An Overview on Performance Measurement Systems: Emphasis on Balanced Scorecard Approach

In the knowledge –based economy, organization are changing the way they monitor and measure performance, to be successful organization now have to focus on comprehensive view of business. It can be stated that performance measurement it the foundation of performance management in any construction organization. Traditional financial performance measurement is not capable of capturing the true performance of an organization. Thus the results of such financial performance cannot be used by managers to derive future performance in their organizations. One of the approaches adopted is that of the Balanced Scorecard (BSC). It is distinct from other measurement systems in that, it is more than collection of financial and non financial measures. This paper argues relationships between performance measurement and performance Management.