Collaborative Performance Management in Interfirm Relationships

2016 ◽  
Vol 28 (3) ◽  
pp. 25-48 ◽  
Author(s):  
Henri C. Dekker ◽  
Rong Ding ◽  
Tom Groot

ABSTRACT In this study, we examine how firms' collaborative objectives influence their use of performance management practices in interfirm relationships. We conceptualize collaborative performance management to include three interrelated practices: measurement of interfirm performance, information sharing, and interaction between boundary spanners of partner firms. Prior research has related firms' interfirm control choices to transaction risk as proxied by “given” transaction characteristics. We hypothesize that transaction characteristics are determined by the strategic importance of the collaboration (manifested by the importance of firms' collaborative objectives) and, in turn, influence the use of firms' performance management practices. Analysis of survey data supports our hypotheses that strategic importance of the collaboration is associated with transaction characteristics (i.e., with asset specificity, transaction scope, task interdependencies, and environmental variability), which, in turn, mediate the influence of collaborative objectives on the use of performance management practices. We also find that performance measurement, information sharing, and boundary spanner interaction are used as complementary practices in the management of interfirm relationships.

2017 ◽  
Vol 30 (5) ◽  
pp. 414-428 ◽  
Author(s):  
Harri Laihonen ◽  
Sari Mäntylä

Purpose The literature acknowledges the importance of interpretative processes, discussion, and organizational learning in public performance management, but a knowledge gap remains concerning the mechanism of performance dialogue. To fill this gap, the purpose of this paper is to study the principles of performance dialogue and collaborative performance management in public administration. Design/methodology/approach The study utilizes a longitudinal research setting and analyzes the evolution of performance management practices in one city organization in Finland. Findings The study suggests that performance dialogue needs to be integrated with management practices and explains how this can be done. Three guiding principles of performance dialogue and collaborative performance management are derived. These underline the role of “referees of the information game”, a supportive and encouraging environment and a focus on the use of performance information. Practical implications Performance information is too often provided as a back-office function, and dialogue with information users is either completely lacking or somehow disturbed. The performance dialogue provides a platform for collaborative sense making and helps managers to better understand the complex phenomena and processes they are responsible for. Originality/value The literature dealing specifically with the change from centralized and vertical performance management practices toward decentralized and horizontal practices is still scarce. This paper provides a new perspective on management control and organizational learning in public administration based on performance dialogue.


2020 ◽  
Vol 33 (6/7) ◽  
pp. 613-627
Author(s):  
Ana I. Melo ◽  
Luís F. Mota

PurposeThis paper aims to analyse the state of performance management in the Portuguese public sector as part of the efforts towards public administration reform.Design/methodology/approachTheoretically, the authors took Bouckaert and Halligan's (2008, pp. 35–39) approach into consideration to analyse the adoption of performance management practices. This approach was supplemented by an adaptation of Pollitt and Bouckaert's (2011, p. 33) framework to analyse the context for administrative reforms. The used data analysis techniques include documentary analysis (namely legislation and evaluation reports of reform efforts), secondary data analysis and a survey conducted with 296 Portuguese top public managers.FindingsThe findings show that Portuguese public sector organisations adopted several tools to measure performance over the years, but failed to incorporate performance information into their management practices or to properly use it for either internal or external purposes. Concerning the ideal types proposed by Bouckaert and Halligan (2008, p. 36), Portugal is considered to fit the “performance administration” ideal type, even though it is moving closer to the “managements of performance” ideal type.Originality/valueThis is one of the first comprehensive studies on the state of performance management in Portugal framed within the broader context of public sector reforms. The findings will be of interest both to scholars who study public administration reforms and performance management and to Portuguese policy makers and public managers who are interested in understanding and improving the way performance information is measured, incorporated and used in that sector.


The field of performance management is premised on the centrality of measurement and performance information use in everyday decision making and practice. Information is managed through the use of information systems, but research shows that implementing these technological systems is not enough. This research responds to recent calls for a better understanding of performance information use and the role of dialogue among stakeholders in promoting learning and system change. Through case analysis and qualitative modeling, it proposes the concept of performance information artifacts, and the need for effective boundary spanners to promote effective learning and knowledge sharing in performance dialogue.


