Management Performance Measurement in Service Industries
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 1 March 1988
Abstract
The problem of using management accounting techniques to measure managers' performance in the service sector is examined. The essence of the problem, it is argued, is that organisations are being judged externally on one set of criteria while the internal control system measures a different set of criteria. Using a management accounting perspective the article identifies the dominance of accounting measures in performance measurement and demonstrates how this has led to dysfunctional behaviour of managers. It is then proposed that a control system be developed that aims to achieve organisational control by the specification of a range of control measures. Measures of finance, customer service, resource utilisation, employee attitudes and service development should be included. Furthermore, no one set of measures can be expected to satisfy all organisations, the exact set and relative weighting of each component being determined by the particular organisation's objectives.
Keywords
Citation
Fitzgerald, L. (1988), "Management Performance Measurement in Service Industries", International Journal of Operations & Production Management, Vol. 8 No. 3, pp. 109-116. https://doi.org/10.1108/eb054830
Publisher
:MCB UP Ltd
Copyright © 1988, MCB UP Limited