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Multi-criteria Performance Measurement Model Development
Relationships between Non-financial Performance Measures and Performance Improvement
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Measurement systems incorporating financial and non-financial measures have been a topic of considerable interest to both business practitioners and academics for most of the 1990s. The main focus of this thesis work is to indicate the negative impact of traditional performance measures and operation strategies on improvement of business results and to formulate a multi-criteria performance measurement model that comprises critical both tangible & intangible measures. This research thesis reviews worldwide researches that address the correlation between designing & implementing appropriate performance measures, and business performance outcomes. The research is conducted in a sample of 28 Ethiopian manufacturing enterprises. The vital financial results of these surveyed companies are compared to the international industry benchmarks. The extent of utilization of financial & non-financial measures in strategic planning and organizational performance evaluation is studied. The results from this research study assure that one of the major constraints for performance degradation in selected companies is the lack of proper performance measurement systems and strategies.
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