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Article
Publication date: 1 June 2005

Stefan Tangen

The purpose of this paper is to discuss how to design an individual performance measure, which usually means the measurement practitioner must deal with many requirements

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6533

Abstract

Purpose

The purpose of this paper is to discuss how to design an individual performance measure, which usually means the measurement practitioner must deal with many requirements other than the ones that can be found when designing a complete performance measurement system.

Design/methodology/approach

Different requirements suggested in the performance measurement literature from the past 20 years have been sorted out in order to structure the different tasks to conduct when designing a measure.

Findings

Explains how to form or select a formula that fulfils the purpose of a measure. Defines 15 parameters that fully specify a measure. Clarifies positive and negative measure properties.

Practical implications

Measurement regimes are often built without a clear understanding of what is being measured. The article includes several practical tools that can be used when designing a performance measure.

Originality/value

Discusses the question “how to measure?”, while most of past research in the field has been aimed at solving “what to measure?”.

Details

Measuring Business Excellence, vol. 9 no. 2
Type: Research Article
ISSN: 1368-3047

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Article
Publication date: 1 December 2003

Stefan Tangen

Performance measures are often used to increase the competitiveness and profitability of manufacturing companies through the support and encouragement of productivity…

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9405

Abstract

Performance measures are often used to increase the competitiveness and profitability of manufacturing companies through the support and encouragement of productivity improvements. This paper reviews the most frequently used performance measures to identify their strengths and weaknesses and the situations in which they are most appropriately deployed. The performance measures under review are compared in terms of how easily they are derived from strategic objectives, how easy they are to understand and whether they help form a long‐term view of performance. Suggests that it is important to select performance measures to match the situation in which they are to be used; more importantly, it is necessary to combine various types of performance measure to provide a fair complete and balanced view of a company or the operations under evaluation.

Details

Work Study, vol. 52 no. 7
Type: Research Article
ISSN: 0043-8022

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Article
Publication date: 1 June 2000

Alan Wilson

Reports on a programme of research undertaken to understand the manner in which leading service organisations develop, use and integrate measures of their outlets…

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2021

Abstract

Reports on a programme of research undertaken to understand the manner in which leading service organisations develop, use and integrate measures of their outlets’ activities and performance. In particular, looks at the extent to which academic guidelines for adding value to performance measurement systems are applied. Four service sectors where service delivery is seen as being critical were selected for the research. In each of these sectors, one of the top four organisations (in terms of turnover) agreed to collaborate in the development of a series of case studies. The research found linkages between objectives, drivers and key performance measures. However, the organisations still have some way to go in moving performance measures from being something that keeps score to something that helps people and teams improve their performance. Clarity of the communication of results and their relationship to corporate priorities is also an area where major development is still required. Finally, there is a tendency for performance measurement systems to be technology driven rather than needs driven. As a result, the complexity and breadth of measures now available may actually make it more rather than less difficult for service outlet managers to manage.

Details

Marketing Intelligence & Planning, vol. 18 no. 3
Type: Research Article
ISSN: 0263-4503

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Article
Publication date: 1 July 2005

Maurice Gosselin

The recent performance measurement literature suggests that organizations should put more emphasis on non‐financial measures in their performance measurement systems, that…

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6498

Abstract

Purpose

The recent performance measurement literature suggests that organizations should put more emphasis on non‐financial measures in their performance measurement systems, that organizations must use new performance measurement approaches such as the balanced scorecard and that measures should be aligned with contextual factors such as strategy and organizational structure. The purpose of this paper is to assess the extent to which organizations are following these prescriptions.

Design/methodology/approach

A survey of a sample of Canadian manufacturing firms was conducted. In the questionnaire, organizations had to indicate the extent to which they use 73 performance measures. They also had to respond to questions about determinants such as strategy, organizational structure and environmental uncertainty. More than 100 organizations responded to the survey. The response rate was 50.5 percent.

