The use of performance measurement information in the work of middle managers

Purpose The aim of this study is to investigate in-depth how the managerial processes involving middle managers are affected by performance measurement information. More specifically the study gives understanding on the impact of performance measures, policies and procedures (formal controls); and individual intuition and experiential knowledge (informal controls) on the work of middle managers. Design/methodology/approach The study is carried out as a semi-structured interview study in Finnish companies representing five industries and 29 interviewees. Empirical data was analyzed deductively according to the research framework combining informal and formal management controls with two managerial processes: strategy implementation and decision-making. Findings – It was found that the work of middle managers is clearly affected by informal controls. Much of the managerial work relies on intuition and individual experience instead of performance information or formal instructions. The study also unveiled that top management sees the status of utilizing performance measurement information in a more positive light than do middle managers. Research limitations/implications – This study examined the work of middle managers widely in different positions and industries which means that the findings are rather explorative. Further, more focused research is required in order to understand better the contextual causes of the findings and to provide more understanding on the appropriate ways of improving the utilization of performance measurement information. Practical implications – The practical contribution of this study is in the detailed description of strategy implementation and decision-making processes based on observations in several large companies representing different industries. Through this description, this study unveils possible improvement areas regarding the utilization performance information in middle management. Originality/value – This study contributes to the earlier literature on performance management by highlighting the usage of performance measurement information as opposed to developing new measures. In addition, the novelty value of the paper relates to the focus in the work of middle managers which has gained less attention in the previous research.