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1 – 10 of over 8000Kevin Murphy and Angelo DeNisi
This paper aims to review the challenges of performance appraisal in organizations and argue that these challenges can and must be overcome.
Abstract
Purpose
This paper aims to review the challenges of performance appraisal in organizations and argue that these challenges can and must be overcome.
Design/methodology/approach
The authors review research on performance appraisal in organizations and on claims that organizations are abandoning performance appraisal.
Findings
Structured performance appraisals are still the norm in organizations around the world. There are clear and practical strategies for improving appraisals. These include improving feedback and removing unnecessary complexity, clarifying the goals of appraisal systems, focusing appraisal on behaviors and outcomes under the employee's control and increasing the fairness of appraisal systems.
Research limitations/implications
Research is needed on the effects of changing the ways performance appraisals are conducted in organizations.
Practical implications
Practical strategies for improving performance appraisal are outlined.
Social implications
Better performance appraisals will benefit organizations and their members.
Originality/value
This paper refutes the growing claim that organizations are abandoning performance appraisal and illustrates practical strategies for improving performance appraisal.
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The purpose of this paper is to investigate the impact of customer-focus on small medium enterprise (SME) performance from the perspective of a resource-based view (RBV).
Abstract
Purpose
The purpose of this paper is to investigate the impact of customer-focus on small medium enterprise (SME) performance from the perspective of a resource-based view (RBV).
Design/methodology/approach
This research study implemented a survey strategy to gather data from 255 respondents on the registered list of Ghana Enterprise Agency (GEA) in the eastern region of Ghana. Scales used to gather data were operationalized from previous research studies. A structural equation modeling (SEM) path analysis was used to estimate the impact of customer-focus on the performance of SMEs.
Findings
The outcomes of this study indicate that customer-focus has a significant positive impact on SME performance, hence backing the current demand for investigating the distinct influence of customer-focus on SME performance. The results show that customer-focus has a positive and significant relationship with financial performance, customer performance, internal business process performance and learning and growth performance, thus supporting the literature on the positive impact of customer-focus on SME performance. Therefore, customer-focus determinants used in this study, including co-creation, networking ties, customer insight and artificial intelligence marketing (AIM), are critical to the optimization of SME performance.
Research limitations/implications
Notwithstanding the importance of this research study mentioned earlier, the study has limitations. Notably, the sample size of this study can be increased to capture SME respondents in other geographical zones that were not included in this study. Future research studies may address how business environment conditions moderate the relationship between customer focus and performance, and also the cause-effect of the relationship between customer focus and business environment conditions on SME performance.
Practical implications
The practical implications consist of two main items. First, this study empowers SME owners and managers to develop a customer focus technique as a central strategic goal in their quest for SME performance optimization. Second, SME owners and managers should progressively exploit the four determinants of customer focus which include co-creation, networking ties, customer insight and (AIM in order to accrue important resources for effective utilization of their customer focus competences as a way to enhance their performance.
Social implications
This study is targeted at the sound development of SMEs to bring about poverty alleviation and employment. Poverty, unemployment and poor living standards are recognized as vital social challenges in most emerging economies. The establishment of customer focus as an important strategic capability provides opportunities for SME survival, profitability and growth.
Originality/value
Generally, the findings of this research study provide a strong backing to RBV perspective and the proposition that customer-focus and its determinants (i.e. co-creation, networking ties, customer insight and AIM) should be acknowledged as a vital strategic resource for optimizing the performance of SMEs. This research study also provides new knowledge contribution to the present body of knowledge on customer-focus orientation and management literature, particularly in the context of an emerging economy.
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Thomas Borup Kristensen, Henrik Saabye and Amy Edmondson
The purpose of this study is to empirically test how problem-solving lean practices, along with leaders as learning facilitators in an action learning approach, can be transferred…
Abstract
Purpose
The purpose of this study is to empirically test how problem-solving lean practices, along with leaders as learning facilitators in an action learning approach, can be transferred from a production context to a knowledge work context for the purpose of becoming a learning organization while enhancing performance. This is important to study because many organizations struggle to enhance efficiency in the short term while still trying to be long-term learning oriented (i.e. learning organization development).
