Measuring Performance in the Financial Services: An empirical study
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Management accounting theory suggests that two different measures of branch performance should be computed; one to evaluate the economic performance of each branch and the other to evaluate the performance of branch managers (managerial performance). It also advocates that the evaluation of a manager s performance should consist only of those factors under his or her control. The purpose of the study was to ascertain the type of performance measures that are applied in these institutions. That is whether or not the management of these banks have been applying financial and/or non financial per...
Management accounting theory suggests that two different measures of branch performance should be computed; one to evaluate the economic performance of each branch and the other to evaluate the performance of branch managers (managerial performance). It also advocates that the evaluation of a manager s performance should consist only of those factors under his or her control. The purpose of the study was to ascertain the type of performance measures that are applied in these institutions. That is whether or not the management of these banks have been applying financial and/or non financial performance measures in assessing the performance of their branches and the managers of those branches. The study also assessed whether in measuring the performance of these branches factors that are within the control of these branches are considered. In addition the study examined the impact of contingent factors on the use of financial and non financial performance measures and the application of the controllability principle from a contingency perspective.
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