organizational performance measurement and evaluation systems in smes: the case of the transforming...

Apresentao do PowerPoint

7th International Research Meeting in Business and Management11-12 Jul 2016 Nice(France)

Aquilino Felizardo Consultant in Management Phd Student at University of vora (Portugal) and Member of CEFAGE-U Elisabete Gomes Santana Flix Assistant Professor of the University of vora (Portugal) and Researcher of CEFAGE-UJoo Pedro C. Fernandes Thomaz Associate Professor of the ISLA-Leiria and Researcher of CEG-IST (Lisbon, Portugal) and GP2/CIn/UFPE (Recife-PE, Brazil) Felizardo, A. / Flix, E. / Thomaz, J.1ORGANIZATIONAL PERFORMANCE MEASUREMENT AND EVALUATION SYSTEMS IN SMEs: THE CASE OF THE TRANSFORMING INDUSTRY IN PORTUGAL

1


Felizardo, A. / Flix, E. / Thomaz, J.2CONTENTS

IntroductionMethodologyResultsConclusionsReferences

2


Felizardo, A. / Flix, E. / Thomaz, J.3INTRODUCTIONThe measurement results plays an important role in the performance management of an organization. Today, organizations live in a context of competitiveness and market developments. They must be more prepared to react to the challenges they have to face that threaten their survival. It is necessary to them take strategies and behaviors that benefit and revitalize their results, forcing them to measure their performance in order to contribute to its stability (Gabcanova, 2012).

3


Felizardo, A. / Flix, E. / Thomaz, J.4INTRODUCTION

ModelAuthors, YearThe Performance Measurement MatrixKeegan et al., 1989Results and Determinants FrameworkFitzgerald et al., 1991The Performance Pyramid System Lynch and Cross, 1991Balanced ScorecardKaplan and Norton, 1992Integrated Performance Measurement Systems Bititci et al., 1998European Foundation for Quality ManagementEFQM, 1999The Performance PrismNeely et al., 2002

These models have the concern of "what to measure" and "how to structure" a measurement and evaluation system of organizational performance (Hudson et al., 2001; Neely, 2004; Bourne et al., 2005; Nudurupati, 2011). The Balanced Scorecard model (BSC) is the most cite.Measurement and Evaluation of Organizational Performance Models

4


Felizardo, A. / Flix, E. / Thomaz, J.5INTRODUCTION

PERFORMANCE MANAGEMENTRESULTS OF THE MEASUREMENTinformation on the effective and efficient way of how the organization manages its resources HOW TO MEASURE?WHAT TO MEASURE?

5


Felizardo, A. / Flix, E. / Thomaz, J.6INTRODUCTIONThis study:Central question - what to measure and how to measure:Focuses on small and medium enterprises (SMEs) in the manufacturing sector activities in Portugal;Aims to be a contribution to a better understanding of how these companies measure and evaluate their performance. Objectives: to identify the most approaches discussed in the literature to evaluate the performance of organizations; to determine whether small and medium sized companies in the manufacturing activities sector, in Portugal, measure their performance; how these companies operationalize that measurement.

6


Felizardo, A. / Flix, E. / Thomaz, J.7METHODOLOGY

related to the topic that respond to the objective of the present studyto assess whether organizations have a strategy, formalized and communicated by the organization; to determine if and how these organizations undertake the measurement and evaluation of their performance; to assess whether the respondents have knowledge about measurement models covered in this study and identify whether any of them is used or, possibly, another model; to collect data to make a characterization of the respondents and organizations. analysis of published studies in scientific journalssemi-structured interviews

7


Felizardo, A. / Flix, E. / Thomaz, J.8METHODOLOGY

To select the sample74 organizations were invited (SME);13 accepted to participate;1 was invalidated.