Design/methodology/approach
The authors draw on theory on learning interventions to show how lean practices for problem-solving can foster learning and help an organization to become adaptive. This study’s subject is a non-production department of 100 employees at the LEGO corporation. The authors applied survey results from a natural experiment lasting 18 months between a pre-measurement survey and a post-measurement survey. The results were compared to a control department of 50 employees who were not exposed to the lean practices intervention. The authors’ focus was on the individual level as individuals have different perceptions of lean practices, performance, and learning.
Findings
Using repeated-measures tests, difference-in-difference regressions analyses, and structural equation models, the authors find that a package of contemporary lean practices for problem-solving, along with leaders who function as learning facilitators, significantly improved learning organization dimensions while also enhancing efficiency and quality and that learning organizations positively mediate the relationship between the lean intervention and quality-related performance, while efficiency is directly affected by the lean interventions. Data from LEGO's key performance indicators (KPIs), benefit trackers, on-site observations and more than 40 interviews with managers provided results that were consistent with the survey data. A detailed description of the lean practices implemented is provided to inspire future implementations in non-operations environments and to assist educators.
Research limitations/implications
The authors contribute to the learning literature by showing that a learning-to-learn approach to lean management can serve as an active and deliberate intervention in helping an organization becoming a learning organization as perceived by the individual organizational members. The authors also add to the lean literature by showing how a learning approach to lean, as used by LEGO, can positively affect short-term efficiency and quality and create a foundation for a longer-term competitive advantage (i.e. a learning organization) in a non-production context. By contrast, most of the lean literature streams treat efficiency separately from a learning organization and mainly examine lean in a production context.
Originality/value
The extant literature shows three research streams on lean, learning, and performance. The authors built on these streams by trying to emphasize both learning and efficiency. Prior research has not empirically tested whether and how the application of problem-solving lean practices combined with leaders as learning facilitators helps to create a comprehensive learning organization while enhancing performance in a non-production context.
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Joshua Maine, Emilia Florin Samuelsson and Timur Uman
Drawing on paradox theory, this study explores how ambidextrous sustainability relates to organisational performance in hybrid organisations represented by Swedish municipal…
Abstract
Purpose
Drawing on paradox theory, this study explores how ambidextrous sustainability relates to organisational performance in hybrid organisations represented by Swedish municipal housing corporations, and how this relationship is contingent on the organisational structure of these organisations.
Design/methodology/approach
The study relies on the data collected from Swedish municipal housing corporations. These data sources consist of a survey sent to the management team members in Swedish municipal housing corporations, financial and non-financial archival data on these corporations, interviews with the management team and board members, and observations of meetings involving the management team and board of directors at a Swedish municipal housing corporation. Quantitative data of the study were analysed using descriptive statistics, correlation analysis and linear multiple regression analysis. Qualitative data were analysed employing deductive thematic analysis and were used to illustrate and discuss the results of the quantitative analysis.
Findings
The quantitative findings show that ambidextrous sustainability, i.e. the alignment between an explorative orientation and an exploitative orientation towards sustainability, has a weakly positive relationship with financial performance and a positive relationship with social performance in hybrid organisations represented by Swedish municipal housing corporations. The study further shows that a high level of the structural element “connectedness” weakened the relationship between the ambidextrous sustainability and financial performance of the organisation in the study. In contrast, a lower level of connectedness reinforced and strengthened this relationship. Our qualitative material illustrates how the quantitative findings could be explained by the interaction between the board of directors and the management team of these hybrid organisations.
Originality/value
The study shows how ambidextrous sustainability, employed for conceptualisation of the sustainability strategy in hybrid organisations, represented by Swedish municipal housing corporations, can impact on facets of performance (i.e. financial, social and environmental) differently. The study further highlights the importance of organisational structures in these relationships in a hybrid context.