2016 ◽  
Vol 9 (2) ◽  
pp. 329-333 ◽  
Author(s):  
Jisoo Ock

As organizations become decentralized and work becomes team based, organizations are adopting performance management practices that integrate employees’ performance information from multiple perspectives (e.g., 360-degree performance ratings). Both arguments for and against the use of performance ratings presented in the focal article focused on rater agreement (or lack thereof) as evidence supporting the position that multisource ratings are a useful (or not a useful) approach to performance appraisal. In the argument for the use of multisource ratings, Adler, Campion, and Grubb (Adler et al., 2016) point out that multisource ratings are advantageous because they lead to increased interrater reliability in the ratings. Although Adler and colleagues were not explicit about why this would be true, proponents of multisource ratings often cite the measurement theory assumption that increasing the number of raters will yield more valid and reliable scores to the extent that there is any correlation in the ratings (Shrout & Fleiss, 1979). In the argument against the use of multisource performance ratings, Colquitt, Murphy, and Ollander-Krane argued that because multisource ratings pool together ratings from raters who are systematically different in terms of their roles and perspectives about the target employee's performance, the increased number of raters is not expected to resolve the low level of interrater agreement that is typically observed in performance ratings (Viswesvaran, Ones, & Schmidt, 1996).


2014 ◽  
Vol 27 (6) ◽  
pp. 530-547
Author(s):  
Aki Jääskeläinen ◽  
Juho-Matias Roitto

Purpose – The purpose of this paper is to identify the drivers of personnel satisfaction towards performance information (PI) usage in the local public administration context. Design/methodology/approach – The study utilizes both quantitative and qualitative research approach. Data are gathered with a survey receiving 194 responses from the departments of six different municipalities that all belong to the group of largest municipalities in Finland. Regression and variance analysis, as well as analysis of open-ended comments are utilized. Findings – A key observation is that high maturity level of performance measurement or information systems do not guarantee personnel satisfaction. Three main perspectives are found to positively affect satisfaction: use of PI in strategic planning, inter-administrative management with PI and communication of measurement information. Research limitations/implications – Common limitations of survey studies apply. The quantitative data set could have been wider and it should be complemented with more qualitative data. Also the survey itself has limitations due to its generic nature. Practical implications – The results indicate that managerial purpose of measurement needs to be better clarified. Greatest need for development is found in utilizing PI in resource sharing and in the analysis of current situation supportive to strategic planning. Originality/value – The efficient use of performance measurement is a commonly acknowledged challenge. Even though PI usage has been increasingly studied, the focus has often been in separate managerial tasks. Wider approach towards performance measurement and management practices has gained less attention. This study is one of the first attempts to apply private sector originating performance measurement maturity discussion in the public sector context.


Author(s):  
Luis Felipe Luna-Reyes ◽  
Natalie Helbig ◽  
Xiaoyi Yerden

The field of performance management is premised on the centrality of measurement and performance information use in everyday decision making and practice. Information is managed through the use of information systems, but research shows that implementing these technological systems is not enough. This research responds to recent calls for a better understanding of performance information use and the role of dialogue among stakeholders in promoting learning and system change. Through case analysis and qualitative modeling, it proposes the concept of performance information artifacts, and the need for effective boundary spanners to promote effective learning and knowledge sharing in performance dialogue.


Author(s):  
Poul A. Nielsen ◽  
Caroline H. Grøn

Performance management systems in public organizations have grown in importance since the advent of new public management, but they often have a hard time delivering on their promises. This chapter discusses how managers can use performance management tools without demotivating their employees. The chapter points to six guidelines which should be kept in mind when using such tools. Managers should be given procedural autonomy; performance information should be used to increase learning; links between performance and rewards should be considered carefully; performance information and management practices should be used to support professional development and to avoid negative motivational effects and gaming; performance information should be used as a basis for dialogue; and, finally, performance management should increase employee autonomy and avoid documentation overload.


Sign in / Sign up

Export Citation Format

Share Document