Purpose -The purpose of this paper is to identify the main problems that can be encountered during the implementation and use of a performance management system (PMS). Design/methodology/approach -Problems encountered during the implementation and use of a PMS were collected from the literature and put into a survey which was sent to 31 experts in performance management (PM). These experts gave their opinion on the frequency, impact and solvability of the listed problems as they encountered these in practice. Findings -The study shows that the failure rate of PM implementations has decreased in the past decade from 70 to 56 percent, and that the most severe problems organizations encounter are: lack of top management commitment; not having a PM culture; PM getting a low priority or its use being abandoned after a change of management; management putting low priority on the implementation; and people not seeing (enough) benefit from PM.Research limitations/implications -The main limitation is that the number of experts could be higher in order to get an even broader view on the main problems. Practical implications -The practical implication of the study is that management can now better prepare itself for the issues to be expected while introducing PMSs in the organization. Originality/value -The need for an efficient and effective PMSs has increased over the last decade and the successful implementation and use of these systems has become of paramount importance to organizations. Unfortunately, until now only scattered information was available in the literature about the problems that can be expected during the implementation and use processes. Even the failure rate, which is often mentioned in the literature has never been substantiated. This paper gives, for the first time, a systematic overview of the main problems to be expected, and a more accurate failure rate of PMSs.
The human element in performance managementPerformance can be considered an outcome of both organizational and human activities. Originally, performance measures were used as surrogates for these outcomes, and a direct link between performance management systems, human nature, and outcomes was not made. This omission was addressed by Argyris (1952) (referred to by Vagneur and Peiperl, 2000, p. 25) and later on by Simon et al. (1954). They explored the human behavioral side of performance management system use, looking specifically at the budgeting system. Both concluded that budgets and budgeting processes could be associated with important human relation problems. These included workermanagement separation, cross-boundary conflict, and job-related tension. Their conclusions were substantial departures from the mechanistic approach to
PurposeSeeks to identify the characteristics of high performance organizations (HPO) so managers can start improving their organizations in such a way that these also become HPOs.Design/methodology/approachThe research is based on a meta‐analysis of the results of 91 HPO studies performed in the last and present decade.FindingsThe results of the analysis offer a first picture of what a modern HPO looks like and provides the characteristics managers need to focus on in order to turn their companies into HPOs.Research limitations/implicationsDespite an extensive literature search, potentially valuable studies might have been missed. Also, the studies look by definition at what organizations have done in the past, therefore not necessarily giving a guarantee that these characteristics will also be valid and of importance for the dynamic future. Further HPO research should focus on validating the characteristics found in this study so that managers can start improving their organizations with confidence. Also, additional research should aim to validate the link between the HPO characteristics and organizational performance, in order to make sure it is worthwhile for companies to improve themselves in the direction indicated in this article.Practical implicationsAs it is the task of every manager to realize the goals of the organization by achieving outstanding performance in the organizational unit for which he or she is responsible, managers are under great pressure to deal effectively with trends and developments. Therefore, the more that is known about the elements that make up sustainable organizational performance, the easier it becomes for managers to improve their organizations in a focused way.Originality/valueThe results of the search for HPO characteristics have been documented mainly in the popular management literature: until now, scientific research into HPOs has not been abundant. Therefore most evidence is anecdotal, consisting of surveys and case studies. The research described in this article forms the start of a thorough investigation of HPO characteristics, which is executed in a scientific way while at the same time yielding practical results with which managers can start improving their organizations.
The recent economic downturn has caused tremendous upheaval in the business world. It has spurred many companies to self-analysis and further organisational improvement. As a result, there is an increasing interest into the factors that determine sustainable organisational success. Managers all over the world are trying out various improvement concepts, seeing mixed results. One likely reason for this is the lack of consensus on the organisational characteristics that lead to high performance. Another reason may be that research into high performance is predominantly conducted in US companies, making it seem less relevant to management practice outside the North American continent. The research study described in this article aims at identifying the factors which have a positive relation with organisational performance. Through review of 290 research studies into high performance and subsequent testing in 1470 organisations worldwide, 35 characteristics -grouped into five factors -were identified which have a correlation with high performance and seem to be generic. The research results provide managers with a framework that adds focus to their continuous improvement efforts.
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