Strategic Performance Measurement System and Its Impact on Organizational Effectiveness: A Study of United Arab Emirates Based Organizations

Abstract

Performance measurement has been subject to a considerable amount of research and attention over the past 15 years. The inadequacy of traditional financially based performance measurement systems and the introduction of nonfinancial measures have been the triggers for much of this research. The purpose of this paper is to review the performance measurement framework (Input-process-output), their application in the UAE based organizations in quality enhancement and to identify gaps in knowledge and practice that suggest future research. The paper draws on the study of performance indicators used in the 6 UAE based organizations. The design of indicators has been covered by many publications, but the design of measures specific and appropriate to UAE based organizations has not been well addressed. Based on the study of these organizations, a conceptual model is proposed that treats performance measurement as an integrated system, based on the TQM philosophy of continuous improvement cycles.