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Dimensions & Levels


Scholars’ interest to performance measurement and management (PMM) has dramatically grown in the last two decades. The development has been raging also in the practice. Today performance management practices are widespread in all industries and for all kind of organizations.

The enormous amount of research can be classified using a matrix (Cuccurullo et al., 2015), where the horizontal axis separates the PMM dimensions of measurement and the vertical one distinguishes levels of performance management.

On the left-hand side of the matrix, we locate research with a focus on the financial dimension, while on the right-hand side we find research that analyze the PMM topic in a multidimensional matter (internal processes, human resources, clients/users, etc.).
On the top of the map, we put research on the whole organization or its business units, while in the bottom we have all the research on the appraisal of individual performance.

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Four quadrants are formed at the intersection of the two axes.

  1. Quadrant 1 includes researches about organizational profitability, value and efficiency (cost measurement).
  2. Quadrant 2 comprises studies the performance measurement through multidimensional frameworks, such as Balanced Scorecard, Corporate Social Responsibility, Public value, and so on.
  3. Quadrant 3 comprehends researches on compensation and incentives.
  4. Quadrant 4 is the area where scholars’ interests are recently addressing to appraise the individual performance in a multidimensional way.

In fact, PMM studies in private-owned firms have evolved along a precise line: from a financial measurement to a multidimensional one. Now they are aiming for a multi-dimensional evaluation of individual performance. Even the scholars of public management, though always interested in a multi-dimensional evaluation, are heading towards quadrant 4. Future research questions should be related to the integration of multidimensional measurement and individual performance evaluation and its implication for the overall organizational performance. 

The need to link multidimensional measurement and individual performance offers new opportunities to bring the theoretical approach of different disciplines into the PMM domain to help disentangle the practice. In particular socially complex contexts, like professional organizations in highly regulated industries – universities, healthcare organizations, courts and legal professional, auditing and management consulting firms - could be excellent laboratories to explore this link and find managerial implications, useful also for private companies.