"A performance measurement system attempts to address the needs of different stakeholders of the organisation by creating a blend of strategic measures "?comment (please answer in 200 to 250 words)
Stakeholders include the Customers, Employees, and Owners. For most firms, these three are by far the most important, and the scope of the performance measurement is usually focused on them.
Majority of organizations use formal performance measurement systems that are extensions of their financial reporting systems. They justify this practice because the financial reporting system provides measures that:
One way to measure stakeholder value is by creating a blend of strategic measures by analyzing the social efficiency like
expenditures, average hours of training per year per employee broken down by employee category, cost of employee health and safety, payments to government, voluntary contributions to civil society, value of imports versus exports, total new investments, local purchasing, total workforce with breakdown by employment type, gender, and number of convictions for violations of corruption related laws or regulations.