Performance Measurement Systems: Putting Organizational Effectiveness Ahead

14 Pages Posted: 12 Sep 2007  

Riccardo Silvi

University of Bologna - Department of Management

Diego Maria Macrì

Università degli studi di Modena e Reggio Emilia (UNIMORE)

Maria Rita Tagliaventi

University of Bologna - Department of Management

Date Written: June 30, 2004

Abstract

In the last decade a plethora of studies have been carried out in the area of new multidimensional performance measurement systems (MPMS). Notable efforts were focused on PMS design issues related for example to the proper dimensions to be considered, new area of measurement(competencies, networks and supply chain), or their role in the strategy formulation. More recently new streams of research were addressed to the critical analysis of claimed effectiveness with specific regard to the linkage with business performance, or with the management control system (MCS). This paper extends the critical stream of research on MPMS to the organizational linkages of performance and presents a new framework based on the measurement of the relations between formal organizational units as units of analysis. Specifically, this framework introduces a new dimension in the designing of MPMS because it focuses on the measurement of the relationships and not on pre-codified indicators even if systematically organized (tableau de bord, balanced scorecard, ...). In this perspective, the approach enables MPMS to be aligned with the organizational structure of MCS and increases the effectiveness of the appraisal because they are based on a shared view of the organizational functioning. The framework is supported by a case study conducted in an Italian top luxury car firm.

Keywords: Performance measurement systems, KPI, BSC, Management Control

JEL Classification: M40, M41, M12

Suggested Citation

Silvi, Riccardo and Macrì, Diego Maria and Tagliaventi, Maria Rita, Performance Measurement Systems: Putting Organizational Effectiveness Ahead (June 30, 2004). Available at SSRN: https://ssrn.com/abstract=1012622 or http://dx.doi.org/10.2139/ssrn.1012622

Riccardo Silvi (Contact Author)

University of Bologna - Department of Management ( email )

P.le della Vittoria, 15
Forli', Bologna 47100
Italy

Diego Maria Macrì

Università degli studi di Modena e Reggio Emilia (UNIMORE) ( email )

Viale A. Allegri 9
Modena, Modena 42121
Italy

Maria Rita Tagliaventi

University of Bologna - Department of Management ( email )

Piazza Scaravilli 1
Bologna, Bologna 40126
Italy

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