Problem: Although performance measurement systems (PMSs) in firms to a large extent regard motivation of the employees, motivation theory is rarely used as frame-work to study the use and implications of PMS. The starting point of our identified problem is the narrow theoretical framework used in prior research of formulation of PMS in firms, when only relying on agency theory. We consider the present conceptions used as a foundation for the results in theoretical and empirical research of PMS are a barrier for more efficient governance control in firms. Therefore we ask if agency theory alone solid enough as a framework to capture the complex behavioural aspects of PMS? Or does an incorporation of motivation theory extend the under-standing of the use of PMS in firms? The answer has got important practical implications for all firms characterised by the separation of ownership and control. This brings us to the question: When evaluating and rewarding employees, which aspects are crucial to consider when formulating PMS in order to maximise the value of the firm? Purpose: The purpose of this thesis is to extend the understanding of the use of PMSs in banks. Contrary to prior research in this field, our purpose is to extend the conceptual framework by incorporating motivation theory extensively when analysing the use of PMS. In addition the results of this study are intended to give practical indications from a firm value maximizing perspective of which aspects that are crucial when formulating a PMS. Method: A qualitative method has been chosen to collect empirical data to our study. We have conducted interviews with our respondents working in the two banks. Mo-reover from our theoretical and empirical the conclusions are drawn in line with the approach of abduction. Conclusion: From what we have seen in our study there is no absolute answer, since there are many contingencies which affects how a PMS should be adapted to an organisation. However, due to four numbers of reasons we have come to the conclusion that the use of one atomistic measurement system, together with a profit-sharing system, is to prefer where all employees are rewarded equally.

<p>Problem: Although performance measurement systems (PMSs) in firms to a large extent regard motivation of the employees, motivation theory is rarely used as frame-work to study the use and implications of PMS. The starting point of our identified problem is the narrow theoretical framework used in prior research of formulation of PMS in firms, when only relying on agency theory. We consider the present conceptions used as a foundation for the results in theoretical and empirical research of PMS are a barrier for more efficient governance control in firms. Therefore we ask if agency theory alone solid enough as a framework to capture the complex behavioural aspects of PMS? Or does an incorporation of motivation theory extend the under-standing of the use of PMS in firms? The answer has got important practical implications for all firms characterised by the separation of ownership and control. This brings us to the question: When evaluating and rewarding employees, which aspects are crucial to consider when formulating PMS in order to maximise the value of the firm?</p><p>Purpose: The purpose of this thesis is to extend the understanding of the use of PMSs in banks. Contrary to prior research in this field, our purpose is to extend the conceptual framework by incorporating motivation theory extensively when analysing the use of PMS. In addition the results of this study are intended to give practical indications from a firm value maximizing perspective of which aspects that are crucial when formulating a PMS.</p><p>Method: A qualitative method has been chosen to collect empirical data to our study. We have conducted interviews with our respondents working in the two banks. Mo-reover from our theoretical and empirical the conclusions are drawn in line with the approach of abduction.</p><p>Conclusion: From what we have seen in our study there is no absolute answer, since there are many contingencies which affects how a PMS should be adapted to an organisation. However, due to four numbers of reasons we have come to the conclusion that the use of one atomistic measurement system, together with a profit-sharing system, is to prefer where all employees are rewarded equally.</p>

This Master Thesis aims to provide an overview of performance measurement systems both business and team related and to analyse their application spectrum. Based on the theoretical analysis, a new framework was created, including all relevant factors to analyse team performance. Thus the research questions of whether performance is measurable and what factors influence performance were investigated. The team performance framework (TPF) and the results from its application are presented in the practical part. The TPF includes different factors influencing team performance, such as input factors, motivation, communication, and output factors. This academic research concludes that various factors influence performance but that simplistic theoretical models still cannot catch the whole complex picture of reality.

Manufacturers have in recent years become more and more aware of the benefits of offering more comprehensive value propositions. As the economic climate changes, more manufacturers are trying to capture value further downstream in the value chain by providing services. The field of performance management has been extensively adopted in production and the benefits of performance measurement have been widely praised both in literature and in business. The literature on performance management has also extended into service management and how to manage service performance. But how can performance measurement and performance measurement systems be implemented when the line between products and services becomes more and more unclear? Over a twenty week period, the researchers have studied, analyzed, and observed the procedures at Scania CV’s maintenance development and delivery organization. The study was conducted on Scania’s premises in Södertälje, Sweden. Scania’s Preventative Maintenance Development group develops and sets the requirements for the preventative maintenance programs Scania offers to its customers. The group had a desire to track and measure what effects changes made in the maintenance program have on the customer’s life cycle profit. At Scania’s Preventative Maintenance Development group, there is a developed performance measurement system, MPI-model, consisting of maintenance performance indicators (MPIs). The current MPI-model, however, lacks practical applicability. The master thesis has aimed at investigating how the MPI-model could be implemented in the preventative maintenance development by researching what criteria are set in literature for performance measures, how existing resources can be employed, and how performance measurement systems can be used. Apart from conducting a case study, in order to investigate how performance measurement systems could be implemented, an extensive literature review was also conducted to provide the necessary theoretical knowledge. The result of the study was a proposed three-step model that clarifies the requirements for the implementation of a performance measurement system.

