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Open Access
Article
Publication date: 31 August 2023

Lilian M. de Menezes and Ana B. Escrig-Tena

This paper aims to improve our understanding of performance measurement systems in the health and care sector, by focussing on employee reactions to core performance measurement…

1493

Abstract

Purpose

This paper aims to improve our understanding of performance measurement systems in the health and care sector, by focussing on employee reactions to core performance measurement practices. Targets and monitoring are hypothesised to be associated with employee perceptions of job control, supportive management and job demands, which in turn, are expected to be linked to employee-wellbeing and organisational commitment.

Design/methodology/approach

Matched employee workplace data are extracted from a nationally representative and publicly available survey. Structural equation models are estimated.

Findings

Performance measurement systems are neither perceived as resources nor additional demands. Setting many targets and a focus on productivity can lead to negative employee outcomes, since these positively correlate with perceptions of job demands, which negatively correlate with employee wellbeing. However, monitoring financial performance and monitoring employee performance may be helpful to managers, as these are positively associated with employee perceptions of job control and supportive management, which positively correlate with job satisfaction and organisational commitment and, negatively, with anxiety. Overall, common criticisms of performance measurement systems in healthcare are questioned.

Originality/value

Given the lack of consensus on how performance measurement systems can influence employee experiences and outcomes, this study combines theories that argue for performance measurement systems in managing operations with models developed by psychologists to describe how perceptions of the work conditions can affect employee attitude and wellbeing. A conceptual model is therefore developed and tested, and potential direct and indirect effects of performance measurement systems in the health sector are inferred.

Details

International Journal of Operations & Production Management, vol. 43 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 20 July 2023

Arnaldo Camuffo and Alberto Poletto

The paper tests if and to what extent lean management system adoption generates abnormal profitability, and how it accrues over time. Configurational approaches to lean management…

Abstract

Purpose

The paper tests if and to what extent lean management system adoption generates abnormal profitability, and how it accrues over time. Configurational approaches to lean management systems and “S-curve” effects in lean implementation are used to ground the paper's hypotheses and interpret its findings.

Design/methodology/approach

Using the emerging view of lean as enterprise-wide management systems, this quasi-experimental study uses a difference-in-differences approach to estimate the abnormal profitability (ROIC) attributable to lean management system adoption. The paper leverages a unique data set of lean adopters nested in a panel data set (19 years) of 2,088 industrial firms matched by industry and firm size. It applies a variety of regression methods (two-way fixed effect panel estimator, propensity score matching, instrumental variable two-stage-least squares) to estimate the size of the abnormal profitability attributable to lean management systems, addressing endogeneity issues related to non-random sampling, omitted variable bias and reverse causation. It also analyzes the cross-firm variability of such abnormal profitability and how it accrues over time.

Findings

For the average non-adopter in the sample (44.3 million euro revenues), lean adoption generates abnormal ROIC ranging from 1.4% to 3.9%. These results come into effect approximately three years after starting lean adoption and peak after eight years. While the average abnormal profitability attributable to lean adoption is sizable, it varies significantly across firms and over time. This significant variation is compatible with firms' diverse ability to understand the complex inner workings of lean systems, and to design and implement them so that they improve profitability.

Research limitations/implications

The conceptualization of lean as enterprise-wide management system can be further refined to more effectively categorize the components of lean systems and investigate the nature of their relationships. Lean system adoption measurement can be fine-tuned to better capture cross-firm and longitudinal heterogeneity. Future work can explore other dependent variables of interest to different stakeholders including shareholders' value, employment and environmental and social sustainability.

Practical implications

The financial benefits of adopting lean can be reaped to the extent to which managers embrace lean as a philosophy and implement it pervasively in the organization. A firm can use the study's estimates as a basis for making calculations about the returns of investment in lean adoption. The paper also shows that “getting the lean system right” makes a significant difference in terms of abnormal profitability, which is twice as large for the best lean adopters..

