Electronic performance measurement systems: feasibility of electronic performance measurement systems: a case study

Arraiz, J.-I., 2017. Electronic performance measurement systems: feasibility of electronic performance measurement systems: a case study. DBA, Nottingham Trent University.

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This thesis explores the possibility of using digital technologies to improve and redefine the performance management process of employees within organisations. A review of the literature indicates that performance processes are not working; a key finding in the literature is the difficulty in collecting the right evidence in order to have the relevant conversation between manager and employee: that is, having access to enough data in order to run the performance measurement.

A case study is used to explore two different perspectives: a technical one, looking for accuracy in the performance appraisal, and a social one, for acceptance of the results among the different stakeholders.

The main findings of the research are as follows:

• Technically, it is possible to gather data about how employees perform at work and develop an algorithm that predicts individual performance, that is: know-how compared with the job profile; behaviours compared with the company values; and output compared with the budget or business plan.
• The use of technology to support performance measurement – which is very limited currently – is likely to increase dramatically. With predictive models, performance can be measured, and data be collected at any time.
• Like any other new technology, the success of an electronic performance appraisal system depends on the determinants of adoption. These, being complex depend largely upon the different stakeholders, CEO (or eventually the Board), line managers and employees. Each has different interests, perceptions, wills and fears.
• In the case study analysed, all stakeholders accepted the concept idea intellectually, an electronic system capable of capturing information and predicting performance at an individual level. However a common fear among line managers is that they will lose control over even basic decisions (i.e. promotion, salary review or bonuses for the consultants). This implies a significant loss of managerial power.
• The performance process in most organisations has four different stages: planning, assessment, recognition and career planning. These are usually framed into the budget cycle.
• The introduction of technology opens up a new perspective. The measurement phase can be run by the system, in its entirely virtually, and be run at any time. Managers could run performance appraisals and interviews at any time over the year, probably interviewing staff focused on specific issues more; likewise employees may receive feedback more often; the process is disconnected from the recognition phase. The discussion between line manager and employee looks forward rather than backward and focuses on action plans.

The research gives practitioners the opportunity to rethink the performance management process, and shows that it is possible to reframe it thanks to technology. As a case study, however, there are still many limitations when generalizing the process.

Item Type: Thesis
Creators: Arraiz, J.-I.
Date: August 2017
Divisions: Schools > Nottingham Business School
Record created by: Linda Sullivan
Date Added: 10 Jul 2018 08:27
Last Modified: 10 Jul 2018 08:34
URI: https://irep.ntu.ac.uk/id/eprint/34038

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