Performance measures : preventive strategies to limit negative secondary behaviour induced in selected incentive-based companies

Coetzee, Johannes Gerhardus ; Mathur-Helm, Babita (2009-03)

Mini-research report presented in partial fulfillment of the requirements for the degree of Master of Business Administration at the University of Stellenbosch.

Thesis

ENGLISH ABSTRACT: This research report is focused on the phenomenon that various Key Performance Indicators (KPIs) used by an organisation as part of their Performance Management systems in support of their strategic objectives will sometimes also drive non-productive behaviour. Thus although the intention might be that the KPI should promote a specific strategic objective, the very same KPI might drive additional behaviour that might not be aligned with the strategic objectives at all or could even be downright destructive. The purpose of this research study is to develop an analysis methodology that can be used to identify those KPIs that drive negative secondary behaviour (the intended positive behaviour being the primary behaviour). The methodology must also assist in identifying preventive measures that can be used to mitigate the risk posed by the negative behaviour. An interesting aspect of this research report is that it cross-references between the business and engineering disciplines by means of adapting techniques used in engineering to assist with a business management problem. The result of this research is a KPI Effectiveness Analysis that has gone through a trail phase where a number of case studies were analysed by means of this tool. The results were conclusive and the analysis tool found to be of great assistance.

AFRIKAANSE OPSOMMING: Hierdie navorsingsverslag fokus op die verskynsel dat Sleutel Prestasie Indikators (SPI's)wat deur ondernemings gebruik word as deel van hul prestasiebestuur-stelsels en wat ten doel het om die strategiese doelwitte van die onderneming te ondersteun, soms ook nie-produktiewe gedrag bevorder. Dus alhoewel dit die intensie met die SPI mag wees om gedrag te bevorder wat die strategiese doelwitte sal ondersteun, dieselfde SPI ook gedrag kan bevorder wat glad nie die strategiese doelwitte ondersteun nie en dalk self destruktief van aard kan wees. Die doel van hierdie navorsingstudie is om 'n analise metodologie te ontwikkel wat gebruik kan word om die SPI's te identifiseer wat negatiewe sekondêre gedrag bevorder (waar die bedoelde gedrag as die primêre gedrag gesien word). Die metodologie moet ook die identifisering van moontlike voorkomende stappe help fasiliteer wat gebruik kan word om die risiko van negatiewe gedrag te vernminder. 'n Interessante aspek van hierdie navorsingsverslag is dat daar 'n kruisverwysing gedoen word tussen die besigheids- en ingenieursdissipline deur tegnieke wat in die ingenieursrigting gebruik word aan te pas ten einde te help met 'n besigheidsbestuursprobleem. Die resultaat van die navorsing is 'n SPI Effektiwiteitsanalise wat tydens 'n toetsfase in 'n paar gevallestudies geanaliseer is deur hierdie metode te gebruik. Die resultate was konkreet en bewys dat die analise metode van groot hulp is.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/5035
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