Evolutionary paths of performance measurement: An overview of its recent development

Managing the most important asset: a twenty year review on the performance management literature

Purpose

The three objectives served by this review are to provide readers a limpid insight about the topic performance management (PM), to analyse the latest trends in PM literature and to illustrate the theoretical perspectives. It would be fascinating for the practitioners and researchers to see the latest trends in the PM system, which is not yet covered in previous reviews. The study covers the historical and theoretical perspectives of human resource management practices. We also try to unveil some of the theoretical debates and conflicts regarding the topic.

Design/methodology/approach

We reviewed 139 studies on PM published within the last 20 years (2000–2020). The method used here is the integrative review method. The criteria used to determine studies are articles from peer-reviewed journals regarding the PM system published between 2000 and 2020. The initial search for studies was conducted using an extensive journal database, and then an intensive reference-based search was also done. Each selected article was coded, themes were identified, and trends for every 5 years were determined. All the articles were analysed and classified based on the methodology used to identify qualitative and quantitative studies.

Findings

The review concludes that PM literature's emphasis shifted from traditional historical evaluations conducted once or twice a year to forward-looking, feedback-enriched PM systems. By segregating the studies into 5-year periods, we could extract five significant trends that prevailed in the PM literature from 2000 to 2020: reactions to PM system, factors that influence PM system, quality of rating sources, evaluating the PM system and types of the PM system. The review ends with a discussion of practical implications and avenues for future research.

Research limitations/implications

It is equally a limitation and strength of this paper that we conducted a review of 139 articles to cover the whole works in PM literature during the last 20 years. The study could not concentrate on any specific PM theme, such as exploring employee outcomes or organizational outcomes. Likewise, the studies on public sector and non-profit organizations are excluded from this review, which constitutes a significant share of PM literature. Another significant limitation is that the selected articles are classified only based on their methodology; further classification based on different themes and contexts can also be done.

Originality/value

The study is an original review of the PM literature to identify the latest trends in the field.

Operations flow effectiveness: a systems approach to measuring flow performance

Purpose

Effective operations management systems (OMS) measurement remains a critical issue for theorists and practising managers (Neely, 2005; Bititci et al., 2012). Traditional labor efficiency measures sufficed when all that was made could be sold or when mass production systems filled warehouses with stock and the OMS had little relationship with “the consumer.” Modern manufacturing systems require a different form of flow optimization (beyond labor efficiency) measurement (Schmenner, 2015). The essential unit of measure for all OMS designs is the optimal use of time for process value adding and the flow of materials into and from the conversion process. Timely flow, therefore, satisfies the needs of multiple organizational stakeholders including cash flow (accounting), consumer reaction times (marketing) and the general steady state flow of materials (sales and supply chain). The purpose of this paper is to present the results of testing a new performance measure of operations flow effectiveness (OFE) with ten purposively selected cases.

Design/methodology/approach

The paper is theory building using ten, purposively selected, longitudinal case studies drawn from the UK high-value manufacturing (HVM) sector using a pluralist methodology of interviews, observation and secondary data.

Findings

The OFE measure provides a holistic view of material flow through the input-process-output cycles of a firm. The measure highlights OMS design weaknesses and flow inhibitors that reduce cash flow using a time-based approach to measuring OMS performance. The study validates the OFE measure and has identified six key design elements that enable high flow performance.

Originality/value

The paper tests a new process-focused flow performance measure. The measure supports a holistic approach to the manufacturing enterprise and allows different OMS designs to be evaluated so that organizational learning may be enacted to support performance improvement.

Management accounting practices, governing boards and competitive advantage of Ugandan secondary schools

Purpose

The purpose of this paper is to report on the results of a study carried out to determine the use of Management Accounting Practices (MAPR) in Ugandan secondary schools. The study also sought to determine whether MAPR and governing boards (board size, gender diversity and frequency of board meetings) influence the perceived competitive advantage.

Design/methodology/approach

This study is cross-sectional and correlational. Data were collected through a questionnaire survey of 200 secondary schools. The data were analysed through ordinary least squares regression using Statistical Package for Social Scientists.

Findings

There are wide variations in MAP in terms of the extent to which the schools employ management accounting techniques. Also, MAP and governing boards have a predictive force on the schools’ competitive advantage. However, governing board’s size has no effect on competitive advantage. In terms of the control variables, the results suggest that while government school ownership has a positive effect on competitive advantage, the school’s size has no effect. There are intertwining relationships of frequency of board meetings, board size and school size.

Research limitations/implications

The present study was limited to the secondary schools in Uganda which limits generalisability. Still, the results offer important implications for secondary schools’ governing boards, owners and for similar African governments who are a major stakeholder in the secondary school education system. The exact mechanism by which intertwining relationships of frequency of board meetings, board size and school size impact competitive advantage is not been explored in this paper. Future researchers may direct research effort in this endeavour.

