THE LEVEL OF PROFESSIONALISM AND THE USE OF PMS AMONG MANAGERS IN MALAYSIAN MANUFACTURING FIRMS

Main Article Content

Nurul Ashikin Said Amizawati Mohd Amir Ruhanita Maelah

Abstract

Nowadays, stringent competition has force manufacturing sector to focus on performance measurement system (PMS) to ensure individual employee’s actions is in line with organizational objectives. Accordingly, individual level of professionalism is seen as one of the element to be considered to enhance the use of PMS. Looking from individual-level perspective, this study aims to examine the relationship between professionalism with the use of PMS, namely PMS use for (1) monitoring, (2) attention focusing, (3) strategic decision making and (4) legitimization, and their impact on managerial performance.
This study adopted PMS use typology by Henri (2006) to be applied at individual level analysis. Upper echelon theory (UET) is used as the underlying principle in developing the model of the study. UET suggested personal characteristics such as expertise and specialization are crucial in dealing with complex and complicated decision making process and consequently affect performance.
Data were collected through mail questionnaire from 100 operation managers of manufacturing firms. Path models were analyzed using structural equation model (SEM). Findings indicate the level of managers’ professionalism positively affects the use of PMS for attention focus and strategic decision making. Result also suggests that the use of PMS for strategic decision making positively affect managerial performance. In addition, results indicate that PMS use for strategic decision making has mediating effect on the relationship between professionalism and managerial performance. This study provides new insight into the improvement of PMS by considering individual element such as level of professionalism of managers and contributes to the body of knowledge by providing new empirical evidence, at the same time helping manufacturing industry to reexamine their system from individual perspectives.

Article Details

How to Cite
SAID, Nurul Ashikin; MOHD AMIR, Amizawati; MAELAH, Ruhanita. THE LEVEL OF PROFESSIONALISM AND THE USE OF PMS AMONG MANAGERS IN MALAYSIAN MANUFACTURING FIRMS. Asia-Pacific Management Accounting Journal, [S.l.], v. 12, n. 2, dec. 2017. ISSN 2550-1631. Available at: <http://arionline.uitm.edu.my/ojs/index.php/APMAJ/article/view/508>. Date accessed: 17 jan. 2018.
Section
Management Accounting