Assessing some distinctive dimensions of performance feedback information in high performing plants

A primary function of the Performance Measurement System is to provide employees with information on their past performance, allowing them to assess the outcomes of their actions, and therefore if they are meeting or not the objectives they are given. This work aims at contributing to the understanding of how the effectiveness of performance feedback information can be improved by defining a set of distinct performance feedback dimensions based on a PMS literature review, and by validating it empirically on an international sample of 164 manufacturing organisations. The proposed dimensions are: relevance as performance feedback orientation to the achievement of objectives; dynamic adjustment of performance feedback; relevance as usefulness of cost performance feedback; relevance as usefulness of non‐cost performance feedback; timeliness of shop‐floor performance feedback; personal performance feedback; and feedback on the overall process performances. The analysis shows that these dimensions are distinct, thus allowing to deal with them separately both in PMS design and audit. As far as the effectiveness of the performance feedback is concerned, it emerges that for several dimensions higher scores are associated to higher operating performances (cost, time and quality), but in one case this only holds for managers and in another one only for supervisors.