The Development of Measurement Systems - Thesis Proposal Example

THE DEVELOPMENT OF MEASUREMENT SYSTEMS THAT ALIGN WITH THE OBJECTIVES OF PUBLIC SECTOR ORGANISATIONS Table of Contents Table of Contents 2 Aims/Objectives: 3 Objectives: 4 Research Questions: 5 Methodology: 5 Literature Review: 7 Performance Measurement Process: 7 Public Sector organisations and performance measurement: 9 Role of HRM in performance measurement: 10 Challenges in Performance Management Process of Public Sector Units: 11 Resources: 12 Project Schedule: 12 Reference List: 14 Aims/Objectives: Increasing focus on improving the productivity of firms and developing an efficient workforce has also evolved the performance management systems being used in the corporate sector. Understanding the concept of performance management has been one of the prime issues of the managerial bodies of public sector firms in order to align their work structure with their business objectives. According to Braz, Scavarda and Martins (2011), performance management is a strategy that allows the organisation to streamline their work process so that they can keep themselves ahead of the competition. On the other hand, Hamza (2008) mentioned that performance management process is used for enhancing the productivity of the firm and develop a better brand equity in the market. Combing both these definitions, it can be assessed that performance management processes are mainly used to organise the operational activities of a firm in order to develop a better brand reflection and a competitive advantage to the stakeholders. However, Abu-Musa (2007) stated that performance management processes are initiated in an organisation to help in achieving the business goals but often managing the work processes derails the performance management processes from its original objectives. This brings in the aspect of including the strategic management process in the performance management system of a company. Focusing on the public sector organisations, Issa-Salwe et al. (2010) mentioned that operational process of public sector organisations are mostly managed in a centralised manner which reduces the efficiency of the performance management system. One of the most common problems being faced by the public sector firms is that of resource utilisation and resource management. Braz, Scavarda and Martins (2011) argued that resource wastage is a frequent problem being faced by the public sector organisations. Again pointing out these specific problems may change the direction of the performance management system in context of assisting the business in achieving its objective. Thus the question remains is how to set up a performance management process that supports the organisational mission and objectives. Based on evaluations of the performance of different public sector organisations Issa-Salwe et al. (2010) stated that it has to be considered that there is not set framework for performance management and thus comparison among various public sector organisations may not always be valid. This sentiment has also been mentioned by Braz, Scavarda and Martins (2011) stating that performance management frameworks are developed in accordance with the work culture of the organisation but their efficacy depends on the organisational ability to implement them within the work culture of the firm. Based on the above discussion, the aim of the study will be to evaluate the performance measurement system of the public sector segment in Saudi Arabia in context of the HR managers and recommend suitable ways for evolving the performance management alignment with the organisational objectives. The company selected for the research is Saudi Health Ministry. Objectives: To assess the alignment of performance measurement system with the organisational objectives in Saudi Health Ministry. To evaluate the role of HR managers in context of implementation of performance measurement system within a workforce. To recommend suitable process for enhancing the efficacy of implementing performance measurement systems in public sector organisations Research Questions: What factors influence the performance measurement system in public sector organisations operating in Saudi Arabia? How can the performance measurement system be embedded in the strategic mission of organisations in order to achieve the organisational objectives? Methodology: The methodology of a study reflects the scientific viability or a research approach. The researcher can develop the direction and stages of conducting the research with the help of appropriate research methodology (Kothari, 2008). The methodology aspects for this research have been explained in the below segments of the study: Research Philosophy: Epistemology is most commonly used for conducting business research studies as it helps in analysing the past and present situation of an industry or organisation. Epistemology has been further segmented into three philosophies namely, positivism, realism and interpretivism (Crowther and Lancaster, 2012). Positivism helps in quantifying the facts gathered and justifying them with appropriate