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Wrong Performance Measurement Systems " In Order Answer Essay

¶ … wrong performance measurement systems?" In order answer question, conduct independent research, drawing sources academic practitioner literature. Through research,: • Identify key criticisms performance measurement systems management accounting research theory; • Explain problems identified occur, consequences problems organisations individuals; • Use relevant academic research develop support explanations. Performance Measurement Systems

Companies that develop their businesses in competitive environments are required to differentiate themselves through increased performance. The importance of performance has increased because of its implications on productivity, profits, and development of companies. In order to benefit from improved performance levels, companies must identify the levels at which their performance is situated. This is the reason for which performance measurement systems have been developed.

Performance measurement systems allow companies to make evaluations regarding their process efficiency, but also to identify which process improvements are required mostly. These systems also...

Based on this information, companies can expand the usage of such practices to other purposes. The effects of performance measurement systems also help increase motivation.
However, there is important criticism to performance management systems. It seems that these systems are based on biased opinions. These systems are developed by individuals that have confronted themselves with numerous situations where performance was affected. They made opinions about those situations. They develop performance measurement systems based on these opinions (Neely & Bourne, 2003). But their opinions cannot be applied in all situations. Therefore, it is not useful to measure different situations with identical standards. Performance measurement systems must be adapted to the issues that are determined by each different situation.

Another criticism on performance measurement systems is represented by the fact that in many situations the individuals that develop them have too little knowledge on the situation that must be measured regarding its performance. This means they develop…

Sources used in this document:
Reference list:

1. Neely, A. & Bourne, M. (2003). Implementing Performance Measurement Systems: A Literature Review. Business Performance Management. Retrieved September 14, 2013 from

2"

http://www.tlog.lth.se/fileadmin/tlog/Utbildning/Kurser/Logistik_i_foersoerjningskedjor/Artiklar/Perf_Meas._Neely.pdf.

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3. Julnes, P. (2006). Performance Measurement. Retrieved September 14, 2013 from http://www.pnud.ne/RENSE/AfrEA%202007/AfrEA%202007%20Workshops/W18/WKSHP%20Perrin%20-%20DeLancer%202006%20(article).pdf.
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