Critical issues of comprehensive performance measurement and management process

Abstract

An effectively functioning performance management process has become the key to success in today’s tough competitive environment. It is necessary to have comprehensive knowledge of new approaches to performance measurement in order to create and implement such a process. The main aim of this paper is to contribute toward building on such knowledge by designing a performance measurement and management process diagram. To fulfill this goal, the features of a performance measurement system have been determined based on research in the literature; additionally, key elements that are necessary for a comprehensive process of performance management have been defined using case study analysis. The diagram also identifies critical elements of contemporary performance management process related to the provision of balanced performance indicators and their subsequent incorporation in strategic planning. The findings show that competitive-related performance aspects such as innovation, core competencies, and employee engagement are not sufficiently integrated in performance measurement