Quantitative approaches to organizational performance measurement means traditionally accounting measures.
Recent publicity surrounding the marketing of economic value added as an overall measure of company performance, means for us optimizing efort directed to qualitative approach.
Usual those are well know as financial evaluations or financial aspects of performance. Attention is moving from profit to added value. Objectives in financial form are a part of strategy implementation there are more “drivers” to performance.
The three main functions involved are:
1 Financial measures of performance as tools of financial management. Here the focus is on the functional specialism of finance and financial management. This is concerned with the e cient provision and use of financial resources to support the wider aims of the organization, and to manage the effective and efficient operation of the finance function.
2 Financial performance as a major objective of a business organization. Here an overarching financial performance measure, such as profit, return on investment, is used to signify the achievement of an important (perhaps the most important) organizational objective.
3 Financial measures of performance as mechanisms for motivation and control within the organization. Here the financial information provides a ‘window’ into the organization by which specific operations are managed through the codification of their inputs and outputs in financial terms.
We suggest to use only dimensions less figures!. Read more…