Effects of performance measurement system inconsistency on managers’ role clarity and well-being

In this paper we explore the impact of PMS inconsistency on managerial role clarity and well-being. In addition, we investigate if problems with PMS inconsistency can be dealt with by convincing superiors to loosen their control reactions to variances, giving managers job autonomy and providing managers with support from superiors, peers and staff functions. Based on survey responses from 799 managers in one public sector organization and 187 managers in one private sector organization we conclude that PMS inconsistency has negative effects on managers’ role clarity and well-being. This situation does not improve if superiors practice loose control; on the contrary, it seems to make managers’ work situation worse. Job autonomy and support appear to be better coping methods since they have direct positive impacts on managers’ role clarity and well-being that counteracts the negative effects of PMS inconsistency.     

Conducting a sales forecasting audit

Continuous improvement in sales forecasting is a worthy goal for any organization. This paper describes a methodology for conducting a sales forecasting audit, the goal of which is to help a company understand the status of its sales forecasting processes and identify ways to improve those processes. The methodology described here has been developed over a 5-year period, involving multiple auditors, and has been implemented (to date) at 16 organizations. This methodology revolves around three distinct phases: the ‘as-is’ phase, in which the audit team seeks to understand fully a company’s current forecasting process; the ‘should-be’ phase, in which the audit team presents a vision of what world-class forecasting should look like at the audited company, and the ‘way-forward’ phase, in which the audit team presents a roadmap of how the company can change its forecasting processes to achieve world-class levels. Those companies that have responded positively to the audit process have experienced significant improvement in their forecasting performance. The paper concludes by presenting lessons from audits conducted to date, as well as implications for management practice and future research.     

The first twenty-five years of the European Accounting Association: an American view

Since its emergence at the beginning of the 1990s, numerous companies have adopted the Balanced Scorecard (BSC). This paper tackles two research questions: (1) whether the BSC adds value to companies and (2) if so, how does it contribute to organisational performance. In contrast to previous literature that does not separate these two questions, we rely on an established methodology (Foster and Swenson, 1997) to separate and quantify both the BSC contribution to performance and the way that the contribution is achieved, by applying a unique cause-and-effect scheme to the BSC. Our empirical results are based on survey data collected from 76 business units. They indicate first that the Balanced Scorecard has a positive impact on organisational performance. More specifically, the BSC improves the integration of the management processes and empowers people. Using the Strategy-Focused-Organisation (SFO) model (Kaplan and Norton, 2001), we empirically find that the sources of performance derived from the BSC are primarily of three types: (1) a better translation of the strategy into operational terms, (2) the fact that strategising becomes a continuous process, and (3) the greater alignment of various processes, services, competencies and units of an organisation.     

The relationship between employee performance management and civil servants’ turnover intentions: a test of the mediating roles of system satisfaction and affective commitment

In search of maximizing efficiency, public organizations found solace in the adoption of employee performance management (EPM) systems. While research supports that managing employees’ performance has favourable outcomes, it is still unclear why and under which conditions. Moreover, EPM systems might even create additional pressures and therefore increase turnover intentions and undermine public organization’s quest to maximize efficiency. We argue that when EPM systems are carried out consistently (i.e. internal consistency) and when they link civil servants’ individual goals to the organization’s strategic goals (i.e. vertical alignment), civil servants will be less likely to leave the organization. Hierarchical linear regression analysis shows that internal consistency relates to increased satisfaction with the EPM system and affective commitment to the organization. Vertical alignment relates to lower levels of turnover intentions. This relationship was mediated by EPM system satisfaction and affective commitment. These findings that contribute to our understanding of EPM systems can lead to favourable outcomes.     

基于平衡计分卡的M公司绩效考核研究

平衡计分卡是一种以企业战略为基础,系统考虑企业业绩驱动因素,多维度平衡评价企业业绩的评价系统。文章介绍了M公司基于BSC开展绩效考核的成功做法。     

Lessons from implementing the balanced scorecard in a small and medium size manufacturing organization

The UK manufacturing sector is facing massive challenges to survive in today's global and volatile marketplace. In an attempt to overcome these challenges, companies are adopting newer management systems to clarify their vision and strategy and translate them into action. The balanced scorecard (BSC) is one such approach which is gaining significant interest, especially within the small and medium size enterprises (SME). In this paper, a case study with a SME demonstrates how BSC can be implemented successfully using a systematic and structured methodology. This paper lists the experimental results of the proposed deployment method and highlights the experiences, successes and lessons leant during the implementation process. In conclusion, this research exercise confirms the validity and usefulness of the proposed methodology and offers managerial insights and guidelines for similar implementations.     

Specification and power of cross-sectional abnormal working capital accruals models in the Spanish context

The aim of this study is to examine one attribute of performance measurement systems (PMS) that is not widely addressed in the management accounting literature, namely the dynamism of PMS. This attribute refers to the periodic review of performance indicators by organizations. Based on contingency theory and using survey data from a sample of manufacturing firms, this study examines whether the association between the dynamism of PMS and organizational performance is contingent on the level of external and internal changes. The results suggest three main conclusions. First, even though the current business environment is characterized by fast changes, manufacturing organizations do not appear to revise their PMS to a great extent. Second, while periodic revisions of performance indicators are beneficial, these revisions may not necessarily be appropriate at all times and in all circumstances as the need for dynamic PMS varies depending on the degree of external and internal change. Third, an absence of dynamic PMS may be more harmful in a context of higher levels of change than to have dynamic PMS even if they are not required.     

