Overcoming the specific performance measurement challenges of knowledge‐intensive organizations

Human resource management (HRM) in the performance measurement and management (PMM) domain: a bibliometric review

Purpose

The literature highlights the key role of human resource management in developing effective organizational performance measurement and management. To understand the state of the art of this role, the paper reviews the literature on human resource management in the performance measurement and management domain.

Design/methodology/approach

The paper conducts a bibliometric literature review on 1,252 articles to identify the prevailing research trends and the conceptual structure of human resource management in the performance measurement and management domain.

Findings

The study highlights a growing number of publications and four themes related to human resource management in performance measurement and management. It also underlines the shift from static to the dynamic performance measurement and management systems within organization which is expected to be more suited to current and future contexts.

Practical implications

The paper highlights the need to manage the identified themes as strategic organizational assets and further develop the strategic dimension of human resource management practices leveraging on project management and information systems.

Originality/value

The paper goes beyond the traditional focus on performance appraisal of human resource management studies and assumes the challenge of connecting two research fields: human resource management and performance measurement and management.

Measure what matters: descriptive and predictive metrics of HRM-pathway toward organizational performance

Purpose

To understand human resource (HR) practices outcomes on HR decision making, strategic human resource management (HRM) and organizational performance by exploring the HR data quality along with descriptive and predictive financial and non-financial metrics.

Design/methodology/approach

This work utilizes the grounded theory method. After the literature was reviewed, 113 HR managers of multinational and national companies in India were interviewed with a semi-structured questionnaire. The collected interview data was analyzed with NVivo 8.0 software.

Findings

It is interesting to uncover the descriptive and predictive non-financial and financial metrics of HR practices and their influence on organizational performance. It was found that HR data quality moderates the relationship between the HR practices outcome and HR metrics. This study found that HR metrics help in HR decision-making for strategic HRM and subsequently affect organizational performance.

Originality/value

This study has uniquely provided the descriptive and predictive non-financial and financial metrics of HR practices and their impact on HR decision making, strategic HRM and organizational performance. This study highlights the importance of data quality. This research offers insights to the HR managers, HR analysts, chief HR officers and HR practitioners to achieve organizational performance considering the various metrics of HRM. It provides key insights to the top management to understand the HR metrics' effect on strategic HRM and organizational performance.

Performance measurement and evaluation: applying return on investment (ROI) to human capital investments

Purpose

This study aims to investigate the growing use of financial metrics (such as return on investment [ROI]) to measure performance and evaluate human capital (HC) investments.

Design/methodology/approach

The research employed an embedded case study approach, examining how one ROI approach was applied to evaluating HC investments, across three sectors (corporate, public health and international development).

Findings

Three major findings emerged in this study: First, interpretations of ROI can lead to ambiguity during implementation. ROI is interpreted trichotomously – metaphorically, as a desire for value; literally, as a metric; and procedurally, as a method for planning and evaluating HC investments. Second, understanding, measuring and tracking the domains of people performance (cognitive, affective and psychomotor) is vital to evaluating the impact of HC investments because this is where the change in behavior occurs. Third, although the logic model measures the change in process following an intervention (input-activity-output-outcome-impact), other approaches measure the change in behavior of people in the intervention (people performance).

Practical implications

These findings provide clarity for practitioners about challenges when applying ROI.

Originality/value

This is the first study to explore how the ROI financial metric is applied in a new domain by first examining its interpretation. It elucidates the use of ROI in practice, as well as the different purposes of key ROI approaches.

Mitigating challenges of small social enterprises to improve performance

Purpose

Small social enterprises (SEs) face many challenges as they seek to secure their survival, sustainability and performance, but little is known about the interrelations among these challenges and how these SEs might mitigate their challenges by using online platforms.

Design/methodology/approach

Drawing on the results of 19 in-depth semi-structured interviews with founders of small SEs in Australia, the authors present two integrative frameworks: one demonstrates how different challenges directly or indirectly influence SE performance, and the other represents the linkage between online platforms use and SE performance.

Findings

The authors’ findings indicate that SEs face social, economic and organizational challenges, and that SEs use online platforms to mitigate these challenges and improve their performance. Online platforms enable these enterprises to identify funding opportunities, recruit staff and volunteers, connect with other SEs, form partnerships, promote their organization, market their products and services, and avoid competition and duplication in their ecosystem.

Research limitations/implications

The authors provide a guiding model for further research on using online platforms to mitigate challenges for small enterprises to improve performance. This study advances current understanding of why some SEs fail to thrive, while others survive, flourish and grow.

Originality/value

The authors’ study advances the resource-based view by identifying how online platforms offer a valuable resource to improve SE performance, and assist managers to maintain the strategic direction of their enterprise.

