Strategic Performance Measurement System and Its Impact on Organizational Effectiveness: A Study of UAE Based Organizations

Purpose: The purpose of this paper is to review the performance measurement framework (Input-process-output), their application in the UAE based organizations in quality enhancement and to identify gaps in knowledge and practice that suggest future research. Design/Methodology/Approach: Performance measurement has been subject to a considerable amount of research and attention over the past 15 years. The inadequacy of traditional financially based performance measurement systems and the introduction of nonfinancial measures have been the triggers for much of this research. The paper draws on the study of performance indicators used in the 6 UAE based organizations. The design of indicators has been covered by many publications, but the design of measures specific and appropriate to UAE based organizations has not been well addressed. Findings: Based on the study of these organizations, a conceptual model is proposed that treats performance measurement as an integrated system, based on the TQM philosophy of continuous improvement cycles. Practical Implications: Organizations must understand the direct link between performance and competitiveness to survive and succeed in the modern competitive marketplace where measuring and monitoring customer satisfaction is highly crucial. Originality/Value: Quality performance indicators are defined as performance measures, either qualitative or quantitative in nature, which are utilized to study and assess a process at a specified time period in order to determine and analyze if quality requirements have been achieved and organization targets are met. The chief objective and purpose of indicators is: to appraise and control performance of processes and resources, to provide and share performance outcomes as results to internal and external stakeholders, and to detect performance gaps between expected and actual outcomes in order to improve the quality.