ISSN: 2559-5059

 

The role of financial indicators in measuring the performance of economic
organizations

 

Mihai Păunică1

1Academy of Economic Studies, Bucharest, Romania

Corresponding author: mihai.paunica@cig.ase.ro


Running title: Financial indicators and performance of economic organizations

Keywords: financiar indicators, performance, economic organizations

J Appl Econ Stat. 2017; 1(1): 1-10; Date of submission: 2017-01-10, Date of acceptance: 2017-02-30


Abstract

Nowadays, with increasing competitiveness, organizations have to cope with complex situations and decision-making bodies have to adopt a management system that can adapt complex, fast, difficult to drive systems and for which an error of conduct can have grave/serious consequences.

Due to the complexity of the economic environment, in recent years there has been an increase in the expectations of the companies and, implicitly, of the managers regarding the level of performance of these systems. Performance appraisal is important because it provides decision support to managers in all activities: planning, organization, control and coordination. Evaluating past activities and identifying the variables that influence the company’s performance can effectively achieve its objectives. If it is impossible to measure and evaluate “something,” it is not able to improve it. For the success of the company, the critical performance indicators and the relationship between them are of particular importance.

Concluding, we can say that efficacy plays an essential role in the performance measuring process. In theory, any performance measurement indicator can be used as a tool to control it. However, no matter how useful this indicator is, it loses its attributes if it is not used effectively to implement performance improvement actions.


Editor in Chief

Mihai Paunica

J Appl Econ Stat.

 

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