Measurement and management of competences by enterprise social networking

Purpose

Literature describes the transformation process of employees’ individual competences into firm-specific competences as a great challenge in the performance management and management field. Recently, to favor the transformation of competences, some companies have adopted enterprise social networking (ESN). However, not enough studies support the understanding of its role in performance management and measurement and scant attention is given to the inclusion of competences in a holistic performance measurement and management system (PMMS). To help close this gap, the purpose of this paper is to develop knowledge on the role of ESN in measurement and management of competences to favor the development of a holistic PMMS.

Design/methodology/approach

The research adopts a multiple case study methodology using a qualitative meta-analysis. It investigates 32 multinational companies by case studies available in the scientific literature.

Findings

The results highlight the use of ESN as a relevant support for the development of a holistic PMMS based on a high maturity in performance measurement and a democratic and participative approach in performance management. ESN provides real-time data collection, analysis and reports that encourage a democratic and participative performance management. It facilitates relationships, knowledge sharing and favors a high maturity performance measurement.

Originality/value

The paper provides implications for theory, practice and society. First, the paper rationalizes the impact of ESN usage on performance measurement and management. Second, it offers new knowledge supporting practitioners in the development of holistic PMMS. Third, it highlights that ESN favors people in self-expression of own capacity, sharing artwork and knowledge on specific topics.

Measuring the productivity of facilities management

Purpose

The purpose of this study is to identify methods appropriate for measuring the direct productivity of facilities management (FM) with respect to the providers, on both the industry level and the firm level.

Design/methodology/approach

This is a literature survey and conceptual analysis.

Findings

Prior studies are dominated by subjective assessments of how the office environment affects individual labour productivity. While the available EU data on productivity growth for the FM industry indicate a negative trend, they might be misleading. More recent research on the productivity of business services providers could be applied to the measurement of the productivity of FM firms. Co-production and effects of client satisfaction are important issues for measurement.

Research limitations/implications

The analysis is concentrated on the direct productivity of FM providers. There is a need to develop objective measures of provider productivity, and there is a particular challenge in measuring how FM clients contribute to the productivity of FM providers.

Practical implications

Providers of FM services should be able to assess the efficiency of their resource use more clearly and to balance user satisfaction against resource use more efficiently.

Social implications

The effects of co-production with clients need to be recognised, considering productivity effects on both providers and clients jointly. Sustainability is an argument for an increased focus on resource use in FM.

Originality/value

This is the first overview of issues raised when measuring the direct productivity of FM itself rather than indirect FM effects on office worker labour productivity.

Exploring added value through the service process: a comparative multiple case study

Purpose

– The purpose of this paper is threefold: first, to evaluate how the service process of the market leader differs from the other actors’ processes and whether the service process explains the success of the market leader; second, to identify the success factors of the service process; and third, to test and analyse how the mystery shopping method works as a measurement tool to evaluate the service processes, including the quality of such processes.

Design/methodology/approach

– The case study focuses on the service processes of kitchen fitments. The paper is an explorative multiple case study. The results of the study are based on seven service processes of seven different kitchen fitment stores in Finland. The mystery shopping method has been utilised in an empirical data collection process.

Findings

– The study revealed the most important factors in the service process that differentiate the market leader from the other operators. The results indicated that there are three main aspects highlighted in the market leader’s service process. The results also reveal that mystery shopping is a workable tool for analysing service processes.

Practical implications

– The study identifies the key factors that affect the success of the service process of kitchen fitments companies. By developing these factors, companies can increase service quality. The results also reveal that the mystery shopping method can be a workable tool to evaluate service processes.

Originality/value

– The study reveals the most important factors in the service process that differentiate the market leader from the other operators. It can be stated that these factors also explain their success. Thus, the results of the study are applicable at least in companies which operate in the kitchen fitments industry. Furthermore, the results can be utilised to some extent in companies which are developing their service processes.

AN INDIVIDUAL PERSPECTIVE ON OPEN INNOVATION CAPABILITIES IN THE CONTEXT OF HAUTE CUISINE

Previous research on open innovation (OI) has primarily focused on the organisational level of R&D intensive industries. With this paper, we contribute to research on the individual level of analysis by analysing specific perspectives in the context of creative industries. Our study is based on 36 interviews with Haute cuisine chefs in France, Germany, Great Britain, Italy, Spain, Sweden, and Switzerland listed in the 2012 Michelin Guide. Building on the OI capability concept, our results demonstrate that chefs use absorptive and desorptive capacity (AC, DC) as means to generate and market culinary innovations, respectively. Moreover, we found that chefs almost exclusively rely on their own inventive and innovative capabilities in the early stages of the culinary innovation process. In subsequent phases, however, chefs increasingly integrate other sources such as employees, suppliers, and guests. Our study contributes to the literature in two ways. First, we research the individual level within the OI process, and second, we provide insight into OI practices in the creative industries.

