Browsing by Author "Franco-Santos, Monica"
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Item Open Access Contemporary performance measurement systems: A review of their consequences and a framework for research(Elsevier, 2012-06-01T00:00:00Z) Franco-Santos, Monica; Lucianetti, Lorenzo; Bourne, MikeThe main purpose of this paper is to develop a conceptual framework for understanding the literature on the consequences of contemporary performance measurement (CPM) systems and the theories that explain these consequences. The framework is based on an in-depth review of 76 empirical studies published in high-quality academic journals in the areas of accounting, operations, and strategy. The framework classifies the consequences of CPM into three categories: people's behaviour, organizational capabilities, and performance consequences. This paper discusses our current knowledge on the impact of CPM, highlighting inconsistencies and gaps as well as providing direction for future research.Item Open Access Designing better performance measurement systems in universities using the business model canvas(POMS, 2016-09) Franco-Santos, MonicaThis paper starts by critically reviewing the way in which universities design their measures of performance. We argue that the “one size fits all” performance measurement approach adopted by so many universities is not appropriate when departments have very different operating models. The paper proposes using “business model design” to enable university departments and centres to design and develop their own “sustainability model”, which in turn may help them develop more appropriate performance measurement systems. Using the lens of business model design may help universities to recognise their diversity and allow them to use performance measures more strategicallyItem Open Access An examination of the literature relating to issues affecting how companies manage through measures(Taylor & Francis, 2005-03-01T00:00:00Z) Franco-Santos, Monica; Bourne, MikeIn the last decade, organizations have devoted enormous time and effort to the development of business performance measurement (BPM) systems. Many articles have been written on how to design and implement these types of systems. However, few studies have addressed the issue of why some organizations are better able to 'manage through measures' than others. In other words, why do some organizations struggle to ensure that action follows measurement, whilst others systematically use their metrics to inform their decision-making processes, and their subsequent actions? This paper aims to contribute to a more complete understanding of the use of BPM systems by reviewing the performance measurement literature developed in the management arena. It differs from previous examinations of performance measurement and management control systems in that it uses a broader scope and follows a new method of literature review applied to management research, namely, systematic review. The paper focuses on the thematic analysis of the review only. The insights extracted from the literature are articulated and presented in a management framework. In addition, the paper identifies different gaps in the literature that require further research.Item Open Access The impact of diverse performance measurement on the customer-orientated selling behaviours of B2B salespeople(2018-03) Kerr, Peter; Franco-Santos, MonicaThe pervasive use of performance measurement frameworks, such as the balanced scorecard, coupled with the growing complexity of today’s B2B sales role is increasing the need for greater levels of measure diversity to evaluate the performance of the modern salesperson. Yet very little is known regarding the behavioural impacts of using more balanced and diverse measures to evaluate individual salesperson performance. This research investigates the relationship between the use of diverse measures of performance and the customer-oriented selling behavior of B2B salespeople. Based on data collected from 274 business-to-business salespeople from Canada, the United States and the United Kingdom and using partial-least squares, structural equation modelling, the author finds that measure diversity is positively associated with salesperson customer-oriented selling behaviour and that this behaviour is fully mediated through salesperson attitudes towards customer-oriented selling. Findings also suggest that measure diversity within a sales performance measurement system is positively associated with increased levels of supervisory sales coaching activity.Item Embargo The impact of performance measurement diversity on customer-oriented selling behavior(Elsevier, 2023-03-04) Kerr, Peter D.; Franco-Santos, MonicaMotivated by recent high-profile cases of salespeople behaving ‘badly’ (i.e., unethically, aggressively, or misleading toward customers), we investigate traditional behavioral controls to examine the specific relationship between performance measurement choices and selling behavior with a survey of 207 business-to-business salespeople. Borrowing from attention-based theory and the theory of planned behavior, our findings suggest that sales management can encourage more pro-customer behavior by using a more diverse performance measurement schema to influence the underlying drivers of customer-oriented selling behavior, including salesperson attitudes and subjective norms. This is particularly important in transactional selling environments where the use of diverse measures has the strongest effect on pro-customer attitudes and customer-oriented selling behavior.Item Open Access The Impact of the Investors in People Standard on People Management Practices and Firm Performance(2008-09-01T00:00:00Z) Bourne, Mike; Franco-Santos, Monica; Pavlov, Andrey; Lucianetti, Lorenzo; Martinez, Veronica; Mura, MatteoThis document reports on an extensive study into the impact of the Investors in People Standard on business performance. We started by reviewing what is already known about the Standard’s impact on business performance, before building a framework of the expected benefits of IIP from the Strategic Human Resource Management literature. This framework was tested using case studies, a survey and financial analysis to create a body of knowledge that improves our