Performance measurement and management at a Swedish manufacturing company

Sammanfattning

Today, performance measurement and performance management practices permeate alltypes of industries and are frequently recommended to enhance organizational performance.The purpose of this thesis is to evaluate how performance measurement and performancemanagement can be assessed within the departments of an organization, so that theorganization can understand where efforts need to be made to facilitate implementation ofdesired practices and effectively use its performance measurement system to evaluate theperformance of the organization.A small manufacturing company was the subject of the thesis. Using the framework ofinterplay between performance measurement, performance management, employeeengagement and performance by Smith and Bititci (2017), four departments of the companywere assessed in their levels of maturity in performance measurement - also named technicalcontrol - and performance management - also named social control - respectively. This wasdone by interviewing and surveying employees at the company, collecting data relating to thecriteria proposed by Smith and Bititci (2017) in technical and social control.By developing empirically derived maturity matrices for technical and social control practiceswithin the company, the respective maturity levels within the individual departments wereassessed. Overall, the product department shows the highest maturity in both technical andsocial control. Managerial implications include addressing the lack of employees’ connectionto measures and targets as well addressing the lack of allotted time for feedback andperformance reviews. The thesis contributes to existing theory by providing a tangible way toassess technical and social control between organizational units, able to be used both bymanagers and in future research alike.