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| Topic: |
Business
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| Number of pages / Number of words: |
12 / 3113 |
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They will tend to focus on the current impacts of decisions without a clear link between short-run actions and long-run strategy (Dixon et al. 1990). By expensing costs of many improvements, the traditional financial measures also work against strategies based on quality, flexibility, and minimization of manufacturing time...
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For many lower-level employees, they might need non-financial performance measures that are more directly and accurately relate to outcomes that they can influence (McKenzie and Schilling 1998).
Some firms have recognized the importance of non-financial measures of performance many years ago such as General Electric in the 1950s, growing international competition and the rise of the Balance Scorecard (BSC) also have upheld the importance of non-financial performance measures...
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