Is Performance Measurement and Management fit for the future?
(2017) BUSN79 20171Department of Business Administration
- Abstract
- Purpose: The aim of this paper is to find out how the PMM system can be used to remain resilient to a change in the environment and so continue to provide appropriate guidance to managers in real time.
Methodology: The paper is based on a qualitative research method with primarily an abductive approach to derive insight about a PMM system’s use to remain resilient to a change in the environment.
Theoretical perspectives: The main approach is on Performance measurement and management with a particular focus on its use. Also assumptions from the dynamic environment theory are applied.
Empirical foundation: A seven-point scale questionnaire has been used to identify companies with high- or very high environmental dynamics index by... (More) - Purpose: The aim of this paper is to find out how the PMM system can be used to remain resilient to a change in the environment and so continue to provide appropriate guidance to managers in real time.
Methodology: The paper is based on a qualitative research method with primarily an abductive approach to derive insight about a PMM system’s use to remain resilient to a change in the environment.
Theoretical perspectives: The main approach is on Performance measurement and management with a particular focus on its use. Also assumptions from the dynamic environment theory are applied.
Empirical foundation: A seven-point scale questionnaire has been used to identify companies with high- or very high environmental dynamics index by considering a 5 years’ time period. From the total replied sample of 26 firms, eight were chosen for additional data collection. This subsample represents seven highly differentiated industries, more exactly IT- and chemical industry, paper- and metal powder manufacturing, infrastructure, construction and, logistics. The intense of competition (price, product/services, technology, distribution) were perceived as high- or very high within five of these firms. Three of the firms were highly- or very highly affected by diverse factors, all from many environmental changes (competition, technology/innovation, economics, regulations) to difficulties to obtain input to the business in form of raw material or unfavourable demographic trends.
Conclusions: In summary, three major types of uses of PMM are found that have relevance for the possibility of organizational alignment.
First, organizations should decide whether their PMM is strategic or operational. This choice will determine whether there is a fixed or unfixed link between strategy and measures. Second, the balance between alignment and empowerment will have a relevant consequence for the diagnostic or interactive use of PMM. Third, depending on the use assigned to the PMM, information will generate either single or double-loop learning, which will have an immediate impact on the firms’ possibilities for change. Case study findings demonstrate that for PMM system to remain resilient and continue to provide appropriate guidance, all six features should be present and managed in such a way that an appropriate balance of the tensions can be sustained. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8959947
- author
- Hatipoglu, Sibel LU
- supervisor
- organization
- course
- BUSN79 20171
- year
- 2017
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Dynamimism, Performance measurement, Performance management, Strategic fit, Multiply-case study
- language
- English
- id
- 8959947
- date added to LUP
- 2018-10-11 15:55:43
- date last changed
- 2018-10-11 15:55:43
@misc{8959947,
abstract = {{Purpose: The aim of this paper is to find out how the PMM system can be used to remain resilient to a change in the environment and so continue to provide appropriate guidance to managers in real time.
Methodology: The paper is based on a qualitative research method with primarily an abductive approach to derive insight about a PMM system’s use to remain resilient to a change in the environment.
Theoretical perspectives: The main approach is on Performance measurement and management with a particular focus on its use. Also assumptions from the dynamic environment theory are applied.
Empirical foundation: A seven-point scale questionnaire has been used to identify companies with high- or very high environmental dynamics index by considering a 5 years’ time period. From the total replied sample of 26 firms, eight were chosen for additional data collection. This subsample represents seven highly differentiated industries, more exactly IT- and chemical industry, paper- and metal powder manufacturing, infrastructure, construction and, logistics. The intense of competition (price, product/services, technology, distribution) were perceived as high- or very high within five of these firms. Three of the firms were highly- or very highly affected by diverse factors, all from many environmental changes (competition, technology/innovation, economics, regulations) to difficulties to obtain input to the business in form of raw material or unfavourable demographic trends.
Conclusions: In summary, three major types of uses of PMM are found that have relevance for the possibility of organizational alignment.
First, organizations should decide whether their PMM is strategic or operational. This choice will determine whether there is a fixed or unfixed link between strategy and measures. Second, the balance between alignment and empowerment will have a relevant consequence for the diagnostic or interactive use of PMM. Third, depending on the use assigned to the PMM, information will generate either single or double-loop learning, which will have an immediate impact on the firms’ possibilities for change. Case study findings demonstrate that for PMM system to remain resilient and continue to provide appropriate guidance, all six features should be present and managed in such a way that an appropriate balance of the tensions can be sustained.}},
author = {{Hatipoglu, Sibel}},
language = {{eng}},
note = {{Student Paper}},
title = {{Is Performance Measurement and Management fit for the future?}},
year = {{2017}},
}