Performance can be seen as a concept that, after six decades of studies and approaches, is still seeking clarification. Over time, the performance has been viewed from several perspectives such as: the equivalent of organizational effectiveness, adaptability, sensitivity, and productivity, up to concepts from the economic-financial sphere such as: increasing added value, profitability, productivity, indebtedness, and solvency. If we look at performance as a term, we notice that it presents a certain imprecision and is rarely defined. In DEX “performance” is represented as “the outcome (especially good) obtained by someone in a sports competition”, “special achievement in a field of activity”, or “the best result obtained by a technical system…” (DEX, 1998). The meaning of word performance comes from the English language from the verb “to perform” which according to the translation made by google translate means to do something regularly, to fulfil an obligation, to execute a contract, to perform in the activity you carry out, to achieve the work. If we look at the word “performance” not from the perspective of the verb but of the subject, this approach leads us to the goal and the way in which an organization achieves its proposed objectives, a fact that can be viewed from the point of view of effectiveness and productivity. The indicators that are presented can be used to measure the economic-financial performance of the entities from a relative perspective and some of their limits have been identified in absolute size. An important trend that manifests itself in the field of measuring the economic-financial results of companies is represented by the increasing importance of intangible assets and intellectual capital, which must be reflected with the help of specific indicators. With the development of new technologies in the information field, many of the work tools of the industrial era have become outdated. The economic entities can no longer obtain long-term competitive advantages only through the rapid assimilation of new technologies or through very good management of financial resources. The ability of an economic entity to mobilize and exploit its intangible assets has become much more important than investments in fixed assets. The difficulties in the financial evaluation of some elements of the business activity such as the ability to organize production, the knowledge and skills of employees, their motivation, flexibility, customer loyalty, available databases, care for the environment, etc., have not allowed that these assets to be recognized as such in the companies’ balance sheets, although they are essential in the present and future competitive environment for the success of economic entities.
Read full abstract