IMPROVEMENT OF PERFORMANCE MEASUREMENT SYSTEM ACCORDING TO BUSINESS ENVIRONMENT

Abstract

Today we may observe that the rules of traditional business have changed. The new business environment determines major changes in resources, structure, strategic objectives and the performance measurement of organizations. Economic and technological changes have significantly changed work environments and the management of businesses. Today’s business environment has become more dynamic and competitive due to the rapid developments of recent years. Given such a competitive environment it has become very important for managers to make consistent, logical and strategic decisions and develop instruments and models that provide financial and nonfinancial information. The main objective of performance measurement is to provide information for decision making process. According to this aspect the importance of performance measurement and its information has increased. This aspect allows to state that the utility of performance measurement depends on its conformity with business environment. However, it is very important not only  to conform performance measurement system to business environment, but also to improve performance measurement system according to the changing environment of the organization.

DOI: http://dx.doi.org/10.5755/j01.em.18.1.4031