The literature review shows that performance measurement is growing in its scope and importance. The
academicians and practitioners have been increasingly paying attention on how to design and implement
performance measurement systems. However, there are continuous changes in its nature and context. There is a
shift for example, from the traditional performance measures that focused on financial data (i.e. ROI, ROA), to
non-traditional performance measures that focused on non-financial data (i.e. quality, flexibility). The paper
initially provides definitions of performance measurement. It discusses the importance of performance
measurement systems. It is also seen from the literature survey that both traditional and non-traditional
performance measures are necessary for an organization to compete. The paper explores performance
dimensions and its measures. The literature review leads to a conclusion that a study is needed to reliably and
accurately measure activities in which the flow of material, information and cash, through transformation
processes, to finished product. Performance measurement is a power tool that assists firms or organizations to
evaluate resource utilization so that they can strategically manage and continuously control to achieve their
objectives and goals.
The literature review shows that performance measurement is growing in its scope and importance. The
academicians and practitioners have been increasingly paying attention on how to design and implement
performance measurement systems. However, there are continuous changes in its nature and context. There is a
shift for example, from the traditional performance measures that focused on financial data (i.e. ROI, ROA), to
non-traditional performance measures that focused on non-financial data (i.e. quality, flexibility). The paper
initially provides definitions of performance measurement. It discusses the importance of performance
measurement systems. It is also seen from the literature survey that both traditional and non-traditional
performance measures are necessary for an organization to compete. The paper explores performance
dimensions and its measures. The literature review leads to a conclusion that a study is needed to reliably and
accurately measure activities in which the flow of material, information and cash, through transformation
processes, to finished product. Performance measurement is a power tool that assists firms or organizations to
evaluate resource utilization so that they can strategically manage and continuously control to achieve their
objectives and goals.
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