tools and techniques. Positivism does not include the personal thoughts or concepts of the researcher which reduces the scope of a biased result. However, positivism also lacks the ability to analyse the psychological considerations unlike interpretivism (Morgan, 2007). Interpretivism focuses on gathering in-depth knowledge which makes it suitable for qualitative studies. Realism on the other hand is often called study of the senses as it presents the data and refrains from analysing them. Thus the researcher has considered positivism and interpretivism for this study. Research Approach: The approach of a study is associated with the overall purpose and nature of the research. Research approaches are of two types namely inductive and deductive. Inductive approach is used for formulating new theories and concepts which starts from a narrow picture and develops a wide perception (Morgan, 2007). On the other hand, deductive approach is used for assessing the validity of an existing concept of theory and begins from a wide concept and narrows it down to a specific result (Ellis and Levy, 2009). Inductive approach is suitable for qualitative studies while deductive approach supports quantitative analysis. Both these approaches will be used in this research. Research methods: Quantitative and qualitative methods are the two types of research methodologies. However, research methods can be selected in a mono or mixed manner. Quantitative research focuses on developing numerical evidences while qualitative study is more focused on gathering knowledge in an exhaustive manner (Crowther and Lancaster, 2012). Quantitative research also allows the researcher to evaluate the authenticity and validity of the questionnaire being asked to the researcher (Morgan, 2007). The researcher has selected mixed method for conducting this study as this will help in establishing quantifiable results as well as provide the psychological factors related to the subject matter. Sampling: Sampling processes are mainly of two types, probability and non-probability sampling. In probability sampling, the researcher selects the participants of a result on a random basis which creates an equal opportunity for every individual in the sample population to get selected (Ellis and Levy, 2009). On the other hand, in non-probability sampling the researcher selects the respondents on a purposive basis. In this study, non-probability sampling has been used for selecting the participants. The sample size selected for the study is 30 HR managers of Saudi Health Ministry. Data Collection process: The process will primarily be survey and semi-structured interview. The researcher will conduct a Likert Scale survey process and also multiple choice questions in the survey process which will be analysed with quantitative research method. Some of these managers, based on their availability will also participate in semi-structured interviews that will help in gathering in-depth knowledge regarding the performance measurement systems of the company. The results of the semi-interviews will be analysed with the help of qualitative analysis. Research Ethics: The researcher will ensure that the study is conducted within the boundaries of code of ethics as provided by the University. The researcher will not consider use of force or any other unethical means for making the respondents participate in the study. The researcher will use the data collected from the respondents only for academic purposes and will not use them for any sort of commercial gains. Any question that can hurt the emotions of the respondents will not be asked to the researchers. The researcher will also ensure that all the data collected and used in the study will be submitted to the University on the completion of the study. Literature Review: The literature review of a study analyse the existing studies, concepts, theories and models related to the subject topic. The researcher can gather background study regarding the research arena and also improve the process of research development. Performance Measurement Process: Performance measurement processes have evolved over the years, not \only do they reflect the level of performance of a workforce but they also help in identifying the gaps in the work culture and work structure of an organisation. Authors such as Hamza (2008) have criticised performance measurement systems for creating a stringent situation in the workplace and reducing the scope of enhancing employee potential. However, despite of this consideration performance measurement and management continues to be a primary and inclusive factor in the managerial process of the corporate firms. Strassmann (1998) mentioned that with the growth in ICT and technological resource utilisation in the business sector, the scope and role of performance management has also intensified. New technologies such as CCTV monitoring, workplace database management, electronic login and logoff, KPI dashboard, etc are some of the options used in performance monitoring and measurement. Braz, Scavarda and Martins (2011) observed that relating performance measurement process of a