A Research Study On Performance Measurement

998 Words4 Pages
2.1 Introduction
This section of the study concentrates on reviewing of some previous related research about the topic under study. Our theoretical background foremost consists of former research in the area of performance measurement in the manufacturing industries.The central concept of performance measurement are described. In the end of this chapter we will gather relevant parts of the presented theory and put it together in a theoretical framework, which we will use when we collect and analyse our empirical material. 2.3 Empirical Literature
Many studies have been done over the period on performance measurement in many countries. However a few of the topics are worth mentioning and reviewed.
For example Hayes & Abernathy (1980) criticized the use of traditional short-term financial measures, Kaplan (1984) argued that measurement systems were lagging behind their time, new kind of competition and demand for internal information required system renovation and Hiromoto (1988) presented the more advanced management accounting techniques of Japanese companies. Eccles (1991, p. 131) even stated that within the next five years, every company will have to redesign how it measures its business performance. Neely (1999) suggests that reasons for this were the changing nature of work and organizational roles, increasing competition, new improvement initiatives and changing external demands.
The beginning of 1990s created a boom in performance measurement
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