understanding of how the Investors in People Standard improves business performancItem Open Access Investors in People, Managerial Capabilities and Performance(2010-01-31T00:00:00Z) Bourne, Mike; Franco-Santos, MonicaExecutive Summary: Investors in People (IiP) UK commissioned the Centre for Business Performance at Cranfield School of Management to investigate the impact of Investors in People on managerial capabilities, managerial performance and business results. In this study, we took three different approaches. Firstly, we conducted in depth case studies in seven different organisations. Through a series of interviews with HR professionals and line managers, we investigated the impact Investors in People had on management capabilities and managerial performance, probing their understanding of how good management delivered business performance. Secondly, we conducted a survey across some 400 small, medium sized and larger companies based in the UK. Senior, middle and junior managers provided data on their understanding of the role of Investors in People, the company’s managerial capabilities, the performance of managers, and the company’s financial and nonfinancial performance results. Thirdly, we accessed published data from returns to Company’s House (as provided through the FAME database) to test the linkage between perceptions of managerial performance and firm profitability. The companies we visited for our case studies highlighted the differences in managerial capabilities and performance between Investors in People recognised companies, and nonrecognised companies. They also illustrated the differences in organisational commitment to people and their development and provided practical examples of tools being successfully used to build management capabilities. In our study, we found empirical evidence showing that Investors in People: Enhances managerial capabilities - that is to say the knowledge, experience and skills of managers. Supports the development of an organisational learning culture. Improves the effectiveness of management development practices. Facilitates the creation of a high-performing environment. Increases the performance of managers. Furthermore, working with Investors in People triggers a chain of events (see figure 1). Investors in People recognised companies have better managerial capabilities that engender higher managerial performance, which leads to better perceived non-financial and financial performance, resulting in higher profitability - as shown in their published accounts – than nonrecognised companies. Managers play a key role in delivering business performance. This research shows how Investors in People underpins effective management through its impact on the development of management capabilities and management performance. Also, we conclude that the more companies embrace Investors in People, the better their performance will be.Item Open Access Investors in People, Managerial Capabilities and Performance(2010-03-01T00:00:00Z) Bourne, Mike; Franco-Santos, MonicaInvestors in People (IiP) UK commissioned the Centre for Business Performance at Cranfield School of Management to investigate the impact of Investors in People on managerial capabilities, managerial performance and business results. In this study, we took three different approaches. Firstly, we conducted in depth case studies in seven different organisations. Through a series of interviews with HR professionals and line managers, we investigated the impact Investors in People had on management capabilities and managerial performance, probing their understanding of how good management delivered business performance. Secondly, we conducted a survey across some 400 small, medium sized and larger companies based in the UK. Senior, middle and junior managers provided data on their understanding of the role of Investors in People, the company’s managerial capabilities, the performance of managers, and the company’s financial and non- financial performance results. Thirdly, we accessed published data from returns to Company’s House (as provided through the FAME database) to test the linkage between perceptions of managerial performance and firm profitability. The companies we visited for our case studies highlighted the differences in managerial capabilities and performance between Investors in People recognised companies, and non- recognised companies. They also illustrated the differences in organisational commitment to people and their development and provided practical examples of tools being successfully used to build management capabilItem Open Access Managing through measures: a study of impact on performance(MCB University Press, 2005-01-01T00:00:00Z) Bourne, Mike; Kennerley, Mike; Franco-Santos, MonicaPerformance measurement has developed rapidly over the last two decades. The dissatisfaction with financial measures, which came to the fore in the 1980s, has given way to a plethora of balanced performance measurement frameworks. Over the period, the focus has moved from designing balanced performance measurement systems, through implementation to the use of measures to manage performance. There is now a debate in the literature over whether performance has a positive impact on business performance, but despite the research, until recently, few studies have examined the use of performance measures and how performance measurement impacts performance. This paper reports on a study of the use of performance measures in multiple business units of the same organisation. The findings suggest that current research into the impact of performance measurement on performance may be too simplistic in its approach as much of the research relies on studying the physical and formal systems used, ignoring the types of factors found to be important in this study. These factors include Simons’ (1991) concept of interactive control and the paper suggests that this concept deserves further studItem Open Access Modelling the impact of performance management practices on firm performance: Interaction with human resource management practices(Taylor & Francis, 2017-04-23) Pavlov, Andrey; Mura, Matteo; Franco-Santos, Monica; Bourne, MikeThe paper draws on resource orchestration theory to investigate whether and how performance management (PM) practices interact with human resource management (HRM) practices in organisations as well as how this interaction affects firm performance. The proposed theoretical model was tested through a survey of 192 UK firms using Partial Least Squares approach for structural equations modelling. The findings show that the effect of PM practices on firm performance is better explained when the interaction between these practices and other organisational practices is considered. In particular, we examine the extent to which the interaction between PM practices and commitment-based HRM practices affects performance. We find that when HRM practices and PM practices are misaligned, their effect on performance can be negative. This is the first paper in the PM literature that establishes the relationship between PM and HRM practices in organisations and demonstrates the effect of this relationship on firm performanceItem Open Access The performance impact of using measurement diversity in executives’ annual incentive systems(Cranfield University, 2007) Franco-Santos, Monica; Bourne, MikeThe purpose of this research is twofold. Firstly, it examines the relationship between the use of financial and non-financial performance measures in executives’ annual incentive systems and firm performance. Secondly, it looks at the extent to which this relationship is influenced by five different organisational contingencies (business risk, ownership structure, organisational culture, the quality of the performance measures used in executives’ annual incentives and the effectiveness of the executives’ reward system). Agency theory and contingency theory are used to develop the theoretical framework that underpins this study. The research design is based on survey and archival data from 132 private and publicly quoted organisations based in the UK. Data is studied using multivariate analysis, in particular, multiple regression analysis with main and interaction effects. Contrary to expectations, the study finds that the relationship between the use of financial and non-financial performance measures in executives’ annual incentives and economic firm performance (measured by return on assets and sales annual growth) is negative rather than positive. However, this relationship is not universalistic. Results suggest that when organisations operate in high or low business risk environments or when organisations have clan or adhocracy cultural values the use of multi-criteria performance measures in executives’ annual incentives is beneficial as it facilitates the achievement of business goals. Results also suggest that ownership structure, the quality of performance measures and the effectiveness of executives’ reward systems are organisational contingencies that do not influence the performance impact of using multi-criteria performance measures in executives’ annual incentive systems. This thesis contributes to the management literature; in particular, to the literature that looks at the use of non-financial performance measures in management control systems. It contributes to agency-based research by providing empirical evidence that refutes some of its premises regarding the use of multi-criteria performance measures in incentive systems. This thesis also contributes to contingency-based research as it supports the notion that there is no universally appropriate management control system –in this case, the executive incentive system– which applies equally to all organisations in all circumstances.Item Open Access Performance management and well-being: a close look at the changing nature of the UK higher education workplace(Taylor and Francis, 2017-06) Franco-Santos, Monica; Doherty, NoeleenThe relationship between HRM and well-being has received a significant amount of research attention; however, results are still contested. Our study addresses this phenomenon in the Higher Education sector. We specifically investigate the association between performance management and the perceived well-being of academic staff. Our research finds that the application of a directive performance management approach, underpinned by agency theory ideas as evidenced by a high reliance on performance measures and targets, is negatively related to academics’ well-being (i.e. the more it is used, the worse people feel). In contrast, an enabling performance management approach, based on the learnings of stewardship theory, emphasising staff involvement, communication and development, is positively related to academics’ well-being. We also find the positive relationship between enabling practices and well-being is mediated by how academics experience their work (i.e. their perceptions of job demands, job control and management support). These results indicate that current trends to intensify the use of directive performance management can have consequences on the energy and health of academics, which may influence their motivation and willingness to stay in the profession. This research suggests that an enabling approach to managing performance in this context, may have more positive effects.Item Open Access Performance management and wellbeing at the workplace(Springer, 2022-03-04) Franco-Santos, Monica; Bourne, Michael; Stull, DanielPerformance management systems can be a source of stress and anxiety, and yet they can also provide clarity and focus, which are both factors that have positive effects on wellbeing at work. Employee wellbeing is essential as it has been shown to enhance organizational performance and employees’ quality of life. These paradoxical results represent a challenge for organizations when designing performance management systems. In this chapter, we examine current research on the relationship between performance management practices and employee wellbeing and formulate a conceptual framework elucidating the conditions under which different wellbeing results are likely to occur. The purpose of our work is to help organizations design performance management mechanisms that account for and foster employees’ wellbeing as well as raise awareness regarding the situations that can deteriorate it. We conclude by highlighting the importance of managerial philosophies and organizational goals definitions, recommending the adoption of a enabling or a hybrid