firm with its organisational mission or objectives can be a complex task. Often it has been observed that performance monitoring processes have resulted in negative influence on the employee base. For instance, in case of technology giant, Microsoft Corp. implemented stack ranking system for motivating their employees to perform better by designing a competitive work structure. However, this also created internal problems among the employees and hampered the work culture of the company (Issa-Salwe et al. 2010). This example reflects one of the real life situations where performance management was not able to follow or achieve the organisational objective for creating a productive employee base. Strassmann (1998) criticised that implementation of performance management and the objectives set reflects the ability of a performance management process to achieve the organisational aims. Considering the growing trend of internal integration and competition in the business processes, performance measurement system has only extended its usage in the management of firms (Kansal, 2006). Public Sector organisations and performance measurement: The operational processes of public sector organisations are mostly centralised which allows the organisation to control its activities. However, this reduces the ability of the management to focus on the gaps existing in the individual functional departments of the business. Hamza (2008) reflected that public sector organisations often suffer from under or over utilisation of resources which can also result in unprofitable performance management processes. Under utilisation resources can occur because of untidy management practices as well as lack of co-ordination among the employees of the firm. For instance, the lean manufacturing process of Japanese automobile manufacturer Toyota is a classic example of resource utilisation. They have streamlined their operational segments so that the production process can be started and stopped based on the demand of the consumers (Issa-Salwe et al. 2010). Similarly, the employee base of a company should be connected so that the work structure can be streamlined and monitored accordingly. Collaboration among the employee base also develops a scope for the managers of a company to create comparative analysis and measurement process. For instance, the KPI dashboard helps in analysing the performance of a team with other teams which allows the managers to assess the performance and its direction. According to Braz, Scavarda and Martins (2011), performance management processes of public sector organisations are developed with a common structure but they fail to create any considerable difference in the performance of the work force. Varma (2008) stated that as it is the integration among internal departments of public sector firms is limited which also reduces the efficacy of performance management systems. Factors such as lack of communication within different departments of an organisation have a considerable influence in the work process of the employees. Issa-Salwe et al. (2010) further analysed that the centralised management enhances a steady process in the work culture and imitates a barrier to change among the employees. Role of HRM in performance measurement: The role of human resource managers have evolved with the evolution of internal management processes of a company. The involvement of performance management and measurement processes is also a result of this enhanced internal management aspects of business houses. According to Braz, Scavarda and Martins (2011) performance management process was embedded in the basic role of HR managers as the deciding the remuneration of the employees and increments were based on the performance. Hamza (2008) mentioned that performance management processes includes not only monitoring the work process but also involves the role of analysing the performance of individual as well as teams. Factors such as work culture, structure and managerial types are being developed and implemented in an organisation by the HR managers. Issa-Salwe et al. (2010) argued that involvement of performance monitoring acted as a complexity for their existing roles. On the other hand, Hudson, Smart and Bourne (2001) confirmed that performance measurement allowed the HR managers to assess the work process of a company in a better manner as they are better informed regarding the employee performance. One of the key aspects of developing a performance measurement process or performance monitoring process for the HR managers is to align the system with the organisational objectives. However, this requires the managers to focus on the specific criteria of the job descriptions of the work profile and managing these factors can sideline the organisational objectives (Abu-Musa, 2007). Thus, the entire work process of a firm should be related with the organisational objectives and hence the performance measurement process will be aligned with the organisational goal. Furthermore, Hudson, Smart and Bourne, (2001) observed that developing a performance measurement system for a public sector