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Article
Publication date: 17 January 2023

Helen Mackenzie and Umit S. Bititci

The conceptual foundations of performance measurement and management (PMM) are predominantly rooted in control systems research. However, the appropriateness of this paradigm for…

Abstract

Purpose

The conceptual foundations of performance measurement and management (PMM) are predominantly rooted in control systems research. However, the appropriateness of this paradigm for volatile and uncertain environments has been questioned. This paper explores whether grounding PMM in social systems theory and viewing uncertainty from an organisational behaviour perspective provides new insights into the PMM theory–practice gap.

Design/methodology/approach

A framework, rooted in social systems theory and practice theory, is created that describes how organisational behaviour shapes the social processes associated with organisational change. Semi-structured interviews of 35 people from 16 organisations coupled with thematic analysis are employed to identify the organisational behavioural characteristics that influence how PMM is executed in practice. PMM is then reconceptualised from the perspective of this social systems-based framework.

Findings

This investigation proposes (1) performance management is concerned with elements of PMM-related practices open to flexible interpretation by human agents that change the effectiveness of organisational practices, whereas performance measurement is concerned with elements of PMM-related practices not open to interpretation but deliberately reproduced to provide a consistent comparison with the past; (2) the purpose of PMM should be to achieve organisational effectiveness (OE) and (3) the mechanisms underlying performance management and performance measurement are social intervention and embeddedness, respectively.

Originality/value

This first social systems perspective of PMM advances the development of PMM's theoretical foundations by providing a behaviour-based interpretation of, and framework for, PMM-mediated organisational change. This competing approach has strong links to practice.

Details

International Journal of Operations & Production Management, vol. 43 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 21 November 2023

Krishna Muniyoor and Rajan Pandey

Farmers producer organisations (FPOs) play the most crucial role in the agriculture supply chain system, aiming to redress the balance between farming and marketing activities of…

Abstract

Purpose

Farmers producer organisations (FPOs) play the most crucial role in the agriculture supply chain system, aiming to redress the balance between farming and marketing activities of agricultural produce. The purpose of this study is to assess the performance of FPOs using data envelopment analysis (usually referred to as DEA) on 34 FPO units selected from the state of Rajasthan.

Design/methodology/approach

One of the most commonly used techniques to examine business performance is the application of DEA. The application of DEA requires the selection of inputs and outputs. This study takes three inputs and three outputs based on the insights drawn from the field survey. While the input variables consist of total assets, paid-up capital and the number of economic activities, the three output variables are turnover, net profit and number of members benefitted. Broadly, these variables encapsulate the operational performance of the business units.

Findings

This study’s findings reveal that the estimated relative efficiency score of the input-oriented CCR (Charnes, Cooper, and Rhodes) model ranges from 0.06 to 1. Interestingly, only one FPO has reported a relative efficiency (RE) score of one, whereas the remaining FPOs fall below the efficiency frontier. However, 15 FPOs report an RE score of one in the output-oriented CCR approach. Considering the estimates obtained in the input- and output-oriented BCC (Banker, Charnes and Cooper) models, this study found that about 20% of the FPOs report an efficiency score greater than 0.80. Moreover, three FPOs are on the frontier line. An examination of the scale efficiency score in the input-oriented model, 45% of the FPOs have an efficiency score greater than 0.80, whereas almost all FPOs achieve a scale efficiency score greater than 0.80 in the output-oriented model. Overall, the results imply that the FPOs should place greater emphasis on the efficient utilisation of the inputs to enhance the overall business performance and productivity.

Research limitations/implications

The findings of this study provide vital insights into the specific inputs and outputs that determine the performance efficiency of FPOs and identify the potential areas for improving the existing inefficient FPOs.

Originality/value

This study contributes to the repository of the existing empirical studies in three distinct ways. First, the authors hardly found any previous studies that quantitatively assess the business performance of FPOs using the DEA technique. Second, the effort to identify the slacks associated with each input and output variable in input- and output-oriented models gives insights on improvable areas for inefficient FPOs. Third, the authors attempt to demystify the empirical obfuscations by highlighting the major challenges FPOs face in the state of Rajasthan.

Details

Journal of Global Operations and Strategic Sourcing, vol. 17 no. 1
Type: Research Article
ISSN: 2398-5364

Keywords

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