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Performance measurement in universities: managerial perspective

Wang, Xiaocheng (2010) Performance measurement in universities: managerial perspective.

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Abstract:This paper is about a research on performance measurement in universities. The research is to figure out how the performance of universities can be measured from a managerial perspective. By far, few performance measurement frameworks originated from public sector have been developed for performance measurement in universities. Frameworks such as balanced scorecard in for-profit settings have been increasingly adapted to performance measurement in universities. Risks are concerned that they may incompletely grab the nature of university services. The paper aims to develop a framework for performance measurement in universities. Therefore, the main research question is: “To what extent can a tailored performance measurement framework along the lines of BSC be developed for performance measurement in university settings?” Universities are characterized by goal ambiguity (Barbara and Richard I, 1999, pp 25). Thus traditional performance measurement approach by goal rational model may not be able to serve performance measurement in universities. This paper argues that the performance of universities can be measured by the extent to which each of university functions is maintained toward the university goals. Based on this argument, it proposes a solution to performance measurement in universities by the distinction of academic performance and management performance. The distinction creates four sub-dimensions under the academic and management performance dimensions. The four sub-dimensions are education, research, finance and human resources. The four sub-dimensions construct a balanced concept for university managers in management control. Meanwhile, a complete performance measurement framework based on the notion of pyramid from Cross and Lynch (1992) is established by integration of the performance dimensions and performance indicators. Performance measurement in universities has been focused on output and outcome measurement. However, outcome and output measures fail to catch the whole process of academic activities. This paper suggests that input and process measures be included in the performance measurement in addition to output and outcome measures. Most current performance indicators are quantitative. They are unable to measure some aspects such as customer satisfaction and employee satisfaction. Therefore, the use of qualitative indicators is proposed. Performance indicators under each sub-dimension are developed. Pros and cons of the indicators for university management are argued before interviews are going to be held in the University of Twente. The purpose of interviews is not only to know current performance indicators and performance measurement in the university but it is also to justify how valid and reliable the indicators in the paper can be put into actual applications in the university settings. In the end of this paper, potential problems and limitations from this research are discussed. The report ends with a conclusion for this research.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/60180
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