Strategic Performance Measurement of Employees based on Project Efficiency and Effectiveness

Document Type : Research Paper

Authors

1 Faculty of Management, Hormozgan University, Bandarabbas, Iran

2 Faculty of Management, Hormozgan University & Hormozgan Cement Company, Bandar-Khamir, Iran

Abstract

One of the most important issues in strategic management is enhancing employees’ motivation to contribute in the implementation of strategies; because they usually do not pay necessary attention to strategies. Accordingly, it is required to consider and calculate their roles in implementing strategies. In terms of employees’ role in the organization, they have managerial (goal setter) and/or non-managerial (non-goal setter) role. We are looking for a strategic performance measurement method to involve both roles. Since there was not a pervasive method in the literature to cover both roles properly, this research introduces a method that measures and calculates the strategic performance of employees based on two main parts: Project effectiveness (for managerial roles) and project efficiency (for non-managerial roles). This method tested on a sample of employees in Hormozgan Cement Company. Results show a significant difference between employees who participated and those who did not participate in implementation of strategies in their performance value. Achieved values are tangible and traceable; therefore, employees can have a proper sense and reaction to outputs of this method.

Keywords

Main Subjects

References

Aguinis, H. (2005). Performance management. London: Edinburgh Business School.
American National Standard for Human Resource Management. (2012). Performance Management Standard. New York: American National Standards Institute.
Amini, M., Keshavarz, E., Keshavarz., A., & Bagheri, S. (2016). Prioritisation and performance evaluation of employees at strategic human  resource management process using fuzzy AHP and fuzzy TOPSIS methods. International Journal of Productivity and Quality Management, 17(1), 61-81.
Armstrong, M. (2006). Performance Management: Key Strategies and Practical Guidelines. London: Kogan Page.
Battaglia, M. (2008). Nonprobability sampling. Encyclopedia of Survey Research Methods, 524-527.
Bin Mohamad, I., & Usman, D. (2013). Standardization and its effects on K-means clustering algorithm. Research Journal of Applied Sciences, Engineering and Technology, 6(17), 3299-3303.
Behushan, N., & Rai, K. (2004). Strategic decision making applying the analytic hierarchy process. New York City, NY: Springer Publishing Company.
Brienza, R. M., &Hildreth, J. C. (2007). Tracking project commodities for progress control. Virginia: Polytechnic Institute and State University.
David, F. R. (2011). Strategic management: Concepts and cases. Upper Saddle River, NJ: Prentice Hall.
Foot, M., & Hook, C. (2011). Introducing human resource management. Harlow, England: Pearson Financial Times/Prentice Hall.
Gates, L. P. (2010). Strategic planning with critical success factors and future scenarios: An integrated strategic planning framework. Pittsburgh, PA: Carnegie Mellon University.
Haines, V. Y., & St-Onge, S. (2012). Performance management effectiveness: Practices or context? The International Journal of Human Resource Management, 23(6), 1158-1175.
Hartog, D. N., Boselie, P., & Paauwe, J. (2004). Performance management: A model and research agenda. Applied Psychology: An International Review, 53(4), 556 -569.
Hill, C. W. L., & Jones, G. R. (2008). Essentials of strategic management. Mason, OH: South-Western.
Hill, G. M. (2013). The complete project management office handbook. Boca Raton, FL: Auerbach Publications.
Intrafocus. (2014). Key performance indicators: Developing meaningful KPIs. Retrieved from https://www.intrafocus.com/wp-content/uploads/2014/08/developing-meaningful-key-performance-indicators-V5.pdf
Ishizaka, A., & Pereira, V. (2016). Portraying an employee performance management system based on multi-criteria decision analysis and visual techniques. International Journal of Manpower, 37(4), 628-659.
Itika, J. S. (2011). Fundamentals of human resource management: Emerging experiences from Africa. Leiden: African Studies Centre.
Project Sizing: Estimating Needs and Allocating Resources. (2015). Retrieved from http://www.ittoolkit.com/how-to-it/projects/project-sizing.html.
Lussier, R. N., & Hendon, J. R. (2012). Human Resource management: Functions, applications, skill development. Thousand Oaks, CA: Sage Publications.
Milkovich, G. T., & Newman, J. M. (1999). Compensation. Boston, MA: Irwin/McGraw-Hill.
Mone, E. M., & London, M. (2002). Fundamentals of performance management. London: Spiro.
Olsen, E. (2006). Strategic planning kit for dummies. Hoboken, NJ: For Dummies.
Osmani, F.,  & Maliqi, G. (2012). Performance management, its assessment and importance. Original Research Article, 41(2012), 434-441.
Pennypacker, J. S. (2005). Measures of project management: Performance and value. Center for Business Practices.
Project Management Institute. (2013). A guide to the project management body of knowledge: PMBOK guide. Newtown Square, PA: Project Management Institute.
Saaty, R. W. (1987). The Analytic Hierarchy Process-What it is. Mat/d Modelling,  9(3-5), 161-176.
Salem, H. (2003). Organizational performance management and measurement. New York: United Nations Economic and Social Council. Retrieved from E/ESCWA/SDPD/2003/WG.5/16
Sepehrirad, R., Azar, A., & Sadeghi, A. (2012). Developing a hybrid mathematical model for 360-degree performance appraisal: A case study. Procedia - Social and Behavioral Sciences, 62, 844- 848.
Sharma, A., Remy, B., & Koenemann, K. (2012). Get more out of your business improvement initiative: Align projects with strategic objectives. Management Briefing, 800.438.5535. Retrieved from www.tbmcg.com
Sundqvist, E., Backlund, F., & Chronéer, D. (2014). What is project efficiency and effectiveness? Procedia - Social and Behavioral Sciences, 119, 278- 287.
Wheelen, T. L., & Hunger, J. D. (2012). Strategic management and business policy: Toward global sustainability. Upper Saddle River, NJ: Pearson Prentice Hall.
Zewo (n.d.). Outcome and impact assessment in international development: zewo guidelines for projects and programming. Retrieved in 2016 from http://impact.zewo.ch/en /impact/step1_define_objectives
Zigon, J. (2002). How to measure employee performance. Crum Creek Road Media, PA: Zigon Performance Group.
Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 10, Issue 1
March 2017
Pages 207-236

Files

Share

How to cite

Statistics