The boundaries of a performance management system between knowledge and control

Structured Abstract Purpose – This article aims to investigate the relationship between performance management systems (PMS) and knowledge in a service organization. A PMS could be defined as a control framework which attempts to ensure that certain ends are achieved and particular means are used to attain these ends (Broadbent and Laughlin, 2009: 293). The basic idea is to consider the PMS in the organization as an important process in order to go deeper on the level and quality of know-how of the member of the organization. Typically performance systems are used as a tool to plan and to coordinate activities and workers. Notwithstanding there is a key dimension related to the possibility of interpreting PMSs not just as an information box, but as an opportunity to reflect on what is going on and why inside the organization (in terms of performance and activities). Design/methodology/approach – Franco-Santos et al. (2010) point out that, although it is possible to design, maintain and use a PMS without organizational learning occurring, such an outcome is extremely unlikely: in fact, one of the primary effects during the system design is improved knowledge of the organization. In according to Ferreira and Otley framework (2009), we want to address these research questions: what type of use is made of information and of the various control mechanisms in place? Our studies relies on a single case study. We selected a service organization which could provide a consistent, differentiated and information rich setting for studying the phenomenon under scrutiny. Originality/value – This paper would like to propose new lens in order to interpret PMSs, overcoming the positivist/functionalist paradigm characterized by a focus on the causes-effect relationships, statistical testing, and linear thinking (Latham et al., 2005). Practical implications –This paper would like to offer a critical perspective (Micheli and Neely, 2010) regarding the use of traditional managerial tools in a service organizations, pointing out how the principles of efficiency and effectiveness risk to remain vague in their applications and overlooking the issue of knowledge.