International Journal for Business Case Studies

Towards Business Performance Measurement Systems

*Rewan Kumar Dahal
Department Of Management Accounting And Control System, Nepal

*Corresponding Author:
Rewan Kumar Dahal
Department Of Management Accounting And Control System, Nepal

Published on: 2019-04-25


Performance measurement system (PMS) has been defined and redefined over the years since the traditional measurement systems are seen as inadequate in meeting the needs of the contemporary business environment. The onsets of global competition and changing technologies have demanded holistic and dynamic performance measurement systems. Therefore, the objective of the study is to enrich the understanding of some popular PMSs and their key characteristics, major contributions and the shortcomings in the integrated performance frameworks that have inhibited their adoption on full scale. The study has followed literature review methodology based on chronological review and reviewed almost all popular PMSs developed in last three decades. The acceptance of different PMSs have had on various dimensions and measures give the different result of organization performance. This study has resulted in a departure from a generalist understanding of performance measurement to a specialty focus


Performance measurement; Performance measurement systems (PMSs); Non-financial measures; Organizational performance


Performance measurement systems (PMSs) are considered as the information systems that are used to evaluate both individual and organizational performance [1]. According to Ghalayini, Noble and Crowe (1997) literature concerning performance measurement can be divided into two phases. The first phase started in the 1880s and ended in the 1980s. This phase emphasized financial measures of performance such as profit, return on investment and return on assets. The second phase began in the early 1980s. This phase arose due to the emergence of global competition which forced companies to implement new technologies and philosophies of production and management [2]. Figure 1 explains the evolutionary phases of performance measurement over the years.