How Decision Makers Learn to Choose Organizational Performance Measures

Abstract

This study, framed by decision making, program theory, and performance measurement theory, explored the knowledge and experience that enable decision makers to identify organizational performance measures. It used a mixed method, exploratory sequential research design to discover the experience, knowledge, and skills (EKS) senior decision makers felt were important in learning to choose organizational performance measures. From the analyzed interviews, a survey was designed to measure the importance of the EKS characteristics. Qualitative analysis identified 55 life, work, or educational experience; knowledge; or skill characteristics and 23 effective measure characteristics. Regression analysis and PCA were used to extract 6 components. One-way ANOVA found no significant differences in these factors between gender groups, age groups, and process complexity levels, but found differences for decision-making tenure. MANOVA found no significant differences by the same dimensions. The limited sample size and high number of variables confounded component extraction. Further research with a suitable sample size is required before findings can be generalized