Effective use of Performance Measurement System

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

The main objective of this research is to evaluate the usefulness of United Bank of Africa for performance measurement system. This achieved primarily through the use of documentary research and quantitative research approach.

This analysis involves looking at different literatures and the latest developments in the area of performance measurement. On the other hand, the quantitative approach covers the use of surveys to reach a reasonable conclusion.

Table of Contents

CHAPTER #1: INTRODUCTION6

1. Introduction6

1.1Background of the Research6

1.2Objectives and Questions of the Research7

1.3Structure of the Research11

1.4Conclusion12

CHAPTER #2: LITERATURE REVIEW13

2.1Introduction13

2.2Performance Management14

2.3Performance Measurement System17

Purpose of Performance Measurement18

2.4Financial and Non Financial Measures20

The Need for Accountability21

Limitation to Performance Measure23

What Drive Performance?23

Balance Scorecard24

2.5The Use of Balance Scorecard24

The 4 perspectives of the Balanced Scorecard25

Benefits of the Balanced Scorecard27

The Financial Perspective29

2.6Factors Affecting Performance Measurement Systems30

Objectives, Measure, Target, and Initiative Outcome Metrics31

Management by Fact31

Cautionary note on using the Balanced Scorecard32

Evolution of the Balanced Scorecard33

Determinant of Performance35

2.7Conclusion37

REFERENCES38

Chapter #1: Introduction

1. Introduction

The purpose of this paper is to investigate the effectiveness of the Balanced Scorecard (BSC) in improving financial performance. The BSC has profited expanding attractiveness as an productive management device that aligns worker activities and goals with corporate strategy since first being presented in 1992. We present an empirical investigation that investigates the influence of BSC on a banking institution's financial performance.

1.1Background of the Research

Beginning in the early 1980s, management accounting investigators recounted the expanding irrelevance of customary command and performance measurement practices. Weaknesses encompassed malfunction to connection performance measurement to strategic plans of organizations, an focus on accounting for external describing other than on accounting accounts helpful for interior conclusion producing, and a malfunction to account for improvement in expertise that change how constructing companies function (Palmer, 1992 and Spicer, 1992). The increasing significance of service commerce and expanded international affray has farther intensified the require for alternate command and performance measures.

The BSC originated out of the require to improve the designing, command, and performance measurement purposes of management accounting. Because of the increase in attractiveness of the BSC, and advantages attributed to its usage, Atkinson et al. (1997) state the BSC is a important development in management accounting that warrants strong study attention. They propose utilising multiple study procedures, encompassing case investigations, behavioral trials, and archival approaches. Although much has been in writing extolling the advantages of the BSC, couple of investigations live that exactly consider financial performance advantages affiliated with the BSC or assertions the BSC is better to other performance measurement systems. This study hunts for to work out if an improvement in financial performance appeared after ...