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1 – 10 of 222
Book part
Publication date: 3 September 2014

Diego dos Santos Pereira and José Carlos Tiomatsu Oyadomari

This research aimed to verify how the performance measurement system (PMS) and the quality management system (QMS) work in small and medium Brazilian enterprises in the light of…

Abstract

Purpose

This research aimed to verify how the performance measurement system (PMS) and the quality management system (QMS) work in small and medium Brazilian enterprises in the light of the typology proposed by Garengo (2009).

Design/methodology/approach

Using a qualitative approach PMS’s and QMS’s managers were interviewed. The data from the first interview were analyzed using the technique of content analysis and have been subsequently triangulated with other data collected. The study was conducted by means of two questionnaires, two semi-structured interviews, and the analysis of the performance measures used by five small/medium manufactures based in the State of São Paulo.

Findings

It was found that in four out of five companies, PMS does not function singly, but along with QMS, mainly with respect to performance indicators. In spite of that intrinsic operation, the systems are in different stages of evolution. It was also found that in three out of five companies, quality management area is responsible for coordinating the process of PMS use, without effective participation from the controlling and/or accounting areas in this process.

Originality/value

The typology of Garengo (2009), used to check the stage of the PMS, was validated and can be used by practitioners to diagnose and improve the PMS in their enterprises; companies with QMS certified by ISO, particularly with higher degree of quality management maturity, can be encouraged to implement or improve the PMS in their organizations.

Article
Publication date: 29 January 2021

Tarmo Kadak and Erkki K. Laitinen

The purpose of this paper is to analyze the relationships between different types of performance management system (PMS) and organizational performance. The main task is based on…

1133

Abstract

Purpose

The purpose of this paper is to analyze the relationships between different types of performance management system (PMS) and organizational performance. The main task is based on an empirical typology of PMS to show how the different types of PMS are related to organizational performance.

Design/methodology/approach

The empirical typology is used on the creation on the sample of Estonian and Finnish firms.

Findings

The results show that the highest performance out of the four clusters is achieved by firms from strategy-focused multi-level and strategy-focused one-level clusters. They also show the highest quality of the key characteristics of PMS. Firms from the not-strategy-focused one-level cluster have the lowest performance and quality of the key characteristics of PMS.

Practical implications

The findings give a set of consistent guidelines on how to develop a PMS to achieve high organizational performance in different situations. These give hints, if strategic objectives are important to firm, then for achieving these objectives, also a strong emphasis of strategic aspects in PMS is necessary to gain performance; if the firm suffers from a lack of strategy, the firm should invest on the information aspects of PMS to get more relevant information to increase performance; if the firm, however, decides to move more strategy-oriented, then the strategy aspects of the PMS should get relatively more attention than other aspects in PMS, and they should be developed with care, otherwise performance will suffer.

Originality/value

This paper shows relations between empirically extracted clusters and organizational performance. The results show that clusters of PMS are systematically associated with the level of performance. Firms with different aspects of PMS do not achieve the equal level of performance. Firms with higher performance inside different PMS types have more desirable characteristics and aspects of PMS.

Details

Measuring Business Excellence, vol. 25 no. 3
Type: Research Article
ISSN: 1368-3047

Keywords

Book part
Publication date: 24 July 2020

Juan Romero-McCarthy, Antonio Casanueva-Fernández and Erika Daniela Garza-Leal

In implementing strategies to achieve ambitious goals, managers use tools such as performance measurement systems (PMS) for their proven ability to motivate and drive employees’…

Abstract

In implementing strategies to achieve ambitious goals, managers use tools such as performance measurement systems (PMS) for their proven ability to motivate and drive employees’ behaviors. However, many strategies fail during implementation, partly because managers pay insufficient attention to PMS design, tending to devote too little attention to characteristics of the metrics they use to evaluate and provide feedback on their subordinates’ performance. This chapter discusses the management control literature on metrics, the psychology behind the behavioral effects of measurements, typical managerial errors in choosing performance metrics, and previous attempts to define characteristics of good measurements. It suggests that good measurements should exhibit a set of characteristics associated with a novel and easily remembered acronym, STORY, and tests this typology by analyzing empirical data gathered on 1,159 metrics from 293 survey respondents, including characteristics of the people measured (e.g., age, position, and functional department) and the organizations employing them (e.g., firm size, industry, scope, and type of organization).

