Dermawan Wibisono
School of Business and Management, Bandung Institute of Technology

Published : 1 Documents
Articles

Found 1 Documents
Search

A FRAMEWORK OF PERFORMANCE MEASUREMENT SYSTEM FOR MANUFACTURING COMPANY Dermawan Wibisono
The South East Asian Journal of Management Vol 5, No 2 (2011): October 2011
Publisher : Department of Management, Faculty of Economics and Business, Universitas Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

In the current dynamic environment, measuring a company’s performance becomes exceedingly complex since Performance Measurements Systems (PMS) not only measure a company’s performance but also reflect their organizational culture and philosophy. Designing and implementing PMS is an integral part of management control systems. However, traditional PMS are criticized for being obsolete, irrelevant to managerial decisionmaking, unrelated to strategic objectives and detrimental to organizational improvements. Given the shortcomings of traditional PMS, there is need for a new framework that canlead to the design of a PMS that balances short-term and long-term measures, internal and external measures, and financial and operational measures. This paper presents issuesassociated with the needs of a dynamic PMS, observe past research achievements in PMS and review past PMS frameworks that have been introduced. The paper then proposes animproved methodology for the design of a realistic PMS and its effective implementation in a manufacturing environment with case for Indonesia’s company.