Originality/value

To the authors’ knowledge, this is the first study to investigate use of MAPR in secondary schools and to provide evidence of their efficacy.

Exploring the status and effects of balanced scorecard adoption in the non-western context

Purpose

The purpose of this paper is to explore the status of corporate performance management (PM) in the Middle Eastern context, represented by the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA). In addition, the current study investigates the effects of the adoption of the balanced scorecard (BSC) and aims to explore the impact of the BSC on workplace attitudes and behaviors, as shown by accountability, inspiration, and motivation.

Design/methodology/approach

Due to the limited knowledge about the subject matter and the limited number of companies adopting the BSC in the Middle East, this study has adopted a descriptive approach to verify the significance of the BSC and to explore the causal relationship amongst the performance perspectives and the different dimensions of the BSC. The sample was drawn from five major business sectors in the UAE and KSA.

Findings

The results indicate that the BSC indicators are effective tools to evaluate and reflect on corporate performance. The concept of the BSC is considered good practice in the UAE and the KSA. Because of the concept’s compatibility with the local culture and business practices, it can be used to balance shareholder and stakeholder demands.

Research limitations/implications

One of the main limitations of this study is that the sample is drawn from only two countries from the Middle East and, hence, cannot be generalized.

Originality/value

This study is one of the first attempts to explore the status of the corporate PM systems in a non-western context using a BSC technique created and typically applied in the western world. In addition, this study is considered a valuable attempt at exploring the effects of the adoption of this technique on an organization’s performance.

Proposal for an Evaluation Method for the Performance of Work Procedures

BACKGROUND

Noncompliance of operators with work procedures is a recurrent problem. This human behavior has been said to be situational and studied by many different approaches (ergonomic and others), which consider the noncompliance with work procedures to be obvious and seek to analyze its causes as well as consequences.

METHODS

The object of the proposed method is to solve this problem by focusing on the performance of work procedures and ensuring improved performance on a continuous basis.

RESULTS

This study has multiple results: (1) assessment of the work procedures' performance by a multicriteria approach; (2) the use of a continuous improvement approach as a framework for the sustainability of the assessment method of work procedures' performance; and (3) adaptation of the Stop-Card as a facilitator support for continuous improvement of work procedures.

CONCLUSION

The proposed method emphasizes to put in value the inputs of continuous improvement of the work procedures in relation with the conventional approaches which adopt the obvious evidence of the noncompliance to the working procedures and seek to analyze the cause-effect relationships related to this unacceptable phenomenon, especially in strategic industry.

Performance agreement in Thai public sectors

Purpose

– The purpose of this paper is to examine use of the performance agreement (PA) as well as the diagnostic control system that has been implemented at the provincial level of the Thai government.

Design/methodology/approach

– This is a qualitative study. Two qualitative methods – focus group and in-depth individual interviews – were employed. In addition, documents such as performance reports, forms, provincial strategic plans, and work manuals, were examined.

Findings

– Implementation of the PA at the provincial level has encountered some unexpected difficulties. Results of this study indicate that the PA and performance target-setting may contradict the “controllability” principle. In using the diagnostic control system, the two main challenges are: what to monitor and how to report it.

Practical implications

– This study is intended to be used as a guide in the use of the existing PA and diagnostic control system. The study also points to areas in which improvements can be made to increase the effectiveness of the PA in future use.

Originality/value

– This study calls for reconsideration in the implementation of the PA at the provincial level of the Thai government. Results show that the notion that “what gets measured gets done” is only half true at best.

The construction of knowledge from the scientific literature about the theme seaport performance evaluation

Purpose

– The purpose of this paper is to know what scientific literature presents about the theme evaluation of seaport performance, thus enabling the construction of knowledge in the researchers and the identification of gaps in the research that will lead to advances in the area from the identification of the characteristics of a portfolio of relevant international publications.

Design/methodology/approach

– From the basic philosophical (constructivism), of the kind strategy (research-action) and the method used for the accomplishment of such strategy (structured process knowledge development process – constructivist (ProKnow-C)) the current research has a qualitative approach.

Findings

– From the analysis of the bibliographic portfolio composed of 23 articles, the main results were: focus of the evaluation of seaport performance is on operational and tactical efficiency rather than on strategic and global performance; the majority of the studies does not relate to the reality experienced by seaport managers due to the limited interaction with these managers, evidencing a distance of the researchers from the object of their research; and performance evaluation was barely used/explored as a tool to support management, only for the sake of evaluation itself.

Research limitations/implications

– The search occurred in the databases Web of Science, Scopus, Proquest, Ebsco, Sciece Direct and Wiley.

Originality/value

– The identification of gaps that might promote advances in this field of knowledge, once the seaport segment is not exploring the potential that performance evaluation can offer and is already available in literature.