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Performance measurement system and relationships with performance results

Author

Listed:
  • Eric O. Olsen
  • Honggeng Zhou
  • Denis M.S. Lee
  • Yoke‐Eng Ng
  • Chow Chewn Chong
  • Pean Padunchwit

Abstract

Purpose - This study aims to address an important gap between the normative view of an integrated performance measurement system (PMS) design that assumes a clean slate and the organizational realities of a PMS design as an ongoing analysis, coordination and improvement process. Design/methodology/approach - The authors present a framework for evaluating the effectiveness of a PMS based on three criteria – i.e. causality, continuous improvement and process control – and use a case study to illustrate the application of the methodology and the interpretation of results for PMS design. Findings - The determination of “driver measures” in an integrated PMS involves a complex process that requires a number of considerations not adequately addressed in prior research. Research limitations/implications - This study involves only a single case study and the model presented involves only a two‐tier analysis. Practical implications - The framework provides a simple methodology that organizations can easily adopt to analyze individual and group performance measures and relate them to the strategic performance measures of the company. Originality/value - The study follows an emerging line of research that addresses the design of an integrated PMS as an ongoing improvement process.

Suggested Citation

  • Eric O. Olsen & Honggeng Zhou & Denis M.S. Lee & Yoke‐Eng Ng & Chow Chewn Chong & Pean Padunchwit, 2007. "Performance measurement system and relationships with performance results," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 56(7), pages 559-582, September.
    • Handle: RePEc:eme:ijppmp:v:56:y:2007:i:7:p:559-582
    DOI: 10.1108/17410400710823624
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    Citations

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    Cited by:

    1. Yuliansyah Yuliansyah & Biana Adha Inapty & Muhammad Dahlan & Intan Oktri Agtia, 2018. "Budgetary Participation And Its Impact On Individual Performance," Tourism and Hospitality Management, University of Rijeka, Faculty of Tourism and Hospitality Management, vol. 24(2), pages 325-340, December.
    2. ȘERBAN Radu-Alexandru & HERCIU Mihaela, 2019. "Performance Management Systems – Proposing And Testing A Conceptual Model," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 14(1), pages 231-244, April.
    3. Alina Alecse Stanciu & Dumitru-Alexandru Stoica & Monika Brigitte Surgun & Nicolae Ileana Traistaru & Aurelian Vranceanu, 2019. "Measuring the Organizational Performance: A Theoretical Overview," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(1), pages 160-163, March.
    4. Pinheiro de Lima, Edson & Gouvea da Costa, Sergio E. & Angelis, Jannis Jan & Munik, Juliano, 2013. "Performance measurement systems: A consensual analysis of their roles," International Journal of Production Economics, Elsevier, vol. 146(2), pages 524-542.

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