Social implications

Compared with the promises of many lean proponents and supporters, the paper provides a more realistic view of what to expect from lean adoption in terms of profitability. Adopting lean as a comprehensive, enterprise-wide management system is not a universal panacea, but a complex endeavor, characterized by multiple complex decisions that require considerable capabilities, coordinated efforts and consistency of action.

Originality/value

Differently from extant research, this study does not study the correlation between the adoption of lean operation practices and financial performance but focuses on the abnormal profitability generated by the adoption of lean as a pervasive, enterprise-wide management system. Its research design allows to identify the differential profitability attributable to lean adoption and documents that it accrues non-linearly.

Details

International Journal of Operations & Production Management, vol. 44 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 11 April 2023

Aneta Kucińska-Landwójtowicz, Izabela Dagmara Czabak-Górska, Marcin Lorenc, Pedro Domingues and Paulo Sampaio

The main purpose of this paper is twofold: to present a proposal for a model of educational quality management system within a process approach context for technical universities…

Abstract

Purpose

The main purpose of this paper is twofold: to present a proposal for a model of educational quality management system within a process approach context for technical universities, and a conceptual model of a performance measurement system (PMS) towards the assessment of the quality level of management, core and support processes.

Design/methodology/approach

The paper encompasses two main parts: a theoretical portion and a case study. Within the theoretical background, the authors discuss the issue of educational quality management supported on a process approach perspective as well as performance measurement system in high education (HE). The case study reports the development of the concept of performance measurement system for technical universities.

Findings

The proposed system of educational quality management supported on a process approach, together with a conceptual model of the performance measurement system, can be implemented in every technical university. The identification of processes in the education quality management system permitted the development of the PMS. The model covers 32 key performance indicators (KPIs) for management processes, 39 for core processes and 19 for supporting ones.

Research limitations/implications

The proposed performance measurement system is limited in its focus on educational processes and support of these processes. The evaluation of scientific and research activity and aspects related to financial resources is not pursued.

Originality/value

Elaboration of a conceptual model of a performance measurement system towards the assessment of the quality level of management, core and support processes is dedicated to technical universities.

Details

International Journal of Quality & Reliability Management, vol. 40 no. 10
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 26 December 2022

Andrey Pavlov and Pietro Micheli

Traditional approaches to organizational performance management that emphasize objectivity, control and predictability are rapidly losing relevance in an environment characterized…

2350

Abstract

Purpose

Traditional approaches to organizational performance management that emphasize objectivity, control and predictability are rapidly losing relevance in an environment characterized by increasing levels of complexity and dynamism. This paper draws on complexity theory to suggest a new paradigm for managing performance in organizations.

Design/methodology/approach

The paper draws on the common features of complex systems and the corresponding concept of emergence to revisit key themes in organizational performance management and propose a set of implications for research and practice.

Findings

Understanding organizations as complex systems and performance as an emergent property of such systems leads to a set of new research questions, the adoption of alternative methods and the formulation of novel propositions. It also has various implications for both academic research and managerial practice, from moving away from the traditional notion of organizational alignment to adopting a more explicit stakeholder-based view in the design and use of measurement systems.

Originality/value

The paper highlights the great potential of complexity theory for addressing contemporary issues in the field of organizational performance management and charting the landscape for its future development.

Details

International Journal of Operations & Production Management, vol. 43 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 4 August 2022

Grid Rangsungnoen

The Baldrige criteria for assessing business performance excellence (BCPE) suggests a relationship among seven self-assessment categories. The purpose of this paper is to take an…

Abstract

Purpose

The Baldrige criteria for assessing business performance excellence (BCPE) suggests a relationship among seven self-assessment categories. The purpose of this paper is to take an in-depth look at the BCPE by testing the causal relationship among categories grouped into four basic dimensions – driver triad, work core, outcomes, and brain centre. Identifying meaningful interrelationships for leaders helps them transform their organisations to achieve performance excellence.