organisation can also cause some barriers. Such as, the difference in the nature of the work can result in different types of performance measurement technique utilisation. This type of factors can also create differences in the outcome of performance measurement process and reduce the trust of the work force on the fairness of the performance assessment process (Abu-Musa, 2007). Challenges in Performance Management Process of Public Sector Units: Performance management process involves various factors that influence the work process and the management decision making process of business units. According to Pearsoan (2006), the performance management process often does not contribute to increase in productivity and this may be the result of inefficient leadership skills of the managers. Braz, Scavarda and Martins (2011) also agreed to this statement and opined that often large number of managers and the differences in their opinions can lead to the challenges faced in performance monitoring process. Similarly, factors such as integration among employee base, manager - employee communication, limited rewards against the target set by the managers, lack of motivation, inability to adapt to the changes, etc are some of the crucial factors that act as barrier for the implementation of performance management process (Daley, 2007). Apart from these, Braz, Scavarda and Martins (2011) stated that incompetence of the employees is also a major factor that can reduce the efficacy of the performance measurement system in an organisation. Resources: The resources to be used in this study will be journals, books, and online databases. Online databases such as Emerald Insight, JSTOR, Science Direct, etc will be used from online resources. Books related to performance management and public sector work process management will be used for the study. Some of the journals that will be used in the study includes Strassman’s “What is Alignment?” published in Cutter IT Journal and Hamza’s “Design process improvement through the DMAIC Six Sigma approach: a case study from the Middle East” published in International Journal of Six Sigma and Competitive Advantage will be used in the study. Project Schedule: Steps Description Due date 1 Preparation Stage Week -1-2: Area of interest identified 13-12-2014 Weeks 3-4: Topic selected/form submitted 13-12-2014 Weeks 4-5: Topic refined to develop dissertation proposal 14-12-2014 Weeks 5-8: Proposal written and submitted 16-12-2014 2 Chapters 1-3 completed Chapter 1 Draft Introduction completed 20-12-2014 Chapter 2 Draft Literature Review completed 10-01-2015 Chapter 3 Draft Research Methodology completed 24-01-2015 3 Collection of data and information Data analysis and Interpretation of data 15-02-2015 Chap 4 Draft Results, Analysis and Discussion completed 25-02-2015 Chapter 5 Draft Conclusions, Implications & recommendations 28-02-2015 4 Final Writing up Structure, presentation and proof reading 05-03-2015 5 Final Stage Final proof reading, printing and binding 10-03-2015 6 Submission of Project (WOLF and hard copy submission) 12-03-2015 Reference List: Abu-Musa, A. A., 2007. Exploring information technology governance (ITG) in developing countries: an empirical study. The International journal of digital accounting research, 7(13-14), pp. 71-120 Braz, R. G. F., Scavarda, L. F. and Martins, R. A., 2011. Reviewing and improving performance measurement systems: An action research. International journal of production economics, 133(2), pp. 751-760. Crowther, D. and Lancaster, G., 2012. Research Methods, 2nd ed. London: Routledge. Daley, D. M., 2007. Performance appraisal in the public sector: techniques and applications. 5th ed. London: Prentice Hall. Ellis, T. and Levy, Y., 2009. Towards a guide for novice researchers on research methodology: Review and proposed methods, Issues in Informing Science and Information Technology, 6, pp.323-337. Hamza, S. E. A., 2008. Design process improvement through the DMAIC Six Sigma approach: a case study from the Middle East. International Journal of Six Sigma and Competitive Advantage, 4(1), pp. 35-47. Hudson, M., Smart, A. and Bourne, M., 2001. Theory and practice in SME performance measurement systems. International Journal of Operations & Production Management, 21(8), pp. 1096-1115. Issa-Salwe, A., Ahmed, M., Aloufi, K. and Kabir, M., 2010. Strategic Information Systems Alignment: Alignment of IS/IT with Business Strategy. JIPS, 6(1), pp. 121-128. . Kansal, B, B., 2006. Performance Management (Paragon Books). 6th ed. London: Prentice Hall. Kothari, C., 2008. Research methodology: methods and techniques. 5th ed. New York: Leadership Press. Morgan, D. L., 2007. Paradigms lost and pragmatism regained: methodological implications of combining qualitative and quantitative method, Journal of Mixed Methods Research, 1(1), pp. 48-76. Pearsoan, D., 2006. How to Ensure Strong Employee Performance Management. Gallup Management Journal, 19, pp, 412-429. Strassmann, P. A., 1998. What is Alignment? Cutter IT Journal, 11, pp, 4-9. Varma, A., 2008. Performance management systems: a global perspective. 3rd ed. New York: Wiley. Read More