The sample consists of 12 organizations

8


Felizardo, A. / Flix, E. / Thomaz, J.9RESULTSGeneral characteristics of the sample Industry type, location, number of employees and volume of turnover (n = 12)

OrganizationIndustrial activityN of employesVol. billing (million/)AFood170,8BMolds20020CThermoplastics1309DWoods8912EMetallurgical332,7FMortars272,1GMortars411,3HFood320,7IThermoplastics783,7JPrefabricated411,2LCarton packaging683,2MFood242,9

9


Felizardo, A. / Flix, E. / Thomaz, J.10RESULTS

AgeFunctionN years in functionLevel of education28Managing Partner3Secondary school / level42Administrator / CFO1MBA53CEO12Phd48HR Director 24Master55General Diretor 27Secondary school / level54Managing Partner12Secondary school / level38Manager9Graduation58Managing Partner18Elementary, middle school / level45Administrador / Marketing9Graduation63Managing Partner23Elementary, middle school / level58CEO14Graduation57Managing Partner23Elementary, middle school / level

Characterization of respondents

10



Do you have an idea (vision) of how your business will be in the next five years?NO = 25% YES = 75%

Who in your organization is aware of this idea (vision)?

Only 33% have stated their vision (statement, goals and planning) described and formalized in an internal document.

Only the partners / shareholders33%Partners / shareholders and employees 1st line33%Partners / shareholders and all employees22%No one11%

11



# of Key indicators used

OrganizationFinancialsProductionMarkt/salesHuman ResourcesOthersTotalA321006B4330010C3434014D2234213E111003F111003G231208H222006I4232013J322108L5344016M323008

12



Models identified by respondents

OrganizationPMMRDFPPSBSCCPMSIPMSBEMPPOthers(s)YesANoNoNoNoNoNoNoNoNo0BYesYesYesYesYesYesYesYesNo8CNoNoNoYesNoNoNoYesNo2DYesYesYesYesNoNoYesNoNo5ENoNoNoYesNoNoNoNoNo1FNoNoNoNoNoNoNoNoNo0GNoNoNoYesNoNoNoNoNo1HNoNoNoNoNoNoNoNoNo0INoNoNoYesNoNoYesNoNo2JNoNoNoNoNoNoNoNoNo0LNoNoNoYesNoNoNoNoNo1MNoNoNoNoNoNoNoNoNo0222711320

13



14


Felizardo, A. / Flix, E. / Thomaz, J.15CONCLUSIONS The measurement results plays an important role in the performance management of an organization; Most of the organizations, apart from not having a formal process of its strategy, the sharing of their strategic intent is very low; There are few organizations that have systematic processes for obtaining elements that allow them to evaluate the results in accordance with their strategic objectives; It also appears that the number of used indicators is very low in all functional areas, being the area of human resources the one that has a very small number; That there is a significant lack of managers on a theoretical level for the performance measurement area.

15


Felizardo, A. / Flix, E. / Thomaz, J.16Research limitations and implicationsResearch limitations and implications The reduced number of data obtained and the insufficient knowledge of the interviewed about the performance measurement and evaluation limit the range and depth of the theme exploration.

Practical implications The indicators to measure and evaluate the performance are used without a clear comprehension about what and how to measure and, consequently, what to improve, it is therefore an opportunity to comprehend how the results limit the optimization of the most important facts related to competitiveness and success.

16


Felizardo, A. / Flix, E. / Thomaz, J.17Originality/valueOriginality/value The global organizational performance evaluation as a whole and its practical implementation is a field of studies that is poorly investigated in Portugal. There is no study about how SMEs from the transforming industry activities sector in Portugal measure and evaluate their performance, which does not allow the comparison with other similar studies even from other countries. This study contributes to a major comprehension about the advantages of using a system of organizational performance measurement and evaluation of the SMEs as a factor of incrementing its competitiveness.

17


Felizardo, A. / Flix, E. / Thomaz, J.18

Aquilino Felizardo [email protected]

Elisabete Gomes Santana Flix [email protected]

Joo Pedro C. Fernandes Thomaz [email protected]

18