浅论平衡计分卡在民办高校绩效评价中的应用

近年来,随着我国的高等教育从以往"精英教育"转向"大众教育",以及优势教育资源的相对稀缺,民办高校得到了蓬勃的发展。但是,与此同时,民办高校的自身问题与所遇到的外部压力也十分突出。例如自身的管理与战略定位问题,民办高校间的竞争与公办高校的排挤等。在这样的状况下,民办高校通过持续的绩效改进来对自身进行管理,这对民办高校的长期战略发展具有重要的意义。本文分析了影响民办高校绩效的重要因素,将平衡计分卡(BSC)基本原理运用到民办高校的绩效评价中,并构建了民办高校的绩效改进模型。     

Determination of a hospital management policy using conjoint analysis in the analytic network process

When making management performance decisions, administrators frequently utilize balanced scorecard (BSC) to measure performance because the BSC does not excessively focus on financial measures and seeks a balance among customer perspectives, learning and growth, internal business processes and financial measures. A growing number of studies have applied the analytic hierarchical process (AHP) method to choose BSC metrics for management performance. These AHP methods assume that criteria are independent. Saaty (Decision making with dependence and feedback: the analytic network process. RWS Publications, Pittsburgh, 1996) presented the analytic network process (ANP) method to solve the limitations that criteria are independent. Conventional ANP methods involve complex calculations when the number of criteria increases. Hence, this study attempts to integrate conjoint analysis (CA) and the ANP method to simplify the ANP calculation procedure. Additionally, the decision of management policy is utilized with BSC to determine whether the situation at a hospital demonstrates the feasibility of integrating CA with ANP. Study results reveal that the proposed methodology increases the efficiency of decision making among policymakers and reduces associated risks     

Efficiency in fundraising and distributions to cause-related social profit enterprises

Managerial efficiency is as important in social profit enterprises (SPEs) as it is for more traditional financial-profit organizations. In this regard, both donors and SPE executives use efficiency information in making decisions. Here, we suggest a linked, two-stage Data Envelopment Analysis (DEA) methodology for assessing efficiency in both charitable fundraising and cause delivery, while empirically investigating results for international aid organizations. The model allows efficiency assessment for both the fundraising and utilization of generated funds when directed for cause-related purposes. This, in particular, allows for measurement of the organization’s managerial efficiency relative to both multiple phased goals and peer organizations. Additionally, the approach provides benchmarks for identifying sources of improved performance in fundraising and program/cause service delivery. It can also project the results of changes in inputs on the amount of resources available for the charitable organization’s cause.The proposed model(s) allow the examiner to assess performance while, at the same time, identifying those instances wherein the simple ratio measures commonly used in non-profit assessment are (1) deficient, and/or (2) misleading because of the use of ‘incorrect’ variables, or the ‘hiding’ of inefficiency if/when tax form categories are filed by an SPE. Importantly, the suggested two-stage DEA methodology can be useful for any organization with multiple-linked goals.     

浅析基于平衡记分卡的战略执行

本文介绍了平衡记分卡的基本原理,并对基于平衡记分卡的战略执行进行分析,最后总结了在实施的过程中可能遇 到的问题。     

SNC公司战略制定研究

战略制定是企业战略管理中的一个重要环节,是企业对未来发展方向和目标的选择。通过运用PEST分析、迈克尔·波特五力分析模型、SWOT分析、平衡记分卡(BSC)等战略工具,对SNC公司战略制定的全过程进行研究,最终确定SNC公司2012年度的发展战略。     

不同模型拟合优度下的多响应优化方法

响应曲面方法是对产品质量改进的一种有效的试验设计方法。目前,在响应模型的不同拟合优度问题基础上的多响应优化方法还有待进一步的研究。满意度函数方法是一种简单易行的响应曲面方法,而传统的满意度函数方法并未涉及响应模型的拟合优度。文章在指数满意度函数基础上提出了一种改进的满意度函数方法,以解决试验设计中不同拟合优度下的多响应优化问题。该方法将调整的Ra2dj作为响应曲面模型拟合优度的衡量标准,考虑了响应模型的拟合优度因素,分析了不同的拟合优度对多响应优化结果的影响。最后,通过实例对该方法进行验证,得到了较好的效果。     

A performance-oriented risk management framework for innovative R&D projects

Uncertainty is one of the major inherent difficulties in developing innovative products, due to their highly dynamic markets and technologies. The presence of a large degree of uncertainty leads to high R&D risks, resulting in many R&D failures. Therefore, it is important to manage R&D risks through all R&D stages to improve R&D project success rates. This paper proposes a new risk management framework that aligns project risk management with corporate strategy and a performance measurement system to increase success rates of R&D projects and to accomplish corporate strategic goals. The balanced scorecard is used to identify major performance measures of an R&D organization based on the firm vision and strategy. Quality function deployment is adapted to transform organizational performance measures into project performance measures and a systematic procedure is developed for risk identification, assessment, response planning, and control. The proposed risk management framework enables an R&D project to be focused on achieving the corporate goals and provides a more effective way to identify, assess, analyze, and monitor R&D risks along the project cycle. The proposed methodology is illustrated with a drug development project.     

