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Performance management system:evolution and re-evaluation

Mohd Alwi, Norhayati and Abdul Khalid, Siti Nabiha (2006) Performance management system:evolution and re-evaluation. Indonesian Management & Accounting Research, 5 (2). pp. 46-59. ISSN 1411-8858 E-ISSN 2442-9724

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Business organisations are constantly faced with external and internal forces that drive them to change. These changes have had various impacts on the use of performance management system. With the new way of doing business, the information derived from traditional management control systems is claimed to be too aggregated, too late and too distorted and it could no longer be an effective mechanism to govern an organisation (Johnson & Kaplan, 1987). Thus, various new performance management system and framework (PMS) such as balanced scorecard, linked structure model and economic value added, have been advocated and claimed to be able to address the needs of contemporary organisations. Thus in this paper, a review of the development of performance management system and evaluation of the efficacy of both the traditional and contemporary performance systems are undertaken. Criticisms of the traditional functional measures that arise in the mid 1980s which lead to the introduction of several prominent performance management frameworks are discussed. The paper continues with re-evaluation on the contemporary performance measurement frameworks with the objectives of ascertaining their applicability to replace or to supplement the traditional performance measures. Finally, discussion on critical issues related to performance management that might require reformations are addressed in the final section of this paper.

Item Type: Article (Journal)
Additional Information: 3574/59545
Uncontrolled Keywords: Performance management system; Financial measure
Subjects: H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5601 Accounting. Bookkeeping
H Social Sciences > HJ Public Finance > HJ9701 Public accounting
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User: Dr Norhayati Mohd Alwi
Date Deposited: 05 Dec 2017 11:13
Last Modified: 20 Apr 2018 08:53
URI: http://irep.iium.edu.my/id/eprint/59545

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