A proposed white‐collar workforce performance measurement framework
| Published date | 01 June 2006 |
| DOI | https://doi.org/10.1108/02635570610666421 |
| Pages | 644-662 |
| Date | 01 June 2006 |
| Author | Josu Takala,Udomsak Suwansaranyu,Kongkiti Phusavat |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
A proposed white-collar
workforce performance
measurement framework
Josu Takala
Department of Production, University of Vaasa, Vaasa, Finland
Udomsak Suwansaranyu
Mitsubishi Fuso Truck, Pathumthani, Thailand, and
Kongkiti Phusavat
Department of Industrial Engineering, Kasetsart University, Bangkok,
Thailand
Abstract
Purpose – To propose a structured framework for measuring white-collar workforce.
Design/methodology/approach – The proposed framework, designated as the multi-dimension
measurement process or the MDMP, is based on the nature of white-collar work as well as on the
strengths of current measurement techniques such as Zigon’s. The experiment on comparing the
MDMP with several techniques was conducted. The analytic hierarchical process (AHP) has been
adopted to determine the usefulness and applicability of the MDMP. The follow-up discussions with
the participants and the surveys to external experts have also been made.
Findings – The research results imply potential usefulness and applications for the MDMP.
Relatively to others, the MDMP has performed very highly with the set of prioritized criteria (from the
AHP) that is used for this comparison, e.g. reliability, strategic congruence, measurement coverage,
and user acceptance. Based on this experiment, the MDMP appears to ensure the alignment between
strategies and measurement, and also to gain the acceptance by both workers and supervisors.
Research limitations/implications – Given the small size (16 participants) and the limited scope
(participants mainly from the accounting and finance areas), it is not possible to provide a definite
conclusion on the effectiveness of the MDMP. More experiments and tests will be needed to determine
the level of the MDMP generalization.
Practical implications – A basis or a starting point to help develop a tool that can be used to
measure white-collar workforce.
Originality/value – This research incorporates several aspects relating to the work performed by
white-collar workforce from outputs/outcomes, skills, behavior, and organizational goals. The needs to
develop the framework that measures and captures the performance of white-collar workforce have
been cited by several sources for many years. The focus on measuring the workforce level is mainly for
appraisal/administrative purposes. As a result, the information may not reflect all aspects relating to
the white-collar work.
Keywords Performance measures, White-collarworkers
Paper type Research paper
1. Introduction
The term performance measurement has had significant roles in business and
operational management during the past few decades. Many organizations have used
performance measurement as a primary tool for communicating direction, establishing
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Industrial Management & Data
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Vol. 106 No. 5, 2006
pp. 644-662
qEmerald Group Publishing Limited
0263-5577
DOI 10.1108/02635570610666421
accountability, defining roles, allocating resources , monitoring and evaluating
activities, linking organizational processes, establishing goals and benchmarks, and
initiating changes to ensure continuous improvement (Viken, 1995). Simply put, it is a
critical element of a management process. This is supported by the statement of “you
cannot manage what you cannot measure” by Deming (1986). Rummler and Brache
(1995) reinforce such a statement by concluding that “the selection of measures and
related goals is the greatest single determiner of an organization’s effectiveness as a
system”. Owing to its importance, performance measurement has received lots of
attentions from a number of researchers in various fields of study including
psychology, human resource management, economics, accounting, and industrial
engineering. When focusing on the industrial, national, and international levels, the
approaches have been designed and developed by the field of economics such as the
total factor productivity (TFP) technique. At the organizational, functional, program,
and project level, there are several disciplines that have examined and developed the
performance measurement approach. The balanced scorecard concept (Kaplan and
Norton, 2004) has been used to measure organizational performance levels. At the same
time, the approach developed by Sink and Tuttle (1989) have been cited by several
sources in both public and pri vate sectors when measuring fu nctional and
organizational performance. At the group and individual levels, there are various
concepts and methods, ranging from motivational approach (by industrial
psychologists) and appraisals for salary structure/job assignments/workload
analysis extended (by human resource specialists), to piece-rate and standard times
(by industrial engineers). Nevertheless, for the group and individual levels, there is a
lack of clarity and comprehensive taxonomy to determine the compatibility between
the specific circumstance and the particular approach (Ramirez and Nembhard, 2004).
The US Bureau of Labor Statistics has shown that the proportion of white-collar
workers has increased dramatically during the past few decades. By 1980, white-collar
workers represent approximately more than 60 percent of the entire workforce. This
trend is consistent with the progress and movement in the economy among the
developed countries. Their economies have shifted from the agricultural- and
industrial-based to service- and knowledge-based. As a result, the emergence of
white-collar workforce represents both potential opportunities and problems in
businesses and management. The opportunity to explore new ideas and approaches on
measuring the work created by white-collar workforce is challenging. At the same
time, the difficulty level in measuring the performance level of white-collar workforce
is perceived to be greater relatively that of blue-collar workers. Blue-collar worker s
who are on the production line have received a lot of attention because their
performance is simple to measure and analyze. Applying the time and motion studies
(developed by Frederick Taylor in 1911) can ensure successful blue-collar workforce
measurement.
The following example helps demonstrate the key differences, based on Table I.
The nature of white-collar and knowledge work is quite different from that of the shop
floor. In fact, extension of the performance (including the productivity aspect)
measurement from the successful shop floor application to the office and laboratory
stops abruptly when the output of the off-line process is no longer clear and when
higher productivity becomes only one of several desired outcomes. Measuring the
performance of white-collar workers is common in “back rooms” of service institutions.
Performance
measurement
645
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