The changing basis of performance measurement

The objective of performance measurement has changed over the past few decades. Traditional performance measures based on productivity are no longer appropriate or representative of the information needs of today’s competitive global market. Alternative performance systems have been proposed that range from time as the basis of all measures to the integration of a variety of performance measures. Reviews and analyses the limitations of traditional approaches to performance measurement as well as the emerging trends in performance measurement system development. Reveals that the basis of performance measurement is changing and that there are certain characteristics that are necessary in order to produce information that is relevant for improving world‐class manufacturing performance.