Performance measurement systems (PMSs) are developed and implemented to support the accomplishment of objectives of an organization or organizational initiative. PMSs are structured to enable monitoring of performance. This monitoring is accomplished through the identification of areas of concern and success, with the ultimate goals of developing organizational capabilities and enhancing organizational learning. This article reviews the literature on performance measurement and its implementation, and proposes a model to guide the development and implementation of PMSs. The article concludes with a consideration of the broader implications of PMSs and provides recommendations for future research in PMSs with regard to human resource development.
Keywords performance measurement, performance indicatorsDecades ago, performance measurement systems (PMSs) were generally undertaken to broaden an organization's accounting systems (Neely, 1999). In the 1940s and 1950s, there was a growing recognition of Japanese industries' high efficiency and success. Subsequently, Western companies sought to replicate Japanese Research Question 1: What does the literature say regarding PMSs and their creation and implementation within organizations? Research Question 2: Based on this literature, can a general model be developed for implementing PMSs? Research Question 3: Using this literature and the developed model, what are the implications for HRD research and practice? Specifically, what might be undertaken to further organizational work using PMSs?Given these questions, we offer a model for use in developing and implementing a PMS. Such a model will enable practitioners to determine appropriate interventions to aid individuals, groups, and the organization in the use of the PMS adopted by the organization. This model is followed by suggestions for HRD practitioners. We also provide recommendations for continued research on issues related to PMSs in HRD and organizational development. by guest on April 3, 2016 hrd.sagepub.com Downloaded from Star et al. Identified resources were reviewed through a multistage process. First, article abstracts were scanned and archived. Next, selected references were placed under their germane topic headings in a working outline, similar in use to a concept matrix (Webster & Watson, 2002). Complete readings were then conducted, and further screening ensued. In addition, numerous older articles were identified through the citations and reference lists of newer sources.As noted, we then synthesized the findings from this review into the creation of a model for the development of a PMS by organizations. The model emphasizes communication and systematic decision making, while recognizing the flexibility needed to be relevant across a range of organizational contexts.