Design/methodology/approach

A systems perspective supports system mapping for understanding meaningful interrelationships among dimensions and mediating factors affecting business performance excellence. A 35-item questionnaire designed to measure seven categories of the BCPE (version 2022–2023) was administered to export and import (EXIM) businesses across Thailand. Valid responses (n = 290) were analysed through SPSS and AMOS via structural equation modelling (SEM) to test the hypotheses and explore the influencing factors.

Findings

A strong systems perspective focus is essential for high organisational performance. The result reveals that all seven BCPE categories are significantly linked. In addition, mediation analysis (taking selected mediators) proved hypothesised cause-and-effect relationship as significant. The results demonstrate that the brain centre plays a crucial role in driving business success promulgating its influence within the model.

Research limitations/implications

This study provides the necessary backgrounding in systems perspectives confirming that the BCPE premises on a set of four basic dimensions: driver triad (leadership, strategy, and customers category), work core (workforce and operations category), brain centre (measurement, analysis, and knowledge management category), and outcomes (results category). These four dimensions define the essentials of an integrated management system. Further, the study shows that measurement, analysis, and knowledge management directly influenced customer focus, the highest coefficient path among the criterion in the Baldrige framework. This is the critical driver in predicting performance outcomes via meaningful feedback.

Practical implications

From a managerial point of view, the structured system management framework proposed provides a specific guide for the alignment in quality management, which can change its practice in business management and award assessment. The results evidence a significant relationship among driver triad, work core, brain centre, and outcomes to propose a form of system management. The findings help award examiners or business practitioners provide system mapping for evaluation – i.e. how well organisations meet their goals and how best to prepare feedback reports to applicants that paint meaningful pictures.

Originality/value

This study promotes a systems perspective when approaching business performance excellence, whereas other studies provide evidence to individual relationships. Moreover, the examined interrelationship among dimensions – driver triad, work core, outcomes, and brain centre – provide novel system mapping to guide managers, practitioners, or award examiners in evaluating quality management practice.

Details

The TQM Journal, vol. 35 no. 7
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 17 May 2022

Adelaide Ippolito, Marco Sorrentino, Francesco Capalbo and Adelina Di Pietro

The aim of this paper is to analyse how technological innovations in performance measurement systems make it possible to overcome some of the challenges that public healthcare…

Abstract

Purpose

The aim of this paper is to analyse how technological innovations in performance measurement systems make it possible to overcome some of the challenges that public healthcare organizations face where management and control are concerned. The changes that could be applied to the performance measurement system of healthcare organisations were analysed together with an evaluation of the responses developed in order to achieve these changes.

Design/methodology/approach

The paper contains an in-depth case-study of a public university hospital which utilises an innovative information system.

Findings

The case-study highlights how technological innovations in performance measurement systems impact the management and monitoring information system in a public university hospital, through the implementation of a multidimensional management dashboard.

Research limitations/implications

The limitation of this paper is that only one case-study is analysed, albeit in depth, while it would be interesting to consider more public university hospitals.

Practical implications

The paper highlights the fundamental role of middle management in change processes in the healthcare sector.

Originality/value

The case-study highlights how critical the active involvement of middle management is in performance measurement and management, and how this is achieved thanks to the adoption of a simple, clear method which ensures comprehensible communication of the objectives, as well as the measurement of performance by means of radar plots.

Details

International Journal of Productivity and Performance Management, vol. 72 no. 9
Type: Research Article
ISSN: 1741-0401

Keywords

Book part
Publication date: 7 December 2023

Danila Scarozza, Alessandro Hinna and Federico Ceschel

Scholars have pointed out the need for improvement and refinement in public management research, also depending on the role of public administration for sustainable development…