Findings

The results show that manufacturing firms continue to use financial performance measures. Despite the recommendations from experts and academics, the proportion of firms that implement a balanced scorecard or integrated performance measurement systems is low. Furthermore, organizations that use these approaches are not employing more extensively non‐financial measures than those which are applying traditional performance measurement approaches. This research project also shows that there are some significant relationships between the types of measures and contextual factors like strategy, decentralization and environmental uncertainty. This research finally demonstrates clearly that there is a need to develop a theory that explains how firms can use their performance measurement system to enhance their performance.

Originality/value

This paper provides information on performance measures used by organizations and their association with organizational determinants.

Details

International Journal of Productivity and Performance Management, vol. 54 no. 5/6
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 1 December 2003

Umar Al‐Turki and Salih Duffuaa

Measuring the performance of academic departments received little attention compared to other industries due to their complex nature and difficulty in measuring their…

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3177

Abstract

Measuring the performance of academic departments received little attention compared to other industries due to their complex nature and difficulty in measuring their outputs. However, measures of performance are needed to assess whether they meet their set objectives and foster an environment of continuous improvement. The objective of this paper is to develop a performance measurement system for educational institutions. It outlines the properties of adequate performance measures and the steps for developing such measures in an educational environment. Three types of performance measures are proposed. These are outcomes, inputs and process measures. Suggestions are made to select the most appropriate and relevant performance measures pertinent to academic departments’ goals and objectives. Also the need, relevance and implementation issues in the context of the Saudi Arabian educational system has been discussed and highlighted in the paper.

Details

International Journal of Educational Management, vol. 17 no. 7
Type: Research Article
ISSN: 0951-354X

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Article
Publication date: 1 February 2005

Susan Hass, Priscilla Burnaby and James L. Bierstaker

The objective of this paper is to gain an understanding of the multiple ways companies are using performance measures throughout the organization in the areas of strategic…

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3448

Abstract

Purpose

The objective of this paper is to gain an understanding of the multiple ways companies are using performance measures throughout the organization in the areas of strategic planning, monitoring operations, and evaluation of employees work and satisfaction with the company and suppliers.

Design/methodology/approach

A survey was developed and distributed to internal auditors to gather information on how their companies used performance measures.

Findings

The results suggest that most companies tend to have an internal focus when using performance measures and place less value on benchmarking with competitors and suppliers.

Originality/value

Based on the results of the survey, performance measures are used throughout the organization for numerous reasons from the determination of whether strategic goals are being met to evaluation of suppliers.

Details

Managerial Auditing Journal, vol. 20 no. 2
Type: Research Article
ISSN: 0268-6902

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Article
Publication date: 1 June 1998

Charles E. O’Mara, Paul W. Hyland and Ross L. Chapman

Performance measurement systems not only provide the data necessary for managers to control business activity, they also influence the behavior and decisions of managers…

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4728

Abstract

Performance measurement systems not only provide the data necessary for managers to control business activity, they also influence the behavior and decisions of managers. This being the case, a restrictive set of financial performance measures may adversely impact on an organization’s long‐term viability, so organizations should develop a broad range of performance measures. Berliner and Brimson state that “performance measurement is a key factor in ensuring the successful implementation of a company’s strategy”. Thus when organizations implement new strategies they should ensure that the appropriate set of performance measures are in place. In this paper we look at two case studies conducted in a medium‐sized manufacturing firm and a large manufacturing firm, and evaluate the managers’ perceptions of the strategy/performance measurement relationship, and the responsiveness of performance measures to changes in strategy.

Details

Managing Service Quality: An International Journal, vol. 8 no. 3
Type: Research Article
ISSN: 0960-4529

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Article
Publication date: 29 May 2007

Tariq H. Ismail

This study aims to examine performance evaluation measures across private sector companies in an Egyptian context and pinpoints obstacles that may limit the adoption of…

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3807

Abstract

Purpose

This study aims to examine performance evaluation measures across private sector companies in an Egyptian context and pinpoints obstacles that may limit the adoption of the balanced scorecard (BSC).

