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The Effectiveness of Performance Management Systems and its Systemic Value

Perez Penagos, Daniel LU and Steller, Nicole LU (2022) BUSN09 20221
Department of Business Administration
Abstract
This thesis aims to explore how managers comprehend the systemic value of a companies’ Performance Management System (PMS). The study findings show that PMS causes path-dependent behavior, leading to organizational rigidities, strategic inertia, and diminishing PMS effectiveness. Managers' comprehension of the multifaceted, complex, and systemic nature of PMS can counteract the unintended negative consequences of PMS, such as the lock-in effect, and improve its effectiveness. This study recommends practitioners adopt a systems-based view of their PMS to raise their awareness of the PMS systemic value by identifying mediating variables, seeking a PMS-internal fit between PMS categories through congruent interdependencies, questioning its... (More)
This thesis aims to explore how managers comprehend the systemic value of a companies’ Performance Management System (PMS). The study findings show that PMS causes path-dependent behavior, leading to organizational rigidities, strategic inertia, and diminishing PMS effectiveness. Managers' comprehension of the multifaceted, complex, and systemic nature of PMS can counteract the unintended negative consequences of PMS, such as the lock-in effect, and improve its effectiveness. This study recommends practitioners adopt a systems-based view of their PMS to raise their awareness of the PMS systemic value by identifying mediating variables, seeking a PMS-internal fit between PMS categories through congruent interdependencies, questioning its potential, and using the PMS dynamically. (Less)
Popular Abstract
This thesis aims to explore how managers comprehend the systemic value of a companies’ Performance Management System (PMS). The study findings show that PMS causes path-dependent behavior, leading to organizational rigidities, strategic inertia, and diminishing PMS effectiveness. Managers' comprehension of the multifaceted, complex, and systemic nature of PMS can counteract the unintended negative consequences of PMS, such as the lock-in effect, and improve its effectiveness. This study recommends practitioners adopt a systems-based view of their PMS to raise their awareness of the PMS systemic value by identifying mediating variables, seeking a PMS-internal fit between PMS categories through congruent interdependencies, questioning its... (More)
This thesis aims to explore how managers comprehend the systemic value of a companies’ Performance Management System (PMS). The study findings show that PMS causes path-dependent behavior, leading to organizational rigidities, strategic inertia, and diminishing PMS effectiveness. Managers' comprehension of the multifaceted, complex, and systemic nature of PMS can counteract the unintended negative consequences of PMS, such as the lock-in effect, and improve its effectiveness. This study recommends practitioners adopt a systems-based view of their PMS to raise their awareness of the PMS systemic value by identifying mediating variables, seeking a PMS-internal fit between PMS categories through congruent interdependencies, questioning its potential, and using the PMS dynamically. (Less)
Please use this url to cite or link to this publication:
author
Perez Penagos, Daniel LU and Steller, Nicole LU
supervisor
organization
alternative title
Performance Management System Effectiveness: A Systemic Approach to the Notion of Fit
course
BUSN09 20221
year
type
H1 - Master's Degree (One Year)
subject
keywords
Performance management systems, Effectiveness, Systemic value, Concept of fit, Path-dependency
language
English
additional info
This thesis aims to explore how managers comprehend the systemic value of a companies’ Performance Management System (PMS). A qualitative multiple-case study was conducted to analyze companies’ PMS from a system-based view. Furthermore, an abductive reasoning logic is set to enhance the dialogue between the researcher, data, and theory, leveraged by content latent-pattern and thematic analysis. The empirical material consists of eight independent case studies conducted by several research groups. The cases provide in-depth insights into the organization's PMS design, usage, and consideration from a senior manager's perspective. All cases are structured based on Ferreira and Otleys’ (2009) PMS framework.
id
9085869
date added to LUP
2022-07-01 15:36:02
date last changed
2022-07-01 15:36:02
@misc{9085869,
  abstract     = {{This thesis aims to explore how managers comprehend the systemic value of a companies’ Performance Management System (PMS). The study findings show that PMS causes path-dependent behavior, leading to organizational rigidities, strategic inertia, and diminishing PMS effectiveness. Managers' comprehension of the multifaceted, complex, and systemic nature of PMS can counteract the unintended negative consequences of PMS, such as the lock-in effect, and improve its effectiveness. This study recommends practitioners adopt a systems-based view of their PMS to raise their awareness of the PMS systemic value by identifying mediating variables, seeking a PMS-internal fit between PMS categories through congruent interdependencies, questioning its potential, and using the PMS dynamically.}},
  author       = {{Perez Penagos, Daniel and Steller, Nicole}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Effectiveness of Performance Management Systems and its Systemic Value}},
  year         = {{2022}},
}