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Ekonomski horizonti
2013, vol. 15, iss. 1, pp. 31-44
article language: Serbian, English
document type: Original Scientific Paper
published on: 09/05/2013
doi: 10.5937/ekonhor1301031D
The effectiveness of the performance measurement in terms of contemporary business environment
University of Kragujevac, Faculty of Economy

e-mail: vterzic@kg.ac.rs

Project

Preclinical investigation of bioactive substances (MESTD - 41010)

Abstract

The effective performance measurement systems inevitably become the condition of companies' existence in terms of contemporary dynamic and very turbulent environment. The effective performance measurement system enables company to measure and control performance in accordance with the defined strategy. In designing of the performance measurement system in contemporary environment, there should be respected financial as well as non-financial indicators reflecting the effects of the key activities, which add the value of any company. Introduction of the diversified strategic aligned performance indicators should improve the organizational outcomes by increasing the quantity of the information relevant for making decision, which are at managers disposal, what strategic consistent making decision makes ease. The effectiveness of the performance measurement system is influenced by numerous factors, some of which are the subject of the paper. The aim of the paper is to highlight the significance of multidimensional measures use as well as of the specific organizational factors in the process of contemporary performance measurement systems implementationi.

Keywords

performance measurement; balanced scorecard (BSC); multidimensional performance measures use; organizational factors; performance measurement role

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