3.

0 LITERATURE REVIEW

For organisations, Performance Measurement and Management (PMM) is vital for the effective
and efficient running of the enterprise (Melnyk et al 2013). PMM makes possible control and
correction of current level of performance and comparing it with the desired level of
performance (Melnyk et al 2013).

PMM convey strategic significance and purpose throughout the organisation with regards to
what is being measured, and vitally, what is not (Margaretta and Stone, 2002). PMM has been
equated with the nervous system, linking the business’ mission to what it targets to achieve, and
at the same time making sense of the environment and permitting business adaptation along the
way (Melnyk et al 2013). PMM is today accepted as an effective tool in bringing organisational
improvements in the form of efficiency and effectiveness (Neely et al 1995). How PMM does
this is, however, expected to change as business evolves with time.

VUCA, the acronym for volatile, uncertainty, complexity and ambiguity widely attributed to
Bennis and Nanus (1985), is today used to describe the changing dynamics of business. And as
we advance into the mid-century of the 21st century, the rate of change with VUCA is set to
increase even more and come in unexpected ways and from different directions (Nudurupati et al
2021).

This change is propelled by technological revolution and globalisation causing the smearing of
traditional boundaries, e.g., the blurring of customs and national borders, lowered trade barriers,
and increased movement of goods and people (Nudurupati et al 2021). On the technological
front, real-time ICT brought in communication advancements and the rise of social media,
driving the increase in awareness of the options available for products and services (Harrison and
Van Hoek 2011). ICT’s real-time capabilities helped reduce lead-times all along the supply chain
from source to end-user resulting in markedly raised expectations about what is possible and
eventually became the norm (Nurudupati et al 2015).

Social media thus enables stakeholders (customers, employees, suppliers, regulators, and the
community) to evaluate business performance and hence is posing a different type of challenge
to organisations. These changes are bringing political, social, and environmental considerations
that impact how PMM is implemented.