Since time immemorial is considered as a performance measurement tool for the importance and effectiveness of the management organization to control and to ensure appropriate performance goals and organizational goals.
Various studies have been done in connection with the measurement of performance it is primarily intended to improve the effectiveness of the performance of the evolutionary process. Keep in mind, evaluation or performance measurement is a component that has been accepted as a principle to ensure that the benefits for these organizations.
In addition, the performance is a process that produces a specific period and produced something to measure the ability, experience and motivation. Ability, experience and motivation to work is a key factor of production-quality performance of each employee.
An organization has benefited from an effective performance measurement includes the improvement of decision making and control, better communication and performance measurement and reporting provides decision-makers as a significant tool to achieve a level of accountability in the organization. So ultimately the ability to measure performance and progress will give meaning to the process of development and strategic planning and goals.
Here to know that the performance measure is to ensure that organizational goals are met the needs of customers in improving the quality level to minimize risk and increase profit organization. In addition, performance measurements will determine the level of the organization to be ranked good or otherwise.
The performance is one important aspect that must be dealt with either by an organization. However, the major problem that often occurs in the measurement of performance is why it has to be measured.
Performance measurement can be divided into two categories, financial accounting and management of accounting. Financial performance measures can be divided in several categories such as sales, expenses, profits, assets, or investment returns, revenue shares and more. While the management accounting performance measures involving the internal organization such as employees and shareholders. Both of them can describe the level of organizational performance is good or not. For example, when an organization gets a higher profit, it was generally good. However, there are some other things that need to be taken into account because the company's performance not only depends on a point of fact, should be viewed broadly. Therefore, further evidence of the performance measures will be included in the main report.
Financial Accounting perform role in measurement of performance within an organization.
Once again the discussion, that the performance measures is a process of assessing the achievement of goals and progress achieved by the organization. To implement and achieve this objective, it should be seen every corner of the financial accounting and management accounting. In this topic, I will be explained more about the role together with the advantages and disadvantages in performance measurement.
Financial accounting focuses on preparing, classifying, record and reporting of transactions by means of a structured organization, where he was influenced by the financial transactions that enable financial organizations can be measured using standard financial measurement (the money).
Traditional financial accounting is involving the transactions to classify all assets, liabilities, equity capital or income, and expenditure.
Financial accounting measurement objective is to get high profit, raise money, and settle the debt with an effective way to achieve the goals and objectives set by the organization.
To make the measurement in financial accounting is like using ratios such as profit margin, Return of Investment, Turnover of Assets, Debt Collection Period, including interest, Gearing Ratio and others.
As discussed in the...