The use of performance measurement information in the work of middle managers

Abstract

Purpose

The purpose of this paper is to investigate how middle managers utilize performance measurement information in their work. More specifically, the study gives understanding on the impact of performance measurement, policies and procedures (formal controls), and individual intuition and experiential knowledge (informal controls) on strategy implementation and decision making. The study also identifies hindrances to the use of measurement information.

Design/methodology/approach

The study is carried out as a semi-structured interview study in Finnish companies representing five industries and 29 interviewees. Empirical data were analyzed deductively according to the research framework combining informal and formal management controls with two managerial processes.

Findings

The work of middle managers is clearly affected by informal controls. Much of the managerial work relies on individual intuition and judgment based on experience instead of performance information or formal instructions. The study also unveiled that top management sees the status of utilizing performance measurement information in a more positive light than do middle managers. This is the case especially in strategy implementation. Deficiency of measurement information was found to be a key factor hindering the use of measurement information but improper analysis of results is also a challenge.

Research limitations/implications

This study examined the work of middle managers widely in different positions and industries which means that the findings are rather explorative. Simplification was required in order to operationalize the complex tasks of strategy implementation and decision making. Further, more contextually focused research is required in order to understand better the contextual causes of the findings and to provide more understanding on the appropriate ways of improving the utilization of performance measurement information.

Practical implications

The practical contribution of this study lies in the detailed description of strategy implementation and decision-making processes based on observations in several large companies representing different industries. The study also suggests areas to which development efforts should be concentrated on in order to improve the use of performance information among middle managers.

Originality/value

This study contributes to the earlier literature by highlighting the usage of performance measurement information as opposed to developing new measures. In addition, the novelty value of the paper relates to the focus in the work of middle managers which has gained less attention in the previous research.

Citation

Jääskeläinen, A. and Luukkanen, N. (2017), "The use of performance measurement information in the work of middle managers", International Journal of Productivity and Performance Management, Vol. 66 No. 4, pp. 479-499. https://doi.org/10.1108/IJPPM-02-2016-0043