Design/methodology/approach

Uses a questionnaire that was mailed to a sample of 150 companies listed in the Egyptian stock exchange market. The analysis is directed at determining managers' perceptions of performance evaluation measures within the Egyptian private sector. Descriptive statistics, frequency of use of companies' practices and possible relationships between variables provide the basis for discussion.

Findings

Companies rely on both financial and non‐financial measures of performance evaluation. The profit margin, as a financial measure, is also the most commonly used performance measure. Customer satisfaction is the most commonly used non‐financial measure of performance evaluation. The BSC has wide spread use in the Egyptian companies surveyed, but the level of use of multi‐dimensional indicators is significantly low. The survey provides considerable insight into obstacles inhibiting the adoption of the BSC. The most significant obstacle is the inadequacy of implemented information systems.

Research limitations/implication

Survey results restrict generalization, as the sampling design cannot be claimed to represent all Egyptian companies. Also a relatively low response rates must be taken into account.

Originality/value

Provides an insight into performance evaluation practices in the private sector in a developing country.

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Article
Publication date: 17 August 2012

Thomas J. Greitens and M. Ernita Joaquin

The purpose of this paper is to analyze the accuracy of program performance measurement in US financial regulatory programs.

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492

Abstract

Purpose

The purpose of this paper is to analyze the accuracy of program performance measurement in US financial regulatory programs.

Design/methodology/approach

This research uses the US Government's Program Assessment Rating Tool (PART) system of output and outcome data collection, performance data from financial regulatory programs were examined to determine: if PART data revealed any degradation in external financial conditions or internal regulatory performance prior to the Great Recession of 2008, and whether output performance influenced outcome performance.

Findings

The results indicate that outcome measures did “capture” some deterioration in the performance of the financial industry before the Great Recession, but these measures were arguably not influenced by program outputs. This represents a potentially problematic use of performance measures in that programs used outcome measures which were not controlled by programmatic actions.

Originality/value

This project adds to a growing body of literature on the challenges of program performance measurement in government. However, this analysis is unique in that it specifically examines the performance of the US Government's financial regulatory programs, as measured by PART, before the Great Recession of 2008.

Details

International Journal of Public Sector Management, vol. 25 no. 6/7
Type: Research Article
ISSN: 0951-3558

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Article
Publication date: 31 August 2010

Job P. Antony and Sanghamitra Bhattacharyya

The purpose of this paper is to empirically establish an indigenously developed model for measuring organizational performance and organizational excellence, and to

Downloads
5800

Abstract

Purpose

The purpose of this paper is to empirically establish an indigenously developed model for measuring organizational performance and organizational excellence, and to examine the relationship between organizational performance and organizational excellence.

Design/methodology/approach

The paper presents a model based on seven variables, at the overall and work unit level, for measuring organizational performance and organizational excellence – tested by using a large sample. A structured questionnaire is developed for collecting data from 407 respondents from 230 organizations. Summated scale average method is used for calculation of organizational performance and a total correlation method is used for the calculation of organizational excellence.

Findings

It is established that organizational performance and organizational excellence could be measured by consolidating performance variables, using two different methods: performance can be measured by averaging the performance variable scores, and excellence can be measured by averaging the correlations of performance variable scores. Based on the study, a new general definition for organizational excellence is proposed, as “the outstanding measure of relationship of all performance variables influencing an organization's functioning”.

Practical implications

The model, developed and tested for measuring performance and excellence, can be used by small and medium enterprises to evaluate their performance and excellence separately and periodically. The study helps managers to recognize organizational excellence as a measure needing special attention instead of taking it as an outstanding value of organizational performance.

Originality/value

The definition and model developed and tested for measuring excellence can contribute significantly to existing literature on excellence measurement. This will help researchers to study organizational excellence as a separate organizational behavior, instead of limiting it as a terminal value of organizational performance.

Details

Measuring Business Excellence, vol. 14 no. 3
Type: Research Article
ISSN: 1368-3047

Keywords

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