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1 – 10 of over 1000Tarmo Kadak and Erkki K. Laitinen
The assessment of the success of Performance Management Systems (PMS) is difficult because there are many success factors, they are mutually dependent on each other, and located…
Abstract
Purpose
The assessment of the success of Performance Management Systems (PMS) is difficult because there are many success factors, they are mutually dependent on each other, and located at different hierarchical levels of an organization. Therefore, there is a need to describe the complete logical chain, which makes PMS successful for an organization and to find out a comprehensive list of key factors (KF) affecting the success of PMS. The objective of this research paper is to develop a method to assess success of a PMS based on a logical chain of 14 KF.
Methodology/approach
The research first develops a logical chain based on the 14 KFs on the basis of prior studies and then carries out a survey about these KFs (15 check points) of PMS and their connection to organizational performance for a small sample of firms from two EU countries.
Findings
There are next findings of this study which indicate following: KFs of PMS affect organizational performance; successful PMS improves organizational performance; PMS is successful for the organization when the completeness of the logical chain in PMS is high.
Practical implications
The practical contribution of this study is that findings show that firms can assess their own PMSs and compare their check point values against the values of successful PMS group. This kind of analysis indicates directly improvement potential for the different check points in PMS.
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Nopadol Rompho and Sakun Boon‐itt
This study aims to identify what managers involved in the design of a performance measurement system (PMS) perceive are the attributes of a successful PMS.
Abstract
Purpose
This study aims to identify what managers involved in the design of a performance measurement system (PMS) perceive are the attributes of a successful PMS.
Design/methodology/approach
A total of 85 managers from Thai firms were interviewed to develop the proposed model to measure the success of a PMS. Results from 269 returned questionnaires from Thai managers were analysed by second order confirmatory factor analysis (CFA).
Findings
Based on the study's findings, success of PMS was categorised into two aspects: design success and implementation success. Using CFA the empirical data demonstrate a good fit with the proposed measurement model.
Research limitations/implications
The results of this study are based on the opinions of managers and therefore their accuracy is open to question. Adding non‐managerial perspectives might demonstrate another picture.
Practical implications
The findings could well be useful for managers in any organisation. They can assist the manager in judging whether or not the company's PMS is successful according to the discovered criteria. Use of these criteria could lead to better decision‐making in the design and implementation of a PMS framework in any organisation.
Originality/value
This study enhances the body of knowledge by defining what a successful PMS means to managers in Thai firms. The results of this study can be applied to any country, but perceptions of what is important could vary from country to country.
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Erkki K. Laitinen and Tarmo Kadak
The purpose of this paper is to use the logical chain of key factors (KFs) to explain the success of performance management systems (PMS) and corporate performance.
Abstract
Purpose
The purpose of this paper is to use the logical chain of key factors (KFs) to explain the success of performance management systems (PMS) and corporate performance.
Design/methodology/approach
The authors use the strength of the KFs chain to capture PMS success. First, the authors assume that perceived environmental uncertainty (PEU) is positively associated with the strength (H1). The higher the PEU, the stronger is the chain as a response to uncertainty. Second, the authors assume that the strength improves performance (H2) but third, that the impact of the strength is negatively moderated by competition (H3). Fourth, the authors assume that this improvement leads to superior corporate performance (H4). The research model is tested by applying the partial least squares method for a sample of 61 Estonian and Finnish firms.
Findings
Empirical evidence shows that PEU is negatively correlated to the strength of the chain but when controlled for a set of control variables, the path coefficient is positive. The strength of the chain is positively associated with improvement in performance. The impact of the strength of the chain on financial performance is negatively moderated by competition. The improvement in performance is positively associated with the attainment level of strategic goals. The improvement in non-financial performance does not significantly affect corporate profitability.
Practical implications
The levels of PEU and competition should be taken into the account when designing, adjusting and assessing the PMS of organization.
Originality/value
The authors give explanation why evidence about the effects of PMS on the performance of the firm is mixed.
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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…
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.
