Promoting Performance Measurement System Effectiveness in Higher Education Institution: Antecedents and Consequences

Abstract

Objective: Different discussions have been carried out on effectiveness of performance measurement systems (PMS) in higher education institutions (HEI). Some lecturers assert that PMSs place excessive emphasis on bureaucratic procedures, divert-ing attention from their primary responsibilities, without contributing to performance. Therefore, this study aimed to analyze the factors influencing effectiveness of PMS implementation and explore the impact of the concept on lecturers’ motivation to enhance performance. Methods: We conducted a survey with 293 lecturers in Indonesia and employed structural equation modeling (SEM) to test the relationships included in the theoretical model. Results: The result showed that PMSs for development purposes indirectly affected effectiveness through rating and feedback system satisfaction, as well as organizational commitment. Meanwhile, PMSs for strategic purposes have a direct and indirect effect through self-monitoring and feedback system. Conclusions: The study implied the importance of considering the mediating role of rating and feedback system satisfactions, as well as organizational commitment, and self-monitor-ing, on the influence of PMSs for development and strategic goals. Furthermore, an effective PMS served to elevate lecturers’ motivation to excel in their performance.