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practice in the 1970s with the introduction of new social programmes that needed to be
assessed. However, interest in performance measurement nosedived in the 1980s, as
people did not perceive the benefits of using the concept in making decisions. In the 1990s,
performance measurement was reenergized as the demands for holding government
entities accountable to the public increased. A number of resolutions were passed by
Companies and Allied Matters Decree (1990). In the United States of America, the
National Academy for Public Administration came with a policy urging government to set
goals and measure their performance and in 1993, The Government Performance and
Results Act was passed by the US government requiring their agencies to become involved
in strategic planning, goal-setting, and performance measurement (Moullin 2002).
Performance measurement according to Upadhaya, Munir and Blount (2014) is the
process of collecting, analyzing and/or reporting information regarding the performance
of an individual, group, organization, system or component. It can involve studying
processes/strategies within organizations, or studying engineering
processes/parameters/phenomena. This helps in the assessment of the level of
achievement of the firm's objectives. Neely, Adams, and Kennerley (2002), McCurry
(2010) and Moullin (2002) see performance measurement as “the process of quantifying
the efficiency and effectiveness of an organization's past actions”, "the process of
evaluating how well organizations are managed and the value they deliver for customers
and other stakeholders”.
Several performance measurement systems are in use today, and each has its own group of
supporters. For example, the Balanced Scorecard (Kaplan and Norton, 1993, 1996, 2001),
Performance Prism (Neely, 2002), action-profit linkage APL (Epstein & Westbrook, 2001)
and the Cambridge Performance Measurement Process (Neely, 1996) are designed for
business-wide implementation; and the approaches of the TPM Process (Moullin 200), 7-
step TPM Process (Epstein & Westbrook 2001) and Total Measurement Development
Method (TMDM) (Tarkenton Productivity Group, 2000) are specific for team-based
structures. With continued research efforts and the test of time, the best-of-breed theories
that help organizations structure and implement its performance measurement system
should emerge.
Talking about organizational model towards effective performance measurement, Etzioni
(1960) emphasized on goal model by saying that organization is a set up with proper
arrangement towards achieving goals', implying that the organization focuses on
accomplishment of outcome. Yuchtman and Seashore (1967) in their study sees
organization as an open system (input, transformation, output), relying on acquisition of
resources and internal processes as a means. Connolly et al. (1980) developed what is
called 'strategic constituencies' model. According to them, organization is perceived as
internal and external constituencies that negotiate a complex set of constraints, goals and
referents. This is in response to the expectations of powerful interest groups that gravitate
around the organization. For Quinn and Rohrbaugh (1983) organization is a set of
competing values which create multiple conflicting goals with three dimensions of
competing values: internal versus external focus, control versus flexibility concern and
ends versus means concern.

Ghosh and Mukherjee (2002) opined that a corporate performance measure is better
discussed from two points which are: (a) Operational CPM and (b) Analytical CPM.
Operational CPM addresses the business process needs of executives and financial
managers. Analytical CPM addresses the reporting and analysis needs of executives,
managers and staff through all levels of an organization, as well as vendors, suppliers and
partners. This is solely the responsibility of the accountant. There are a number of
performance measurement tools, which could be merged into two broad groups: (i)
Traditional measures and (ii) Non -traditional measures. Traditional measures which

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