 PERFORMANCE EVALUATION: LITERATURE REVIEW AND TIME EVOLUTIONAnnals of Faculty of Economics, 2012, vol. 1, issue 1, 753-758 Abstract: Performance evaluation of an economic entity requires approaching several criteria, such as industry and economic entity type, managerial and entrepreneurial strategy, competitive environment, human and material resources available, using a system of appropriate performance indicators for this purpose.The exigencies of communication occurred on the growing number of phenomena that marked the global economy in recent decades (internationalization and relocation of business crises and turmoil in financial markets), demand performance measurement to be made in a comprehensive way by financial and non-financial criteria. Indicators are measures of performance used by management to measure, report and improve performance of the economic entity. The relationship between indicators and management is ensured by the existence of performance measurement systems. Studies to date indicate that economic entities using balanced performance measurement systems as a key management tool registered superior performance compared to entities not using such systems. This study attempts to address the issue of performance evaluation by presenting opinions of different authors concerning the process of performance measurement and to present, after revising the literature, the evolution of the performance evaluation systems. We tried to do this literature review because sustainable development and, therefore, globalization require new standards of performance that exceeds the economic field, both for domestic companies as well as international ones. So, these standards should be integrated into corporate strategy development to ensure sustainability of activities undertaken by harmonizing the economic, social and environmental objectives. To assess the performance of economic entities it is required that performance evaluation to be done with a balanced multidimensional system, including both financial ratios and non-financial indicators in order to reduce the limits of the two categories of indicators. Performance measurement and management canâ€(tm)t be separated; performance management is a philosophy that is supported by performance measurement. Performance management precedes performance measurement and creates the context for performance measurement. Keywords: performance; performance measurement; indicators; sustainable development; global performance. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ora:journl:v:1:y:2012:i:1:p:753-758 Access Statistics for this article More articles in Annals of Faculty of Economics from University of Oradea, Faculty of Economics Contact information at EDIRC. |
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