Democracy in management – the new coming of MBO via organisational dialogue

Purpose – The main purpose of the paper is to analyse how a performance measurement system constitutes a dialogue to enable manageability in knowledge work organisations. Design/methodology/approach – The paper is based on an action research project aimed to study the use of performance measurement in a knowledge work context. The case study is applied. The results are derived in participative action research interventions that aimed to build an applicable performance measurement system in three individual organisations. The approach is constructive and normative. Findings – The paper provides information about applications of performance measurement in knowledge work context. As a result there is discussion on applying performance measurement in the managerial system of knowledge worker organisations and description of using performance measurement in knowledge work context. The contribution consists of managerial norms for applying performance measurement in knowledge work context. Research limitations/implications – The research, thus the results too, is delineated to small and medium size organisations. Practical implications – In the paper there are several transferable results. As the aim was to have normative results, the degree of practicality is relatively high. Taking the restrictions of conceptuality of performance measurement into account, the paper provides useful information to practitioners. Originality/value – The paper answers the research question set. Originality of the paper lies in the field applying performance measurement. It continues the discussion on the traditions of management and leadership.