A review of performance measurement: Towards performance management

Abstract

Describes the evolution of performance measurement in four sections: recommendations, frameworks, systems, and inter-organisational performance measurement. Measurement begins with a recommendation, which is a piece of advice related to the measures or structure of performance measurement; frameworks can be dichotomised into a structural and procedural typology that suggests structural framework development has outstripped procedural framework development. The basic requirements for a successful PM system are two frameworks -one structural, and one procedural; as well as a number of other performance management tools.Inter-organisational performance measurement may be divided into supply chain and Extended Enterprise performance measurement: the former relying solely on traditional logistics measures, while the latter incorporates the structural aspects of the supply chain system and adds nonlogistics perspectives to its measurement arena. Finally the encroachment of the performance measurement literature into the processes related to performance management is examined, and areas for future research are suggested. Recommendations; Frameworks; Systems; Inter-organisational Performance Measurement; Performance Management Manuscript No.: 1762 -Computers Keywords:in Industry Submission Paper 3 IntroductionOrganisational Performance has always exerted considerable influence on the actions of companies. Consequently, the ways and means of accurately measuring this performance is perceived as being an increasingly important field of research for both organisations and academics alike. Indeed, in the last fifteen years or so Performance Measurement (PM) has been seen to occupy the minds of academics in an ever-increasing number of fields. The mid to late nineties seem to have seen the peak of this activity. Neely [63] estimated that between 1994 and 1996, some 3,615 articles on performance measurement were published alongside the statistic that in 1996 books on the subject appeared at a rate of one every two weeks in the USA alone. A vast array of disparate information concerning PM has been made available through the efforts of a number of researchers in different functional silos [58] and the field is now well recognised as being an important part of the manufacturing strategy literature [20]. As a consequence of this flourishing PM research, however, organisations and academics are facing a comprehension predicament: it has been suggested that the multi-disciplinary character of the research is hindering developments in the field of PM [58,64]; while the fact that PM is not owned by academics in any particular discipline has resulted in a reluctance to leave behind traditional functional boundaries when research upon the topic is performed [63]. The results have been an abundance of isolated PM information produced that may be duplicated and / or contradictory in nature.PM is also evolving at a considerable rate to combat new organisational realities; owing to the fight for industrial supremacy, the con...

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