The process of constructing performance measurement

Abstract

Purpose

The purpose of this paper is to show how the present article illuminates the process of how information is constructed in performance measurement systems.

Design/methodology/approach

The main argument for using performance measurement is that it creates possibilities for managers to gain knowledge about what is going on within the organization and direct future behaviour. The effectiveness of such a knowledge creation process is partly dependent on local circumstances of how information is being created.

Findings

In large scale performance measurement systems we can expect that several people are involved in constructing information. These people are either directly involved or have indirect influence over the construction process. Different motives and cognition play an important role as information is shaped and reshaped from the collection of raw data until its final usage in management settings.

Research limitations/implications

The research field is provided with an alternative view of what it means to work with performance measurement. This includes decomposition of the traditional mechanistic view of performance measurement.

Practical implications

Practitioners are urged to be reflective and careful in their usage of performance measurement as they cannot be viewed as objective facts of reality.

Originality/value

The paper contributes with knowledge in an underdeveloped field of research, namely quality of information. It may provide a basis for further research and scholarly analysis.

Citation

Elg, M. (2007), "The process of constructing performance measurement", The TQM Magazine, Vol. 19 No. 3, pp. 217-228. https://doi.org/10.1108/09544780710745649