Measuring Business Performance: Comparison of Financial, Non Financial and Qualitative Indicators

European Journal of Business and Management 6 (4), 38-45, 2014

8 Pages Posted: 1 Jan 2014 Last revised: 3 Feb 2017

See all articles by Najam Arifeen

Najam Arifeen

Federal Urdu University of Arts, Science & Technology - Department of Commerce

Mudassir Hussain

Benazir Bhutto Shaheed University, Lyari, Karachi

Shazia Kazmi

Federal Urdu University of Arts, Science & Technology; University of Karachi

Muhammad Mubeen

IQRA University

Sumra Latif Mughal

Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST), Students; Bahria University, Students

Waqar Akbar

SZABIST; affiliation not provided to SSRN

Date Written: November 20, 2013

Abstract

Purpose: To review research contributions to performance measurement systems.

Design/Methodology/Approach: Critical review of the literature using the systems developed by previous contributors: performance measurement systems; financial measures vs. non-financial measures; quantification of qualitative performance indicators; and generalization vs. specification in performance measurement system.

Findings: The absence of unified performance measurement systems means that the existing literature is capturing a wide range of financial measures and qualitative specifications. As a result, performance measurement system appears scattered rather than summative. New measurement systems are needed for correct measurement of performance comprising both financial variables with non-financial variables and also inclusion of qualitative perspective is inevitable.

Research Limitations/Implications: Similar researches have suggested performance measurement systems must always be tailored according to requirement of assessment entity. Empirical work must explain the measurement of performance explicitly.

Originality/Value:This paper synthesizes the existing literature in the area of performance measurement systems that has been critical for the performance evaluator in terms of advice given to strategic manager, business owners and policy makers.

Keywords: Performance Measurement Systems, Financial Performance, Non-Financial Performance

Suggested Citation

Arifeen, Najam and Hussain, Mudassir and Kazmi, Shazia and Kazmi, Shazia and Mubeen, Muhammad and Mughal, Sumra Latif and Akbar, Waqar and Akbar, Waqar, Measuring Business Performance: Comparison of Financial, Non Financial and Qualitative Indicators (November 20, 2013). European Journal of Business and Management 6 (4), 38-45, 2014, Available at SSRN: https://ssrn.com/abstract=2373145 or http://dx.doi.org/10.2139/ssrn.2373145

Najam Arifeen

Federal Urdu University of Arts, Science & Technology - Department of Commerce ( email )

Abdul Haq Campus
Karachi
Pakistan

Mudassir Hussain

Benazir Bhutto Shaheed University, Lyari, Karachi ( email )

Faqir Mohammad Dura Khan Road,
Near cheel chowk
Karachi, Sindh 75500
Pakistan

Shazia Kazmi

University of Karachi ( email )

00923002396117 (Phone)

Federal Urdu University of Arts, Science & Technology ( email )

Sector G-7/1, Main University Road
Gulshan-e-Iqbal
Karachi, Sindh 744000
Pakistan

Muhammad Mubeen (Contact Author)

IQRA University ( email )

Defence View
Shaheed-e-Millat Road (Ext.)
Karachi, Sindh 75500
Pakistan

Sumra Latif Mughal

Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST), Students ( email )

Karachi
Pakistan
923333212120 (Phone)

Bahria University, Students ( email )

Pakistan

Waqar Akbar

affiliation not provided to SSRN

SZABIST ( email )

90 Clifton
SZABIST
Karachi, Sindh 54200
Pakistan

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