Performance management methods: A case study from international industrial companies

Abstract

In the period of globalization, the management of international industrial companies has a problem of managing the production performance in different countries. In addition, there is a problem of creating business strategies and organizing effective and efficient production with the lowest costs because there are many indicators that may have impact on production and should be analysed in the decision-making process. The main objective of the research is creation and presentation of new methods for monitoring and analyzing KPIs suitable for displaying a combination of input, process and output measures, which implies the evaluation values of Key Performance Indicators (KPIs) according to their impact on international industrial companies’ goals. This study presents a new model for performance analysis based on four main perspectives of international industrial companies. The model is presented using different methods, which include Tool for Action Plan Selection - TAPS, Analytic Hierarchy Process (AHP), Non-parametric Statistical Analysis with Kruskal-Wallis Test and a new method created in Lab View software. The methods are suitable for defining, analysing and visualization of KPIs and their impact on the company performance. Empirical part of the study is conducted in twenty international companies and research is based on assessing defined KPIs by General Management and Sector Managers. The research has largely achieved the objectives which determine that measuring of KPIs has a value for international industrial companies and can influence strategy development and help in organizing efficient production with minimum cost.