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Rebecca Kassa, Ibilola Ogundare, Brian Lines, Jake B. Smithwick, Nancy J. Kepple and Kenneth T. Sullivan
Construction organizations' investment in effective talent-development programs is a key strategy in attracting, developing and retaining staff. Such programs are especially…
Abstract
Purpose
Construction organizations' investment in effective talent-development programs is a key strategy in attracting, developing and retaining staff. Such programs are especially important given the current challenges in the construction workforce, including labor shortages, an aging workforce, generational differences in the workforce, supply chain disruptions and the need to effectively train staff in the skills that are essential in a constrained labor environment. To address these challenges, this study proposes a performance measurement strategy that construction companies can use as input to design their talent development programs.
Design/methodology/approach
The strategy intends to assess the performance of project managers and develop criteria that define categories of their performance, including the top performers' category. This enables construction organizations to provide each project manager with individualized training that addresses areas of weakness and in turn, develops the skills that correspond with being top performers. The proposed strategy was developed and tested by surveying the immediate supervisors of 187 project managers working for general and specialty contractors in the United States. Principal component analysis was used to develop a single performance construct from seven performance criteria.
Findings
This construct was used to organize the project managers into the categories of top, above-average and below-average performers. According to the findings, top-performing project managers have well-rounded skills in the areas of leadership, communication, technical proficiency and overall job knowledge.
Practical implications
The outcomes of this study can help construction organizations focus their talent-development programs on the skills most associated with PMs being top performers.
Originality/value
This study provides construction organizations with a comprehensive performance-measuring construct to focus their talent-development programs on the skills most associated with top-performing project managers. Researchers can use this study as a foundation for further understanding how performance is related to various construction professions.
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Antonio Leotta and Daniela Ruggeri
The purpose of this paper is to highlight how the variety of the actors involved in a performance measurement system (PMS) innovation are spread out in time and space. Healthcare…
Abstract
Purpose
The purpose of this paper is to highlight how the variety of the actors involved in a performance measurement system (PMS) innovation are spread out in time and space. Healthcare contests are examined, where such an innovation is influenced by present and past systems and practices (spread out in time), and by managerial and health-professional actors (spread out in space).
Design/methodology/approach
Drawing on Callon’s actor network theory, the authors describe PMS innovations as processes of translation, and distinguish between incremental and radical innovations. The theoretical arguments are used to explain the evidence drawn from a longitudinal case study carried out in an Italian public teaching hospital, referring to the period from 1998 up to 2003.
Findings
The conceptual framework shows how the translation moments lead to a recognition of the different actants involved in a PMS innovation, how their interests are interrelated and mobilized. Moreover, it shows how the interaction among the actants involved in the process is related to the type of PMS innovation, i.e. radical vs incremental. The case evidence offers detailed insights into the phenomenon, testing the explanatory power of the framework, and highlights how the failure of one of the translation moments can compromise the success of a PMS innovation.
Originality/value
This study differs from the extant accounting literature on PMS innovations as it highlights how the introduction of a new PMS can be affected by some elements of the previous systems “package,” which are relevant for the mobilization of the actants through the new project.
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Manoochehr Najmi, Mohammad Etebari and Samin Emami
The purpose of this paper is to develop an exclusive review framework for the Performance Prism.
Abstract
Purpose
The purpose of this paper is to develop an exclusive review framework for the Performance Prism.
Design/methodology/approach
An extensive literature survey on performance measurement is used to identify the main aspects of the review in such systems. Various dimensions related to the characteristics of Performance Prism are explored. All the findings are then rationally put together to develop the proposed conceptual framework.
Findings
The paper presents a conceptual model to review performance measurement systems (PMS) which are designed based on Performance Prism. The presented framework categorizes review processes and tools into two main categories; Business Performance Review (BPRw) and Performance Measurement System Review (PMSR). In BPRw, a loop is presented in three levels – with regards to the five facets of Performance Prism – which indicates the performance management process. PMSR deals with reviewing the efficiency and effectiveness of the design and implementation of the PMS itself. Several methods and tools have been gathered from the literature (e.g. relevance test, measures profile, etc) in this section to examine the relevance of measures, and some have been introduced (including a method to determine inconsistencies in organization's performance trends between stakeholder, strategic and operational level) to study and challenge the validity of strategic assumptions and strategies, and appropriateness of infrastructure. Implications of various factors such as organizational culture, change management, and characteristics of the measures (level of the measure, managers who receive reports including the measure, and supporting infrastructure) are highlighted.
