...selecting performance measures in the framework of the balanced scorecard (BSC). Previous studies in the now well-investigated effect that decision makers tend to give a much higher weight to common measures compared to unique measures (Banker et al, 2004; Lipe and Salterio, 2000) did not explore differences between perspectives in terms of commonality of measures used for performance evaluation purposes. We will explain why there are common measures in all perspectives and which their shared characteristics are. Based on a simulation with graduate students, we argue that common measures are found in every BSC’s perspective but with a significant degree of difference. Financial measures are by far the most common ones, internal process measures are the least common ones with customer and learning ranging somewhere in between. Our study implies that the idea of standardization beyond financial measures is based on three performance measures characteristics: 1) reliance on data already available, 2) easy benchmarking, and 3) possibility of being audited by third parties. We advanced implications for managers and for future research on the information generated in the BSC. 1. INTRODUCTION. This paper has been motivated by the evidence of some limitations of the balanced scorecard (Lipe and Salterio, 2000; Banker et al., 2004). These authors examine the judgmental effects of the balanced scorecard (BSC) and found that when evaluating the performance of different strategic business...
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...Table of Contents I. INTRODUCTION 1 LITERATURE REVIEW 2 RESEARCH METHODOLOGY 3 METHODS OF RESEARCHING 3 METHODS FOR INVESTIGATION 3 II. PERFORMANCE MANAGEMENT 4 1. INTRODUCTION 4 2. STRATEGIC MANAGEMENT OF SEAPRODEX 5 III. ACTIVITIES AND ENVIRONMENT 7 1. THE MAIN ACTIVITIES 7 2. APPROPRIATE PERFORMANCE MANAGEMENT TOOLS 7 IV. MANAGING PERFORMANCE TO IMPROVE DECISION-MAKING 9 1. BUSINESS LEVEL STRATEGY OF SEAPRODEX 9 2. STRATEGY FOMULATION 9 3. PERFORMANCE OBJECTIVIES OF SEAPRODEX 10 4. BALANCED SCORECARD IMPLEMENTATION OF SEAPRODEX 10 5. TOOLS TO INFORM DECISION MARKING THROUGH PERFORMANCE 11 V. CONCLUSION AND RECOMENDATION 11 1. REVIEW AND RESULT FINDING 11 2. RECOMMENDATION FOR AREA IMPROVEMENT 12 VI. APPENDICES 15 INVESTIGATION RESULT SUMMARY 23 SEAPRODEX BACKGROUND 23 Performance Management at strategic level 24 Performance Objective 25 VII. REFERENCES 27 I. INTRODUCTION It is realized that the most of manufacturing company is to get competitive advantage in the industry, or to get high quality in products and services. To get these competitive edges and maintain the position in the market, company needs to have an excellent operation management system or strategic performance management within the organization, as supported by Fryer et al. (2009). It is no doubt about the benefits and advantage of the strategic performance management system because De Waal (2007, p. 19) offers his perception of strategic...
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