engleski

Performance Measurement System in Turbulent Environment: The Case of Large Croatian Enterprises

Organizations have to adapt to the new business conditions caused by the turbulent environment that is constantly and rapidly changing, especially in the crisis situation. The speed by which organizations are able to adapt becomes a key factor in determining the increase in organizational efficiency and with it, organizational competitiveness. In crises situations there is a little time and information available for detailed analyses so managers have to make decisions based on paradigms that differ from traditional rational decision making models. In order to increase organizational efficiency, it is necessary to have access to useful qualitative and quantitative performance indicators that cover all segments of business operations. Traditional measures of performance, which are based on accounting measurement, have been subjected to many criticisms, which emphasize many shortcomings. Because these measures are not adequate for measuring the new value added, academic community, as well as the consulting enterprises, have presented “new” measures of performance. Modern efficiency assessment models use both financial and non-financial indicators to measure efficiency at all organizational levels. Those models represent an indispensable strategy implementation tools capable of measuring and assessing the fulfilment of strategic objectives at all levels of the organization, while also providing exceptional support in the overall decision-making process. The aim of this paper is to stress and emphasize the importance of appropriate measurement selection, in order to increase overall organizational efficiency, especially in the turbulent environment, which is essentially tied to the appropriate choice of organizational objectives and strategies. This paper focuses primarily on the Croatian business environment exactly on the large Croatian enterprises. The research conducted in the paper is based on the data collected from the survey that has been sent by the post to the top managers of the large Croatian enterprises.

Performance measurement; performance management; large Croatian enterprises

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