Looking at Measures in the Performance Prism, throughout Organizational Cultures, presented by Unchan Youngbantao and Nopadol Rompho, at the 2014 PMA Conference

Written by Denisa Călin on June 29, 2014. Posted in News, Organisational performance

Day 2 of the 2014 PMA Conference, held in Aarhus, Denmark, brought on an array of presentations, among which, a paper dubbed “The Uses of Measures in Performance Prism in Different Organizational Cultures”. Authored by Unchan Youngbantao, System Management Controller at RHB OSK Securities and Associate Professor Dr. Nopadol Rompho from the Thammasat University of Bangkok, the paper evaluates how performance measures, from within the Performance Prism Measurement System, are being used in different organizational cultural contexts.

Their research, presented by Ms Unchan Youngbantao, relies on the usage of measurement, as viewed within the Performance Prism Measurement System, namely the 5 perspectives:

• Stakeholder Satisfaction
• Strategies
• Processes
• Capabilities
• Stakeholder contribution

They have compared their usage in 2 different organizational settings. Arguing that organizational culture will determine the use of a certain type of measurement from within the prism, they have screened 2 different types of organizational cultures, flexibility and stability.

Some of the conclusions they have obtained are the following:

• Financial firms will employ all performance measures from within the Performance Prism Measurement System, irrespective of their performance culture;
• Measures like customer satisfaction, strategic formulation and budget measures are used often by financial firms;
• There is little difference in the use of performance measurement, out of each of the perspectives posited within the Performance Prism Measurement system, for different organizational cultures.

However, albeit the encouraging results, the authors caution the use of performance measures without taking into account organizational culture particularities, as it may lead to dysfunctional organizational behaviors.

Tags: Performance Management, PMA 2014 Conference