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Petra Pekkanen and Timo Pirttilä
The aim of this study is to empirically explore and analyze the concrete tasks of output measurement and the inherent challenges related to these tasks in a traditional and…
Abstract
Purpose
The aim of this study is to empirically explore and analyze the concrete tasks of output measurement and the inherent challenges related to these tasks in a traditional and autonomous professional public work setting – the judicial system.
Design/methodology/approach
The analysis of the tasks is based on a categorization of general performance measurement motives (control-motivate-learn) and main stakeholder levels (society-organization-professionals). The analysis is exploratory and conducted as an empirical content analysis on materials and reports produced in two performance improvement projects conducted in European justice organizations.
Findings
The identified main tasks in the different categories are related to managing resources, controlling performance deviations, and encouraging improvement and development of performance. Based on the results, key improvement areas connected to output measurement in professional public organizations are connected to the improvement of objectivity and fairness in budgeting and work allocation practices, improvement of output measures' versatility and informativeness to highlight motivational and learning purposes, improvement of professional self-management in setting output targets and producing outputs, as well as improvement of organizational learning from the output measurement.
Practical implications
The paper presents empirically founded practical examples of challenges and improvement opportunities related to the tasks of output measurement in professional public organization.
Originality/value
This paper fulfils an identified need to study how general performance management motives realize as concrete tasks of output measurement in justice organizations.
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Tamilarasu Sinnaiah, Sabrinah Adam and Batiah Mahadi
The purpose of this paper is to present a conceptual framework for integrating strategic thinking factors, organisational performance and the decision-making process.
Abstract
Purpose
The purpose of this paper is to present a conceptual framework for integrating strategic thinking factors, organisational performance and the decision-making process.
Design/methodology/approach
The methodology involves a synthesis of literature and proposes a framework that explores the relationship between strategic thinking enabling factors, organisational performance and the moderating effect of decision-making styles.
Findings
The framework includes strategic thinking enabling factors (systems perspective, focused intent, intelligent opportunism, thinking in time and hypothesis-driven analysis), organisational performance and the moderating effect of decision-making styles (intuitive and rational).
Research limitations/implications
This research results in a conceptual model only; it remains to be tested in actual practice. The expanded conceptual framework can serve as a basis for future empirical research and provide insights to practitioners into how to strengthen policy development in a strategic planning process.
Originality/value
A paradigm shift in the literature proves that strategic management and decision-making styles are vital in determining organisational performance. This paper highlights the importance of decision-making styles and develops a framework for strategic management by analysing the existing strategic management literature.
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Sari-Johanna Karhapää, Taina Savolainen and Kirsti Malkamäki
Although previous studies have addressed the positive relationship between trust and performance, existing research has paid limited attention to management that shapes valued…
Abstract
Purpose
Although previous studies have addressed the positive relationship between trust and performance, existing research has paid limited attention to management that shapes valued organisation behaviours important for effectiveness and wellbeing. This paper examines how organisational trust and performance unfold in the context of one private and one public sector case organisation in management change.
Design/methodology/approach
A multiple case study design using qualitative methods is applied to analyse textual data gathered from management and employee perspectives, juxtaposing private and public organisations.
Findings
Management change renewed decision-making in both organisations through role clarification. Through clearer roles, expectations were better managed in the collaborating units of a private organisation case and of the employees in a public organisation case impacting on organisational ability and predictability. Along with organisational communication, these develop trust which seems to be reflected in employee job performance at the organisational level.
Originality/value
This paper contributes to the gap in qualitative, empirical and contextual research by providing understanding about how intra-organisational trust is related to performance. Further, this paper sheds light on the vulnerability within an organisation during management change and adds to the somewhat scarce studies of relationships between trust and performance by juxtaposing the two contexts. Consequently, this enables one to reveal different approaches to trust and performance between the two sectors.