The impact of ISO 9001 implementation on organizational performance in Kenya

Purpose

– The purpose of this paper is to establish the effect of ISO 9001 implementation on the performance of organizations in Kenya. It specifically targeted organizations listed on the Nairobi Securities Exchange (NSE) which is the leading securities exchange in East Africa.

Design/methodology/approach

– The survey made use of web content analysis to collect data from these organizations’ web sites. Data were collected on net profit, turnover and net assets over a four-year period (2010-2013). The research used statistical data analysis to investigate the association between ISO 9001 implementation and performance.

Findings

– Results of the survey reveal that ISO 9001 certification influenced return on net assets of the organizations thereby influencing their performance. There was significant differences in net asset value among organizations with ISO 9001 certification and those that did not possess the certification. On profit and revenue, there were no significant differences between the ISO 9001 certified and non-certified organizations.

Research limitations/implications

– The research findings are limited to those organizations listed in the NSE and may not be generalized to other organizations. The study is further limited by the number of organizations participating in the study which was 20.

Practical implications

– The findings of the study provide justification for adoption of ISO 9001 standard in organizations in all key sectors of the Kenyan economy for sustained quality management practices. The ISO 9001 certified companies will enhance their quality management practices to achieve the successes documented in this paper while those yet to embrace the standards will draw lessons from such successes which may offer them compelling arguments to adopt them.

Originality/value

– Since the adoption and uptake of ISO certification in Kenya over a decade ago, no study has been carried out that directly relates ISO certification to organizational performance. This study will thus be useful as a starting point in documenting the ISO standard’s impact.

SmartWoW – constructing a tool for knowledge work performance analysis

Purpose

– New Ways of Working (NewWoW) refers to a novel approach for improving the performance of knowledge work. The purpose of this paper is to seek innovative solutions concerning facilities, information technology tools and work practices in order to be able to “work smarter, not harder.” In order to develop work practices toward the NewWoW mode there is a need for an analytical management tool that would help assess the status of the organization’s current work practices and demonstrate the impacts of development initiatives. This paper introduces such a tool.

Design/methodology/approach

– Constructive research approach was chosen to guide the development of the Smart ways of working (SmartWoW) tool. The tool was designed on the basis of previous knowledge work performance literature as well as on interviews in two knowledge-intensive organizations. The usefulness of the tool was verified by applying it in four organizations.

Findings

– SmartWoW is a compact questionnaire tool for analyzing and measuring knowledge work at the individual level. The questionnaire consists of four areas: work environment, personal work practices, well-being at work and productivity. As SmartWoW is a standardized tool its results are comparable between organizations.

Research limitations/implications

– SmartWoW was designed a pragmatic managerial tool. It is considered possible that it can be valuable as a research instrument as well but the current limited amount of collected data does not yet facilitate determining its usefulness from that perspective.

Originality/value

– This paper makes a contribution to the existing literature on knowledge work measurement and management by introducing an analytical tool which takes into account the NewWoW perspective.

The practice of strategic performance measurement systems

Purpose

– For over 20 years, management control literature has indicated the importance of supporting the strategy development and implementation process with strategic performance measurement systems (SPMS) and integrating traditional financial indicators with a set of multidimensional forward-looking measures focusing on the long term and linked to cause-effect relationships. Nevertheless, knowledge on the specific SPMS models used in practice and their effectiveness in supporting the managerial decision-making process is still fragmented and ambiguous. The purpose of this paper is to first analyse the SPMS models used in practice, also considering the role of strategy and firm size as drivers of adoption, thereafter analysing the capability of SPMS models to provide managers with measures that are consistent with their strategic information needs.

Design/methodology/approach

– The research is based on a survey involving 88 Italian medium-large sized firms (or subsidiaries of multinational firms) operating on a global level.

Findings

– The cluster analysis identifies two very different SPMS models used in practice. The first is the Short-term Financial Model, and as its name indicates, is based on short-term, internally focused and unconnected financial indicators. The second is the Multidimensional Additive Model, which integrates financial and non-financial measures but without a fully developed fit with the strategy. The research primarily indicates unsatisfied information needs in both clusters, presenting a significant challenge to the further development of existing SPMS models and in defining new theoretical SPMS frameworks.

Practical implications

– The adoption of an incremental approach to SPMS, simply adding new operational and strategic non-financial measures without a real fit with the strategy does not increase the information effectiveness of the system.

Originality/value

– The paper analyses the characteristics and use of SPMS models in practice from an exploratory perspective, defining and applying a model to evaluate the information effectiveness of SPMS.