COMPARISON OF PERFORMANCE MEASUREMENT APPROACHES

References: 4th International Multidisciplinary Scientific Conference on Social Sciences and Arts SGEM 2017, www.sgemsocial.org, SGEM2017 Conference Proceedings, ISBN 978-619-7408-17-1 / ISSN 2367-5659, 24 - 30 August, 2017, Book 1, Vol 5, 181-186 pp, DOI: 10.5593/sgemsocial2017/15/S05.023

ABSTRACT

Performance measurement is a central theme in business management. There are four broad areas of inquiry. The first focuses on accounting as a performance measurement system that generates various reports for various purposes. The second is concerned with strategic measurement systems including both financial and non-financial measures designed, selected, implemented, used, and maintained by organizations. The third considers the role of performance measurement systems as part of management control systems. The fourth analyzes empirically why, how and when accounting systems and processes relate to performance. This paper is devoted to the comparison of various performance measurement approaches.
A comparative literature analysis investigates prior literature to develop a framework for assessing and comparing the following three primary approaches to performance measurement: the accounting-based, goal-centered, and behavioral approaches. An empirical study, carried out on a sample of companies, illustrates how the concept of performance can be, and has been, measured. Following that, a conclusion is made to assess and compare the advantages and disadvantages of the various approaches. Future research possibilities are also suggested.

Keywords: performance measurement, accounting-based approach, goal-centered approach, behavioral approach.