The mediating role of fairness on the effectiveness of strategic performance measurement systems

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kevin Baird ◽  
Sophia Xia Su ◽  
Nuraddeen Nuhu
Keyword(s):  
Performance Appraisal ◽  
Human Resource ◽  
Performance Measures ◽  
Content Type ◽  
Strategic Performance ◽  
Measurement Systems ◽  
Mediating Role ◽  
Performance Measurement Systems ◽  
Insight Into

PurposeThis study examines the mediating role of the fairness of performance appraisal on the association between the extent of use of strategic performance measurement systems (SPMSs) with SPMS effectiveness.Design/methodology/approachData were collected using an online survey distributed to 656 Australian middle and lower level managers.FindingsThe findings reveal that informational fairness mediates the association between SPMSs (link to value drivers and the use of multidimensional performance measures) with performance-related outcomes; procedural fairness mediates the association between SPMSs (link to strategy and the use of multidimensional performance measures) with staff-related outcomes and distributive fairness mediates the association between the use of SPMSs (all three types) with both performance and staff-related outcomes.Originality/valueThe study provides a unique insight into the importance of fairness (the distributive, informational and procedural fairness of the performance appraisal system) in mediating the associations between the extent of use of SPMSs and SPMS effectiveness. The findings contribute to the human resource management (HRM) “black box” literature by providing an insight into the behavioural mechanism through which a specific human resource management practice (i.e. the SPMS) influences organisational performance.

Association between performance measurement systems and organisational effectiveness

2014 ◽  
Vol 34 (7) ◽  
pp. 853-875 ◽  
Author(s):  
Bedanand Upadhaya ◽  
Rahat Munir ◽  
Yvette Blount
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Financial Services ◽  
Content Type ◽  
Services Sector ◽  
Measurement Systems ◽  
Organisational Effectiveness ◽  
Financial Services Sector ◽  
Performance Measurement Systems

Purpose – The purpose of this paper is to investigate the role of performance measurement systems in organisational effectiveness in the context of the financial services sector within a developing country. Design/methodology/approach – Using the mail survey method data were collected from 69 financial institutions operating in Nepal. Multivariate analysis, in particular multiple regression analysis was employed to test the hypotheses. Findings – The results suggest that non-financial measures and feedback are tightly intertwined with organisational effectiveness. While institutions are focused on using the performance measures concerning internal business process perspective, less emphasis is placed on using customer and employee-related performance measures because they are considered less significant to organisational effectiveness. The findings also reveal that strategy-related feedback is considered more critical by management, as opposed to performance and staff. The study also provides evidence that 40.58 per cent of the financial institutions in Nepal had implemented the Balanced Scorecard, which is considered to be high when compared with other developing countries. Practical implications – The findings provide managers with valuable insights pertaining to the role of non-financial performance measures and the importance of feedback in improving organisational effectiveness, which could assist them in (re) aligning their performance measurement practices. Originality/value – The findings of this study contributes to the limited management accounting literature on performance measurement and the impact on organisational effectiveness by providing evidence from the financial services sector within the context of a developing country.

The effectiveness of strategic performance measurement systems

2017 ◽  
Vol 66 (1) ◽  
pp. 3-21 ◽  
Author(s):  
Kevin Baird
Keyword(s):  
Performance Measurement ◽  
Performance Measures ◽  
Content Type ◽  
Strategic Performance ◽  
Four Dimensions ◽  
Internal Customer ◽  
Measurement Systems ◽  
Business Units ◽  
Organisational Process ◽  
Performance Measurement Systems

Purpose The purpose of this paper is to examine how the characteristics of strategic performance measurement systems (SPMSs) influence the effectiveness of such systems. Specifically, the study examines the association between the following three strategic performance measurement approaches with the effectiveness of SPMSs: the use of multidimensional performance measures, the use of performance measures that are linked to value drivers, and the use of performance measures that are linked to strategy. Design/methodology/approach Data were collected using a mail questionnaire distributed to a random sample of 800 Australian manufacturing and service business units. Findings The use of multidimensional performance measures is found to positively influence the effectiveness of SPMSs. Practical implications Organisations need to strive to design their SPMSs in a manner which considers the achievement of both performance- and staff-related goals, with the findings suggesting that managers need to focus on a broad set of performance measures relating to the four dimensions of the BSC (financial, internal, customer, and learning and growth measures). Originality/value This study contributes to the literature by examining the important role that SPMSs play in the achievement of organisational process outcomes. The incorporation of a measure of organisational process effectiveness, and the subsequent identification of the performance-related outcome and staff-related outcome dimensions, provides future researchers with an alternative approach to analyse SPMS effectiveness and provides managers with an insight into how to adjust their SPMS to improve their organisational processes.

