The purposes of performance management systems and processes : a cross-functional typology

Purpose: This paper aims to organise, in a general typology, the different purposes of performance management systems and processes (PMSPs) that are discussed across the performance management literature in different functional areas. Design/methodology/approach: The typology is developed based on a traditional review of the performance management literature from three types of functional areas, represented by operations and production management, management accounting and human resource management. Findings: The cross-functional typology illustrates how the different types of purposes discussed in the literature can be organised in a hierarchical structure. In this way, the basic purpose of organisational value creation for PMSPs can be decomposed into two layers of sub-purposes, the first specifying the domain and the second outlining the specific managerial use of PMSPs. Practical implications: The presented typology may help managers across different functional areas map the purposes of their PMSPs; this mapping will not only provide the basics for understanding a PMSP's potential value for an organisation but also serve as an important input for PMSP design. Originality/value: The presented typology has a broader scope than existing typologies of purposes in research and, consequently, better interrelates and tracks the various types of purposes discussed across different functional areas. This contributes not only to our understanding of performance management as a cross-functional field but also to research on the use and design of PMSPs in organisations.