An assessment of performance-related practices in service operational settings: measures and utilization patterns

Abstract

The objective of this study is to examine the current practices related to performance measurement in service operational settings. Several statistical procedures are utilized to analyse the data collected from Portuguese service organizations. These procedures include multiple regression analysis, cluster analysis, and gap analysis. Overall, the results of this study indicate that service organizations are beginning to view performance from a broad, organizational perspective. However, they are still, to a certain extent, emphasizing financial measures of performance. This study provides managers of service organizations with valuable insights into the organizational role of performance measures and measurement. This line of research is consistent with the significant growth of the service sector in recent years. IntroductionService organizations are unique operational open systems. These operational systems, dynamically, interact with their environments in order to satisfy the needs and wants of the increasingly sophisticated customers. In this context, measuring, tracking, and improving the performance of these systems require a systematic approach which takes into account the different aspects of performance. The effective management of the different dimensions of service performance is critical towards achieving and sustaining a competitive advantage in an increasingly competitive market place. However, due to the difficulties associated with the measurement of certain aspects of performance, some service organizations tend to emphasize certain performance dimensions at the expense of others. Such approach to service performance may compromise the effort to improve the overall organizational performance. This, in turn, may lead to difficulties in achieving a competitive advantage in the market place.Despite the difficulties associated with measuring certain aspects of service performance, managers of service organizations are becoming increasingly aware of the need to capture, monitor, and improve their organizational performance in order to create or sustain a competitive strategic advantage (Forslund, 2007;Tiernan, Rhoades, & Waguespack, 2008;Urban, 2009). However, due to their intense interaction with customers, the main concerns of the managers of organizations in service industries have been focused on measuring customer satisfaction and service quality (Chen, 2009;Deng, 2008).Although customer satisfaction and service quality are considered critical aspects of performance, other aspects of service performance, such as aspects related to efficiency of operations, competitive environment, and human resources utilization, among others, should not be overlooked. While studies dealing with these performance-related concerns in manufacturing operational settings have been forthcoming ), this has not been the case in most service operational settings (Jusoh & Parnell, 2008).A literature review which examined articles related to service performance measurement and measures utilized, between 1981 and 2008, call...

Perspective of Local Government on the Performance Assessment of District Sports and Leisure Centers

“…This technique requires good fit and does not produce any benchmarks [36,37]. For example, Gomes and Yasin [38] used multiple regressions to measure performance in Portuguese services. Charnes, Cooper, and Rhodes (CCR) [39] developed the CCR-DEA model with the assumption of constant return-to-scale (CRS), using multiple indicators to evaluate the relative efficiency of each decision-making unit (DMU).…”