Approaches towards performance measurement and management

In today's dynamic and highly competitive business environment, performance measurement and management systems play a crucial role. They help companies to be competitive. However, companies must properly set up approaches towards performance measurement, management, and all associated activities to take full advantage of these systems and ensure their sustainability. This can be a challenging task. Only some researchers discuss approaches toward comprehensive performance measurement and management. The authors have identified issues related to understanding, implementing, and using these systems. This article aims to fill this gap by providing a comprehensive view of performance measurement and management. It describes the performance measurement system, components, steps, measures, measurement areas, users, and information transfer. The performance management system has to consider the context of the entire organisation and embrace external and internal factors that influence its implementation, development and quality, as well as tools that make it more efficient and ensure its sustainability. The suggested framework is graphically illustrated. Finally, the meaningfulness, reality and possible usability in practice are verified through semi-structured interviews with managers of selected companies.