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

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.

Improving timeliness in the neglected tropical diseases preventive chemotherapy donation supply chain through information sharing: A retrospective empirical analysis

Background Billions of doses of medicines are donated for mass drug administrations in support of the World Health Organization’s “Roadmap to Implementation,” which aims to control, eliminate, and eradicate Neglected Tropical Diseases (NTDs). The supply chain to deliver these medicines is complex, with fragmented data systems and limited visibility on performance. This study empirically evaluates the impact of an online supply chain performance measurement system, “NTDeliver,” providing understanding of the value of information sharing towards the success of global health programs. Methods Retrospective secondary data were extracted from NTDeliver, which included 1,484 shipments for four critical medicines ordered by over 100 countries between February 28, 2006 and December 31, 2018. We applied statistical regression models to analyze the impact on key performance metrics, comparing data before and after the system was implemented. Findings The results suggest information sharing has a positive association with improvement for two key performance indicators: purchase order timeliness (β = 0.941, p = 0.003) and—most importantly—delivery timeliness (β = 0.828, p = 0.027). There is a positive association with improvement for three variables when the data are publicly shared: shipment timeliness (β = 2.57, p = 0.001), arrival timeliness (β = 2.88, p = 0.003), and delivery timeliness (β = 2.82, p = 0.011). Conclusions Our findings suggest that information sharing between the NTD program partners via the NTDeliver system has a positive association with supply chain performance improvements, especially when data are shared publicly. Given the large volume of medicine and the significant number of people requiring these medicines, information sharing has the potential to provide improvements to global health programs affecting the health of tens to hundreds of millions of people.

Type of Performance Measurement System and Management Commitment

This study aims to categorize the performance measurement system and management commitment of Bengkulu regional apparatus, and obtain empirical evidence of the relationship between the performance measurement system and management commitment. This study uses a quantitative approach with a survey method. Primary data was collected using a questionnaire distributed to elements of leadership and staff involved in the planning, implementation and/or supervision process at the Regional Work Units (SKPD) in Bengkulu. The results show that the SKPD performance measurement system is categorized in the worst case with management commitment in the category of getting started but limited performance. Empirically, the performance measurement system has a relationship with management commitment.

Industry 4.0 and Supply Chain Performance in the Oil and Gas Industry

The purpose of this study is to investigate industry 4.0 and supply chain performance. Extant literature was reviewed. Secondary data such as E-books, journal articles projects were used. Exploratory research design was used for the study. Based on the review literature, it was revealed that, integrated supply chain performance measurement system (SCPMS) is paramount for an efficient supply chain management (SCM) at inter-organizational and beyond-the-boundary processes. The recent technological innovations (internet of things (IoTs), big data, and web-based communication systems) revamp the SCPMS through effective data collection, information sharing, and framework integration among the different SC partners across nations. The study recommend for further research on the obstacles facing industry 4.0 and supply chain performance in the oil and gas industries across nations.

Performance Evaluation of PT. Bank Mandiri Tbk based on Balanced Scorecard Method

Competing companies not only increase in terms of the number of competitors, but also in terms of the intensity of competition. Today many companies use traditional measurement systems, in such systems there are still shortcomings in providing the information needed to measure and manage all the competencies that can trigger a company's competitive advantage. Given the current business competition environment that is so tight, Bank Mandiri certainly needs a precise performance measurement system that can provide a point of view on the business as a whole in order to compete and even excel in competition. Considering this background, the objectives of this study are: (1) Analyze Bank Mandiri's performance with balanced scorecard concept which includes financial perspective, customer perspective, internal business process perspective, and learning and growth perspective (2) Analyze the factors that must be considered in order to improve the performance of Bank Mandiri (3) Formulate strategic components (vision, mission, policy, and strategic steps) taken by Bank Mandiri. This study employed the descriptive with guided group discussion, in-depth interviews and using Balanced Scorecard analysis. The result showed that, the process of alignment vision to mission, mission to goal, goals to key performance indicators is aligned. The design of the performance-boosting strategy with the Balanced Scorecard approach on Bank Mandiri resulted in 7 strategy objectives and 12 key performance indicators classified into four Balanced Scorecard perspectives. In the formulation of Bank Mandiri's strategy map, customer perspective is at the top, the second position is process perspective, the third position there is people perspective, and at the lowest position there is financial perspective. Keywords: Balanced Scorecard, Bank Mandiri, Formulate Strategic, Performance Evaluation.

Management control systems in response to social and environmental risk in large Nordic companies

This empirical study investigates the relationships between management control systems and social and environmental risks. Building on Simons’ Levers of Control conceptual framework, this study proposes that companies facing social and environmental risks will enhance the quality of their management control systems by integrating social and environmental elements into management control systems in order to manage the related risks. The study uses a longitudinal dataset of the 1179 largest listed Nordic companies for the period 2014–2018. The multivariate regression confirms a negative relationship between the social and environmental integration and social and environmental risks. The results indicate that the social and environmental integrated performance measurement system and strategy implementation are not congruent with the social and environmental risks that the companies face. Nordic companies have not adopted the social and environmental integrated measurement system and strategy in response to social and environmental risks. When the number of social and environmental incidents increase and companies meet high levels of social and environmental risks, their management control systems do not match the related risks. Such social and environmental integration should be improved in order to prevent wider negative implications of the incidents on the natural environment and society in large.

