Multiple Perspectives of Performance Measures
European Management Journal, 25 (4):
266--282 (August 2007)Abstract
Management accounting has had a primary function in developing performance
measures to assist managers in planning and controlling their organizations.
Traditionally, these measures have been internal, aggregate metrics
of financial performance. Managers from other functions such as operations,
marketing and human resource management have sought to develop measures
of greater relevance to their areas of management. What has occurred
is a proliferation of approaches to the development of performance
measures. The purpose of this paper is to provide a review of research
that has addressed the choice and design of performance measures
across a range of disciplines. The review aims to clarify some of
the issues, from a broader management perspective, that relate to
the effective development of performance measures. It is intended
that the paper will help in coordinating, communicating and unifying
different approaches to the development of performance measures and
assist in developing a sounder foundation for research and practice
concerning the design of performance measures.