The Roles of Organizational Politics and Fairness in the Relationship between Performance Management Systems and Trust

2015 ◽  
Vol 27 (1) ◽  
pp. 25-53 ◽  
Author(s):  
Chong M. Lau ◽  
Glennda Scully
Keyword(s):  
Performance Management ◽  
Performance Measures ◽  
Organizational Politics ◽  
Measurement Systems ◽  
Fairness Perceptions ◽  
Mediating Role ◽  
Perceptions Of Fairness ◽  
Performance Measurement Systems ◽  
Financial Performance Measures ◽  
The Relationship

ABSTRACT Organizational politics is ubiquitous in organizations. Yet to date, no prior research has investigated, in a systematic empirical manner, the mediating role of organizational politics in performance measurement systems. The primary purpose of this research is to investigate if perceptions of organizational politics mediate the relationships between performance measures and employees' trust in their superiors. As organizational politics may also affect employees' perceptions of fairness, a model is used to investigate (1) if performance measures affect organizational politics; (2) if organizational politics, in turn, affects procedural and interpersonal fairness; and (3) if fairness perceptions subsequently affect trust in superiors. Based on a sample of 104 responses, the partial least squares results indicate that organizational politics and fairness perceptions significantly mediate the nonfinancial performance measures and trust relationship. In contrast, the results indicate that the mediating effects of organizational politics and fairness on the relationship between financial performance measures and trust are generally insignificant.

Promoting strategic performance through strategic orientation and strategic renewal

2019 ◽  
Vol 58 (2) ◽  
pp. 376-392 ◽  
Author(s):  
Hassan Ahmed Shah ◽  
Muhammad Yasir ◽  
Abdul Majid ◽  
Muhammad Yasir ◽  
Asad Javed
Keyword(s):  
Positive Impact ◽  
Moderated Mediation ◽  
Strategic Orientation ◽  
Mediation Model ◽  
Content Type ◽  
Strategic Performance ◽  
Strategic Renewal ◽  
Mediating Role ◽  
Moderated Mediation Model

Purpose The purpose of this paper is to explore the ways in which strategic orientation (SO) and strategic renewal (SR) could create the possibility for improving strategic performance (SP). The indirect effect of SO was also tested in this study. Furthermore, by using the moderated mediation model, the authors also investigated the moderating role of organizational ambidexterity (OA). Design/methodology/approach The results of this cross-sectional study are based on a survey conducted on 1,430 owner/managers of SMEs. To analyze the relationship among variables, this study used descriptive, correlation and hierarchical multiple regression approach. Findings Results revealed that SO positively affects SR and SP in SMEs. Furthermore, the mediating role of SR between the relationships of SO and SP was also confirmed. Moreover, OA strengthens the connection between SO, SR and SP. Practical implications The current study provides new insights for strategic planning and management by focusing on SO along with its different dimensions. Therefore, it provides new guidelines and a roadmap that would be helpful in achieving the objectives of SP. Originality/value The study makes significant contributions to the extant literature by adding new knowledge about the positive impact of SO on SP. Moreover, with the analysis of mediating role of SR in this relationship, the study has made significant addition to the existing literature on SP. Furthermore, moderated mediation model adds value to the existing body of knowledge.

Executing strategy through comprehensive performance measurement systems

2017 ◽  
Vol 37 (4) ◽  
pp. 423-443 ◽  
Author(s):  
Pietro Micheli ◽  
Matteo Mura
Keyword(s):  
Performance Measurement ◽  
Performance Indicators ◽  
Company Performance ◽  
Content Type ◽  
Cost Leadership ◽  
Measurement Systems ◽  
Comprehensive Performance ◽  
Different Types ◽  
Performance Measurement Systems

Purpose The purpose of this paper is to investigate the mediating role of comprehensive performance measurement systems (PMS) – i.e. measurement systems that comprise financial and non-financial indicators, and which also consist of indicators related to different aspects of an organisation’s operations – in the relationship between strategy and company performance. Design/methodology/approach Survey data of top managers of large European companies were collected and analysed by means of exploratory factor analyses and hierarchical regressions in order to validate the proposed hypotheses. Findings This research shows that different strategies lead to the use of different types of performance indicators. Also, it finds that the utilisation of a comprehensive PMS enables the implementation of both differentiation and cost-leadership strategies. Specifically, a comprehensive PMS positively mediates the effect of differentiation strategy on organisational and innovative performance, and of cost-leadership strategy on organisational performance. Research limitations/implications Further research could be undertaken in other contexts and consider additional factors, such as the structure, maturity and different uses of PMS, and the cost of measuring performance. Qualitative studies could examine the role of PMS in dynamic environments, as well as the evolution of PMS during strategic transitions. Practical implications Greater consideration should be given to the utilisation of different types of performance indicators when implementing and re-formulating strategy. Originality/value This study clarifies the links between strategy and performance measurement, and it is the first to identify the mediating effect of comprehensive PMS between strategy and company performance.

