Abstract
This study seeks to examine new trends in the performance measurement system over the traditional system, how corporate organizations respond to the emerging trends, how the changes impact their businesses performance in the challenging contemporary business environment, and identify the new approaches adopted to manage the changes. To achieve this, data were collected through the deployment of case studies and analyzed content of the case studies results. As a major contribution, this study enlightens readers with new insights on performance measurement. It also provides useful guidelines for effective measurement of performance. Findings from the analysis show that traditional performance appraisals were no longer working and the business corporations are now adopting new performance measurement such as individual check-ins, team touch points, and individual development plan (IDP). The study concludes that traditional performance measurement systems such as profitability, strict working capital, revenue, volume, cash flow, return on capital employed, etc were falling short of meeting the needs of managers in a much changed business environment. It has become increasingly important for organizations to develop systems of performance measurement which reflect the growing complexity of the business environment, monitor their strategic response to this complexity.
Highlights
The recent trend in performance measurement is that companies are aligning human resources initiatives with the overall goals of the organization to improve business success
This study aims to examine new trends in the performance measurement system over the traditional system, how corporate organizations respond to the emerging
[22] opined that traditional performance measurement systems such as profitability, cash flow and return on capital employed were falling short of meeting the needs of managers in a much changed business environment. [6] maintains that organizations have extensive performance measurement systems based on cost and financial accounting practices
Summary
The recent trend in performance measurement is that companies are aligning human resources initiatives with the overall goals of the organization to improve business success. [10], a world leader in driving corporate performance recently conducted a global survey on performance management system and found that; 59% of employees feel performance reviews are not worth the time invested, 95% of managers are dissatisfied with their performance reviews/management systems, two-thirds of performance management systems misidentify high performers, regardless of force rankings, and 56% said they do not receive feedback on what to improve. This development has made world-class organizations rethink their performance management approach, such as Lafargeholcim Group, Cargill, Accenture, General Electric, Adobe, Deloitte, Eli Lilly, Google, etc. There is a gap in understanding how organizations manage change in their performance measurement in practice [7]
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