Document Type : ORIGINAL RESEARCH ARTICLE
Authors
Planning, Human capital development, and Council Affairs department, Tehran municipality, Tehran, Iran
Abstract
BACKGROUND AND OBJECTIVES: The roots of Performance Management can be traced to ancient civilizations; however, the industrial revolution marked a turning point in this field, introducing concepts such as systematic evaluation, management by objectives, and excellence models. In modern times, PM has evolved to emphasize process analysis, self-assessment, benchmarking, and workforce development as core components. Despite these advancements, there is still a notable gap in the availability of a comprehensive, visually intuitive, and step-by-step framework to guide managers in implementing a holistic PM system. This manuscript aims to address this gap by introducing a detailed, graphical, and systematic PM model that provides clear guidance for practitioners.
METHODS: This study reviews various performance and excellence models to propose a novel conceptual framework. The proposed model is evaluated using the Analytic Hierarchy Process, Data Envelopment Analysis, and the Technique for Order of Preference by Similarity to Ideal Solution.
FINDINGS: The study constructs a new PM system by integrating an organization’s mission, vision, strategies, processes, and stakeholder perspectives into Key Performance Indicators. It involves collecting relevant data, applying a scoring mechanism, calculating departmental efficiency, and ranking organizations to establish a data-driven decision-making framework. A case study is presented to illustrate the model’s application, revealing that while DEA assigned 100% efficiency to two distinct organizations, TOPSIS yielded scores of 94.67% and 46.86%, with different rankings. The reasons for these discrepancies are thoroughly examined and discussed.
CONCLUSION: This manuscript introduces a conceptual model for PM, structured around eight key steps. These steps include team formation, indicator development, Balanced Scorecard development, weight calculation, scoring system design, data collection, data analysis, and feedback and continuous improvement. The model classifies KPIs into three main categories: specialized KPIs that are derived from missions, visions, strategies, critical success factors, and core processes. Self-assessment KPIs, developed based on established excellence models, and customer survey KPIs, designed to capture external stakeholder feedback. AHP is employed to determine the weights of the KPIs and BSC aspects, ensuring a systematic and objective prioritization. DEA is utilized for efficiency calculations, while the TOPSIS method is applied to analyze the results and derive actionable managerial insights. To demonstrate the model's applicability, it is implemented in a hypothetical municipality using arbitrary data, showcasing its capability to provide a comprehensive and structured approach to performance management.
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