Does the company size affect performance management system? PMSs in small, medium-sized, and large companies Online publication date: Fri, 27-Jul-2018
by Erkki K. Laitinen; Tarmo Kadak
International Journal of Management and Enterprise Development (IJMED), Vol. 17, No. 3, 2018
Abstract: The objective of this research was to analyse how performance management systems (PMSs) differ from each other in small, medium-sized, and large firms. The results showed that the importance of key factors (KF) in successful PMSs differ between size groups. However, the strength of the KF chain was positively associated with the success of PMS in each size class. The research revealed a 'natural difference' between PMSs of small and middle-sized enterprises (SMEs) and large firms. Small firms focus more on operational aspects in control whereas large firms pay considerable attention also to strategic aspects. Small firms use more informal PMSs than larger firms.
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