Performance Management Systems and Strategies

INTRODUCTION

Before the emergence of global competitiveness in business, demand used to exceed supply. Obviously in such a situation, management attention was more on efficient production processes and efficient resource utilization to achieve internal efficiency. During that era the financial control based PMSs were the prime focus. Organizational efficiency used to be defined in terms of objective financial results. Financial control based management system at General Motors in the industrialized economies (beginning in the 1970s), used to focus more and more on quality, differentiation, and customer satisfaction rather than only on cost/financial efficiency. The ability to create a positive effect for customers from their subjective perspective—and ...