Pressure on companies to show evidence of compliance with sustainable requirements is increasing. Performance measurement systems (PMSs) assist managers in making such choices that optimize sustainability within supply chain operations. At the same time, companies’ supply base is growing globally and incurring an increase in one of the most visible parts of a supply chain's environmental impact - transportation. The difficulty lies in obtaining standardized data of sustainable impact by transportation. Thereby, ability to show compliance by measuring and evaluating the sustainable performance of transportation is problematic. This report thus addresses the issue of data availability and quality and its impact on ability to measure and evaluate performance in transportation. Further, the objective is to investigate what critical aspects to consider in order to manage environmental performance in a measurement system of logistics. A case study at Company X, a globally dispersed company within the manufacturing industry has been conducted in order to bring clarity to the questions posed. A framework of founding steps in the development of a PMS with the inclusion of environmental sustainable aspects has been developed from previous research to assess the findings against. The analysis carried out show evidence of availability and quality of data heavily hindering development of Sustainable Performance Measurement Systems (SPMS) by inclusion of environmental aspects. The fundamental aspects in need of consideration are summarized by; commitment and technical support, data availability, management of data and design of measurements. Further there lies a critical factor within management of measurements. This study contributes to practitioners with guidance from developed framework to assess critical factors. The theoretical contribution lies within the investigation of obstacles in need of consideration in development of SPMS, a present under-research area, especially in an industry context. Keywords: Sustainable Performance Measurement, Sustainable Performance Measurement Systems

<p>Performance measurement is a topic that has received considerable attention during the last decades. There are many motives for using performance measures in a company but perhaps the most crucial one is that they will help to improve productivity when used properly. Productivity is of vital importance to a company’s ability to compete and make profits over time. A company that is not able to efficiently utilise its resources in creating value for its customers will not survive in the competitive business environment of today. </p><p>However, the development of fully functional and suitable performance measurement systems (i.e. set of measures) has proven to be a very challenging task. This research has focused on the last phase of the development of performance measurement system, namely the continuous updating of the performance measures, which still have not been explored in a satisfactory manner. The objective is to investigate and clarify how to evaluate and revise performance measurement systems. In order to reach this objective, several obstacles that contribute to the complexity of the research area are treated. </p><p>In the beginning, the thesis thoroughly investigates the confusing terminology within the field and frequently used terms like productivity, profitability, performance, efficiency and effectiveness are explained. Then, a categorisation of ways to measure performance is presented along with advantages and shortcomings of different productivity and other performance measures. Several key-factors found to affect the productivity of a manufacturing company are also discussed, such as: design of processes and equipment, disturbances and losses, management and control, product design, and job design and work organisation. Much attention is given to the different requirements that performance measurement systems must fulfil, both on the system level and the measure level. Finally a method called the performance measurement progression map is finally proposed, which has been developed in order to give measurement practitioners a comprehensive guide of how to evaluate and revise performance measurement systems. </p><p>The thesis is concluded with the results from several empirical investigations in which the usefulness of the developed method is validated. </p><p><b>Keywords:</b> Performance measurement, Performance measurement systems, Productivity, Evaluation</p>

中小企業如何規劃績效評量系統(PMS)？以台灣一中小企業為例做分析 / The paper wishes to provide another angle of study in the performance measurement system (PMS) in SMEs by using a case. The topic was inspired by literatures that focus on PMS in SMEs. As widely understood, the importance of PMS has grown in the last 30 years and there were many PMS models. Yet, applying these PMS models to SMEs is still in doubt. This paper is interested in how SMEs implement their PMS without using any PMS models. In Taiwan, SMEs refer to enterprises with less than 200 employees. However, here in this paper we apply the U.S. definition, company with less than 500 employees, as our standard. The chosen company we studied has nearly 500 employees up to the end of 2013. In one literature - Performance Measurement System in SMEs (2005) - it concluded ten dimensions of PMS characteristics commonly used by popular PMS models. In order to examine the robustness of the PMS in the case company, these dimensions are used to make comparison. The result shows that the case company constructed a quite robust PMS by applying these dimensions. However, since there’s limited resource for SMEs to implement models, we recommend SMEs to use these dimension to examine their PMS instead of trying to find out the best model.

