scholarly journals Analysis of Organizational Excellence Based on Independent Key Indicators among Hungarian SME Leaders

2020 ◽  
Vol 12 (2) ◽  
pp. 47-63
Author(s):  
Erzsébet Gyopár Csapai ◽  
Szilárd Berke
Keyword(s):  
Index Number ◽  
Financial Indicators ◽  
Self Assessment ◽  
Measurement Systems ◽  
Organizational Excellence ◽  
Personal Leadership ◽  
Performance Measurement Systems ◽  
Key Indicators ◽  
Company Growth ◽  
Financial Indices

Excellence and success are those questions, which could hardly be held or clarified because there are exceptionally subjective and complex correlations behind the definitions. In specific literature we could see that success could be defined in many ways, but there is not any index number or formula that anyone could determine easily and according to that, “label” the companies. The conventional performance/excellence measuring methods are based on the financial indices, but we had a plan to measure other indicators. Therefore, we asked questions about the market share, size of the company, growth rate, export activities, efficiency, and the amount of turnover, awards, prominence lists, years of experience as a leader, quality of abilities as a leader. The number of the incoming questionnaires was 148 from Hungary (CEO-s and leading managers from the highest positions). Our results shows that the chosen variables to measure the organizational excellence as awards and appreciations, export activity, TOP-listing and market influence has impact on organizational excellence, so we can conclude that in the performance measurement systems it is important to include the “non numeric financial” indicators, too. Based on the correlations between the indicators and the organizational excellence we can conclude that in line with the company size, the chance rises to be awarded, the number of employees influences the chance to appear on prominence lists, and also affects the strength of the market position. Regarding the personal leadership we can establish that the micro- and small-sized enterprises have got real backwardness in the field of management in proportion to the multinational companies, and the self-assessment of the leaders is still rather low.

scholarly journals Integrated corporate performance measurement systems

2004 ◽  
Vol 44 (161) ◽  
pp. 151-164 ◽  
Author(s):  
Biljana Gajic
Keyword(s):  
Performance Measurement ◽  
Corporate Performance ◽  
Financial Indicators ◽  
Successful Management ◽  
Measurement Systems ◽  
The Past ◽  
Complex Approach ◽  
Performance Measurement Systems ◽  
Integrated Performance ◽  
Traditional Performance

Corporate performance measurement is a key prerequisite for successful management, a process of guiding the enterprise from the existing to the particular, desired performance. Traditional performance measurement systems, based on the use of financial indicators, do not satisfy the needs of modern enterprises. They provide the measurement of the past results, but they do not provide enough quality information for improvement of performance in the future. Nowadays, a great number of different performance measurement systems have been developed. They have a more complex approach to performance analysis, using both financial and non financial indicators grouped in a certain number of performance perspectives. The disadvantages of this modern performance measurement systems can be diminished through their integration, which leads to creating new, integrated performance measurement systems.

The practice of strategic performance measurement systems

2015 ◽  
Vol 64 (2) ◽  
pp. 194-227 ◽  
Author(s):  
Riccardo Silvi ◽  
Monica Bartolini ◽  
Anna Raffoni ◽  
Franco Visani
Keyword(s):  
Performance Measurement ◽  
Information Needs ◽  
Management Control ◽  
Financial Indicators ◽  
Short Term ◽  
Content Type ◽  
Financial Measures ◽  
Strategic Performance ◽  
Measurement Systems ◽  
Performance Measurement Systems

Purpose – For over 20 years, management control literature has indicated the importance of supporting the strategy development and implementation process with strategic performance measurement systems (SPMS) and integrating traditional financial indicators with a set of multidimensional forward-looking measures focusing on the long term and linked to cause-effect relationships. Nevertheless, knowledge on the specific SPMS models used in practice and their effectiveness in supporting the managerial decision-making process is still fragmented and ambiguous. The purpose of this paper is to first analyse the SPMS models used in practice, also considering the role of strategy and firm size as drivers of adoption, thereafter analysing the capability of SPMS models to provide managers with measures that are consistent with their strategic information needs. Design/methodology/approach – The research is based on a survey involving 88 Italian medium-large sized firms (or subsidiaries of multinational firms) operating on a global level. Findings – The cluster analysis identifies two very different SPMS models used in practice. The first is the Short-term Financial Model, and as its name indicates, is based on short-term, internally focused and unconnected financial indicators. The second is the Multidimensional Additive Model, which integrates financial and non-financial measures but without a fully developed fit with the strategy. The research primarily indicates unsatisfied information needs in both clusters, presenting a significant challenge to the further development of existing SPMS models and in defining new theoretical SPMS frameworks. Practical implications – The adoption of an incremental approach to SPMS, simply adding new operational and strategic non-financial measures without a real fit with the strategy does not increase the information effectiveness of the system. Originality/value – The paper analyses the characteristics and use of SPMS models in practice from an exploratory perspective, defining and applying a model to evaluate the information effectiveness of SPMS.

