Performance measurement and management in practice : Advantages, disadvantages and reasons for use

Abstract

Purpose

Despite the fact that in recent years performance management and measurement (PMM) techniques and tools have attracted much research interest and that many scholars claim that implementing PMM yields many advantages, there is only a limited number of rigorous, systematic, scientific analysis of empirical studies into the benefits actually experienced by organizations in practice after introducing PMM. In addition little is known about specific reasons for organizations to start using PMM, and about the various relationships, if any, between the advantages, disadvantages and reasons for PMM use. This paper seeks to address these issues.

Design/methodology/approach

This article identifies the advantages, disadvantages and reasons for use of SPM which organizations have experienced in practice, based on an extensive literature research and interviews at 17 prominent Dutch organizations.

Findings

The study found four main advantages, two main disadvantages and two main reasons for use.

Research limitations/implications

The main limitation is that the number of participating organizations and interviewees could be higher.

Practical implications

The practical implication of this research is that implementing and using PMM yields specific benefits for an organization and that management now knows which advantages are to be expected.

Originality/value

This research shows that management needs to make the advantages of PMM explicit before the PMM implementation starts and keep stressing these advantages during and after implementation. This will heighten commitment of organizational members for PMM and increase a successful use of PMM.

Citation

de Waal, A. and Kourtit, K. (2013), "Performance measurement and management in practice : Advantages, disadvantages and reasons for use", International Journal of Productivity and Performance Management, Vol. 62 No. 5, pp. 446-473. https://doi.org/10.1108/IJPPM-10-2012-0118