Details

Strategy, Power and CSR: Practices and Challenges in Organizational Management
Type: Book
ISBN: 978-1-83867-973-6

Keywords

Article
Publication date: 7 August 2019

Meriam Jardioui, Patrizia Garengo and Semma El Alami

Literature highlights the impact of culture on managerial processes in general and the performance measurement system (PMS) in particular. However, understanding how…

2478

Abstract

Purpose

Literature highlights the impact of culture on managerial processes in general and the performance measurement system (PMS) in particular. However, understanding how organizational culture (OC) influences the PMS remains a challenge, especially in SMEs as in these companies the studies are very limited. The purpose of this paper is to investigate how OC influences PMSs in manufacturing SMEs.

Design/methodology/approach

To achieve the above purpose, a case study approach has been adopted. Four manufacturing SMEs with heterogeneous OC were investigated by means of companies’ documents reviews, participant observations and semi-structured interviews. A conceptual framework based on the competing value framework proposed by Cameron and Quinn (1999) and the PMS typology proposed by Garengo (2009) has been used to investigate the impact of OC on PMS.

Findings

According to the results, OC has a huge impact on PMS in manufacturing SMEs. The dimensions of “internal/external focus” influence strategy formalization, monitoring of the external environment and performance review. The “flexibility/control” dimensions influence the adoption of the balanced (or unbalanced) set of performance measures a company uses.

Originality/value

This paper contributes to clarifying how OC influences PMSs in manufacturing SMEs. Moreover, the study of interplay between flexibility/control dimensions and internal/external dimensions supports the identification of three theoretical propositions and four PMS types related to the four different OCs identified by Cameron and Quinn (1999).

Details

International Journal of Productivity and Performance Management, vol. 69 no. 2
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 20 January 2012

Thommie Burström

The purpose of this paper is to understand the character of activities performed by project managers (PMs) in the early phases of product development in an interorganizational…

Abstract

Purpose

The purpose of this paper is to understand the character of activities performed by project managers (PMs) in the early phases of product development in an interorganizational, multi‐project setting. The aim is to contribute to the extant literature on boundary work in projects by providing a typology of boundary activities and by presenting a conceptual model in which the relationship between these boundary activities is established.

Design/methodology/approach

This study is based on an explorative, in‐depth case study of a multi‐project setting where PMs assigned to three projects developed new products while simultaneously competing and collaborating. Each project's concept phase was followed by participative observations and ongoing interviews over a 15‐week period at two sites and in two countries.

Findings

It is understood that PMs in organizations collaborate and perform balancing activities. These balancing activities are part of a refinement process, which is created through three intertwined dimensions of boundary activities: administrative, sharing, and tuning. These, in turn, are constructed through complementary micro activities. These micro activities are politically colored and do not necessarily follow a prescribed and orderly path; instead, they are situation contingent and iterative in their character.

Research limitations/implications

The character of boundary activities in coopetitive project settings should be further studied to better understand the early phases of product development.

Practical implications

The political dimension of product development activities in the early phases of product development should be acknowledged. By acknowledging the presence of politics, PMs will be more prepared to deal with the complexity and ambiguity that follows when trying to collaborate and compete simultaneously.

Originality/value

This paper takes a practice perspective and focuses on what people do in interorganizational new product development in situations characterised by coopetition.

