Performance measurement and performance management: The operations management perspective

This chapter takes an historic perspective on performance measurement and management (PMM) within operations management (OM). After defining OM, we show that most PMM within OM today is derived from the introduction of work study/productivity measurement within manufacturing during the industrial revolution. This has led to a focus on performance measurement which has gradually evolved, reflecting changes in the concerns of operations managers and a move towards performance management. However, we conclude by suggesting that the drive for productivity and, in particular, ‘bridging the gap’, is still high on the agenda of many western governments, especially in the UK. As such there is a need to understand, differentiate between and manage both performance measurement and performance management within OM.