Balanced Scorecard: A Systematic Literature Review and Future Research Issues

This study provides a systematic literature review on the balanced scorecard (BSC), highlights gaps in the literature and identifies areas for further research. We review a sample of 114 BSC articles published in 14 accounting and 56 management journals between 1992 and 2021. Each article must either be in the Australian Business Deans Council (ABDC), Scopus-indexed or Academic Journal Guide (AJG) list, or receive at least 100 citations, as reported by Google Scholar. We separate the BSC literature into 11 major themes, examine the research methods, statistical tools used and identify the country affiliated with the authors. Companies typically use the BSC as a performance measurement system instead of a management control system. The BSC is more compatible with private versus public sector organizations. Successful implementation of the BSC requires support from the top management and effective communication and coordination. Additionally, a cause-and-effect relationship should exist among its four perspectives—customers, internal business, innovation and learning, and financial. BSC’s critics question its superiority over other performance measurement tools. But the number of supporters is much higher than the opponents. Articles mainly focus on developed, not developing, countries and tend to be conceptual papers rather than data-based empirical studies. The most commonly used statistical tool used is regression analysis. Our review of BSC articles provides insights about BSC strategy, implementation, execution and control that should be of interest to researchers and managers. However, this qualitative study uses judgment to identify BSC themes.

Digitalisation and the performance measurement and management system: reinforcing empowerment

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.

Theoretical Proposal for an Integrated Sustainability Performance Measurement System in the Supply Chain

Environmental impacts due to supply chains are seen as a challenge to innovation and criteria for prioritizing the application of organizational resources. In this context, the research question arises: how to build the necessary knowledge about supply chain performance indicators in sustainability, systematizing in an evaluation process integrated with the organizational results? The general objective of this research is to build an integrated system of sustainability performance analysis of the supply chain. In order to achieve the general objective, the specific objectives are the following: (i) selection of the bibliographic portfolio and (ii) analysis of articles content. The exploratory-descriptive research method presents and illustrates a structured process for the selection of scientific articles on supply chain performance indicators in the sustainability context. The method identified the most important keywords and the main databases of full texts and abstracts aligned with the topic. An important review of the literature reveals that efforts to improve or influence the practice of sustainability in the supply chain raise critical questions about the transaction costs and effectiveness of the approach. The review promoted the development of a system of indicators inspired by the Balanced ScorCard (BSC) to address sustainability performance issues. The originality or value lies on the useful for managers throughout the supply chain. It was identified in the literature that supply chains still generate significant environmental impacts, social impacts, and use of natural resources, even though they individually present statements in their strategies and accountability indicating the priority regarding the mitigation of social, environmental, and economic impacts. Another finding is that it is not just a matter of complying with legal and institutional frameworks. The scientific literature defines the need to prioritize studies on Green Supply Chain Management (GSCM), which helps organizations in the production chain to achieve competitiveness and at the same time emphasize the reduction of social risks and environmental impacts. The main findings of the paper are related to the possibility of interfacing the dimensions present in TBL with performance measurement in a supply chain.

The effects of performance measurement system uses on organizational ambidexterity and firm performance

PurposeThis study aims to investigate how dynamic tensions between performance measurement system (PMS) uses enable organizations to achieve both exploitation and exploration and enhance firm performance.Design/methodology/approachThe authors collected survey data on 153 Italian companies. Scales for each construct were validated through an exploratory factor analysis. Data on firm performance were cross-validated by using lagged accounting data. The authors tested our hypotheses using hierarchical ordinary least squares regressions, together with bootstrapping procedures for the test on mediation.FindingsA diagnostic use of PMS has a positive association with both exploitation – e.g. reductions in total costs and lead times – and exploration, e.g. introduction of new products and extension of product ranges. The dynamic tension created by a joint diagnostic and interactive use has the strongest association with organizational ambidexterity, measured as the multiplicative interaction between exploration and exploitation.Practical implicationsIf an organization or business unit is mainly pursuing exploitative goals, a mainly diagnostic use of PMS would be most suitable. If goals are both exploitative and explorative, a mix of diagnostic and interactive uses would be most effective.Originality/valueThis research helps reconcile conflicting views in the literature. The diagnostic use of PMS, far from acting as a “negative force,” appears to be necessary to guide opportunity search and to establish an appropriate scope for exploration-related activities. The authors’ focus on the uses of PMSs shows that ambidexterity is achieved through managerial capability, rather than just through the introduction of systems and structures.