set of performance management mechanisms to better accommodate the complex nature of wellbeing and other organizational goals.Item Open Access Performance measurement and management: a system of systems perspective(Taylor & Francis, 2017-11-20) Bourne, Mike; Franco-Santos, Monica; Micheli, Pietro; Pavlov, AndreyDespite changes in tools and practices, the conceptual foundations of performance measurement and management (PMM) are still predominantly rooted in control systems research. While PMM approaches have delivered significant organisational benefits, including creating alignment, supporting monitoring and control, and enabling prediction and optimisation of resource allocation, this paper argues that this paradigm is not capable of responding to increasingly complex and highly uncertain organisational environments. Drawing on ideas emerging in the literature on systems engineering and complex systems, we propose a novel perspective that considers PMM from a ‘system of systems’ (SoS) point of view, whose essential characteristics are autonomy, belonging, connectivity, diversity and emergence. After identifying the assumptions underpinning existing PMM approaches, we outline a SoS-based paradigm to PMM and conclude by articulating the main implications for the practice of PMM and setting out a research agenda.Item Open Access Reflections on the role, use and benefits of corporate performance measurement in the UK(Emerald Group Publishing Limited, 2005-01-01T00:00:00Z) Bourne, Mike; Franco-Santos, Monica; Kennerley, Mike; Martinez, VeronicaItem Open Access Reviewing and theorizing the unintended consequences of performance management systems(Wiley, 2018-07-02) Franco-Santos, Monica; Otley, DavidDifferent design choices in the controls used to manage performance often lead to a range of unintended consequences, which have profound effects on individuals and organizations. This paper presents a mixed review (both systematic and eclectic) of the literature on the unintended consequences of performance management systems and develops a typology to explain how and why they occur. It finds that the most salient unintended consequences of directive performance management systems are gaming, information manipulation, selective attention, illusion of control and relationships transformation. It argues that these consequences exist due to limiting factors such as ignorance, error, short-term concerns, fundamental values, self-fulfilling forecasts and changes in social relationships. The emerging typology-based theory suggests that the choice of control mechanisms is based on two key assumptions concerning goal-alignment and goal uncertainty that relate back to ideas in agency theory and stewardship theory. It concludes that, in the design of performance management systems, the more the ‘assumed’ reality about the state of goal-alignment and goal-uncertainty diverges from the ‘real’ state of affairs, the more the resultant system is likely to create perverse unintended consequences, leading to poor organisational outcomes.Item Open Access Revisiting benefits design approaches: the strategic value of identity-based benefits(WorldatWork, 2021-04-06) Afonso, Daniel; Franco-Santos, Monica; Gomez-Mejia, Luis R.When designing benefit offerings, organizations often frame the task as a trade-off: should we follow the market (do what others do) or should we rather focus on our employees’ preferences (let them choose)? In this paper, we contend that framing the problem as a dichotomy underplays the strategic role of benefits and ignores alternative approaches that could be more meaningful and effective. In the past, using benefits to communicate strategic intentions has proven a challenge. Based on recent research applying anthropomorphism ideas to organizations, we suggest an additional approach, which considers an organization’s identity in designing benefit offerings. With stakeholders increasingly expecting companies to position themselves as distinct players within a complex societal and environmental context, the concept of identity-based benefits presents itself as a powerful tool for sensemaking about “who the organization is” and for creating a fruitful connection between the organization and its stakeholders.Item Open Access Shaking up the appraisal system(2012-09-01T00:00:00Z) Franco-Santos, MonicaItem Open Access Towards a definition of a business performance measurement system(Emerald Group Publishing Limited, 2007-08-01T00:00:00Z) Franco-Santos, Monica; Kennerley, Mike; Micheli, Pietro; Martinez, Veronica; Mason, Steve; Marr, Bernard; Gray, Dina; Neely, AndrewScholars in the field of performance measurement tend to use the term business performance measurement (BPM) systems without explaining exactly what they mean by it. This lack of clarity creates confusion and comparability issues, and makes it difficult for researchers to build on one an each other's work. The purpose of this paper is to identify the key characteristics of a BPM system, by reviewing the different definitions of a BPM system that exist in the literature. This work aims to open a debate on what are the necessary and sufficient conditions of a BPM system. It is also hoped that a greater level of clarity in the performance measurement research arena will be encouraged. Design/methodology/approach--The performance measurement literature is reviewed using a systematic approach. Findings--Based on this research, a set of conditions of a BPM system has been proposed from which researchers can choose those which are necessary and sufficient conditions for their studies. Research limitations/implications--The analysis in this paper provides a structure and set of characteristics that researchers could use as a reference framework to define a BPM system for their work, and as a way to define the specific focus of their investigations. More clarity and precision around the use of the BPM systems phrase will improve the generalisability and comparability of research in this area. Originality/value--By reviewing the different definitions of a BPM system that exist in the literature this paper will hopefully stimulate a debate on the necessary and sufficient conditions of a BPM system and encourage a greater level of clarity in the performance measurement research arena.