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A Brief Overview Of Performance Management Systems

Author

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  • Lubna Q. OWAIS

    (Faculty of Business and Economics, Károly Ihrig Doctoral School of Management and Business, University of Debrecen, Hungary)

Abstract

Performance management is not a new topic; however, it has gained so much attention recently due to its need in the current competitive business environment. Performance management has been first used in the 1970s, and since then many definitions, frameworks, and concepts of performance management have been introduced, which led to great confusion in the performance management literature. Furthermore, many terms are used interchangeably with performance management, which made the confusion much worse. This article aims to provide a brief review of the evolution of performance management. Moreover, in the literature, it is obvious that even with the new comprehensive systems still the financial indicators are the most common and used indicators, therefore, an overview of some of the most common financial indicators and their importance is provided in this paper. Additionally, some empirical pieces of evidence about the cause-and-effect relationships, which are claimed to be fundamental for the success of the Balanced Scorecard (BSC), are provided. The findings are ambiguous as some support the existence of these relationships, whereas other findings deny their existence.

Suggested Citation

  • Lubna Q. OWAIS, 2021. "A Brief Overview Of Performance Management Systems," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 25, pages 23-30, May.
    • Handle: RePEc:cmj:seapas:y:2021:i:25:p:23-30
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    References listed on IDEAS

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    1. Ittner, CD & Larcker, DF, 1998. "Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction," Journal of Accounting Research, Wiley Blackwell, vol. 36, pages 1-35.
    2. Fabien De Geuser & Stella Mooraj & Daniel Oyon, 2009. "Does the Balanced Scorecard Add Value? Empirical Evidence on its Effect on Performance," European Accounting Review, Taylor & Francis Journals, vol. 18(1), pages 93-122.
    3. Andreea Ioana COSTE & Adriana TIRON-TUDOR, 2015. "Performance Measurement In Higher Education: Literature Review," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 8, pages 175-178, June.
    4. Chenhall, Robert H. & Hall, Matthew & Smith, David, 2017. "The expressive role of performance measurement systems: a field study of a mental health development project," LSE Research Online Documents on Economics 46364, London School of Economics and Political Science, LSE Library.
    5. Mary A. Malina & Hanne S. O. Nørreklit & Frank H. Selto, 2007. "Relations among Measures, Climate of Control, and Performance Measurement Models," Contemporary Accounting Research, John Wiley & Sons, vol. 24(3), pages 935-982, September.
    6. Péter BAJNAI & Péter POPOVICS, 2020. "Practical Application Of The Balanced Scorecard Model, A Balanced Strategic Indicator System," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 24, pages 271-277, December.
    7. Flavio Hourneaux Jr & Julio Araujo Carneiro-da-Cunha & Hamilton Luiz Corrêa, 2017. "Performance measurement and management systems," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 32(2), pages 148-166, February.
    8. M. Ishaq Bhatti & H. Awan & Z. Razaq, 2014. "The key performance indicators (KPIs) and their impact on overall organizational performance," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(6), pages 3127-3143, November.
    9. Chenhall, Robert H. & Hall, Matthew & Smith, David, 2017. "The expressive role of performance measurement systems: A field study of a mental health development project," Accounting, Organizations and Society, Elsevier, vol. 63(C), pages 60-75.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Performance management; Performance measurement systems (PMSs); Balanced Scorecard (BSC); Cause-and-effect relationships;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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