Abstract

Scholars have pointed out the need for improvement and refinement in public management research, also depending on the role of public administration for sustainable development. Because government organizations employ a substantial portion of the workforce, management practices in the public sector are critical areas for designing, implementing and delivering policies that can achieve the goals set forth in the 2030 Agenda for Sustainable Development. For these purposes, and in implementation of the Next Generation EU (NGEU) programme, Italy recently launched an ambitious National Recovery and Resilience Plan (NRRP) which includes, among other things, upskilling goals for staff employed, following the modernization process that has involved the Italian public sector in the last decades, with the Decree n. 150/2009. Aiming both to understand the extent of the application of the reform and to answer some basic questions (why, what and how) concerning Individual Performance Appraisal Systems (IPAS), we conducted a content analysis on the 220 documents already produced by the Italian Ministries. The study has been conducted in two different steps of the reform process and provides solid evidence of the reforms' effects on designing and implementing individual performance systems. The analyzed documents reveal no longer-term vision in implementing the IPAS that involves some critical performance management utilities such as training, development, fair pay and deployment of employees, raising new questions about a sustainable approach to the individual performance management process even in public organizations.

Details

Reshaping Performance Management for Sustainable Development
Type: Book
ISBN: 978-1-83797-305-7

Keywords

Book part
Publication date: 7 December 2023

Francesca Costanza

Social enterprises (SEs), part of the third sector, are hybrid organizations combining the pursuit of social scopes with commercial business solutions. In seeking for social…

Abstract

Social enterprises (SEs), part of the third sector, are hybrid organizations combining the pursuit of social scopes with commercial business solutions. In seeking for social value, they pair for-profit and non-profit features, thereby compensating for shortcomings of both the public sector and the commercial market. Therefore, the performance management of such organizations assumes a crucial relevance. Among the available tools, the balanced scorecard (BSC) aims to capture performance multidimensionality, at the same time fostering legitimacy towards stakeholders.

In general terms, the BSC has the limit to follow a linear and static logic of construction and functioning. For this reason, scholars combine it with system dynamics (SD) to create dynamic balanced scorecards (DBSCs). However, literature seems to devote scarce attention to the adoption of such analytic tools in the third sector, particularly in SEs. This chapter wants to contribute to bridging this gap by proposing a tailored application in the context of a social cooperative, active in the clothing recycle and in the re-integration of disadvantaged social categories. By referring to previous literature about DBSC, two modelling strategies are identified: the BSC-driven and the SD-driven. The latter, based on inductive reasoning, is the one privileged for the study because of its wider flexibility. The modelling outputs consider different perspectives than the ones within traditional BSCs, contain elements of circular causality and show how financial and non-financial performances interplay and co-determine each other. Insights from the proposed model can be useful to support both decision-making and stakeholder engagement.

Details

Reshaping Performance Management for Sustainable Development
Type: Book
ISBN: 978-1-83797-305-7

Keywords

Article
Publication date: 2 November 2022

Noel Hyndman and Mariannunziata Liguori

This paper explores how performance-management systems are understood and framed through the use of rhetoric and language within universities, where not-for-profit, charitable…

Abstract

Purpose

This paper explores how performance-management systems are understood and framed through the use of rhetoric and language within universities, where not-for-profit, charitable goals are (or should be) central. It addresses the issues of: how strategic rhetorical frames are used by university actors; and how these relate to actors' primary frames and reactions to performance-management practices. The study focuses on the case of UK universities, taking into consideration both old and newer institutions.

Design/methodology/approach

This study adopts a case-study approach, relying on 28 interviews with key-academic actors involved in the design and implementation of university performance-management systems in four UK universities.

Findings

The research highlights the important effect of primary frames over the strategic frames that are mobilised to achieve desired outcomes or individual advantage. In Business disciplines, the consistency between actors' primary frames and managerial and performance-management tools introduced into universities makes such disciplines a fertile ground for these practices to be embraced. This is not the case with Natural Sciences.

Practical implications

While framing a new practice consistently with existing/prevailing primary frames may be a winning strategy in the short term, in the long term, those tasked with introducing new practices should consider that the prevalence of a certain view of the world has the potential to hamper innovation and learning.

Originality/value

The paper contributes to advance our understanding of the interaction between individual primary and strategic frames, as well as academic staff's reactions and interpretations of performance-management practices in universities as knowledge-intensive, not-for-profit organisations.

Details

Accounting, Auditing & Accountability Journal, vol. 36 no. 4
Type: Research Article
ISSN: 0951-3574

Keywords

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

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