Perceived organizational injustice and counterproductive work behaviours: mediated by organizational identification, moderated by discretionary human resource practices

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dirk De Clercq ◽  
Yasir Mansoor Kundi ◽  
Shakir Sardar ◽  
Subhan Shahid
Keyword(s):  
Human Resource ◽  
Organizational Identification ◽  
Content Type ◽  
Mediating Role ◽  
Hr Practices ◽  
Time Lagged ◽  
Counterproductive Work Behaviours ◽  
Counterproductive Work Behaviour ◽  
Organizational Injustice

PurposeThis research unpacks the relationship between employees' perceptions of organizational injustice and their counterproductive work behaviour, by detailing a mediating role of organizational identification and a moderating role of discretionary human resource (HR) practices.Design/methodology/approachThe hypotheses were tested with a sample of employees in Pakistan, collected over three, time-lagged waves.FindingsAn important reason that beliefs about unfair organizational treatment lead to enhanced counterproductive work behaviour is that employees identify less strongly with their employing organization. This mediating role of organizational identification is less salient, however, to the extent that employees can draw from high-quality, discretionary HR practices that promote their professional development and growth.Practical implicationsFor management practitioners, this study pinpoints a key mechanism – the extent to which employees personally identify with their employer – by which beliefs about organizational favouritism can escalate into purposeful efforts to inflict harm on the organization and its members. It also reveals how this risk can be subdued by discretionary practices that actively support employees' careers.Originality/valueThis study adds to previous research by detailing why and when employees' frustrations about favouritism-based organizational decision making may backfire and elicit deviant responses that likely compromise their own organizational standing.

Governmentality and performance for the smart city

2019 ◽  
Vol 33 (1) ◽  
pp. 204-232 ◽  
Author(s):  
Daniela Argento ◽  
Giuseppe Grossi ◽  
Aki Jääskeläinen ◽  
Stefania Servalli ◽  
Petri Suomala
Keyword(s):  
Performance Measurement ◽  
Smart City ◽  
Smart Cities ◽  
Research Question ◽  
Longitudinal Case Study ◽  
Content Type ◽  
Measurement Systems ◽  
Performance Measurement Systems

Purpose The purpose of this paper is to explore the role of performance measurement systems as technologies of government in the operationalisation of smart city programmes. It answers the research question: how do the development and use of performance measurement systems support smart cities in the achievement of their goals? Design/methodology/approach This paper presents a longitudinal case study that uses an interventionist approach to investigate the possibilities and limitations of the use of performance measurement systems as technologies of government in a smart city. Interpretations are theoretically informed by the Foucauldian governmentality framework (Foucault, 2009) and by public sector performance measurement literature. Findings The findings address the benefits and criticalities confronting a smart city that introduces new performance measurement systems as a technology of government. Such technologies become problematic tools when the city network is characterised by a fragmentation of inter-departmental processes, and when forms of resistance emerge due to a lack of process owners, horizontal accountability and cooperation among involved parties. Research limitations/implications This paper is based on a case study of a single smart city, and outlines the need for both comparative and multidisciplinary analyses in order to analyse the causes and effects of smart city challenges. Originality/value This paper offers a critical understanding of the role of accounting in the smart city. The ineffectiveness of performance measurement systems is related to the multiple roles of such technologies of government, which may lead to a temporary paralysis in the achievement of smart city goals and programmes.

Factors affecting customers’ attitude towards Islamic banking in UAE

2019 ◽  
Vol 14 (4) ◽  
pp. 668-688 ◽  
Author(s):  
Abdulkader Kaakeh ◽  
M. Kabir Hassan ◽  
Stefan F. Van Hemmen Almazor
Keyword(s):  
Structural Equation ◽  
Islamic Banking ◽  
Content Type ◽  
Factors Affecting ◽  
Customer Base ◽  
Mediating Role ◽  
Practical Implications ◽  
Insight Into ◽  
Attitude Model

Purpose The purpose of this paper is to investigate the effects of the following factors: image, awareness, Shariah compliance and individualism, on the attitude and intention of customers to use Islamic banking among Bank customers in UAE, and the mediating role of attitude in that model, using a theoretical model based on the multi-attribute attitude model, the theory of reasoned actions and the theory of planned behaviour. Design/methodology/approach The research will focus on surveying bank customers living in UAE. The researcher will use structural equation modelling to analyse the data. Findings Results show that attitude and awareness affect intention directly, while image, awareness, Shariah compliance and individualism affect attitude directly and intention indirectly mediated by attitude. Research limitations/implications The sample size includes 178 bank customers living in three cities in UAE, hence, the rest of the country is not included. Practical implications The research shows the importance of Shariah compliance, individualism and image on attitude and intention and provides suggestions for banks to benefit from these aspects to widen their customer base. Social implications The study provides an insight into individuals’ decision making and the importance of a social approach by banks when advertising. Originality/value The research is the first empirical attempt to test new factors affecting attitude towards Islamic banking in UAE.

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