Details

International Journal of Managing Projects in Business, vol. 5 no. 1
Type: Research Article
ISSN: 1753-8378

Keywords

Article
Publication date: 3 April 2017

Pietro Micheli and Matteo Mura

The purpose of this paper is to investigate the mediating role of comprehensive performance measurement systems (PMS) – i.e. measurement systems that comprise financial and…

4061

Abstract

Purpose

The purpose of this paper is to investigate the mediating role of comprehensive performance measurement systems (PMS) – i.e. measurement systems that comprise financial and non-financial indicators, and which also consist of indicators related to different aspects of an organisation’s operations – in the relationship between strategy and company performance.

Design/methodology/approach

Survey data of top managers of large European companies were collected and analysed by means of exploratory factor analyses and hierarchical regressions in order to validate the proposed hypotheses.

Findings

This research shows that different strategies lead to the use of different types of performance indicators. Also, it finds that the utilisation of a comprehensive PMS enables the implementation of both differentiation and cost-leadership strategies. Specifically, a comprehensive PMS positively mediates the effect of differentiation strategy on organisational and innovative performance, and of cost-leadership strategy on organisational performance.

Research limitations/implications

Further research could be undertaken in other contexts and consider additional factors, such as the structure, maturity and different uses of PMS, and the cost of measuring performance. Qualitative studies could examine the role of PMS in dynamic environments, as well as the evolution of PMS during strategic transitions.

Practical implications

Greater consideration should be given to the utilisation of different types of performance indicators when implementing and re-formulating strategy.

Originality/value

This study clarifies the links between strategy and performance measurement, and it is the first to identify the mediating effect of comprehensive PMS between strategy and company performance.

Details

International Journal of Operations & Production Management, vol. 37 no. 4
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 2 September 2019

Ulf Johanson, Roland Almqvist and Matti Skoog

The purpose of this paper is to further develop a conceptual framework for analysing performance management systems (PMS). The framework aims to be useful for a rich understanding…

Abstract

Purpose

The purpose of this paper is to further develop a conceptual framework for analysing performance management systems (PMS). The framework aims to be useful for a rich understanding of a specific organisation’s PMS. At the same time, it should preferable be simple so that it could be used even in practice. The framework adds to earlier work by Malmi and Brown (2008), Ferreira and Otley (2009), Broadbent and Laughlin (2009), Bedford and Malmi (2015) and Johanson et al. (2001).

Design/methodology/approach

The paper is theoretical but has also been applied to a Swedish municipality. The purpose of the latter was to understand if the framework is feasible so far.

Findings

The authors hold that the framework in its present form is useful to use as an analytical tool even if it needs to be subjected to further development.

Research limitations/implications

The paper addresses an issue that is continuously changing. This means that the suggested framework may suffer from theoretical weaknesses in some respects. To balance between a theoretically deep and exhaustive framework and a framework that is simple enough to use is a tricky question that needs further investigation.

Practical implications

The ambition with the framework is that it shall be useful even in practice.

Originality/value

The need for further research in the PMS area has been emphasised by the above researcher but also by, e.g., Van Helden and Reichard (2016). They hold that the authors need rich European cases to improve the understanding of how PMS works. The authors hold that the present framework has the potential to meet the demands from Van Helden and Reichard.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 31 no. 3
Type: Research Article
ISSN: 1096-3367

Keywords

Article
Publication date: 24 July 2007

Patrizia Garengo and Umit Bititci

The literature emphasizes the important role performance measurement systems (PMS) play in supporting organizational development in small and medium enterprises (SMEs). However…

6175

Abstract

Purpose

The literature emphasizes the important role performance measurement systems (PMS) play in supporting organizational development in small and medium enterprises (SMEs). However, there are very few empirical and theoretical studies on the factors that influence performance measurement practices in SMEs. This paper aims to contribute to filling this gap using both theoretical and empirical approaches.

Design/methodology/approach

A literature review and interviews were used to identify four key contingency factors for PMS in SMEs. A qualitative research design involving a multiple case study methodology was carried out to investigate how these factors influence performance measurement.

