Factors Affecting the Outcomes of Performance Management Systems

This paper proposes and tests a model to explain three critical outcomes of Performance Management Systems (PMS): information quality, effectiveness, and usefulness of the PMS to managerial decision-making. Drawing from Organizational Information Processing Theory (OIPT), we examined how those three outcomes may be influenced by factors that affect OIP requirements (industry, size, and geographic scope of operations) and by organizational and technological factors that affect OIP capabilities. Organizational factors included management's decision-making style and organizational structure. Technological factors included the types of technology used in the PMS (ERP; specialized tools such as EIS and DSS; and generic tools such as Excel, Access and Lotus Notes), and the degree of use of e-Commerce and Internet technologies. We used stepwise regression to analyze data from a sample of 1,990 respondents in small, medium and large organizations