Multiple Perspectives of Performance Measures

• Published in: European management journal 2007-08, Vol.25 (4), p.266-282
• Main Authors: Chenhall, Robert H., Langfield-Smith, Kim
• Format: Article
• Language: English
• Subjects: Business management; Coordination; Corporate management; European studies; Financial performance; Human resource management; Management accounting; Management science; Management techniques; Marketing; Operations; Organizational effectiveness; Performance measures; Performance measures Management accounting Operations Marketing Human resource management Strategy; Resource management; Strategy; Studies
• ISSN: 0263-2373; 1873-5681
• DOI: 10.1016/j.emj.2007.06.001

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.