International Journal of Productivity and Performance Management

The interrelations of decision-making rationales around BSC adoptions in Finnish municipalities : Table of Contents

Antti Ilmari Rautiainen — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to analyze the interrelations of the decision-making rationales around accounting performance measurement (PM) adoptions in Finnish municipalities. Previous studies informed by new institutional sociology (NIS), have tended to assume that accounting PM adoptions occur because of either “rational” or “institutional” reasons. The accuracy of this “polar” view is empirically analyzed in this paper (as called for by Ribeiro and Scapens). Design/methodology/approach – Survey data (199 responses, 48 per cent response rate) were analyzed with factor analyses using, for example, SPSS and LISREL programs. Findings – The decision-making rationales (factors) around Balanced Scorecard (BSC) adoption were labeled “mimetic”, “rational” and “normative-experimental”. Mimetic rationale correlated negatively with the other factors. Research limitations/implications – The data was small. Further, as case studies and LISREL diagnostics often suggest, there may be other forces involved in PM adoption related decision-making. Practical implications – Understanding the interplay of the various pressures may facilitate the management of PM development projects. Originality/value – Rational and institutional rationales are opposed also in the Finnish public sector (corroborating DiMaggio and Powell), but this “polar” view needs to be amended with individual or “experimental” aspects (corroborating Granlund). Acknowledging all three rationales refines public sector PM adoption literature (Lapsley and Wright). Finally, the rationales were interrelated, i.e. able to interact or counteract in PM adoption related decision-making.

Lean can be a survival strategy during recessionary times : Table of Contents

Bhim Singh, S.K. Garg, S.K. Sharma — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to discuss a survival strategy for industry in recessionary time by means of lean principles and philosophies. Design/methodology/approach – The paper presents the views of the authors regarding the application of lean principles and philosophies to overcome recession, followed by interaction with industrial personnel about recession, its effects and prevention. Findings – Recessionary time is the time for industries to follow lean guidelines and to look in to their business chain from raw material to end customer in order to remove all types of waste. Originality/value – The paper provides some real help as to how to survive in recession as there is little published research on this topic.

Healthcare capacity measurement : Table of Contents

David Bamford, Elizabeth Chatziaslan — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to present findings from an action research intervention in the outpatient department of a National Health Service (NHS) Hospital. It investigates the perceived and actual problems of measuring capacity at a UK hospital. Design/methodology/approach – An action research methodology was adopted: relevant literature on capacity measurement and performance was reviewed; the motivation behind its usage explored. Systems requiring improvement were identified and the adoption and implementation of new working methods initiated and explored. In addition to considering capacity measurement and performance issues, the authors examined the effects this may have on the long-term potential of the organisation. Findings – The research identified gaps in the capacity and activity measures used and in the dissemination of performance information. To address these problems and meet the changing needs of the department a new performance measurement and reporting tool was implemented. Research limitations/implications – The methodology applied was appropriate, generating data to facilitate discussion and draw specific conclusions from. A perceived limitation is the single case approach, however, Remenyi argues this can be enough to add to the body of knowledge. Practical implications – The paper gives details about the introduction of new performance measures and the development of a performance measurement tool for the Outpatient Department of the Hospital. The conclusions drawn add substantially to previous commentaries, and develop interesting questions for future research. Originality/value – Specific recommendations for the implementation of a new performance tool for healthcare organisations are made.

The UK productivity gap in the service sector: do management practices matter? : Table of Contents

Giuliana Battisti, Alfonsina Iona — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – This paper aims to contribute to the debate on the drivers of the productivity gap that exists between the UK and its major international competitors. Design/methodology/approach – From the macro perspective the paper explores the quantitative evidence on the productivity differentials and how they are measured. From the micro perspective, the article explores the quantitative evidence on the role of management practices claimed to be a key determinant in promoting firm competitiveness and in bridging the UK gap. Findings – This study suggests that management practices are an ambiguous driver of firm productivity and higher firm performance. On the methodological side, qualitative and subjective measures of either management practices or firm performance are often used. This makes the results not comparable across studies, across firms or even within firms over time. Productivity and profitability are often and erroneously interchangeably used while productivity is only one element of firm performance. On the other hand, management practices are multi-dimensional constructs that generally do not demonstrate a straightforward relationship with productivity variables. To assume that they are the only driver of higher productivity may be misleading. Moreover, there is evidence of an inverse causal relationship between management practices and firm performance. This calls into question most empirical results of the extant literature based on the unidirectional assumption of direct causality between management practices and firm performance. Research limitations/implications – These and other issues suggest that more research is needed to deepen the understanding of the UK productivity gap and more quantitative evidence should be provided on the way in which management practices contribute to the UK competitiveness. Their impact is not easily measurable due to their complexity and their complementary nature and this is a fertile ground for further research. Originality/value – This paper brings together the evidence on the UK productivity gap and its main drivers, provided by the economics, management and performance measurement literature. This issue scores very highly in the agenda of policy makers and academics and has important implications for practitioners interested in evaluating the impact of managerial best practices.

Measuring and comparing the performance of Portuguese secondary schools: A confrontation between metric and practice benchmarking : Table of Contents

Cláudia S. Sarrico, Maria J. Rosa — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – This paper aims to discuss methods for measuring and comparing the performance of Portuguese schools, confronting metric and practice benchmarking exercises. Design/methodology/approach – Data on the schools was collected within the context of a programme for school evaluation launched by the Ministry of Education in 2007. The paper first uses a non-parametric technique, data envelopment analysis, to assess the sample of schools using the data collected, taking a value-added approach. The results obtained are compared with the results obtained by the panels of evaluators within the national evaluation programme of schools. Findings – The paper concludes that the performance of the schools under the metric benchmarking exercise does vary substantially. However, the results do not correlate with the judgements made by the panels of assessors regarding schools' results. This might be because assessors find it difficult to take a value-added approach and instead assess schools mostly on output measures, such as exam classifications and graduation rates, having difficulty in taking into account pupils' socio-economic background and other variables not under the control of the school. Research limitations/implications – The paper focuses on the Portuguese context, and its findings might not be directly applicable to other contexts. Also, if other quantitative and qualitative methods were used, other results might have been obtained. Practical implications – Although the study is focused on the Portuguese context, contributing towards a better understanding of Portuguese secondary school performance, it is believed it will be helpful to inform the debate on school evaluation, performance improvement and policy setting in other contexts. Originality/value – The paper concludes by arguing for metric benchmarking exercises of the type proposed, to inform schools, evaluators and policy decision-makers, in combination with practice benchmarking exercises, which are better suited for qualitative aspects of performance.