What are the effects of Performance Measurement and Management Systems?
A number of survey studies indicate that organisations with integrated and balanced performance management systems perform better than others. A US survey’s results shows that PMS, used as a management control tool, increases both organisational sales and profits, and reduces overhead costs by 25%; while another found that PMS improves the return on assets and stock market performance. Other researchers found less tangible benefits, such as customer or employee satisfaction. Indeed, some also show that PMS increases employee communication and collaboration while facilitating buy-in of the implementation of strategic objectives. Despite the great promises from these survey studies, some organisations do not see the positive effects in their financial accounts. In fact, some suggest that it is very difficult to isolate the financial effect of PMS from other management systems. A couple of senior managers from fast-moving organisations reported that their general perception is that PMS mi