Research limitations/implications
In contrast to PMS design and implementation, research on PMS review is limited. This is more evident in the literature concerning Performance Prism. The empirical evidence of usefulness is beyond the scope of this article.
Practical implications
The framework provides a procedural action for reviewing both business performance and PMS performance when applying the Performance Prism in practice and provides a foundation for further empirical research.
Originality/value
The paper adds to the body of literature, by proposing a comprehensive review framework to be used in Performance Prism.
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This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
This research paper analyzes how performance management systems (PMS) affect organizational performance by surveying respondents from an eclectic range of Estonian and Finnish firms. PMS initiatives often fail because of their multiple layers, which form a chain that presents multiple breakage opportunities. PMS at a strategic level most significantly elevated organizational performance. Strengthening a PMS chain increased the chances of the PMS exercise succeeding, therefore managers are advised to achieve high performance by checking that all key characteristics are present to construct a strong PMS chain.
Originality/value
The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.
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Juan José Alfaro Saiz, Angel Ortiz Bas and Raúl Rodríguez Rodríguez
The purpose of this research paper is to present a performance measurement system for enterprise networks (PMS‐EN) developed within the context of a European project's context.
Abstract
Purpose
The purpose of this research paper is to present a performance measurement system for enterprise networks (PMS‐EN) developed within the context of a European project's context.
Design/methodology/approach
This research follows a constructivist approach, based on the following activities: recompilation, analysis and study of scientific knowledge, acquisition of main postulates and construction of initial framework.
Findings
This paper describes a performance measurement system called PMS‐EN that can be used for managing performance in the enterprise networks context. After analysing different frameworks relating to such a thematic, and once their main weaknesses were identified, it was decided to develop a PMS that will overcome these difficulties and, at the same time, provide enterprises operating within these environments, with a simple, efficient, robust and useful framework.
Research limitations/implications
This PMS has been built upon the framework called PMS IE‐GIP, but thought could be given to building it upon other frameworks existing within the literature.
Practical implications
Even though this proposal has been successfully applied to an enterprises network, it should be tested further by implementing it to other enterprises networks, with the main objective of enriching and extending it to other sectors.
Originality/value
This paper has described a new performance measurement system called PMS‐EN that can be used for managing performance in the enterprise networks context. It provides enterprises operating in this context a simple, efficient, robust and useful framework. Additionally, it is an efficient and effective tool for creating, managing and monitoring performance measures, in an analytical and graphical way, at both global and individual levels of the enterprise networks, which is lacking in most of the existing frameworks.
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Young Cheoul Kang and Nakbum Choi
The purpose of this paper is to explore factors that can influence on the police officer’s perception of the effectiveness of the performance management system (PMS). This study…
Abstract
Purpose
The purpose of this paper is to explore factors that can influence on the police officer’s perception of the effectiveness of the performance management system (PMS). This study examines the effect of the attitude of employees and causal relationships between organizational/individual factors and the effectiveness of PMS during the implementation process.
Design/methodology/approach
The authors conducted a nationwide online survey of 10,619 police officers in South Korea. Structural equation modeling was employed to analyze multiple relationships simultaneously. The authors constructed a baseline model and also examined an alternative model in order to increase the model’s explanatory power.
Findings
Police officers’ perception of the understanding of the PMS, manager’s concern, participation and performance information (PI) usage exerted significant effects on the perceived effectiveness of the PMS. However, the relation between understanding of the PMS and PI usage was not significant. The study identified organizational and institutional settings for the success of the PMS. Overall, results support findings of previous studies that suggest an important role of common consensus on performance indicators and agreement between managers and employees.
Research limitations/implications
While the data size of this study is quite large, it should be considered that the respondent’s preferences on the PMS might have influenced survey results. Findings are limited by the use of a cross-sectional design. Future studies may investigate changes in causal relationships over time by employing a panel design. In addition, various survey items related to the practices of the PMS within the police organization need to be included in future studies.
Practical implications
To improve the effectiveness of performance management in the police organization, decision makers and managers must emphasize behavioral aspects of the system, especially the causal relationship between practices and perception of the usefulness of the system.
Originality/value
Despite the wide use of PMS in police management practice, police officers’ perception of the effectiveness of these systems has received little attention in the field. This study indicated a causal link between the factors in the PMS and the perception of the police officers.
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