Performance measurement is a topic that has received considerable attention during the last decades. There are many motives for using performance measures in a company but perhaps the most crucial one is that they will help to improve productivity when used properly. Productivity is of vital importance to a company’s ability to compete and make profits over time. A company that is not able to efficiently utilise its resources in creating value for its customers will not survive in the competitive business environment of today. However, the development of fully functional and suitable performance measurement systems (i.e. set of measures) has proven to be a very challenging task. This research has focused on the last phase of the development of performance measurement system, namely the continuous updating of the performance measures, which still have not been explored in a satisfactory manner. The objective is to investigate and clarify how to evaluate and revise performance measurement systems. In order to reach this objective, several obstacles that contribute to the complexity of the research area are treated. In the beginning, the thesis thoroughly investigates the confusing terminology within the field and frequently used terms like productivity, profitability, performance, efficiency and effectiveness are explained. Then, a categorisation of ways to measure performance is presented along with advantages and shortcomings of different productivity and other performance measures. Several key-factors found to affect the productivity of a manufacturing company are also discussed, such as: design of processes and equipment, disturbances and losses, management and control, product design, and job design and work organisation. Much attention is given to the different requirements that performance measurement systems must fulfil, both on the system level and the measure level. Finally a method called the performance measurement progression map is finally proposed, which has been developed in order to give measurement practitioners a comprehensive guide of how to evaluate and revise performance measurement systems. The thesis is concluded with the results from several empirical investigations in which the usefulness of the developed method is validated. Keywords: Performance measurement, Performance measurement systems, Productivity, Evaluation / <p>QC 20161026</p>

Qualquer que seja o seu setor de atuação, porte ou origem, as organizações têm enfrentado desafios cada vez mais sérios no propósito de dar continuidade a suas atividades, preferencialmente na busca de um desempenho cada vez melhor, de modo a atingir ou ir além do que é estipulado em seus processos de planejamento. Tais organizações têm a necessidade de identificar, mensurar e avaliar esse desempenho, tornando essa mensuração um importante subsídio para a tomada de decisões mais apropriadas e efetivas, particularmente no que se refere a aspectos outrora negligenciados, como aqueles mais diretamente ligados à questão da sustentabilidade, com destaque para o reconhecimento da importância das chamadas partes interessadas (ou stakeholders), i.e, os diversos públicos que exercem algum tipo de influência na organização ou que são influenciados por ela. Este é, portanto, um dos grandes desafios para as organizações neste momento: como realizar uma apropriada mensuração do desempenho organizacional, considerando-se a necessidade de inclusão dos aspectos relativos à sustentabilidade, como a inserção de resultados finais tríplices (Triple Bottom Line) e a contemplação dos stakeholders como públicos relevantes para que os objetivos estratégicos sejam alcançados. Nesse contexto, o propósito principal deste estudo é responder à seguinte pergunta de pesquisa: Quais são as relações entre as partes interessadas (stakeholders) e os Sistemas de Mensuração de Desempenho (SMDs) das organizações?. Para tanto, pretende-se neste trabalho: (1) entender os conceitos e processos envolvidos na criação e implementação de sistemas de mensuração de desempenho que tenham como foco a sustentabilidade manifestada pelas perspectivas econômica, social e ambiental; (2) considerar-se a participação das partes interessadas e sua influência na determinação do desempenho organizacional a partir do entendimento da importância destes para as organizações; e (3) contribuir, de forma efetiva, para o desenvolvimento teórico, conceitual e prático do assunto em estudo. O referencial teórico consiste em três grandes temas: (i) origem e histórico dos conceitos sobre sustentabilidade e a sua influência nas organizações; (ii) gestão das partes interessadas e sua importância estratégica para as organizações; (iii) mensuração do desempenho organizacional, com seus principais conceitos e metodologias, principalmente considerando-se a inclusão de uma ótica de sustentabilidade. A pesquisa de campo realizada, de natureza quantitativa, é do tipo survey e contou com a participação de 149 empresas pertencentes ao setor industrial e associadas ao CIESP (Centro das Indústrias do Estado de São Paulo). Seus principais resultados apontam para a confirmação das três hipóteses da pesquisa, com correlações positivas entre a influência dos stakeholders e: o Grau de Abordagem Triple Bottom Line; o Grau de Amplitude dos SMDs; e o Grau de Uso dos SMDs. Além disso, verificou-se a prevalência dos consumidores e clientes como a categoria de stakeholders mais influente, seguidos pelos acionistas; o predomínio das dimensões financeira e de clientes na constituição dos SMDs; a concentração do uso dos SMDs para Monitoramento e Foco de Atenção; e a existência de diferenças na percepção quanto à influência dos stakeholders, dependendo tanto do porte quanto da origem do capital das empresas, além de diferenças quanto ao emprego dos indicadores da dimensão ambiental, em função especificamente da origem do capital da empresa. / No matter their size, origin or field, organizations have had to face more and more challenges on their way towards a better performance. Besides trying to reach their goals as defined in their planning process, such organizations have been required to identify, measure and evaluate their performance, turning this into a critical and important element in their decision making processes. Another relevant issue is related to whether this performance measurement process refers to aspects otherwise neglected, such as those directly related to sustainability like the inclusion of social and environmental aspects or the several potential stakeholders influence in the organization, what may require improved performance measurement, beyond what has been done in a more traditional approach. This is a major challenge for organizations nowadays: how to measure their performance, taking into consideration a triple bottom line (economic, social and environmental) approach and the inclusion of a broader stakeholders perspective, according to what has been defined as relevant. From this viewpoint, the main objective of the present research is to answer to the following question: What are the relationships among the stakeholders and the Performance Measurement Systems (PMS) established in organizations?. By doing so, this study will provide: (1) understanding of the concepts and processes embedded in the creation and implementation of performance measurement systems in organizations that are sustainability-oriented; (2) identification of the influence of the stakeholders on the performance measurement systems implementation and use; and (3) an effective contribution to the conceptual and practical aspects related to the subject. The theoretical basis includes three big areas: (i) origin and history of sustainability concepts and their influence on organizations; (ii) stakeholder theory and its importance to organizations; (iii) organizational performance measurement and its concepts and practices, including the sustainability-oriented ones. The field research is quantitative, with a survey been performed among 149 industrial companies associated to CIESP (State of Sao Paulo Industries Centre). The main results point out to the confirmation of the research hypothesis, with positive correlations among Stakeholders Influence and: the degree of Triple Bottom Line approach; the degree of scope of PMSs; and the degree of use of PMSs. The survey was also able to identify the prevalence of Consumers and Clients as the most influential category of stakeholders, followed by Shareholders; the dominance of the Finance and Client perspectives in the design of the PMSs; the incidence of PMSs use regarding Monitoring and Attention Focus; and differences in perception of stakeholders influence, according to the size and the origin of the capital of the organization, and differences regarding the use of environmental indicators, according to the origin of the capital of the firm.

