Introduction
Purpose Statement
Performance measures are widely used to determine whether the organization is meeting its objectives in an effective and efficient manner. Managers measure performance as part of their
management control system, a critical function in all organizations. To mitigate financial losses
or reputation damage, management controls must influence employees’ behaviours in a desirable
way. As Adrian Grace, managing director of Bank of Scotland – Corporate, stated, “You can
have the best vision in the world but if you can’t put it into effect, you are wasting your time.”1
Therefore, success is derived from management’s ability to put their strategy into action; ensuring employees’ actions are aligned with company objectives.
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