Who are we and what do we measure? : A case study of the dynamic relationship between performance measurement and organizational identity

Abstract: Performance measurements have been described as a tool by which management can communicate expected standards of behavior as well as a shared meaning among members regarding the intended direction of the firm. In parallel, the organizational identity field relies on the premise that members can answer the question “who are we as an organization?” through a sense of shared understanding. The purpose of this paper is to investigate the implications a performance measurement system has on the employees’ perception of “who we are“, related to the theoretical framework of organizational identity. This paper utilizes a qualitative research method, a case-based approach of a Swedish life science company which is conducted in an exploratory manner. The case company is chosen due to its contextual setting regarding the newly implemented performance measurement system, along with the inherent characteristics of the industry in general, which is typically considered to be incongruent with such quantitative measurements. The empirical data is collected through eight interviews with members from the chosen case company, as well as through internal documents describing its performance measurement system. The authors propose a revised theoretical framework in which performance measurements and organizational identity are investigated through a conceptual model which explores their dynamic relationship. The findings reinforce well-known ideas of performance measurements and organizational identity, along with providing new insights on the dynamics between them. Keywords: Organizational Identity, Performance Measurement System, Performance Management, Identity-Dynamics