Performance measurement system and relationships with performance results

Eric O. Olsen, Honggeng Zhou, Denis M.S. Lee, Yoke‐Eng Ng, Chow Chewn Chong and Pean Padunchwit

International Journal of Productivity and Performance Management, 2007, vol. 56, issue 7, 559-582

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.

Keywords: Performance measures; Performance management systems; Balanced scorecard; Design and development (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:v:56:y:2007:i:7:p:559-582

DOI: 10.1108/17410400710823624

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