Explaining success of performance management systems : the role of chain of key factors

Purpose: The purpose of this paper is to use the logical chain of key factors (KFs) to explain the success of performance management systems (PMS) and corporate performance. Design/methodology/approach: The authors use the strength of the KFs chain to capture PMS success. First, the authors assume that perceived environmental uncertainty (PEU) is positively associated with the strength (H1). The higher the PEU, the stronger is the chain as a response to uncertainty. Second, the authors assume that the strength improves performance (H2) but third, that the impact of the strength is negatively moderated by competition (H3). Fourth, the authors assume that this improvement leads to superior corporate performance (H4). The research model is tested by applying the partial least squares method for a sample of 61 Estonian and Finnish firms. Findings: Empirical evidence shows that PEU is negatively correlated to the strength of the chain but when controlled for a set of control variables, the path coefficient is positive. The strength of the chain is positively associated with improvement in performance. The impact of the strength of the chain on financial performance is negatively moderated by competition. The improvement in performance is positively associated with the attainment level of strategic goals. The improvement in non-financial performance does not significantly affect corporate profitability. Practical implications: The levels of PEU and competition should be taken into the account when designing, adjusting and assessing the PMS of organization. Originality/value: The authors give explanation why evidence about the effects of PMS on the performance of the firm is mixed.© 2019 Emerald Publishing Limited. This manuscript version is made available under the Creative Commons Attribution–NonCommercial 4.0 International (CC BY–NC 4.0) license, https://creativecommons.org/licenses/by-nc/4.0/fi=vertaisarvioitu|en=peerReviewed

How different are performance management systems? Empirical typology of performance management systems

The purpose of the research is to extract an empirical typology presenting the diverse types of PMSs. For creating empirical typology, a Two-Step cluster analysis was applied. The types of PMSs are characterized by the variables extracted from the chain model found in the literature. We discovered two relevant dimensions specifying the PMSs: the importance of strategy for the firms and the multitude of organizational levels. Based on these, we extracted four clusters (types) of PMS along the dimensions of strategy focusing and organizational level. The findings show that the most advanced PMSs are found in the Strategy-focused Multi-level cluster, before the Strategyfocused One-level cluster. We also linked the dimensions within the four aspects of PMSs: strategic, alignment and process, usage, and information aspects. We found that the expected success of PMSs is positively related to the strategy-focus and multiplicity of levels. These findings broaden the common typologies of PMS and add the intrinsic features of the firm to the types of PMS reflecting strategy orientation and the multitude of hierarchy levels of the firm

Key Factors Influencing the Performance of Healthcare Organizations

The study focuses on the definition of key factors influencing the performance of healthcare organizations. In the last decade, hospital organizations have been facing difficulties and challenges in balancing limited resources and costs to provide their demand for services. In face of these tendencies, many hospitals are under pressure to become more cost efficient. The hospital organizations are working as the complex systems of various inputs, tasks, activities and outputs with complicated interactions between individual segments of an organization. These attributes of hospital organizations are a key factor for the managers whose objective is to effectively manage the organization via defined objectives, with limited sources. In this situation it is essential for managers to process the information and knowledge about an organization. This information and knowledge could be provided by advanced management techniques which have to be adopted by an organization. Unfortunately, the majority of hospital organizations do not use any of advanced management techniques at all. The first part of the paper is focused on an analysis of information sources, which could be used by managers to effectively manage an organization. These sources are provided by advanced techniques such as process management, cost management, balanced scorecard, CRM systems and other managerial tools. The following part of the paper analyses the used techniques and defines the key performance factors used in hospital management. The major objective is to outline a model for effective hospital management based on utilization of key management techniques and definition of key factors for successful organization management