Designing, implementing and updating performance measurement systems

Bourne, Mike; Mills, John; Wilcox, Mark; Neely, Andy; Platts, KW

doi:10.1108/01443570010330739

Cited by 800 publications

(891 citation statements)

References 16 publications

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“…According to Bourne et al (2000), performance management has a dual purpose. The first is the success of the chosen strategy's implementation as a result of the measures derived from the chosen strategy.…”

Section: Literature Reviewmentioning

confidence: 99%

The relationship between remuneration and financial performance for companies listed on the Johannesburg Stock Exchange

Kirsten

Toit

2018

SAJEMS

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Background: The executive directors of a company are the agents of the shareholders and should manage the company in the best interest of the shareholders, not only for personal gain. It is therefore important for companies to ensure that they implement remuneration policies which will result in motivated employees who will execute decisions and actions which are in the best interest of the shareholders. However, it is widely acknowledged that the relationship between company performance and executive remuneration is weak. This implies that executives are still rewarded excessive remuneration regardless of the performance of their companies. Aim: The purpose of this study was to determine whether a relationship exists between the performance-based remuneration of executive directors and the financial performance of South African companies. Setting: The study was conducted in South Africa, specifically on companies listed on the Johannesburg Stock Exchange. Methods: The study design was quantitative and made use of a Pearson correlation and generalised least squares regression with bootstrapping at a 95% confidence interval to analyse the relationship between executive director remuneration and the financial performance of 42 companies in the consumer goods and services industry of the Johannesburg Stock Exchange (JSE) from 2006 to 2015. Results: The study established that the remuneration policies in place for South African executive directors within the consumer goods and services industry seem to be affected by the share price of the company. Conclusion: In the South African environment, executive director remuneration is thus not directly related to profitability or company size, as was the case in some earlier studies. The link between executive director remuneration and share performance may be an indication that remuneration policies are based on the share price and are thus directly connected to the principle of shareholder wealth maximisation.

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Section: Literature Reviewmentioning

confidence: 99%

The relationship between remuneration and financial performance for companies listed on the Johannesburg Stock Exchange

Kirsten

Toit

2018

SAJEMS

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“…Un SMD bien implementado debe contar con la capacidad de adquirir, almacenar, procesar, interpretar y distribuir informaciones sobre el desempeño de la organización, estimulando cambios gerenciales y promoviendo el aprendizaje organizacional (BITITCI; TURNER; BEGEMANN, 2000;BOURNE et al, 2000;GARENGO;BIAZZO;BITITCI, 2005). Esas funciones solo pueden ser alcanzadas cuando el SMD es correctamente estructurado en todas sus etapas de desarrollo: el diseño (traducción de las necesidades y objetivos de la empresa en un conjunto de indicadores apropiados), la implementación (requiere el soporte de sistemas de informaciones y el desarrollo de procedimientos para colectar, procesar y divulgar informaciones) y el uso del sistema de medición (requiere continuos procesos de revisión y ajustes) HUDSON;SMART;.…”

Section: Sistemas De Medición De Desempeñounclassified

“…Los procesos de actualización buscan el alineamiento de los resultados del sistema de medición con la estrategia organizacional, donde, a través de continuas revisiones del sistema se mejore la calidad de decisiones tomadas a partir de las mediciones de desempeño obtenidas (BITITCI; TURNER; BEGEMANN, 2000;BOURNE et al, 2000;HUDSON;SMART;. Tales actualizaciones deben eliminar los indicadores que dejaron de ser coherentes con las nuevas estrategias organizacionales.…”

Section: Sistema De Medición Actualunclassified

Diseño de sistemas de medición de desempeño de proveedores: experiencias de un caso de estudio

Fernandez

Scavarda

Leiras

et al. 2011

Prod.

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ResumenLa evaluación de los proveedores es importante para las organizaciones debido al papel preponderante que éstos cumplen en la dinámica de las cadenas de suministros y a la importancia estratégica que las funciones de compra tienen a raíz de la tercerización de los procesos que no forman parte del know-how de la empresa. No obstante, la literatura académica carece de trabajos concernientes al diseño e implementación de sistemas de medición de desempeño de proveedores (SMDP). En ese contexto, este artículo presenta los factores más importantes del diseño de un SMDP, resaltando, a través de un caso de estudio, los cuidados y recomendaciones que deben ser considerados. Además del detalle del método y los resultados de su aplicación, el artículo presenta el análisis de los procesos y atributos que definen el diseño del SMDP propuesto.

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“…The ability of keeping the PMS continuously updated is a challenge for every firm, but particularly for small and medium sized enterprise (hereafter called SME). [3] mentioned that SMEs often do not understand the potential advantages of PMS as these systems are perceived as an obstacle to the flexibility of SMEs. Even though, some SMEs try to implement a system designed for large firms [4]) but, it would be unwise for SMEs to copy the approach of the large firms due to the different environment.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Management Control System on Performance Measurement System at Small Medium Hotel in Malaysia

Jamil¹,

Mohamed²

2013

IJTEF

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Abstract-Performance measurement system (PMS) is one of the main functions in management roles and reflects the strategic goals of firms. PMS particularly support the management control system (MCS) to manage increasing complexity. Traditionally, PMS models are more horizontal; process oriented and focuses on stakeholder needs. Therefore, it is interesting to consider MCS in designing PMS to overcome the weakness of traditional PMS and to improve overall performance. Specifically, the objective of the study is to investigate the role played by the MCS in the PMS design in the context of the Malaysian SMEs hotels. The study employs contingency theory and using four Simons' levers of control as intervening variables to explain the relationship. Data is collected by survey at small medium hotel sectors in the Northern part of Peninsular Malaysia. The study found that PMS is correlated to an each of the four selected individual management control system (MCS) and also suggest that the development of PMS will influence the overall performance in small medium hotel sector through the acting of MCS. IndexTerms-Performance measurement system, management control system, SMEs hotel.

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Designing, implementing and updating performance measurement systems

Cited by 800 publications

References 16 publications

The relationship between remuneration and financial performance for companies listed on the Johannesburg Stock Exchange

The relationship between remuneration and financial performance for companies listed on the Johannesburg Stock Exchange

Diseño de sistemas de medición de desempeño de proveedores: experiencias de un caso de estudio

The Effect of Management Control System on Performance Measurement System at Small Medium Hotel in Malaysia

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