A importância de um bom sistema de medição de desempenho (SMD) para o sucesso de uma empresa é uma questão bastante estudada e discutida, tanto no meio científico quanto no próprio meio empresarial. No entanto, grande parte das empresas não possui um sistema de medição de desempenho que possa lhes trazer uma vantagem competitiva, sendo ele muitas vezes pontual e desligado da estratégia. Por isso, este trabalho é mais uma tentativa de aproximar a teoria e a prática dentro das empresas no que se refere à medição de desempenho organizacional. O objetivo da pesquisa é desenvolver um sistema informatizado para a gestão do desempenho e apresentar um método para sua implantação. Para a definição das características deste método e dos requisitos do sistema, empreendeu-se uma revisão bibliográfica e um estudo de caso em uma empresa de grande porte que já possui um SMD formalizado. O método foi aplicado em duas empresas de Sertãozinho para identificar seus objetivos estratégicos e indicadores de desempenho, o que resultou em uma primeira versão de um SMD formal para elas. Uma aplicação piloto do software foi feita em uma destas empresas para verificar seu funcionamento na prática. Após estes estudos, pôde-se concluir que o método e o sistema são úteis para implantar e acompanhar indicadores de desempenho nas empresas pesquisadas. No entanto, a implantação encontrou alguns obstáculos como a falta de tempo das empresas para se dedicarem à medição de desempenho e a resistência de alguns funcionários em usar o software. / The importance of a well-developed performance measurement system (PMS) for the success of a company is a subject which is widely studied and discussed either in the academic and business enviroments. However, many companies still do not have a performance measurement system able to bring them competitive advantage, because they are all too often ad-hoc solutions not concerned about the strategy. Hence, this work is yet another attempt to bring theory closer to practice inside the companies in the regard of business performance measurement. This research\'s objective is to develop an information system for performance measurement and present a method for its deployment. In order to define the characteristics of both the method and the information system, a literature review and a case study in a company which had a formal PMS were done. The method was then applied to two companies from Sertãozinho aiming to identify their strategic objectives and performance indicators, which resulted in a first version of their formal PMS. A pilot deployment of the software was made in one of these companies to verify how it would work in practice. After these studies, it was possible to conclude that the method and the information system were useful for deploying and keeping track of performance indicators in the researched companies. However, some dificulties were found during the deployment, such as the lack of time available for performance management and the resistance of some employees to the use of the software.