Keyword(s):  
Public Sector ◽  
Performance Measurement ◽  
Organizational Performance ◽  
Measurement System ◽  
Positive Association ◽  
Organizational Factors ◽  
Performance Measurement System ◽  
Management Commitment ◽  
Public Sector Organizations ◽  
A Performance

This research studies the accountability and performance of public sector organizations. It provides empirical evidence about the relationship between the use of a performance measurement system and the organizational factors of accountability and organizational performance. We investigate the three roles of a performance measurement system (its operational use, incentive use, and exploratory use), and three organizational factors (contractibility, the legislative mandate, and management commitment). A mixed method approach with squential explanatory design was used to answer the research question. The hyphoteses testing used Structural Equation Modelling-Partial Least Square (SEM-PLS). Our findings were based on survey data from 137 SKPD officers in the local government of Yogyakarta Province, and showed that management commitment had a positive association with accountability and organizational performance. We also found a positive association between the legislative mandate and accountability. However, this research did not find any significant association among the three roles of the performance measurement system with accountability and organizational performance. Based on the institutional theory, our findings show substantial contributions by the institutional isomorphism, which was used in an appropriate manner to explain the context of public sector organizations, especially in the local government of Yogyakarta Province.Keywords: the use of performance measurement system, organizational factors, accountability, mixed method

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