Performance Measurement: A Comparative Study of EVA and Traditional Performance Measurement Techniques

A Case Study of Steel and Petrochemicals Industry in India

Libro Especializado , 2011 , 186 Páginas

Economía de las empresas - Administración de empresas, gestión, organización

Moullin defined performance measurement as, “Performance measurement is evaluating how well organizations are managed and the value they deliver for customers and other stakeholders”. According to Kelvin, ‘When you can measure what you are speaking about and express it in numbers, you know something about it’. According to Anon, ‘You cannot manage what you cannot measure’. The Economic Value Added (EVA) framework developed by the Stern Stewart & Company is gradually replacing the traditional measures of financial performance due to its robustness and its immunity from "creative accounting".
Fortune magazine has called it "today's hottest financial idea and getting hotter" and management guru Peter Drucker referred to it as a measure of total factor productivity. The traditional measures for performance measurement, suffer from some serious limitations which are the main reason that these traditional methods based on earnings can’t be used as a reliable measure of performance measurement. Hence, there is the need of new approaches for the performance measurement which takes stakeholder’s perspective into consideration and shareholders wealth into consideration.
EVA is a better performance measurement tool and it has been proved in the research done on 10 companies in India. EVA has been compared with traditional techniques like ROI, ROE, EPS, NVA and MVA and the results are presented. Suggestive measures have also been given at the end and reference tables are also given. The research will e beneficial for academicians and people associated with finance.

Inhaltsverzeichnis

• Introduction
• Literature Review
• The Analysis
• Conclusion & Suggestions
• Bibliography
• Reference Tables

Zielsetzung und Themenschwerpunkte

This text aims to provide a comparative study of EVA (Economic Value Added) and traditional performance measurement techniques, focusing on the steel and petrochemicals industries in India. The study aims to analyze the effectiveness of EVA as a performance measurement tool compared to traditional methods and to identify its potential benefits and limitations in the context of these specific industries.

• Performance Measurement Techniques
• Economic Value Added (EVA)
• Traditional Performance Measurement Techniques
• Comparative Analysis of EVA and Traditional Techniques
• Application of Performance Measurement in Steel and Petrochemicals Industries

Zusammenfassung der Kapitel

• Introduction

  This chapter introduces the concept of performance measurement, defining its meaning and objectives. It explores the significance of performance measurement in various organizational contexts, highlighting its role in improving service delivery, cost effectiveness, and meeting competitive challenges. The chapter also discusses the different techniques of performance measurement, categorizing them into traditional and modern methods.

• Literature Review

  This chapter provides a comprehensive review of existing literature on performance measurement, focusing on both traditional and modern techniques. It examines the theoretical foundations of performance measurement, exploring different frameworks and models. The chapter also analyzes the strengths and weaknesses of various performance measurement tools and techniques, drawing insights from previous research and case studies.

• The Analysis

  This chapter presents a detailed analysis of EVA and traditional performance measurement techniques, applying them to the steel and petrochemicals industries in India. It examines the specific challenges and opportunities faced by these industries in terms of performance measurement. The chapter also compares the effectiveness of EVA and traditional methods in measuring performance, analyzing their impact on key performance indicators and financial outcomes.

Schlüsselwörter

The key terms and focus themes of this text include performance measurement, EVA (Economic Value Added), traditional performance measurement techniques, steel industry, petrochemicals industry, India, comparative analysis, financial performance, operational efficiency, competitive advantage, and industry-specific applications.

• Universidad: Post Graduate Government College (PGGC-46, Chandigarh)
• Curso: Commerce
• Autor: Dr. Shivani Gupta (Autor)
• Año de publicación: 2011
• Páginas: 186
• No. de catálogo: V184720
• ISBN (Ebook): 9783656096207
• ISBN (Libro): 9783656096474
• Idioma: Inglés
• Etiqueta: performance, measurement, comparative, study, traditional, techniques, case, steel, petrochemicals, industry, india