How important are Performance Management Systems to achieve outstanding financial results


Abstract During the research of for a thesis on performance management systems in connection with the theory of constraints a disconnect between literature and the practice caught interest. The researched company has about 5000 employees and is therefore an organization which should rely on delegation of authority to operate the business (Ji-Eun, 2012). There should be an effort of strategy deployment and operationalization to enable the individual parts of the organization to contribute to the organizational goal. In the researched organization there seems to be no communication of strategy or what is expected of the organization. The target setting focuses on budget which often seems to be dictated from above and is considered unachievable by most mid-level managers. The researched company lacks modern performance management systems is financially outperforming year after year. The paper therefore would like to propose an explanation for this phenomenon.
Keywords performance management, management, strategy, target setting, organizational behaviour
JEL classification L21, L25, D23 and M12
PDF format below