REVIEWING MANAGING THROUGH PERFORMANCE MEASUREMENT

Abstract

Performance measurement is a control of a company for track progress. In traditional measure that focus only financial measure and ignore all factors that not associated with financial. According to Kaplan and Norton (1996), the balanced scorecard emphasizes that financial and non-financial measures must be part of the information system for employees at all levels of the organization. The process of blending all measures is the most important factor in managing the organization performance measurement system.
First of all, this conceptual will explained regarding the main performance measurement, the need of performance measurement, the roles of performance measurement, critics of having performance measurements, and types of performance measurements that including financial and non-financial measures. Because of in this new era, the nonfinancial measurement will be significantly used in management and measurement. It will focus on usefulness and deficiency of financial and non-financial measures. Financial measures are stressed on using profit, Return on Investment (ROI), Economic Added
Value (EVA) and the applicant in Just In Time (JIT) practices. Non-financial measures will stress on JIT practices, manufacturing, investor and analyst, and management compensation. This is because not all management use financial as a main measure.
Further research will be done regarding performance measurement system in Government Link Companies (GLCs).