Evaluating Moral Issues in Motivation Theories: Lessons from Marketing and Advertising Practices

Motivation theories in the management and organizational behavior literature represent researchers’ attempts to understand the processes that cause people to act productively in the context of the employment relationship, for the benefit of their employers (Miner Organizational behavior, performance and productivity New-York: Random-House 1988). These theories attempt to develop tools that will enable managers to make their employees’ behavior cost-effective and directed toward the achievement of the organization’s goals. From this perspective, motivational and marketing practices are quite similar, especially if we compare motivational and advertising practices. The goal of both is to propel people into behaving in a way that will benefit the organization. This paper examines what the well-developed criticism of advertising and marketing practices can teach us about the use of motivational practices in work organizations. Following Bishop’s (Business Ethics Quarterly 10: 371–398, 2000) framework of the moral issues raised by ads, this paper critically investigates the moral meaning of classic motivational theories and practices and their implications for both theoreticians and practitioners.     

A Quality Information Benchmarking Methodology: A US Banking Industry Empirical Study

Information is itself a product that customers and staff in any organization consume. Like any product the quality of information can be measured and compared in most industries. This paper presents an application of an information quality measuring methodology adapted and applied for the first time in the US banking industry. An empirical study is used to attest to the informational efficacy of the methodology. Results of the study reveal that the proposed methodology can be used to identify quality differences between differing banking institutions and differing dimensions of information quality as well as a quality benchmarking procedure.     

The development of FFMD Pyramid: Fuzzy Family_Marriage Deployment as decision support method to improve human resources performance

Improvement action to human resource (HR) in organization plays important role in determining the success of organization. Many studies have been done to discuss on how the organization may improve their HR performance. However, not many studies yet discuss the level of improvement that organization shall taken appropriately. Identification of organization’s priority level of improvement seems found to be a complicated work to do in most emerging organizations. High intangible and invisible variables and attributes contribute to unclear situations and perceptions in the organization itself. The complexity and limitation in tools and techniques, make each solution taken is less efficient and effective. Therefore, this study will discuss the development of Fuzzy Family_Marriage Deployment (FFMD) Pyramid. FFMD Pyramid is a new method for decision support in organization especially for HR by equally deploy dimension and variable of family and marriage to quality dimension and variable in organization then identify priorities by considering the deployment value (crisp value) and fuzzy value (non-crisp value) as decision support for organization to plan and decide proper improvement action with proper percentage (%) level of priority of improvement action. As result, a concise and simple pyramid shall present an informative yet effective and efficient to the decision maker to support their better decision especially with regard to the improvement action for HR performance. In addition, the Family_Marriage value that utilize in this study may bring about a new perspective that decision maker shall consider to support their decision process especially for the HR improvement action.     

Strategic planning to drive integrated continuous improvement

This case study describes how one company involved multiple levels of all functions to develop a comprehensive strategic plan that drives the continuous improvement initiative. The process involves clearly defining a mission, assessing the current situation, developing goals designed to achieve a preferred future status, and establishing the specific tactics to move toward that preferred future. The plan then drives integrated efforts throughout the organization to help manage the business of providing the highest quality products and services to meet current and anticipated customer requirements.     

Industry analysis and investment decision-making under conditions of uncertainty

Evaluating risk is a key element in successful investment decision-making. A major risk in forecasting company performance is associated with projecting its cash flow streams by product-line which in turn is strongly related to the expected industry outlook and likely variability about this outlook. This paper sets out a methodology for evaluating this aspect of the investment decision by developing measures of expected real cash flow growth (reward) and expected annual variability of this growth (risk). These measures are constructed for 77 industry classifications at the two and three digit SIC (Standard Industrial Classification) level of detail by solving a dynamic input–output model under various economic secenarios. Aside from producing results which are relevant for producing company valuation bands, the analysis strongly suggests that perceptions of which industries are ‘winners’ and which are ‘losers’ are significantly altered when both ‘reward’ and ‘risk’ are used as criteria as opposed to either one alone. Finally, the methodology also produces results which measures the sources of cash flow growth in terms of relative price performance, productivity, and demand for output. Since there measures can be used as indicators of the quality of industry real cash flow growth, industry performance can be further arrayed within the broad categories of winning and losing industries. Several examples of how this is done are offered.     

基于胜任力的广西中小企业绩效管理体系构建

绩效管理是企业人力资源管理工作的一个重要内容。文章分析了广西中小企业绩效管理存在的主要问题,探讨了中小企业运用目标管理(MBO)、关键绩效指标(KPI)及平衡计分卡(BSC)等绩效管理方法存在的不足,构建了基于胜任力的中小企业绩效管理体系架构。