Verified Document

Wrong Performance Measurement Systems " In Order Answer Essay

¶ … wrong performance measurement systems?" In order answer question, conduct independent research, drawing sources academic practitioner literature. Through research,: • Identify key criticisms performance measurement systems management accounting research theory; • Explain problems identified occur, consequences problems organisations individuals; • Use relevant academic research develop support explanations. Performance Measurement Systems

Companies that develop their businesses in competitive environments are required to differentiate themselves through increased performance. The importance of performance has increased because of its implications on productivity, profits, and development of companies. In order to benefit from improved performance levels, companies must identify the levels at which their performance is situated. This is the reason for which performance measurement systems have been developed.

Performance measurement systems allow companies to make evaluations regarding their process efficiency, but also to identify which process improvements are required mostly. These systems also...

Based on this information, companies can expand the usage of such practices to other purposes. The effects of performance measurement systems also help increase motivation.
However, there is important criticism to performance management systems. It seems that these systems are based on biased opinions. These systems are developed by individuals that have confronted themselves with numerous situations where performance was affected. They made opinions about those situations. They develop performance measurement systems based on these opinions (Neely & Bourne, 2003). But their opinions cannot be applied in all situations. Therefore, it is not useful to measure different situations with identical standards. Performance measurement systems must be adapted to the issues that are determined by each different situation.

Another criticism on performance measurement systems is represented by the fact that in many situations the individuals that develop them have too little knowledge on the situation that must be measured regarding its performance. This means they develop…

Sources used in this document:
Reference list:

1. Neely, A. & Bourne, M. (2003). Implementing Performance Measurement Systems: A Literature Review. Business Performance Management. Retrieved September 14, 2013 from

2"

http://www.tlog.lth.se/fileadmin/tlog/Utbildning/Kurser/Logistik_i_foersoerjningskedjor/Artiklar/Perf_Meas._Neely.pdf.

2
3. Julnes, P. (2006). Performance Measurement. Retrieved September 14, 2013 from http://www.pnud.ne/RENSE/AfrEA%202007/AfrEA%202007%20Workshops/W18/WKSHP%20Perrin%20-%20DeLancer%202006%20(article).pdf.
Cite this Document:
Copy Bibliography Citation

Related Documents

Performance Appraisals for Business Effective
Words: 8831 Length: 31 Document Type: Thesis

However, as Murphy (2008) notes, these original scores, and the weightings, are given by biased humans who may have another agenda than simply giving the most accurate appraisal possible. In addition, there is also the question about whether a truly accurate (when negative) appraisal is the best course of action due to the possible negative consequences. Management by Objectives (MBO) Sudarsan (2009) surmises that, in the past, researchers have concluded that

Tests and Measurements
Words: 3787 Length: 10 Document Type: Term Paper

Tests and Measurements The activities of the classrooms are revealed to the learners, instructors and the institutions through administering normalized tests. They encompass gathered knowledge in reading, mathematics, and English for learners starting from kindergarten up to the high school level. Several instructors detest from organizing and evaluating tests and a majority of the students are scared of appearing in them. But tests are potent didactic instruments which provide at the

Predictors of Managerial Performance the
Words: 4991 Length: 12 Document Type: Term Paper

The tests of any type are being designed in order to choose individuals who will find it considerably easier to make way via the planned syllabus of study, and this is quite different from operating in the role of a manager in real life. This happens with several of the students and at certain stages in their lives, several students might find out that they are not being suited

Performance Evaluation of How Hedge
Words: 19967 Length: 80 Document Type: Research Proposal

As a consequence, investors may suffer. Importance of the Study It is necessary and pertinent to discuss the importance of any study, and this particular study is important to many people across many countries. Not only does it have importance for people who are trusting people with their pension and hedge funds in Germany, but it also has importance for people who are considering a career working with these funds and

Manufacturing World Class Manufacturing
Words: 15740 Length: 57 Document Type: Term Paper

Manufacturing Seven Key Elements for Successful Implementation Norman Binette, Jr. Biddeford, Maine Manufacturing organizations are built on the premise that they possess the ability to provide a wide variety of quality products for their customers. This reputation is dependent upon the constant review of existing processes and the identification of new and innovative methods of production that will enhance and increase the diversification of product lines. One such process that has proven itself

Information Technology IT for Small Businesses
Words: 3448 Length: 10 Document Type: Term Paper

Business Information Technology and the Small Business Information technology has had an impact on all areas of society, including a major impact on the business world. For some small businesses, there is an assumption that information technology is only required for major businesses operating on large scales. In contrast, it is suggested that information technology may be even more important to the small business than it is to the large business. Small

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now