Measurement of Labour Efficiency in the Conditions of Digitization of Enterprise Activity

2018 ◽  
Vol 7 (5) ◽  
pp. 15-18
Author(s):  
Г. Еремина ◽  
G. Eremina
Keyword(s):  
Performance Measurement ◽  
Digital Technologies ◽  
Economic Activities ◽  
Measurement Systems ◽  
Goods And Services ◽  
Labor Efficiency ◽  
Performance Measurement Systems ◽  
Key Indicators ◽  
Analysis Of Performance ◽  
Enterprise Activity

The article is focused on the phenomenon of digitalization of the economy and the transformation of performance measurement and measurement of labor efficiency. The study is based on a comparison of the characteristics of the digital economy as a separate part of the economy, including only economic activities based on digital technologies and as a process of production of any goods and services using computer technology; analysis of performance measurement process. The article presents the author’s opinion that digital technologies are used at each company, we can talk about the digitalization of the economy as a whole. Based on this, it is argued that the nature of work of employees is changing and this change requires the modification of methods of performance measurement and measuring the effectiveness of work. It is proved that in the conditions of digitalization of economy measurement of labor efficiency needs to be conducted on achievement of key indicators, instead of norms of expenses of time. The technique is to use Performance Measurement Systems.

scholarly journals A Comparative Analysis Between The Balanced Scorecard And The French Tableau de Bord

2011 ◽  
Vol 7 (7) ◽  
Author(s):  
Mohsen Souissi
Keyword(s):  
Comparative Analysis ◽  
Balanced Scorecard ◽  
Business Environment ◽  
Financial Indicators ◽  
Bottom Line ◽  
Financial Measures ◽  
The Balanced Scorecard ◽  
Measurement Systems ◽  
Performance Measurement Systems ◽  
New System

Concern over the development of new performance measurement systems that that are in line of a complex business environment has increased. Problems with relying solely on financial measures have proven counterproductive. Recently, interest over non-financial measures has dramatically increased. Non-financial measures, however, are not problem-free. The issues are to translate improvements in these non-financial indicators into improvement in the bottom line. To overcome these problems, Kaplan and Norton have developed a new system called the Balanced Scorecard (BSC). Some French scholars argue that the BSC is a mere reproduction of the French Tableau de Bord (TDB) developed in the 1950s by French engineers. This paper seeks to draw a comparison between the BSC and The TDB.

The contingency of performance measurement systems in Moroccan public institutions and enterprises

2019 ◽  
Vol 27 (4) ◽  
pp. 613-632
Author(s):  
Mohammed Ibrahimi ◽  
Siham Naym
Keyword(s):  
Performance Measurement ◽  
Performance Indicators ◽  
Public Institutions ◽  
Performance Measurement System ◽  
Financial Indicators ◽  
Government Control ◽  
Contextual Variables ◽  
Content Type ◽  
Measurement Systems ◽  
Performance Measurement Systems

Purpose In the framework of contingency theory, this paper aims to study the contextual variables that influence the variety of the contents of a performance measurement system, specifically the use of non-financial indicators in Moroccan public institutions and enterprises (MPIE). Design/methodology/approach Aiming to study the factors which influence the use of financial and non-financial indicators within MPIEs, the authors attempted to identify all performance indicators used by the MPIEs in the sample. They selected 23 MPIEs with an industrial and commercial character and analyzed their reports for the period from 2010 to 2015. To evaluate the variety of performance indicators within these organizations, they used the multi-dimensional definition of performance recommended by Kaplan and Norton (1998) and used linear regressions to explain their relationship with the contextual variables. Findings Three hypotheses were developed regarding these contingency factors, predicting a positive relationship between the age, the size and the competitive environment of the organization, on one hand, and the use of non-financial indicators on the other hand. Following the study of MPIEs, the authors found that these organizations normally use financial indicators. However, the use of non-financial indicators is influenced by the age of the organization alone. Originality/value The scientific contribution of this paper is twofold: first, the authors seek to fill the gap in studies of performance measurement systems for MPIEs; second, they wish to enrich the scientific literature for underdeveloped countries which suffer from lack of data. Its managerial contribution is also dual: first, the authors aim to provide managers of MPIEs with a clearer understanding of non-financial measures that fully address the different management needs of their organizations; second, they encourage the government control using non-financial aspects alongside financial aspects.

The Roles of Organizational Politics and Fairness in the Relationship between Performance Management Systems and Trust

2015 ◽  
Vol 27 (1) ◽  
pp. 25-53 ◽  
Author(s):  
Chong M. Lau ◽  
Glennda Scully
Keyword(s):  
Performance Management ◽  
Performance Measures ◽  
Organizational Politics ◽  
Measurement Systems ◽  
Fairness Perceptions ◽  
Mediating Role ◽  
Perceptions Of Fairness ◽  
Performance Measurement Systems ◽  
Financial Performance Measures ◽  
The Relationship

ABSTRACT Organizational politics is ubiquitous in organizations. Yet to date, no prior research has investigated, in a systematic empirical manner, the mediating role of organizational politics in performance measurement systems. The primary purpose of this research is to investigate if perceptions of organizational politics mediate the relationships between performance measures and employees' trust in their superiors. As organizational politics may also affect employees' perceptions of fairness, a model is used to investigate (1) if performance measures affect organizational politics; (2) if organizational politics, in turn, affects procedural and interpersonal fairness; and (3) if fairness perceptions subsequently affect trust in superiors. Based on a sample of 104 responses, the partial least squares results indicate that organizational politics and fairness perceptions significantly mediate the nonfinancial performance measures and trust relationship. In contrast, the results indicate that the mediating effects of organizational politics and fairness on the relationship between financial performance measures and trust are generally insignificant.

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