This paper seeks to take a historic perspective on performance measurement and management (PMM) within operations management (OM) across all sectors (manufacturing, service and public) in order to reflect on and undercover relevant lessons and issues about PMM in OM.
Drawing from a range of documents and experts, three historic phases were identified which reflected changing aspects of PMM in OM from the early twentieth century until today.
The analysis shows that most of PMM within OM derives from work study and productivity measurement within manufacturing during the industrial revolution. The general trend shows a movement away from performance measurement towards performance management. The paper illustrates how views of PMM have moved in three directions: the broadening of the unit of analysis; the deepening of performance measures; and the increasing range of performance measures.
The paper concludes by presenting four reflections and challenges including the fact that the drive for productivity still exists and there is a need to continue to develop measures across organisations which are also predictive. Finally, that lessons between private and public sectors regarding PMM are shared.
The paper argues that in order to evaluate the movement in the three directions effectively it is necessary to differentiate between the terms performance measurement, performance reporting and performance management.