TRENDS IN BUSINESS PERFORMANCE MEASUREMENT: A LITERATURE ANALYSIS
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IJSSHR and Madonna University.
The pace of change and intense competition in both manufacturing and service organisations has enlarged the scope, complexity and relevance of performance measurement in contemporary business environment. This paper offers a literature analysis of financial and non-financial business performance measurement. More specifically, the paper elucidates justification for the incorporation of non-financial measures to complement the traditional accounting system. The paper employs descriptive and explanatory research approach, by relying on secondary source of information. The paper observes that business performance measurement (BPM) systems have grown in popularity and application and it has further propelled researchers and business practitioners to develop other approaches or models for building and managing BPM system. The study concluded that the success of any organisation is reflected upon by its performance level which is closely related to its strategies. Although, an increased number of nonfinancial performance measures have been developed to complement the financial indices, they are not in any way adequate to serve as a perfect alternative. Based on this, it is recommended that business organisations integrate financial and non-financial measures to achieve a greater symmetry that incorporates the goals of broader business constituents and offers wider opportunity for firms to create value through sustainable business performance.
JEL Classifications: G2, G24, L15
: business performance measurement, financial performance measures, non-financial performance measures, accounting information, performance, benchmark.
International Journal of Social Sciences and Humanities Reviews Vol.8 (1) p.151 – 160, (ISSN: 2276-8645).