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Lode De Waele, Tobias Polzer, Arjen van Witteloostuijn and Liselore Berghman
Numerous of today's public sector organisations (PSOs) can be characterised as hybrids. Hybridity is caused by different (at times conflicting) demands that stem from the…
Abstract
Purpose
Numerous of today's public sector organisations (PSOs) can be characterised as hybrids. Hybridity is caused by different (at times conflicting) demands that stem from the institutional environment, which is likely to affect performance measurement in these organisations. This paper focuses on the relationship between hybridity and organisational performance, which has so far not been studied in detail.
Design/methodology/approach
Based on a literature review (final sample of 56 articles), the authors systematise performance dimensions alongside the pillars “economy”, “efficiency”, “effectiveness” and “(social) equity”. The article summarises results in a framework for measuring performance in hybrid PSOs. The authors outline strategies as to how public managers can tailor frameworks to the requirements and idiosyncrasies of organisations.
Findings
Since hybrid PSOs combine logics from different administrative models (Weberian bureaucracy, market-capitalism and democracy), so need their organisational performance measurement systems. Potential synergies from and frictions between the different performance dimensions related to the four pillars are discussed.
Originality/value
This is the first literature review on performance dimensions and their application in hybrid PSOs. The distilled “hybrid performance measurement framework” can be scrutinised and further refined in future research.
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Geoff Plimmer, Jane Bryson and Stephen T.T. Teo
The purpose of this paper is to explore how HIWS may shape organisational capabilities, in particular organisational ambidexterity (OA) – the ability to be both adaptable to the…
Abstract
Purpose
The purpose of this paper is to explore how HIWS may shape organisational capabilities, in particular organisational ambidexterity (OA) – the ability to be both adaptable to the wider world, and internally aligned so that existing resources are used well. Given the demands on public agencies to manage conflicting objectives, and to do more with less in increasingly complex environments, this paper improves our understanding of how HIWS can contribute to public sector performance. The paper sheds light inside the black box of the HIWS/organisational performance link.
Design/methodology/approach
This multi-level quantitative study is based on a survey of 2,123 supervisory staff, and 9,496 non-supervisory employees in 56 government organisations.
Findings
The study identifies two paths to organisational performance. The first is a direct HIWS performance link. The second is a double mediation model from HIWS to organisational systems, to OA and then performance.
Practical implications
A focus on developing HIWS provides an alternative means to public sector performance, than restructuring or other performative activities.
Originality/value
This is one of the few studies that explore how HIWS can develop collective as well as individual capabilities. Studies in the public sector are particularly rare.
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This study examines the relationship between business strategy, management control system (MCS) type and performance. Does the alignment of organisation business strategy and MCS…
Abstract
Purpose
This study examines the relationship between business strategy, management control system (MCS) type and performance. Does the alignment of organisation business strategy and MCS fresult in better performance?
Design/methodology/approach
This study draws on the business strategy and MCS type literature to identify business strategies and MCS types. A scoring method was used to identify business strategy types and cluster analysis to identify MCS types from a sample of 80 firms and 621 firm-years of data. Analysis of variance was used analyse the differences.
Findings
Four types of MCS were identified and were labelled clan, adhocracy, market and hierarchy. The sample was split into defender, analyser, prospector and reactor strategies. The results showed defender strategies performed better with hierarchy or market type MCSs while prospector strategies performed better with clan or adhocracy MCS types. Analysers performed acceptably with all MCS types.
Practical implications
The results of this study suggest that organisations should align their business strategy with a certain MCS type to achieve good performance. Also, alignment of top management and business strategy is supported as the top management properties differ between the MCS types.
Originality/value
This research contributes to the management control and strategy literature by demonstrating how the alignment between organisation business strategy and organisation-level MCS type determines organisational performance. The results suggest that differing business strategies yield better performance when aligned with the appropriate management controls represented by an MCS type.
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