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Essay / Performance Measurement Systems in Business - 581
Business enterprises may seem similar, relying on the organizational models guide. However, in practice, any business is unique and operates as a distinct set of organizational models, designs and practices. The adoption of any plan is intended solely to support an “inimitable” business strategy. Performance measurement is essential to assess the overall performance of the organization and the results are used for strategic planning to develop a range of strategies (Tapinos & Dyson, 2005) to achieve sustainable business success. Without this information and understanding, organizational strategies will not be appropriate or effective in the business environment. Performance measurement is a multi-faceted management tool that focuses on how a business generates value. Performance measurement systems are used to reinforce behaviors required for business success as well as to achieve organizational direction. A study on the impact of performance measurement in the strategic planning process (Tapinos and Dyson, 2005) described the effectiveness of the performance measurement system and explained...