Findings

The relationship between the contingency factors and performance measurement were formalized in four theoretical propositions. First corporate governance structure is one of the main factors influencing performance measurement adoption and use. Second, advanced information practices and advanced behaviours on the part of the people involved appear to be a necessary condition for the effective implementation and use of PMS in SMEs. Third, a change in a firm's business model seems to lead to the development of an improved PMS. Finally, the successful implementation of a PMS seems to be driven by an authoritative management style.

Research limitations/implications

Contingency factors were studied independently. Future research might investigate how these factors collectively influence performance measurement practices to make interdependence more explicit.

Practical implications

The theoretical propositions provide useful knowledge for defining a methodology and managerial tool to support performance measurement in SMEs.

Originality/value

This paper defines key contingency factors influencing performance measurement in SMEs; it contributes to clarifying how these factors could influence performance measurement practices in companies.

Details

International Journal of Operations & Production Management, vol. 27 no. 8
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 19 July 2013

Vincenza Esposito, Ernesto De Nito, Mario Pezzillo Iacono and Lucia Silvestri

This article sets out to investigate the relationship between performance management systems (PMSs) and knowledge in public universities. In particular, this paper intends to…

1464

Abstract

Purpose

This article sets out to investigate the relationship between performance management systems (PMSs) and knowledge in public universities. In particular, this paper intends to verify how different choices related to PMS affect the nature of knowledge, in terms of the well‐known tacit vs explicit dichotomy.

Design/methodology/approach

The empirical focus is on the recent PMS changes that have been developing in the “modernisation agenda” of the Italian public sector. In particular, 15 case studies of PMS design in Italian universities are presented. The interpretation of the results is based on the Simon's theoretical framework related to the four levers of control.

Findings

Results show how PMSs (in the different forms presented in the universities’ evaluation plans) could represent an important social tool to facilitate the management of organizational knowledge, combining explicit and tacit forms of knowledge.

Originality/value

This paper tackles a topic neglected in the knowledge management literature, aiming to open up a discussion on the possible interconnections between PMSs and knowledge in the public arena.

Details

Journal of Intellectual Capital, vol. 14 no. 3
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 19 January 2010

Luca Cagnazzo, Paolo Taticchi and Alessandro Brun

The purpose of this paper is to discuss which are the most important critical success factors (CSFs) to be attained for determining whether a group of companies in a supply chain…

4603

Abstract

Purpose

The purpose of this paper is to discuss which are the most important critical success factors (CSFs) to be attained for determining whether a group of companies in a supply chain (SC) is prepared to undergo a qualitative improvement initiative (QII). By answering four critical research questions, the paper focuses on the role of performance measurement systems (PMSs) as a CSF to support QII and discusses which PMS is more appropriate for the different SC context existing in the new economy.

Design/methodology/approach

The methodology adopted in this research relies on different approaches. In order to evaluate the readiness of a company in the SC to start a QII, the authors propose a checklist of CSFs defined through a literature review. Further, to evaluate the impact of PMSs to support QII at the SC level, the authors review PMS literature and discuss the characteristics of the various PMS available. Last, in order to select the best PMS to support the QII of companies belonging to different SC, the authors propose a classification matrix based on the SC characteristics.

Findings

The main findings of this research is the understanding of the PMS role in supporting QII at SC level.

Research limitations/implications

The research presented in this paper needs to be validated through the use of case studies, in order to optimize the methodology proposed.

Practical implications

This paper offers to academics, managers and practitioners a structured methodology to select the right PMS to support QII in specific SC contexts.

Originality/value

Few researches are available exploring the correlation between PMS and QII, especially in particular collaborative environments such as SCs. As a consequence, the methodology and findings of this paper add value to the existing body of knowledge and offer good insights for addressing future research.

Details

International Journal of Productivity and Performance Management, vol. 59 no. 2
Type: Research Article
ISSN: 1741-0401

Keywords

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